CFD's vs Spread Betting

[Ph1lly]

Please forgive my newby basic question: Why do traders choose CFD's over Spread Betting when it looks like CFD's have more disadvantages eg Tax & commission.

 

[tomorton]

SB has a legacy of a poor reputation dating from before it was effectively regulated. Also it contains the word "betting" which causes a little apprehension in some people's minds. Neither idea is based on rational consideration.

I have heard that CFD spreads are a little better than in SB, and also that this is not significant enough to make a difference.

 

[0FXTrader0]

Spread betting is a cfd but with a tax free wrapper like an ISA.

 

[tomorton]

Spread betting is a cfd but with a tax free wrapper like an ISA.

You don't need to put your SB account or trades in a tax-free wrapper, SB is exempt from tax.

 

[Spread-Bettor]

Tax advantage is the main + for spread betting.
As mentioned above... spread betting on its own is tax free.