General FAQs

• 1

  How does spread betting work?

  Spread betting involves speculating on the price movement of financial instruments, such as stocks or commodities, without actually owning them. You bet on whether the price will rise or fall, and your profit or loss is determined by the extent of the price movement. The amount you wager per point of price movement is known as the 'spread'. However, because spread betting is leveraged, even small price movements can result in significant profits or losses relative to your initial capital. This leverage will potentially amplify both gains and risks, making it important for traders to manage your speculative trade carefully to avoid substantial losses.

• 2

  What is the difference between spread betting and cfd trading?

  Spread betting and CFD (Contract for Difference) trading both allow speculation on the price movements of financial assets, but they have key differences. Spread betting is a tax-free method in many jurisdictions, where traders bet a certain amount per point of price movement, and profits or losses are based on the degree of movement. CFD trading, meanwhile, involves trading the difference in price of an asset between the opening and closing of the contract, subject to capital gains tax, and allows both long and short positions with the use of leverage.

• 3

  Is spread betting taxable?

  Risk Warning: Spread betting is a leveraged product and carries a high level of risk to your capital as prices may move rapidly against you. You could lose more than your initial investment and in that situation would be required to make further payments. As these products may not be suitable for all clients, please understand the risks sufficiently and seek independent advice, where necessary.
  *UK tax laws are subject to change and please ensure you take independent taxation advice on this topic. Vantage is not a tax adviser but is expressing its understanding of the general position, which could be or become incorrect at any time. Each individual client's tax treatment depends on his/her specific circumstances.

• 4

  What’s the difference between a demo and live trading account?

  While demo accounts and live accounts may provide similar trading experiences, demo accounts are predominantly used for familiarising yourself with the trading platform and for educational purposes only. Our demo account comes with $100,000 worth of virtual trading credits for you to practise trading, so you can build up your confidence before dabbling in the live markets. Live accounts allow you to start trading the live financial markets, with real money.

• 5

  What documents do I need in order to open a live account?

  To open a live trading account, Vantage requires documents to be submitted alongside your application as proof of identity. You can upload a clear picture of the required documents by using a smartphone, digital camera or scanner. The required documents can include: Current valid passport (showing the first page of the local or international passport, where the photo and the signature are clearly visible); or Driving licence which bears a photograph; or National identity card (showing both front and back pages); Documents proving current permanent address (such as utility bills, bank statements, etc.) containing the client’s full name and place of residence. These documents should not be older than 3 months from the date of filing.

*Tax treatment depends on individual circumstances and may change. Spread Betting is only available to UK residents. Leveraged trading carries a high risk of loss and may not be suitable for all investors. Please ensure you fully understand the risks involved before trading.