Question: Am I better to use CFDs to trade or spread betting to trade? (My live account will be open in a weeks time).?
( Back )
Answer #1:
'What I do feel, however is that CFDs are less risky as the leverage isn't as high as to the likes of spread betting, I don't care about if CFDs are taxed either, I just want the safest option out of the two?'That is wrong, both spread betting and CFDs offer equal leverage - the two products are very much identical and both are equally risky. If you are based in the UK, Ireland or Australia then spread betting is the right choice as all gains are tax-free unlike CFDs. Spread betting also allows to get into future positions which avoids the daily financing charges (not possible with CFDs). If you are based outside the UK, Ireland or Australia then you have to go for CFDs.
** Powered by Yahoo Answers