Forex or Spread Betting?

Forex is foreign currency exchange trading. In order to trade foreign currency exchange you need to have an account with one of the Forex companies and be alert to the currency exchange rates that are constantly being updated.

Spread betting is a wager placed on financial markets, much like a yes or no question, the bettor needs to decide whether the value will go up (long) or down (short) and how much he is willing to risk for that – as simple as that.

Unlike forex in Spread Betting you don’t need to risk much to make money. In forex the value of your bet is what you risk and your potential earnings depend on that, however in spread betting you determine the amount you wish to risk and it can be even 1/100 of the potential earning amount.

In spread betting the bettor can also limit his losses by placing a stop loss if the bet goes against him.

Finally the best thing about Spread Betting is the fact that it’s tax free which means you don’t have to pay taxes for your earnings. In forex – you do.

The answer is clear – Spread betting is better than forex.