Financial Spread Betting

Main Features of Spread Betting
Examples of Spread Betting
Top Spread Betting Trading Systems
Spread Betting Companies/Brokers

Introduction to Financial Spread Betting

Financial spread betting is both an alternative and attractive method of trading financial markets. Although it has been very much a British trading phenomenon since the 1980s, spread betting - or "spread bet trading" as it is also known - is actually available to virtually anyone worldwide(1).

Spread betting, as the term rightly implies, is a form of "betting" or "gambling". Although this fact may be frowned upon by some, and may even give the impression that "spread betting" is a down-market, poorly regulated relation to the more established methods of trading financial products, spread betting is in fact a highly regulated (by FSA) professional activity in the UK and offers individuals and companies an alternative means to make a great deal of money in the financial markets. What is more, the profits from spread betting are completely tax-free for UK citizens, as well as for citizens in some other countries (2).

Until recently, spread betting has been predominantly been a British preserve, but in fact almost anyone can now spread bet and the number of people from all corners of the world entering the spread betting arena has been growing rapidly.

As the term implies, spread betting is speculating about the outcome of some future event, and financial spread betting is specifically concerned about betting (or "trading") on the expected future price of a financial instrument.  You are essentially betting (ie, trading) on where you believe the underlying price of a financial instrument (eg the GBPUSD or a stock) is likely to go over a defined period of time. It is worth pointing out that unlike traditional betting, for example on a horse race where the outcome is a simple win or lose scenario, with spread betting you are rewarded based on the accuracy of the outcome of the bet - the more accurate you are with your prediction the greater the reward.

1. Spread betting is not available to US citizens.
2. Tax laws are different in every country so please check with your own national tax authority how spread betting profits are treated.

Main Features of Spread Betting
Examples of Spread Betting
Top Spread Betting Trading Systems
Spread Betting Companies/Brokers

Recommended Spread Betting Companies

Financial spread betting is a leveraged product and can result in losses that exceed your initial deposit. Spread betting may not be suitable for everyone, so please ensure that you fully understand the risks involved.