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Advantages of Financial Spread Betting
Posted By Nick Trade
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Financial spread betting is a simple process as compared with normal betting. This process is not very complex. Some of the various advantages of financial spread betting are mentioned below or learn more here:
1. Tax exempt profits: Yes, you have read right. One of the main reasons why people just love spread betting is that the earnings from it are tax free. So, this is one thing one can involve in to earn some extra profit and that too totally tax free. The reason is that there is no physical exchange between the betting person and the company; it is only a contract without involving any exchange of commodities. Apart from this there is stamp duty exemption also. This makes the stock much cheaper.
2. High profits with less investment: This type of betting is also known as trading on margin. This means that a person does not loose everything if things go against him. Hence, one is not required to pay all the payment in one go. Because of this, the profits are comparatively high with less investment.
3. Commission free: In case of conventional betting one needs to pay a broker fee to the broker however this is not the case in a scenario of financial spread betting. Hence, when one talks about buying and selling, the later term is much more cost effective. Here, a person can involve in to various buying and selling transaction without spending extra money as broker fee for doing so.
4. Trade beyond trade hours: Almost all spread betting companies work for twenty four hours a day. Because of this, a person can actually involve in to financial spread betting without worrying about trading hours. This is another benefit of spread betting over conventional betting.
5. Huge amount of capital is not required: There are so many new investors who are taking up this newer concept of betting. The main reason for this is that in case of this kind of betting, it does not require huge amount of capital to start. Anyone with limited capital can also venture in spread betting.
6. Facilities for credit: If someone is experience and people know him for his credibility, it is easy for that person to bet in the spread betting market on credit.
7. Fast dealings: Transactions can be completed within one single minute. The reason for this is that here in this case, there are no brokers involved. This saves a lot of times of transactions. Another thing to note down is that in old or normal betting world, a person can only bet when there is another person to bet with. However, in case of spread betting, one can bet even when there is no other person available as the betting is done with companies working for twenty four hours a day.
With so many advantages, it is natural that more and more people are attracted towards this comparatively newer concept of betting. Who would not want to maximise their profits with minimum capital investment. And above everything, tax free earnings are always welcomed.
1. Tax exempt profits: Yes, you have read right. One of the main reasons why people just love spread betting is that the earnings from it are tax free. So, this is one thing one can involve in to earn some extra profit and that too totally tax free. The reason is that there is no physical exchange between the betting person and the company; it is only a contract without involving any exchange of commodities. Apart from this there is stamp duty exemption also. This makes the stock much cheaper.
2. High profits with less investment: This type of betting is also known as trading on margin. This means that a person does not loose everything if things go against him. Hence, one is not required to pay all the payment in one go. Because of this, the profits are comparatively high with less investment.
3. Commission free: In case of conventional betting one needs to pay a broker fee to the broker however this is not the case in a scenario of financial spread betting. Hence, when one talks about buying and selling, the later term is much more cost effective. Here, a person can involve in to various buying and selling transaction without spending extra money as broker fee for doing so.
4. Trade beyond trade hours: Almost all spread betting companies work for twenty four hours a day. Because of this, a person can actually involve in to financial spread betting without worrying about trading hours. This is another benefit of spread betting over conventional betting.
5. Huge amount of capital is not required: There are so many new investors who are taking up this newer concept of betting. The main reason for this is that in case of this kind of betting, it does not require huge amount of capital to start. Anyone with limited capital can also venture in spread betting.
6. Facilities for credit: If someone is experience and people know him for his credibility, it is easy for that person to bet in the spread betting market on credit.
7. Fast dealings: Transactions can be completed within one single minute. The reason for this is that here in this case, there are no brokers involved. This saves a lot of times of transactions. Another thing to note down is that in old or normal betting world, a person can only bet when there is another person to bet with. However, in case of spread betting, one can bet even when there is no other person available as the betting is done with companies working for twenty four hours a day.
With so many advantages, it is natural that more and more people are attracted towards this comparatively newer concept of betting. Who would not want to maximise their profits with minimum capital investment. And above everything, tax free earnings are always welcomed.
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