Spread betting is not a common terminology that is used in day to day basis. Spread betting is a kind of fiscal speculation that lets global market traders to make a profit even though the market is not on the good side. The traders that are dealing with crude oil, forex, bonds, and shares can increase their profit making chances using spread betting.
What Is Spread Betting?
Spread betting is a tax free and exciting way to benefit you from the moving financial market. It provide you with the opportunity to trade indices, equities, commodities and currencies and profits you from falling or rising market whilst initially paying only a fraction of its total cost.
Why Spread Betting With Independent Investors?
There are dozens of trading brokers keen for the business as soon as you decide to enter the world of stock trading. Many of these stock trading companies will attract you with amazing discount services such as lower scale fees etc. However it is important that you do not get influenced by these services and opt spread betting with independent investors.
The Advantages of Spread Betting With Independent Investors
There are endless reasons why spread betting might appeal especially if you are new comer to this concept it is likely that you do spread betting with independent broker instead of opting for company services.
Wide Range of Products
The independent brokers will offer you thousands of different markets to trade that includes metals, currencies, commodities, indices, shares. You can pick the market that you wish to make a trade and your broker will be helping you by trading in your favorite market.
Trading On Margin
Spread betting lets you earn more by letting an investor to trade on margin. Trading on margin generally increases the pull of your investment capital as your opening outlay reflects only on the fraction of the total exposure on the market.
Tax Free Profits
Any capital gains you make from the spread betting are totally free from capital gains and income tax.
No Stamp Duty
Spread betting is exempt from stamp duty expenses therefore there is no such expenditure involved from your end.
Because you have an independent broker to take care of your trading activity hence the fiscal risk is significantly reduced. This is something worth considering, when compared to ordinary stock trading.
The spread betting is such a financial industry that is tightly regulated by the Financial Conduct Authority – this means one has to strictly abide by the rules and regulations designed under its protection.
Spread betting with independent investor will remove all your trading headaches though it is important that you at least know the basics of it. Learn as much as possible and grasp the information, also cross query your concerns with the brokers so that you know how efficient your broker is.
Before you apply for an account, make sure that you are familiarizing with the risks involved. The motive behind choosing the spread betting is it should match your betting objectives. It would do well to seek an independent advice especially if you are a novice to this concept.
Phillip Gregorian is an active trader/investor who also exercises his love for writing on various stock trading topics. He writes about on the wide range of stock trading subjects but usually likes to write on spread betting with independent investor relevant topics. He is passionate about his writing on financial market and his niches have been always stocked. One day he hopes to write a complete guide on stock market topics.