Spread Betting account

A

abakan

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Hi all,

What are your opinions on Spread betting? I am interested in opening an account prob with http://www.igindex.co.uk

I know the dangers of dealing with spread betting but I haven't really heard of people making money on it or has the opinion shifted that dealing in stocks in a safer bet and spread betting is to risky

I be interested in hearing your views
 
I use it regularly, but not as an investment - for me it's a way that I punt on sports such as golf, soccer etc, i dabbled in shares years ago when I were a lad, but I don't know enough about them to bother anymore. IMO it's probably the best way to trade shares (obviously only the bigger ones will be quoted), no commission, no cgt, you gotta keep a very close eye on everything though - i know from experience that spread betting of any sort is very risky!!
I presume that they have some sort of a limited stakes package for beginners that it may be useful to try initially.
Others to consider are Delta and Sportsspread ireland (they have a different name for shares, but I don't recollect it off hand), these are both irish firms.
 
It is important to understand that spread betting is gambling and not investing. This query should really be in Letting Off Steam.

Brendan
 
Brendan said:
It is important to understand that spread betting is gambling and not investing. This query should really be in Letting Off Steam.

Brendan
Click to expand...
There's a difference??;)
But in fairness, spreads on shares/indexes etc are as much an investment as any products based on index tracking, and are probably a more tax efficient way of investing/gambling in said products.
 
they may be tax efficient but the leverage afforded/ involved is huge....there was a discussion on this is a previous thread...you should do a search.
 
Spread Betting is gambling, but so is buying shares & property.

The big difference comes down to: volatility, time frame, leverage & taxation.

Spread betting is great for being tax efficient and getting leverage, but it's a double edged sword when it comes to time frame & volatility. The choice depends on your appetie for risk.
 
smiley said:
they may be tax efficient but the leverage afforded/ involved is huge....there was a discussion on this is a previous thread...you should do a search.
Click to expand...

The leverage is an option, not an obligation. You can bet as cautiously as you want to. Denouncing all spread betters as crazed gamblers is a bit silly.

It's a viable option for those who want to save on the cgt (as well as on the ridiculous commissions charged by Irish brokers). Avoidance of currency fluctuations is another plus.

Don't have a spread betting a/c myself, before anyone jumps in to ask...
 
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