Spread Betting Traders Outperformed by CFD Traders in 2010 - City Index

07 May 2011

LONDON--(BUSINESS WIRE)-- The research group Investment Trends recently uncovered data that suggests traders who are primarily involved in spread betting were outperformed by traders who are primarily involved in CFD trading last year.

CFD trading was found to have created an average return of 20 per cent, whereas financial spread betting led to just a 9 per cent return. CFD traders also reported fewer losses than their spread betting counterparts.

So what is the difference between spread betting and CFD trading? City Index (http://www.cityindex.co.uk/) is a provider of both spread betting and CFD trading, with many of its traders choosing to participate in both disciplines.

The company’s Market Strategist Joshua Raymond says “One key difference is that all profits made in a CFD trade are subject to Capital Gains Tax, whilst profits made in a spread bet are currently free from CGT. However, you can offset any losses in a CFD trade that is used as a direct hedge, which is why some traders might prefer CFDs to hedge. However, tax laws are subject to change and you should seek independent advice.”

To learn more about spread betting and CFD trading with City Index, visit:

http://www.cityindex.co.uk/spread-betting/

http://www.cityindex.co.uk/cfd-trading/

Spread betting and CFDs are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, contracts for difference (CFDs) and, in the UK, financial spread betting.

We constantly look to widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. Visit http://www.cityindex.co.uk/ for more information.




Source: City Index

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