Spreadbetting or CFDs?

[Sahil]

What is the 'real' difference between SB and CFDs?

I am looking to trade forex maybe with IGIndex (SB) who quote 5 tick spread for the major pairs or IGMarkets (CFDs) quoting 3 ticks.

I obviously like the 3 ticks but am not familiar with the fundamentals behind them. Anyone know - I did drop IG an email as to why the spread differs but have received no reply as yet. Perhaps I shouldn't go with them come to think of it; however I'd like to know the difference.

Thanks in advance - forgive my ignorance!

 

[Racer]

Spreadbetting... no CGT to pay, but no C losses to offset
The SB firms make the market

CFDs, CGT but can offset the losses
Direct market access

 

[zeeuk]

Any other reason why the spread is tighter i.e. different margin requirements?