Should I Consider Spread Betting to Make Money?

Spread Betting

Anyone looking to make a little extra money on the financial markets should consider spread betting. It offers an alternative to many traditional investment and trading options, including buying stocks and shares, trading forex and more. There are thousands of different spread betting markets, offering countless opportunities whether you want to begin spread betting as a part-time money making exercise or use it to diversify an existing portfolio. Here’s why you should definitely think about spread betting to make some more cash. 

What is Spread Betting?

Spread betting is a derivatives product. You can trade on the price movements across thousands of different financial markets including indices, currencies, commodities, shares and more. With spread bets, you are speculating on whether the markets will rise or fall, and if they go the way you predict then your profits will rise.
The spread is the difference between the buy and sell price. A buy price (also known as going long) is when you expect the chosen markets to increase in value, while the sell price (or going short) is when you predict them to fall. Tight spreads are what anyone considering spread betting should look for as they offer the chance to make the largest profits.  

Are There Many Benefits?

Compared to other investment methods and trading opportunities, spread betting provides a few advantages. Firstly, it offers tax-free profits with no requirement to pay stamp duty or capital gains tax when you are successful, unlike with many other trading and investments.
Spread betting is also free from commissions, so it can work out much cheaper in this way as well. Plus, it is leveraged trading and provides easy access as you can speculate on price movements with only a small fraction of trade value. This means you can begin spread betting with a much smaller starting capital than when investing in stocks and shares.  

How Do I Start?

In order to start spread betting, you need to research and fully understand the practice before finding a trading platform such as one from ETX Capital. It is advisable to use a demo account and practice spread betting first, before putting your own money on the line and to test out a strategy.
Once you have decided which markets you will be spread betting across and tested out your plan, you should be ready to begin. If you have enough spare time and the desire to learn then spread betting can be a great way to make some extra money.  

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