Spread betting can offer a number of advantages over conventional share dealing or fixed odds betting.

Advantages over share dealing / financial trading

• Access to markets that are normally restricted to registered brokers, such as foreign exchange trading.



• A single account gives you access to a range of markets, including shares, bonds, currencies, interest rates, indices, options and commodities.



• No Stamp Duty is payable (payable at 0.5% on traded shares)



• No Capital Gains Tax is payable on profits made.



• No direct commission or brokerage fees are payable.



• It is possible to profit from falling markets.



• Profits are theoretically limitless. The 'more right' you are, the more you will profit.



• You can 'deal' when traditional markets are closed.



• Small bets can be placed.



• Bets can be made partially on credit.

Advantages over fixed odds betting

• Some markets offer 'live betting' so bets can be closed before the end of the sporting event, enabling you to 'lock in' a profit regardless of the final result.



• The only tax due on spread betting is betting tax which is aborbed by the bookmaker.



• A 'stop loss' can be set to limit your liability.



• Some sporting events are better suited to a 'points' market rather than fixed odds.

More Information:

• Introduction



• Disadvantages of Spread Betting



• Limiting Your Liability