Spread betting and CFD trading both offer leveraged trading on a variety of markets, including indices, forex, shares and commodities. However while they share many benefits, there are key advantages to each – for instance, UK residents won’t have to pay capital gains tax or stamp duty when spread betting.*
Watch Sara explain the key differences in our video guide and see more details in the overall comparison table below.
If you’re experienced in the financial markets, both spread betting and CFD trading can bring variety and range to your portfolio. You can see a full comparison in the table below.
A financial spread bet allows you to speculate on the financial markets; you are not trading the markets, you're betting on a range of potential outcomes based on the underlying data. All spread bets have a fixed expiry date.
A CFD is a financial derivative: you trade a contract based on prices derived from the underlying market. Via DMA, you trade a CFD and we place a parallel trade in the market. CFDs don’t expire, excluding futures, digital 100s and options.
Spread betting |
CFD trading |
|
|---|---|---|
| What is it? | The placing of a bet that allows for a range of outcomes. | Trading a financial derivative – you deal on prices derived from the underlying market, not on the underlying market itself. |
| Are there expiries? | Fixed expiry dates. | No expiry dates (excluding forwards, options and digital 100s). |
| Do I pay tax? | You don’t pay capital gains tax or stamp duty*. | You don’t pay stamp duty, but you do pay capital gains tax. However, losses can be offset as a tax deduction. |
| When can I trade? | 24-hour dealing on forex and major stock indices. During the underlying market hours for other markets. We also offer weekend trading on selected markets. | 24-hour trading on forex and major stock indices. During the underlying market hours for other markets. We also offer weekend trading on selected markets. |
| Do I pay to keep positions open? | Overnight funding on daily funded bets. Rollovers on forwards and futures. | Overnight funding on all markets, except futures. Rollovers on futures. |
| Does IG profit if I lose? | We profit primarily from spreads and funding, and hedge the majority of net client exposure. We accept a low level of risk, from which we can make a small profit or loss. | We profit primarily from commission, spreads and funding, and hedge the majority of net client exposure. We accept a low level of market risk, from which we can make a small profit or loss.
The outcome of a client’s DMA trade never has an impact on our profit or loss. |
| What kind of trading is it suitable for? | ||
| Can I receive dividends? | ||
| Can it be used for hedging? | ||
| Can I open a corporate account? | ||
| Range of markets | More than 15,000 markets, including:
|
More than 15,000 markets, including:
|
| The mechanics of dealing | You define the size of your deal by selecting the amount you want to bet per point of movement (£/pt).
Profits and losses realised in currency you bet in. |
You define the size of your deal by selecting the number of contracts or shares you want to trade. Each contract has a fixed value.
Profits and losses realised in traded market’s base currency. GBP contracts available.
|
| The charges | A spread on all markets. No commission. Funding adjustments (excluding futures and forwards). |
A spread on all markets except shares. We charge a commission on share CFDs, but no spread. Funding adjustments (excluding futures). |
| Dealing platforms | ||
| Direct market access | ||
| Getting started |
It's free to open an account, takes less than five minutes, and there's no obligation to fund or trade.
Browser-based desktop trading and native apps for all devices
We're clear about our charges, so you always know what fees you will incur
See how we've been changing the face of trading for more than 40 years
* Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
We're here 24hrs a day from 8am Sunday to 10pm Friday,
and 9am to 5pm Saturday.
You can also email us at newaccounts.uk@ig.com
