FTSE spread betting has some advantages and disadvantages when comparing to other method of trading the index. We will look at some of those now and hopefully you should get a balanced opinion on whether it is suitable for you.
So what it FTSE spread betting? It is the performance of the FTSE that you will be betting on. This is a well known index in the UK made up to large firms. So in this respect you aren’t only interested in the performance of one company you are interested in the performance of a large number of companies.
So what if I am in a position where I like to invest on a company level? Well in that case then FTSE spread betting is probably not for you. If that is the case think think about opening a normal stockbroker account or even do some financial spread betting for individual shares.
How do trackers compare to FTSE spread betting? Even though they are based on the same index the are totally different. A tracker is a great option for those people who do not really want to take an active position in their trading.
Now you I am saying that you may be more suited to a tracker, why am I still talking about FTSE spread betting? There are many benefits to FTSE spread betting. Firstly you don’t have to pay tax on your profits. Please note that this can also true for trackers if you hold them in an ISA.
Other benefits incluse having the ability to trade in other markets from the same account, having small captial requirements and being able to use leverage. Please note that using leverage can be risky.
If you are unsure of any of the tax rules or whether that FTSE spread betting is for you then make sure that you speak to a financial advisor before trying it.
