Forex Brokers with Spread Betting, offer their clients the opportunity to bet and speculate on the price movements of a specific currency pair.
What is Spread Betting?
Spread betting is a trading method or product, that allows investors and traders to speculate on the price movement of various financial instruments, such as stocks, forex, commodities and indices. Spread betting is a leveraged product which means investors only need to deposit a small percentage of the position’s value. For example, if the value of a position is $100,000 and the margin requirement is 10%, a deposit of just $10,000 is required. Leverage can increase potential profits, but also magnifies losses which means investors can lose more than their initial investment.
Benefits of Spread Betting
- Traders can bet on both rising and falling prices.
- No Commissions fees. Forex brokers make money through the spread they offer. There is no separate commission charge which makes it easier to monitor trading costs.
- No Tax charged on earnings. Spread betting is considered gambling in some jurisdictions across the world. Therefore, any realized gains will not not be taxable. Investors who do spread bet should keep records and seek the advice from their accountant before completing their taxes.
Here is a list of Forex Brokers with Spread Betting
MAS, JFSA, DIFC