Choice of Account Types

Take your trading to the next level, choose the right Account Type to suit your style as a trader with City Index.

Trade on over 12,000 Global markets with a Spread Betting, CFD Trading or an MT4 account.

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  • Tax-free trading* when you Spread Bet
  • Hedge your portfolio with a CFD Account
  • Dedicated FX platform with MT4 Account

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

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 FX?

If you wish to trade Forex, you can trade currencies with our Spread Betting and CFD accounts where you will have full access to our FX range and spreads from 0.5pts.

MT4 accounts
We do offer an FX on MT4 account for traders who wish to use MT4 exclusively.

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How do spread bets and CFDs compare to share trading?

There are several key benefits to trading leverage products such as spread bets and CFDs over traditional share trading. These are:

  • Short the markets
    You can speculate on a price falling. In share dealing, you typically profit if the market only increases in value
  • Leverage
    Unlike share dealing, you don’t need to put down the full value of the trade. This will magnify both your returns and losses
  • Tax free* profits
    Unlike share dealing, you pay no UK stamp duty and spread betting profits are free from UK Capital Gains Tax (CGT)*
  • Access more markets
    You are not just restricted to trading on Shares. Access Indices, FX, Commodities and more from one account

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