• Home
  • Forums
  • Trades
  • News
  • Calendar
  • Market
  • Brokers
  • Login
  • Join
  • 8:10pm
Menu
  • Forums
  • Trades
  • News
  • Calendar
  • Market
  • Brokers
  • Login
  • Join
  • 8:10pm
Sister Sites
  • Metals Mine
  • Energy EXCH
  • Crypto Craft

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

Spread betting Forex vs. regular trading forex 4 replies

Forex Spread-betting Software 2 replies

Forex spread betting versus "normal" trading. 1 reply

A Question on Forex Swap and Spread Betting 0 replies

Advice please Forex vs Spread Betting 3 replies

  • Rookie Talk
  • /
  • Reply to Thread
  • Subscribe
Tags: Forex Trading vs. Spread Betting
Cancel

Forex Trading vs. Spread Betting

  • Last Post
  •  
  • Page 1 2
  • Page 1 2
  •  
  • Post #1
  • Quote
  • First Post: Jul 8, 2009 12:05pm Jul 8, 2009 12:05pm
  •  lucashammer
  • | Joined May 2009 | Status: Member | 168 Posts
Alright. I'm not exactly new to trading, but I'm not an expert either. Can someone help me with the difference between spread betting and forex trading? I opened a demo account with FXCM UK and I can't seem to find the difference other than pip value. Am I missing something?
  • Post #2
  • Quote
  • Jul 8, 2009 1:29pm Jul 8, 2009 1:29pm
  •  blacksun1
  • Joined Jun 2008 | Status: member | 577 Posts
Quoting lucashammer
Disliked
Alright. I'm not exactly new to trading, but I'm not an expert either. Can someone help me with the difference between spread betting and forex trading? I opened a demo account with FXCM UK and I can't seem to find the difference other than pip value. Am I missing something?
Ignored

from what i know, sped betting is tax free because it's considered gambling. i think gambling is tax free in the UK. this is how i had it explained to me once. i'm pretty sure that's the only difference though.
 
 
  • Post #3
  • Quote
  • Jul 8, 2009 1:53pm Jul 8, 2009 1:53pm
  •  MyaNyx
  • | Additional Username | Joined May 2009 | 305 Posts
Spread Betting doesn't have spread.

But it is gambling so it's not halal for muslim traders.
 
1
  • Post #4
  • Quote
  • Jul 8, 2009 2:53pm Jul 8, 2009 2:53pm
  •  Jason Rogers
  • Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
Quoting lucashammer
Disliked
Alright. I'm not exactly new to trading, but I'm not an expert either. Can someone help me with the difference between spread betting and forex trading? I opened a demo account with FXCM UK and I can't seem to find the difference other than pip value. Am I missing something?
Ignored
blacksun1 is on the right track.

Spread betting is an account classification that allows UK residents to trade in the forex market tax free, meaning capital gains are not taxed by the UK government. From a trading and execution stand-point there's no difference between the forex trading account and spread betting account. The same platform is also used for each.

Spread betting is tax free due to the UK tax code. So if you reside in the UK, then it's in your best interest to trade a spread betting account.

The pip value on the spread betting account is different since the account is denominated in GBP.

Hope that helps,

Jason
 
 
  • Post #5
  • Quote
  • Jul 8, 2009 3:56pm Jul 8, 2009 3:56pm
  •  PeterFM
  • Joined Apr 2006 | Status: Suaviter in modo, fortiter in re | 1,851 Posts
Quoting lucashammer
Disliked
Alright. I'm not exactly new to trading, but I'm not an expert either. Can someone help me with the difference between spread betting and forex trading? I opened a demo account with FXCM UK and I can't seem to find the difference other than pip value. Am I missing something?
Ignored
Binary options. At least the prices are based on a regulated board's closing prices and there aren't market makers controlling the prices.

