Advantages of Financial Spread Betting
Easy to understand than other financial instruments
Tax free winnings
Potentially massive returns on low investments due to high leverage
Make phased exits without additional broker fees
It is commission-free
Possible tax savings
The ability to trade in amounts less than the standard market contract sizes
The ability to trade outside market hours
Controlled risk bets
No huge capital outlay required
Credit facilities
Immediate dealing
No currency risk
Wide range of markets you can bet on
Ability to go short or long (i.e. you can make money when markets rise or fall)
Diversification
You don't need to own assets in order to profit from them
Trade many different markets from just one account
You can Limit your Losses by placing 'Stops' on your Account
Less paperwork is involved compared to conventional share dealing.
Spread betting makes it easier to track your investments
Online trading platforms for spread betting are often said to be more advanced compared to those to traditional share dealing.
Virtual trading platform are sometimes available
Innovation and flexibility (binary betting comes to mind)
There are pros and cons to spread betting, Profits are not taxable. However, in spread betting you can lose more than your initial capital. The industry is continaully changing shape to appeal to a wider market.
