Spread Betting with AvaTrade-Benefit from Tax-Free Profits!
Go long or short on a variety of assets across Stocks, Indices and Currency Pairs, with a highly regulated broker. Capitalise on unlimited potential, with Spread Betting by AvaTrade
Start Spread Betting today and take your trading to the next level
- Tax-free profits - Pay no capital gains tax on your profits (UK only)
- Dedicated support - A regulated brokerage to guide you, while answering any questions, providing a better trading experience and pushing you towards success
- Trade both ways – Take advantage of opportunities when markets are moving both higher or lower
- Competitive leverage – Go long or short and enhance your trade capacity with generous leverage
- No extra charges – Pay the spread and no extra currency conversion fees on any asset
Spread betting frequently asked questions
Spread Betting is a financial instrument that allows individuals to bet on the price movements of an underlying asset, such as a currency, index, commodity or stock. The bettor can make a profit or loss depending on the direction of the price movement. It is typically used for speculation or hedging and is considered a form of derivatives trading. Spread Betting is popular in the UK, where it is tax-free. To learn more about what is spread betting click here
Yes, Spread Betting is generally considered tax-free in the UK, as it is classified as betting rather than an investment. This means that any profits made from Spread Betting are not subject to capital gains tax or income tax. However, losses from Spread Betting can be used to offset tax liabilities on other income or gains in some cases.
To calculate profits or losses in Spread Betting, you need to know the difference between the buy and sell prices of the underlying asset, also known as the spread. You then multiply this difference by the number of units that you have bet on. For example, if you buy a stock at 100p and sell it at 105p, and you have bet on 10 units, your profit would be 50p (5p x 10 units).
You can spread bet on a wide variety of underlying assets, including stocks, currencies, commodities, and indices. Some popular examples include the FTSE 100 index, gold, and the GBP/USD currency pair.
Spread Betting carries risks, as the value of your bet can increase or decrease depending on the price movements of the underlying asset. It is also important to consider other risks such as market volatility, liquidity and leverage.
To place a spread bet, you will need to open a free account with AvaTrade, then place a deposit in a number of convenient methods and download the MT5 platform. You will then need to select the underlying asset that you want to bet on and decide whether to buy or sell at a certain price. To learn more about how does spread betting works you can click here
Some of the advantages of Spread Betting include the tax-free status in the UK, the ability to speculate on a wide range of markets and the ability to trade with leverage. Spread Betting provides a convenient way to access the financial markets through your computer.
Restrictions on who can spread bet vary by country and provider, but in general, you will need to be over 18 and have the financial means to trade. It is important to research the legal requirements and restrictions in your country before you start.
To be successful at Spread Betting, you will need to have a good understanding of the markets you are trading in, and the underlying assets you are betting on. It's also important to have a solid trading plan, risk management strategy and access to reliable market data, news and analysis. Additionally, using trading tools such as technical analysis and charting software can be beneficial to help you make informed decisions. You can find these on the MT5 platform. You will also find a useful trading academy, once you register, called AvaAcademy, where you can find courses, articles and videos on trading. Remember to also follow us on our socials and receive up-to-the minute alerts on key market moves. For any other questions, please contact customer support here.