The UK is the leading market for spread betting with over 125,000 people in the country having active spread betting accounts. The Financial Conduct Authority (FCA) estimates that 400,000 more who are based abroad are also engaging in spread betting.
Given its popularity, Fair Forex sought to create a platform where investors can speculate on the losses and gains of overseas financial markets.
We’re happy to let you know that we’ve succeeded and that the Fair Forex trading platform now allows spread betting. Our clients can bet on blue chip stocks on the biggest and most popular indexes: NASDAQ (NASDAQ100), The Dow (DOWJONES30) and the New York Stock Exchange (NYSE).
Spread betting is legal in the UK and Ireland, a privilege that many residents in the country enjoy. It is also closely regulated primarily by the FCA and three other major governing bodies:
Investors, therefore, are protected against fraudulent and unethical practices by trading and investment companies. If proven guilty of investor deception, an investment firm can lose its license to operate. The FCA can also suspend the company or specific individuals from engaging in various trading and investment activities in addition to criminal prosecution.
Spread betting is a safe investment tool, and the only risk investors have to face would be choosing a losing position for their chosen index.
So why NASDAQ? This index consists of blue-chip stocks like the Wall Street (Dow) Daily, Wall Street (Dow) Futures, FTSE 100 Daily, S&P 500 Fortunes and more. You can also spread bet on famous NASDAQ100 shares, like Amazon, Apple, Google, Facebook, Microsoft and Starbucks.
Spread betting is very friendly to the average person. With practice and substantial study about the historical performances and trends of the major indexes, you can take your capital further and generate income with only a marginal investment.
Here’s a closer look at the benefits that you can enjoy from spread betting:
Spread bets are exempted from the UK Capital Gains Tax. If you earn something, you don’t need to pay a tax or stamp duty. All profits from your successful speculations are yours to keep.
The reason for this is that when you spread bet, you don’t own the underlying asset: you’re merely earning a profit from correctly guessing the highs and lows of the index.
Commissions, meanwhile, are not deducted from your income because the cost of using the platform and opening your position is included in the spread. You’ll be happy to know that Fair Forex offers competitive spread rates across different markets, so you can look forward to maximum returns on your investment.
A spread bet is a leveraged product: you don’t have to buy the entire underlying investment, but just a fraction of the overall value. This is known as the “margin.” So, if you want to place a bet on a spread for a blue chip stock with a 20% margin, you only have to pay for 20% of the total exposure as your deposit.
The advantage here is that even though your investment is only a margin of the share deal, the profits you earn are calculated based on the full size of your position. It’s highly possible, therefore, that the profits of a £200 spread bet would be equal to the profits of a £1000 share deal.
Spread betting allows you to make money regardless of the direction of the market. In other words, you can generate a profit whether the market falls or rises. All you have to do is choose the correct position. If you believe that the market will rise, you’ll spread bet on a long position; and if you expect the market prices to fall, take a short position.
Spread betting platforms like Fair Forex can give you access to different markets listed in indexes like NASDAQ, The Dow and the NYSE. You can speculate on a wide range of industries and the best US stocks. You can also cherry-pick markets that you know very well on just one platform.
Take advantage of the benefits above by spread betting through Fair Forex. Like our forex trading platform, our NASDAQ Spread Betting platform provides useful information like mid-price charts with customisable ranges that allow you to examine trends over a specific period. Contact us to learn more about our trading platform.
Spread bet seamlessly with a secure provider, Fair Forex. Open an account today.