Why Binary Forex Options are better than Spot Forex
 
 
  • Post #6
  • Quote
  • Jan 10, 2010 7:18am Jan 10, 2010 7:18am
  •  praetserge
  • | Joined Aug 2009 | Status: Member | 7 Posts
They work in the same way... the main difference between financial spread betting and forex is that financial spread betting offers a wide range of markets, including forex, indices, shares, etc.
Thus if you're interested in trading forex I'd recommend you go for financial spread betting account.
http://www.independentinvestor.co.uk/spread_betting/ - find out more about spread betting and compare dozens of financial spread betting accounts.
 
 
  • Post #7
  • Quote
  • Edited 11:34pm Oct 20, 2014 2:49am | Edited 11:34pm
  •  Saroman
  • | Joined Apr 2014 | Status: Member | 57 Posts
Quoting praetserge
Disliked
They work in the same way... the main difference between financial spread betting and forex is that financial spread betting offers a wide range of markets, including forex, indices, shares, etc. Thus if you're interested in trading forex I'd recommend you go for financial spread betting account. independentinvestor.com/spread-betting/ - find out more about spread betting and compare dozens of financial spread betting accounts.
Ignored
financial spread betting is tax free as well.

PS: updated the link
 
 
  • Post #8
  • Quote
  • Oct 20, 2014 12:20pm Oct 20, 2014 12:20pm
  •  faststare08
  • | Commercial Member | Joined Jan 2013 | 224 Posts
Spread Betting is same CFDs?
 
 
  • Post #9
  • Quote
  • Oct 20, 2014 11:29pm Oct 20, 2014 11:29pm
  •  Saroman
  • | Joined Apr 2014 | Status: Member | 57 Posts
Quoting faststare08
Disliked
Spread Betting is same CFDs?
Ignored
Spread betting and CFDs are almost the same but there are two main difference: spread betting is tax-free (at least in the UK) and with spread betting you trade in the currency of your choice across all the markets whereas with CFDs you trade in the currency of the underlying asset (for example, if you buy FTSE100 shares then you deal in £, but if you trade US shares then you trade in $).
 
 
  • Post #10
  • Quote
  • Oct 22, 2014 5:20pm Oct 22, 2014 5:20pm
  •  faststare08
  • | Commercial Member | Joined Jan 2013 | 224 Posts
Quoting Saroman
Disliked
{quote} Spread betting and CFDs are almost the same but there are two main difference: spread betting is tax-free (at least in the UK) and with spread betting you trade in the currency of your choice across all the markets whereas with CFDs you trade in the currency of the underlying asset (for example, if you buy FTSE100 shares then you deal in £, but if you trade US shares then you trade in $).
Ignored
CFDs is also tax free?
 
 
  • Post #11
  • Quote
  • Oct 30, 2014 8:29pm Oct 30, 2014 8:29pm
  •  jhehe
  • | Joined Jan 2012 | Status: Just Pippin' | 459 Posts
What about the upstream process? Although it probably rarely happens in spot forex, a trade in spot forex can be sent upstream. however, is the broker just taking on the risk on the other side with spread betting?
 
 
  • Post #12
  • Quote
  • Nov 5, 2014 4:09pm Nov 5, 2014 4:09pm
  •  conrossmac
  • | Joined Oct 2014 | Status: Member | 4 Posts
Do you get taxed over a certain value??? If not - WOW! This is my new adventure.
 
 
  • Post #13
  • Quote
  • Nov 5, 2014 4:09pm Nov 5, 2014 4:09pm
  •  conrossmac
  • | Joined Oct 2014 | Status: Member | 4 Posts
By adventure i mean Job.
 
 
  • Post #14
  • Quote
  • Nov 5, 2014 7:15pm Nov 5, 2014 7:15pm
  •  Saroman
  • | Joined Apr 2014 | Status: Member | 57 Posts
you don't get taxed if you spread bet but you do pay tax and cfd and forex trades.
 
 
  • Post #15
  • Quote
  • Nov 9, 2014 1:25pm Nov 9, 2014 1:25pm
  •  ManBearPig
  • | Joined Nov 2014 | Status: Junior Member | 1 Post
I have been spread betting for 15 years here in the UK because it's tax free. The only tax that is paid is the profit the broker makes on 'the spread' ie buy at 100 sell at 110 then the spread is 10 which the broker takes whether win lose or break even and he would normally be taxed on that as its counted as profit. We have a similar system for horse racing you can choose to pay tax on the bet say £5.00 + tax and then there is no tax for winnings, you can elect not to pay tax on your bet (horse racing) but you would pay tax on winnings. Like our cricket rules, very British.
 
