Key Differences: CFD Trading vs Spread Betting

  • Tax: Spread betting is a tax-free trading instrument; CFDs are subject to capital gains tax but losses are tax deductible.

  • Charges: the spreads offered in spread betting are wider than in CFD markets but CFD brokers charge commission (depending on account type and market).

  • Dealing: With spread betting you trade £ (you can choose your currency) per point whereas with CFDs you buy and sell contracts.

Comprehensive list of similarities and differences