Charles Stanley is pleased to offer Contracts for Difference and Spread Betting in association with City Index.
As part of Charles Stanley's service to individuals and companies, we have been trading in Contracts for Difference (CFDs) since 2002. In more recent years this form of trading has increased in popularity and we are pleased to offer CFD trading and Spread Betting to a wider audience, in association with City Index.
City Index who were founded in 1983 when there were a handful of CFD companies operating in the UK market, are recognised for their quality of service and levels of customer satisfaction and cover extensive ground with their product offering, including the major global markets and instruments.
Risk Warning
Trading in CFDs and Spread Betting carries a high level of risk to your capital and it is possible to lose more than your initial deposit very quickly. You may be required to make additional payments at short notice. Before starting to trade in these products you should ensure you understand the different risks involved as they are not suitable for everyone and if you are in doubt seek independent advice.
Which Product is more suitable for you?
Though CFD trading and Spread Betting have similarities there are some key differences, the main one being the tax treatment. Unlike CFDs, spread bets are not subject to Capital Gains Tax.*
They are both derivative contracts where a Client and a Provider agree to exchange cash when the contract closes. They both offer gearing so your profits or losses are amplified when compared to traditional investing. Here the similarities end and depending on your objectives one product may be more suitable for you.
Below are the key differences between CFD trading and spread betting. You can find out more about Contracts For Difference and Spread Betting by clicking on the link provided.
| Feature | CFD Trading | Spread Betting |
|
Tax (Tax laws can change and depend on individual circumstances) |
Subject to UK Capital Gains Tax thus profits are potentially taxable and losses are offsettable. Free of UK stamp duty. |
Free of UK Capital Gains Tax; thus profits not taxable but losses cannot be offset. Free of UK stamp duty. |
| Charges | Separate commission and financing charges are made against your account. | Commission and financing charges are built into the spread, except for daily rolling bets where the finance is charged daily. |
| Price Execution Policy | Subject to FSA Best Execution Rules. | Not subject to FSA Best Execution rules but our spreads are consistently constructed and applied. |
| Contract Length | There is no fixed expiry on CFDs. Contracts remain open until closed. | Standard spread bets run until the expiry date or occurrence of the relevant event. It is possible to roll bets over into the next expiry. Rolling bets automatically roll overnight into the next day. |
| Range of Instrument | CFDs focus on equity and Index products. | There is a wider range of instruments available through bets. |
| Trading | Trades are denominated in the local currency and are based on buying a number of CFDs. | All bets are in sterling and are based on £'s per point movement. |
* Tax laws are subject to change and depend on individual circumstances