Thread by @ininvestor

What is the deference between Contracts For Difference and financial spread betting?
Let's get the main points right and see what they have in common and where they actually differ.
spread betting vs CFDs
independentinvestor.com/cfd/cfds-vs-sp…

1. Both, spread betting and CFDs, offer a wide range of markets to trade; you literally can trade practically anything with both instruments - indices, shares, commodities, cryptos, forex, etc. It's incredible, you can trade almost anything.

2. Tax Treatment. That's where it gets interesting as both offer tax advantages as you don't actually hold physical assets but and this is a big but, there's absolutely no tax on your profits from financial spread betting.

3. No underlying assets. Yes, with CFDs and spread betting you don't hold any underlying assets and thus you have no rights at the Annual General Meeting of shareholders. Remember, you hold no assets but only get the difference.

CFDs and spread betting are very similar products and tax treatment is the main difference between them.
It is important you understand the difference and choose the product which suits you and your trading needs.

A bit of a warning: Contracts for difference and financial spread betting are leveraged products and you should understand the risks involved before even starting. Make sure you have a risk management plan in place if you're serious about trading.

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