Financial Betting vs Investing

There’s a big difference between putting your money on the stock market and betting on the movements of stock market entities. When their stocks fall, we also lose the money that we have invested and it may take some time to recover that. Luckily, for those who really want to roll their money over more than they could in the stock market, they can take advantage of financial betting. They don’t even have to think about taxes, stamp duties, commissions and the failing of the stock market. There’s even an opportunity to bet on the fall of someone’s stock shares.

How Investing Works

Choosing to invest your money in stock shares will lock your money for a long time before you get to reap its profits. That could take years watching your money go up and down in the stock market. You need to get good share prices all the time if you want good returns on your capital, but that’s usually not the case when it comes to stock shares these days. Investing on stocks also mean incurring other duties like capital gains on your profits, stamp duty, plus the commission that your broker gets will be taken from your profit. Basically, if you haven’t mastered the science of the stock market and become more familiar with technicalities, you’d end up losing all the money that you’ve invested on shares.

How Spread Betting Works

Spread betting, on the other hand, can both be on a long-term basis or a short-term one. Those who decide to take the shorter route will pay less financing charges than long-term bets, but if they’re so sure of the odds of their bets, they’d be multiplying their money’s worth many times over. Still, spread betting remains cheaper than totally investing on stock shares. If you need to pay for duties in the stock market, you will only need to pay low interest rates for financial spread betting. You will be free from UK Capital Gains Tax, Stamp Duty and best of all companies that offer spread betting will not charge their customers with commission or fees for executing their bets.

Other Advantages of Financial Bets Over Investing

A punter will also have access to more markets as opposed to investments. You get to bet on European or Asian, which you usually cannot invest on. Bureaucracy has never been in the vocabulary of spread betting. You can buy or sell bets using your own currency. That’s better than having to think of the foreign exchange rates, which can fluctuate and affect your profits. Aside from that, you have the opportunity to bet on a falling market. Some have made great profits betting on failing markets especially during the recent years.

The Risks of Both Options

Spread bets however, do not give you rights to a company as a shareholder. You are merely betting on whether their stocks will be rising or falling in the market. This still gives you the opportunity to enjoy the benefits of profits like your normal shareholders get their dividends. There is a risk though that you’d be losing more than what your initial bet since financial betting is based on a point system where you place your bet per point. Other than that, financial spread betting has offered better advantages over common investments.