Our Products City Index offers three ways to trade; Spread Betting, CFD Trading and FX on MT4. Featured Site City Index Open FREE Account Visit Broker SPREAD BETTING Best for... more" />

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Our Products

City Index offers three ways to trade; Spread Betting, CFD Trading and FX on MT4.

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SPREAD BETTING

Best for
Tax-free trading in UK*

Trade type
£ per point

Minimum trade size
50p per point

Tax
No UK Capital Gains Tax (CGT) or Stamp Duty*

Commission
Commission free

CFD TRADING

Best for
Hedging. Non UK accounts

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Trade type
Buy/sell CFDs

Minimum trade size
1 CFD

Tax
No UK Stamp Duty but you do pay UK CGT*

Commission
Commission free apart from Shares

Spread Betting vs CFDs

Spread Betting and CFDs are similar products as they both allow you to speculate on whether a financial market will rise or fall in value. Typically UK based investors choose to Spread Bet because any profits made are free from UK Capital Gains Tax (CGT) and Stamp Duty*. Investors that wish to offset any losses against tax may prefer to trade CFDs. Clients from outside the UK should opt for CFDs as Spread Betting may not be available in your region.

Key differences:

Commission on Shares
Share CFD trades will incur a commission charge from 0.1%. You will not pay commission on Share Spread Bets but you will pay a slightly wider spread

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Trade type and size
Spread Bets are traded in pounds per point. With CFDs, you buy or sell an amount of CFDs. See our example below for a comparison

UK Capital Gains Tax
Currently in the UK, any profits made from Spread Betting are free from UK Capital Gains Tax*. This benefit is not applicable to profits made from CFDs

Trading Shares as a Spread Bet and CFD

A £1 Spread Bet is the equivalent of 100 shares in a CFD equity trade. To illustrate the difference in Spread Betting and CFD trading, let’s say you go long on a UK based Company ABC’s shares. The example below shows how you would do this as a Spread Bet and the equivalent CFD trade.

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