What is spread betting?

As the world’s stock markets continue to move in huge leaps and as the recession deepens, so one would expect the number of private investors who actively trade to be dwindling. recession

However, there is one form of investment that is seeing its number of participants increasing at an exponential rate. Spread-betting, where individuals can trade the market values of almost any financial market, is the fastest growing form of alternative investment. As well as the obvious advantage that all profits are tax-free, the other short as well as long of any market, the low margin requirements and the flexibility of holding an account where placing and monitoring trades is so easy.

Spread-betting, with its connotations of gambling, may be overlooked by many private  investors. However, there are a growing number who are willing to take advantage of the overwhelming benefits that a spread-betting account has to offer. This form of investment has been in existence for nearly 30 years, although for most of that time it has been the reserve of ‘City traders’.

With the introduction of the internet and the huge increase in the availability of financial information, the image that well-informed individuals can only be found in the Square Mile is a thing of the past. Now, there is an ever-increasing number of people throughout the world who want to control their investment strategy, and spread-betting is proving to be the perfect investment tool.