Yes. In my case the spread is zero.
I want spread betting for the tax savings.
The spread will never be zero in spreadbetting; it would contradict with what the contracts are.
I don't understand why it can't be a zero spread. I will simply pay that spread cost upfront like a commission when I enter the trade.
I want the zero spread because of my scalping strategy. The spread is getting in the way of me making a better profit.
It's because a spreadbet is a category of CFD characterised by a spread around the bid/offer.
Surely the reason spreadbets always have a spread is because the provider must pay a percentage tax on winnings to the government. So it can never be a commission based business model, unlike futures, CFDs, etc.
No, they are just companies that pay corporate tax at the end of the year on any profits. Just like other companies.
UK companies are charged something called General Betting Duty. For financial spread bets it's 3%. See this document: https://www.gov.uk/guidance/general-betting-duty-pool-betting-duty-and-remote-gaming-duty
So, one can expect that the bid/ask spread charged on a spread bet would be at least 3% greater than the equivalent CFD to compensate the provider for the duty they have to pay to HMRC.
In fact, they can probably get away with charging even more as the person making the bet would likely be prepared to pay more for having the tax advantage versus the CFD.
Spread betting spreads are pretty much determined by competition. Plenty of SB firms out there.
Your 3% theory doesn't hold any water since CFD prices the same as SB prices.
nine
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There does seem to be some confusion here. If you have zero spread, bid and ask are the same so a trade takes place. If you trade in ticks the minimum is 1 and 1 or 2 is likely fine especially if its fairly consistent.
Also companies make money by other mechanisms than just spread so focus on people's reviews. But if you've watched Apple Cider Vinegar you'll be careful of the source.
Also companies make money by other mechanisms than just spread so focus on people's reviews. But if you've watched Apple Cider Vinegar you'll be careful of the source.
