Futures, CFD, Spreadbet, Physical?!

Effkay

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Hey Guys,

I have been looking into this for a while now and I was wondering if anyone had an opinion on this, I am looking to do the following:

Hold stocks for a period of 3-6months (maybe more)

This leaves me with the following choices:

1) Buy Physical stocks
  • No Leverage
  • Have to pay stamp duty
  • Brokerage
  • Clear prices
  • Taxes
  • Dividends
  • No Interest costs

2) Use CFDs
  • Leverage
  • No stamp duty
  • Brokerage
  • Clear prices (mostly)
  • Taxes
  • Dividends
  • Heavy financing cost

3) Spreadbet
  • Leverage
  • No stamp duty
  • No Brokerage
  • Messy Prices
  • No Taxes
  • Dividends
  • Heavy financing cost

4) Spreadbet Futures
  • Leverage
  • No stamp duty
  • No Brokerage
  • Clear prices (?)
  • No Taxes
  • No Dividends
  • Reduced financing cost

I am currently leaning towards option 4....

All thoughts are appreciated.

Thanks
 
CFDs - Don't know much about these but I think you will have to pay interest on long positions open overnight, but receive interest on shorts. The two interest rates are not necessarily the same. They seem a clunky strategy devised by the industry for the small investor to be allowed to go short or obtain leverage. Either way its going to cost you.

Holding stocks v spreadbetting - My SB company won't take bets on smallcaps anyway, and the margin on medium caps is painful. Bets on stocks can only be open up to about 6 months into the future. You can SB on indices (or, rather, on the SB firm's market for the same), during and beyond normal market hours for the underlying index.
 
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