Spread Betting is essentially for UK and Northern Ireland residents while CFDs are available to a global client base. Below is a table of the major differences between Spread Betting and CFDs:
|Spread Betting||CFD trading|
|Capital gains are tax free*||Subject to Capital Gains Tax (CGT)*|
|Losses cannot be offset for CGT purposes*||Losses can be offset for CGT purposes*|
|All contracts expire**||No expiry (except future contracts)|
|Use a currency to trade in of your choice||Currency based in country of origin i.e. if you trade Vodafone on the FTSE, you trade in £. If you trade Google on NYSE, you trade in $|
|Trade using a stake of £/$/€ etc per point||Trade a number of CFDs per point|
* Under current UK law, which is subject to change and may differ in jurisdictions outside the UK.
** for gaming purposes even rolling contracts have a theoretical expiry date but this is many years in the future.