What is Spreadbetting and How it different from CFD?

Beginner Questions
1

Hello,

What is Spread betting and How it different from CFD?.

Note : My question is not about Taxation that Spreadbetting is Tax-free and CFD is Taxable.

2

This will help you (if ever you move to the UK and can use spreadbetting) -

3

I’ve never traded using CFD’s but I understand there is no difference in the price charts or use of the broker’s trading platform. It has been said that spreads in SB are a little wider than in CFD’s but likewise not enough to make any difference to win rate or profits.

Using SB it certainly seems simpler than calculating lots and contracts and micro-lots and stuff like that.

In the UK the regulator for SB brokerages is the same as for CFD’s and the regulations themselves are equivalent.

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4

So, in technical aspect. There is no difference between Spreadbetting and CFD?.

5

Yes, I don’t know of any chart patterns, trading techniques, tactics or strategies that work only in one but not the other.

7

Yes, CFD spreads are tighter than SB’s, but so little that you would only notice the difference in costs if making many trades per day.

8

Both spread betting and CFDs let you speculate on price movements without owning the actual asset, but the main difference is in how profits and losses are calculated and settled.