According to TD Waterhouse, “There is no great mystery why there are now an estimated 250,000 individuals who are Spread Betting in the UK. Financial Spread Betting is quick, flexible and easy to use.
“Benefits include:
Tax advantages
Profits are free of UK capital gains tax*.
There is no UK stamp duty. Financial Spread Bets do not confer ownership rights, bets on UK shares are currently not subject to UK Stamp duty. Financial Spread Bets therefore save the current 0.5% charge levied on share purchases*
Leverage - Financial Spread Bets are a leveraged product, which means that the initial deposit to place a bet is only a fraction of the value of the total position. This leverage gives investors the potential to make greater profits (or losses) from the same initial investment. The initial deposit or margin required to open a Financial Spread Bet is in effect a down-payment on any potential loss which the customer may incur. Of course, losses may exceed this amount and the customer would also be liable for any additional losses. On closure of a bet, the deposit is returned, leaving the crystallised profit or loss.
Flexibility
Access to a wide range of financial instruments from a single account including indices, equities, currencies or commodities. Also see TD Waterhouse Spread Betting Markets
Instant execution in standard size or below as we make firm prices. (Larger orders may be delayed as we may hedge the position in the underlying instrument).
All bets are in Pounds Sterling which means you avoid any foreign exchange exposure.
Online and telephone dealing so that you can deal how and when you want to.
Trade Long and Short – this lets you profit from both rising and falling markets.
Hedge Your Position - You can use Financial Spread Betting to reduce the risk of unexpected market movements on the value of your share portfolio. For example, you might have a long term portfolio that you know you want to keep hold of, but you are worried that it may lose value in the short term because the markets could head downwards. You can open a Spread Bet that will help mitigate any short term loss, but at the same time might assist you to make a long term gain.
TD Waterhouse - Spread Betting Account
New Account Offer
Trading Charts
24 Hour Spread Betting
Stop Losses Available
Guaranteed Stop Available
Demo Account
Online Application
Spread betting services may also be available through other companies. Notes.
Spread bets carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Before you open an account, please ensure that spread betting matches your investment objectives, familiarise yourself with the risks involved and if necessary seek independent advice.
Content approved / provided by TD Waterhouse Financial Spread Betting which is a trading name of City Index Limited (CI), who is a provider of financial spread betting and whose head and registered office is Moorgate Hall, 155 Moorgate, London, EC2M 6XB. For the purposes of financial spread betting any contract is between you and CI and all dealing, administration and settlement is carried out by them and TD Waterhouse Investor Services (Europe) Limited are not responsible for any of the functions they perform. Your account is held with City Index Limited (CI), which is authorised and regulated by The Financial Services Authority (FSA Registered Number: 113942).
Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
'TD Waterhouse Spread Betting', Review by D. Jones, last update: 25-Jan-11
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Risk Warning:
Spread Betting carries a high level of risk
to your capital and you can lose more than your initial investment,
it may not be suitable for all investors. Ensure you only
speculate with money that you can afford to lose and that you fully
understand the risks involved and seek independent financial advice where necessary.
Disclaimer:
Online-Spread-Betting.com does not endorse the information and
analysis available on this site. It is provided purely for information
purposes and is delivered as a personal view of the writer. Under no circumstances
is the information hereon to be used or considered as, an offer to sell, or a
solicitation of any offer to buy. The website content does not constitute investment
advice and neither the individual contributor nor Online-Spread-Betting.com accepts any
responsibility for any use that may be made of the content.
* Tax Free Trading:
Tax law is subject to change. It may also differ if you pay tax in a jurisdiction outside the UK.
