CFD v SB

CFD are great for day trading as the spreads are really tight.
Ex. CFD
BG group .
The price to sell 1060
The price to buy 1061
1 point spread

Spread bet.
Could be
The price to sell 1060
The price to buy 1066
Or even higher spreads.

Cfd are great for expensive shares as spreads are 1 point or under.
Down side to them is you have to pay tax on them.


Spread bets are tax free.
High spreads on them depending on which contract you use.


Both of the above are generally short term trading tools that I use.
I use both of them.

They both should only be used by experienced traders and not beginners.
Spread betting and Cfd are high margin tools. In the wrong hands can bankrupt a person really quickly.
Dangerous tools.

Cfd providers like to see large capital up front.
Spread betting not so much.

There's more to them so best read up on them thoroughly.
If you have been trading for a while then a great tool to have.

Hi guys,

Just wondering what you guys use in general for your trading? I read that CFD's are more beneficial if trading large amounts as are based on LSE prices and cant be manipulated and spreads are not as wide. On the other hand commission has to be paid to buy and sell which can really add up especially if using the 3 contract rule.

Any opinions/thoughts/advice would be grateful.

Thanks
Amo