CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66.95% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66.95% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Chinese Simplified United Kingdom
Trading
 
Trading

Trade up today - join thousands of traders who choose a mobile-first broker.

Create a live account
Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

Partner Portal
About ThinkMarkets
 
Liverpool FC Sponsorship

ThinkMarkets is the Official Global Trading Partner of Liverpool FC

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
Security of Funds

Security of your funds is our number one priority. We safeguard our Client funds in top tier banks.

Learn more
ThinkMarkets News

Keep up to date with our latest company news and announcements.

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log In Create a live account Try a demo account
Create account

CFDs vs Spread Betting

There are many similarities between CFD trading and financial spread betting, with unique advantages to both the products.



Here we’ll go through some of the similarities and differences between the two financial markets that you’ll experience while trading with ThinkMarkets.

The similarities

Trading Leverage

Trading on leverage

Both CFDs and spread bets are leveraged products, allowing you to maximise profits with a smaller initial investment (although don’t forget that losses can be increased too).

No Stamp Duty

No stamp duty

As you don’t own the underlying assets when either CFD trading or spread betting, both products are currently exempt from stamp duty* in the UK.

Rise and Falling Markets

Rising and falling markets

Unlike traditional shares trading, you’re capable of trading both rising and falling markets in both CFD trading and spread betting.

 

24 Hour Trading

24-hour trading

Both CFD and spread bet markets are available around the clock during the trading week, allowing you to capitalise on market movements at any time of the day.
 


The Differences

Contract size

With spread betting, the contract size is an amount of money per point, determining whether the market rises or falls. On the other hand, with CFD trading you buy or sell contracts which represent an amount per point in the underlying market.


 

Tax

Spread betting is currently exempt from capital gains tax* in the UK, while CFDs are liable to tax deductions. You can offset CFD losses against future profits gained, which can make CFD trading an efficient way to hedge your funds with a physical shares portfolio. 

 

UK +44 203 514 2374
Risk warning for retail traders: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66.95% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning for qualified professional traders:  Derivative products are leveraged products and can result in losses that exceed initial deposits. Please ensure you fully understand the risks associated with a professional trading account. Tax laws depend on individual circumstances and may differ in a jurisdiction other than the UK.
 Tax law may differ in a jurisdiction other than the UK.
TF Global Markets (UK) Limited  is authorised and regulated by the Financial Conduct Authority, FRN 629628. Registered address: Hana, 4th Floor, 70 St Mary Axe, London EC3A 8BE. Company number: 09042646.
The information on this site is not directed at residents of the United States, Canada, Japan, France, Belgium, Russia or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
© 2023 This website is owned and operated by ThinkMarkets Group.
Back to top