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Home / Tax Free Trading

Tax Free Trading

Spread betting is tax free, CFDs are exempt from stamp duty.

  • CFDs in the UK are not presently subject to stamp duty*
  • Spread betting in the UK is not presently subject to either CGT or stamp duty*
  • Trade on margin
  • Trade shares, commodities and currencies online, from one account
  • Go long or short on your chosen market
  • Close the position when you choose – spread bets roll over on expiry. There is no expiry on CFD positions.

CFDs and spread betting (i.e. spread trading) are margined products which give financial traders exposure to an underlying asset on a leveraged basis. What’s more, spread betting is an increasingly popular method of tax free trading online. Although you don’t actually own the asset (e.g. stocks, traded commodities, currencies etc), you profit or lose depending on which way the underlying asset moves. As such, holders of CFD and spread betting positions on shares do not have voting rights, unlike traditional shareholders.

The basic ideology behind CFDs and spread betting is that you can make a profit on potentially any trade, in almost any market providing you correctly predict the future direction. Otherwise, you’ll incur a loss. The simplest way to describe spread betting is as follows:

–         You anticipate shares in Barclays will increase from 150p a share to 200p a share

–         You therefore buy-in at £10 a point on the stock going long (going up).

–         The stock only increases to 180p a share. So despite it not increasing to what you had previously anticipated you still have a running profit of £300 because your stock increased by 30 points (30 points x £10 a point = £300)

–         The next day the stock has dipped slightly to 175p a share, at this time you decide to close the contract on this trade

–         Although it has increased, but not as much as you anticipated, and decreased slightly from its highest point since you brought in, you have still made £250 because the stock went up 25 points.

Although tax free trading with spread bets is understandably attractive to many, one of the greatest risks when spread betting is the reverse of this scenario:

–         You anticipate shares in Barclays will increase from 150p a share to 200p a share

–         Therefore you buy-in at £10 a point on the stock going long (going up).

–         However, this time the stock decreases to 140p a share

–         The next day you find that although the stock has increased slightly it has only risen to 142p a share

–         You chose to cut your losses and close your position 8p down from when you brought in. But due to you anticipating that the stock would go up, you have lost £10 a point. (8 points x £10 a point = £80)

There is a way to combat this problem when tax free trading online using spreadbets. You can use stop-losses and limits on your trade prior to executing it:

–         You anticipate shares in Barclays will increase from 150p a share to 200p a share

–         Therefore you buy-in at £10 a point on the stock going long (going up).

–         You place a stop-loss at 5 points and a limit at 20 points

–         This means that should the price of the stock decrease to 145p a share or increase to 170p a share, it will stop the trade and you will control your losses or take a profit at your pre-set level.

–         The stock rises to 170p a share and the limit order automatically closes the trade for you so you have made a profit of £300 without having to sit and watch the trade.

When spread betting, using stop-losses and limits are the best way of conducting trades because it gives you the peace of mind of knowing that you are in control of your own trade. You should always be aware that when trading you can never fully be in control because the stock market is such a volatile creature. However you can retain some control when you trade because spread betting allows you to tailor your trades to your specifications and eventually perfect your trading techniques.

One factor which appeals so much to traders and investors is the tax free trading element. Spread betting is free from Capital Gains Tax*, Stamp Duty* and commission charges, which means that you keep the £300 profit made from the trade above.

*Under current UK tax law. Tax laws may be subject to change.

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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156 Reviews

George

I have found Accendo staff very helpful,,and informed. I have traded with you for some years now and have no regrets. Keep up the good work!

Posted 1 year ago

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 1 year ago

Anonymous

I am very happy with the service I get from Accendo Markets and in particular Amrit Panesar. He is very professional and pleasant to speak to and this counts for a lot.

Posted 1 year ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 1 year ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 1 year ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 1 year ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 1 year ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 2 years ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 2 years ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 2 years ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 2 years ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 2 years ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 2 years ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 2 years ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 2 years ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 2 years ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 2 years ago

Mr Brian C

Easy to deal with.....

Posted 2 years ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 2 years ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 2 years ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 2 years ago

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