Why opt for spread betting?
Today everyone wants to earn money that is easy. In order to make an immediate profit, people choose to play or gamble. Financial spread betting is becoming more and more popular among investors due to the many advantages associated with it. People who are still toying with the idea of whether to go for it or not have only one important question on their mind: “Why go for financial spread betting?” Well, the answer cannot be revealed in a single line because there is no single reason for it. There are many reasons. Let’s see the main points that can help an investor to make the decision:
1. Simple to understand and practice: Yes, financial spread betting is quite simple to understand and then execute. Many traders feel that one should not try new markets as they are complex and it is difficult to avoid initial losses. However, in this case, things are different. One can easily understand the ways and tricks of this trade and can start making profit as soon as you start betting your money here.
2. Tax-free winnings: It is true that winnings made through financial spread betting are tax-free. However, it is only true in the UK as of now. If the profit one has made through this type of betting is a secondary income in the UK, then it is free from any form of capital gains tax and income tax. It is important to note here that if the profits made are the only source of income, they will be subject to tax. This is one of the main reasons why more and more traders are attracted to this market.
3. Less capital and big profits: It is easy for investors to start investing money here as the investment or capital required is very less. Or in other words, it can be said that the profits obtained are much higher than the money put into play. A trader can enjoy trading without brokerage and thus another additional cost can be avoided here (the first additional cost is tax). However, one must ensure that the bets are executed intelligently, as the losses can also be greater than the money put into play.
Variety is the spice – for investors who get bored easily, this is the place to be. Financial spread betting offers a great variety for traders to choose from. You can choose the area of your own expertise or interest to put your money on the line. This allows an investor to be more knowledgeable and more likely to make a profit. Therefore, the financial spread betting market can never be boring for people here. Apart from this, you can also choose from forex, options, futures, bonds, etc. to negotiate.