 
  • Post #16
  • Quote
  • Nov 28, 2014 7:07pm Nov 28, 2014 7:07pm
  •  nods80
  • Joined Nov 2014 | Status: Member | 591 Posts
Quoting ManBearPig
Disliked
I have been spread betting for 15 years here in the UK because it's tax free. The only tax that is paid is the profit the broker makes on 'the spread' ie buy at 100 sell at 110 then the spread is 10 which the broker takes whether win lose or break even and he would normally be taxed on that as its counted as profit. We have a similar system for horse racing you can choose to pay tax on the bet say £5.00 + tax and then there is no tax for winnings, you can elect not to pay tax on your bet (horse racing) but you would pay tax on winnings. Like our...
Ignored
What Broker do you use. I'm looking for a good broker that offer spread betting.
Intelligence is the ability to adapt to change. Stephen Hawking
 
 
  • Post #17
  • Quote
  • Mar 25, 2015 6:23am Mar 25, 2015 6:23am
  •  tony6616
  • | Joined Jan 2011 | Status: Junior Member | 2 Posts
what happen to the tax free if i'm not the UK resident?
 
 
  • Post #18
  • Quote
  • Mar 25, 2015 6:12pm Mar 25, 2015 6:12pm
  •  moonshot
  • | Joined Feb 2015 | Status: Member | 113 Posts
Quoting faststare08
Disliked
Spread Betting is same CFDs?
Ignored
No, CFDs have taxes, but traders can use losses to offset profits, while in Spread betting there are no capital gain taxes here is more for key differences and similarities
http://www.ig.com/uk/spread-betting-versus-cfds
 
 
  • Post #19
  • Quote
  • Apr 9, 2015 11:36am Apr 9, 2015 11:36am
  •  WhiteFX
  • | Joined Mar 2015 | Status: Member | 5 Posts
There seems to be quite a few mixed messages in here.

Firstly if you spread bet and it is your sole source of income then you do have to pay Tax in the UK. If it is not your sole source of income then you do not have to pay tax.

Spread betting is only available to UK residents.

Different spread betting providers will have different types of accounts... there is not one blanket statement that will accurately describe all spread betting accounts. Some providers can simply put a legal wrapper on a normal FX account like an MT4 account allowing you to trade normally but benefit from paying no tax if it is not your sole source of income. Some other brokers will offer you the more traditional spread betting account where the trade is not determined by the nominal value as with MT4 (the number of lots you are trading) it is determined by the PnL per point that you want to make on the trade. Ultimately both offer you a vehicle for profiting or loosing in the markets but they are just different ways of doing the same thing.
 
1
  • Post #20
  • Quote
  • Apr 16, 2015 3:01pm Apr 16, 2015 3:01pm
  •  Dyce100
  • | Joined Apr 2015 | Status: Junior Member | 1 Post
Hi Guys

I have just finished a course on trading but now looking for a good spread betting brokerage to go with can anyone advise me on any good ones in the UK please.
 
 
  • Rookie Talk
  • /
  • Forex Trading vs. Spread Betting
  • Reply to Thread
    • Page 1 2
    • Page 1 2
0 traders viewing now
  • More
Top of Page
  • Facebook
  • Twitter
About FF
  • Mission
  • Products
  • User Guide
  • Media Kit
  • Blog
  • Contact
FF Products
  • Forums
  • Trades
  • Calendar
  • News
  • Market
  • Brokers
  • Trade Explorer
FF Website
  • Homepage
  • Search
  • Members
  • Report a Bug
Follow FF
  • Facebook
  • Twitter

FF Sister Sites:

  • Metals Mine
  • Energy EXCH
  • Crypto Craft

Forex Factory® is a brand of Fair Economy, Inc.

Terms of Service / ©2023