Why Spread Trade?

Historically many investors were happy to adopt a buy and hold strategy for stocks and shares with a view to benefitting from gradual price appreciation, dividends, etc. In recent times, people are realising that taking more active views about the markets and using newer, powerful tools like financial spread trading gives them great opportunities to make money in a wider range of instruments in both bull and bear markets.

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The benefits of spread trading include:

• 1

  Cost efficient

  Spread Trading is an instant, cheap, simple and easy way to trade thousands of financial instruments like stocks, indices, currencies and commodities.
• 2

  Go long or short

  You can make money in both falling and rising markets.
• 3

  No capital gains tax

  You are trading your view on the direction you think a price is going and you don't own the underlying asset. Therefore gains are tax free.
• 4

  No currency risk

  When trading international stocks you're not worried about currency fluctuations as you are betting on a per point movement basis in your currency of choice.
• 5

  Transparent

  You see the exact price on offer for any trade - whether large or small, there's no waiting for your broker to get back to you.
• 6

  Trade in small sizes

  You can trade from as little as 20 cent per point stakes* (or currency equivalent). *Some exceptions including small cap equities.
• 7

  No stamp duty

  Simply does not apply on spread trades.
• 8

  Trade in your own time

  You can do the day job and still be a successful spread trader. The markets are open early and close late. You can also set automatic buy or sell orders at price levels of your choice.
• 9

  Easy to manage risk

  You decide on your acceptable level of risk and set your own stop loss order levels on any given position.
• 10

  Funds are liquid

  You can withdraw your funds at any time without delay.
• 11

  Education

  Spread trading is a great way to further your financial education. You'll have thousands of prices and up-to-the-instant charting information at your fingertips.
• 12

  Hedging

  If you have an asset such as stock options or overseas property / stock portfolio or a business related FX exposure, you can lock in value cost-effectively through financial spread betting.