In case you had any doubt in your mind, financial spread betting is gambling. When you bet on spreads you place a financial bet on the future value of a stock, share, commodities, currencies and others.

The advantages of betting on financial spreads are as follows:

1.    Tax free – Financial spread betting unlike CFD, futures and other financial type of activities, carry no income tax on winnings. This means that you can take home your winnings tax free.

2.    Invest without being invested – Unlike regular financial market trading, you don’t have to be invested with the actual market value of the stock or the share. This means you don’t actually own a piece of the pie, but the risk is lower as well.

3.    Stop loss – A protection mechanism which intended to protect the gamblers from losing their socks on bad bets. This means that regardless of whether the bet was lost, you will not lose more than you initially invested or other amount you set before you place the bet.

4.    Freedom of financial markets – With financial spread betting you are not limited to bet on specific markets, you can bet on any markets offered by the financial spread betting company.

When you bet on spreads you should keep in mind that it’s dangerous. It’s the type of be that uses leverage which means you can make big amounts of money from small investments, but you can also lose big if the bet goes wrong. It’s not as easy as it seems.

The good news is the bet on spreads type of activity is licensed and regulated which means you have some sort of protection from fraud financial spread betting services. In any case we recommend you to read some reviews before you start betting on spreads online you will definitely find some good reviews of places worth betting at.