I know similar threads have popped up but wanted to get peoples opinions on this. I'm in the UK and I'm currently deciding between a variety of brokers however my first decision is to decide if I'm looking for a spread betting account or a CFD account.
I've mainly been looking at spread betting accounts because I could potentially save 18 or 28% on capital gains however the potential conflict of interest concerns me. From what I understand when it comes to spread betting either you or the broker sustains the loss when you make a bet. Considering the broker controls the market data you place the bet on this leads me to think it would be a very bad idea to go for a spread betting account as they will do all there best to keep you from winning. Spread betting accounts also typically offer crazy bonuses like Intertrader (10k), ETX (15k) depending on your deposit. These sort of bonuses on offer only emphasize to me that they are counting on you to loose.
In contrast we have CFD's, now providing the broker is ECN and doesn't hedge against your trade the broker is there to only fulfil your trade and does business from commissions or spreads. However with CFD's it is subject to capital gains tax.
What are peoples thoughts on this?
I've mainly been looking at spread betting accounts because I could potentially save 18 or 28% on capital gains however the potential conflict of interest concerns me. From what I understand when it comes to spread betting either you or the broker sustains the loss when you make a bet. Considering the broker controls the market data you place the bet on this leads me to think it would be a very bad idea to go for a spread betting account as they will do all there best to keep you from winning. Spread betting accounts also typically offer crazy bonuses like Intertrader (10k), ETX (15k) depending on your deposit. These sort of bonuses on offer only emphasize to me that they are counting on you to loose.
In contrast we have CFD's, now providing the broker is ECN and doesn't hedge against your trade the broker is there to only fulfil your trade and does business from commissions or spreads. However with CFD's it is subject to capital gains tax.
What are peoples thoughts on this?