Although these sums may seem small on each transaction, they will eventually add up and for the serious trader can end up being a large amount at the end of the year. When dealing in any form of official financial speculation, such as Forex trading, the investor must pay tax on their profits.
Although there are many similarities between the two thing, the official gambling status of spread betting means that there are tax implications that stand to benefit the investor. Perhaps the most important difference between the two types of transactions is that spread betting is recognised as a form of gambling under the law of the United Kingdom while Forex trading is officially recognised as a form of speculative investment. While some people think that spread betting and Forex trading are very similar, in fact there are a number of important differences between the two that need to be understood.
Differences Between Spread Betting and Forex Trading
