Spread Bets and CFDs are leveraged financial products that enable investors to open positions on the market, without having to put up the full capital. Spread Betting and CFD trading are forms of derivatives trading, meaning that you aren’t taking ownership of the underlying asset, but opening a position based on whether you expect the value of an instrument to rise or fall.
|Spread Betting||Contracts for Difference (CFDs)|
|No Stamp Duty|
|Commission-Free||No commission on FxPro MT4 and FxPro MT5. $45 per $1million traded (upon opening and closing a position) on FxPro cTrader|
|Trade Rising and Falling Markets|
|Instruments Available||Forex, Shares, Futures, Spot Indices, Spot Metals and Spot Energies||Forex, Shares, Futures, Spot Indices, Spot Metals and Spot Energies|
|Order Execution||Markets||Instant or Market|
|Trading Mechanics||Trade a certain amount per point of market movement||Trade lot sizes on Forex and Commodities Trade a certain number of Shares|
|Platforms||Web||Desktop, web and mobile|
|Profit and Loss||Calculated by multiplying your stake by the number of points the market moves||Calculated by multiplying your position size by the number of pips gained or lost|
|NBP/Limited Risk Account 2|
|Stop Loss / Take Profit|
|Spreads||Floating spreads||Fixed and Floating spreads|
|Account Currencies||USD, EUR, GBP, CHF, PLN, AUD, JPY, ZAR 3|
As a leveraged financial product, Spread Betting has the potential to be profitable albeit involving a certain amount of risk. As such, Spread Betting may be more suitable for active traders that are:
1 Tax laws are subject to change and depend on individual circumstances.
2 Subject to the FxPro Order Execution Policy.
3 ZAR is only available to clients of FxPro Financial Services Limited.