Broker of the month: ETX Capital, read our expert and 30+ client reviews here
Spreadex, the financial and sports spread betting broker has launched CFD trading over the phone and on it’s online platform.
Spreadex, which has a reputation as an old school customer service focused broker, has up and till now been one of the few spread betting brokers that did not offer CFD (contracts for difference) trading as well. Read our Spreadex Review…
So what are the benefits for CFD trading over spread betting?
If you are a normal private trader based in the UK there are not that many advantages of using a CFD broker over spreadbetting. With spread betting you get tax free profits and reduced administration because the costs are included in the spread.
However, with CFDs you are able to offset losses against other investment gains (very helpful if using them to hedge). With CFDs you can also benefit from direct market access which provides much better pricing (although commission is charged) as your orders can be placed directly on the exchange as bid/offers.
Outside the UK, there is really no point in opening a spread betting account as you don’t get the tax benefits, so if you want to trade on leverage from Europe with an FCA regulated, UK based broker then clients will normally do it through CFDs.
So, this may be the start of Spreadex expanding abroad or looking for a more institutional client base.
Further improvements from Spreadex include:
- CFD Trading – You can now place CFD trades as well as financial spread bets with Spreadex .
- New Financial Website – Our financial site has been re-designed to include a new-look analysis section and economic diary plus revamped help guides and examples sections.
- Trade UK 100 Options online – You can now go long and short on both Call and Put UK 100 Options online.
- Price Alerts – We will send you a text, email or push-notification when a market of interest reaches a level specified by you.
- Out of hours US Shares Trading – You can trade selected U.S stocks online outside of normal trading hours, during pre and post market sessions offered by the underlying exchanges.
- Order Fill Reminders – We will send you a push notification when an order you have placed gets filled.
- Re-styled Trading Platform – We have given our financial platform a makeover with many new and improved features.
For more information you can read our Spreadex review here.
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Richard started the Good Broker Guide in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously acting as multi asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2000.