It shouldn’t be allowed these products they just make ppl invest money and lose it only regulated products should be traded
Its highly regulated in the UK, including strict licensing conditions for operators, segregated accounts for clients' deposited funds plus a deposit protection fund valid up to about £80k. Most people who use SB lose money. But most people who trade by any means likewise lose money.
That's one of the advantages of spread betting: it's well regulated (by the FCA). So your conclusion that "it shouldn't be allowed" is very premature, coming from someone who didn't know what spread betting is, only a few posts earlier. (The main advantage, though, as Tom mentioned, is that spread betting profits in the UK are free from both income tax and capital gains tax: to anyone whose trading is profitable, that's a huge advantage.)
I thought that it’s like cfd’s which for some reason the big companies are based in uk such as plus 500 and fxcm whichbthry are a scam and yes I’m not the best trader around no need to rub it in everywhere
I know nothing about Plus500 but I fully agree with you (as so many different regulators have done, worldwide, so repeatedly) that FXCM are deceptive, dishonest and not to be trusted. Nobody said (or even implied) anything at all about your trading prowess ... and anyway that was true of all of us, at some time in our histories. I just thought it was a bit rich that someone who didn't know what SB is was "announcing" that one of the best regulated methods of trading "shouldn't be allowed" because it isn't regulated, and I wanted to correct that "information" for the benefit of other readers. Hope that's ok with you!
Now I trade futures only (mostly NQ, also CL, and occasionally E6 and B6), but I'm no longer self-employed/retail. Originally I traded indices and forex by spreadbetting.
I trade the RUT (Russell 2000) index and there are 2 tax advantages in trading cash settled indexes like the RUT or SPX: 1) taxes paid - Section 1256 where a significant portion of short term gains are taxed as long term gains and 2) tax reporting - you do not need to report individual trades, just the yearly P/L based on mark-to-market, which will be provided by your broker. Unfortunately, ETF indexes do not have these advantages. RUT options are fairly liquid, the SPX options even more so.