If your trading plan includes trading shares for capital gains over the medium term then spreadbetting is by far the best way to do it. No capital gains tax and, more importantly, no stamp duty. Also the leverage means that you can trade a meaningful amount of stock without putting up too much capital.
The disadvantages, however, are that you receive no dividends and any losses made cannot be offset against other capital gains.
Don't try and daytrade shares with spreadbetting though, you'll get mauled. In fact don't try and daytrade the UK market at all, the only place to do that successfully is the US via a direct access platform. The costs and spreads are far too high in the UK.
The disadvantages, however, are that you receive no dividends and any losses made cannot be offset against other capital gains.
Don't try and daytrade shares with spreadbetting though, you'll get mauled. In fact don't try and daytrade the UK market at all, the only place to do that successfully is the US via a direct access platform. The costs and spreads are far too high in the UK.
bottomdollar
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I've done a hell of a lot better spreadbetting the stocks than the indices... position trade them, that has been for me the best. I am finding it difficult to daytrade cos a) I'm crap and b) I work 9 to 5
sidinuk is right though... don't daytrade UK stocks or indices, you'll get mauled.. (like I have!!) haha
Best wishes
Bottomdollar
sidinuk is right though... don't daytrade UK stocks or indices, you'll get mauled.. (like I have!!) haha
Best wishes
Bottomdollar
my problem with spreadbetting stocks is choosing the right ones to trade.........i am going to try using a system from the Champion Trader manual after paper trading them for awhile , it advocates trading only stocks in the DOW 30 and FTSE100 cos of their liquidity.
bottomdollar
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My favourite stock is AZN, Astrazeneca.. it seems to follow TA pretty well 
ColinRiche
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i think a lot of people would disagree with the negative comments
about trading London stocks
Its all a matter of opinion
I would say its easier to daytrade UK stocks than it is to daytrade the dow with SB
You have to pick the right SB company and the right stocks
.
about trading London stocks
Its all a matter of opinion
I would say its easier to daytrade UK stocks than it is to daytrade the dow with SB
You have to pick the right SB company and the right stocks
.
ColinRiche
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you need tight spreads and those outfits dont offer market spreads do they
you need high volume liquid stocks that are volatile
a lot of the ftse100 arent worth trading
check out the top 10 by activity and follow them first
for swing trading theres some select stocks in the 250 aswell
.
you need high volume liquid stocks that are volatile
a lot of the ftse100 arent worth trading
check out the top 10 by activity and follow them first
for swing trading theres some select stocks in the 250 aswell
.
Grubs.
Fins do a daily top 10 volatility. Sorry cannot remember if it is on the home page or client page.
Look at www.finspreads.com
Sorry Grubs, just looked. it is on the client page
Fins do a daily top 10 volatility. Sorry cannot remember if it is on the home page or client page.
Look at www.finspreads.com
Sorry Grubs, just looked. it is on the client page
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Trader333
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jamrest,
You said: "Also, you do get the dividends on stocks with spreadbetting."
How does that work then as it is news to me ? If you dont own the shares which with SB you dont how can you get dividends on them because all you are doing is betting on whether the stock rises or falls in value ?
Paul
You said: "Also, you do get the dividends on stocks with spreadbetting."
How does that work then as it is news to me ? If you dont own the shares which with SB you dont how can you get dividends on them because all you are doing is betting on whether the stock rises or falls in value ?
Paul
B
bisto
i'm not sure about this either - i have read ig's dealing guide on this and they talk about adjusting the opening level or size of the bet. Anyone experienced this?
JTrader
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Regarding the dividends, one good thing with CMC spreadbetting anyway is that the dividends is added to your account as soon as they go ex-dividends. You do not have to wait 2-3 months as I believe you would have to with conventional shares. Yes I forgot that they deduct the same amount if you are going short.
