At City Index we offer different ways to trade FX:

  1. Spread betting
  2. CFD trade
  3. Spot FX trade

The fundamentals of FX trading through spread betting, CFDs and spot FX trading are in fact very similar, but there are some key differences. This section looks at those similarities and differences so that you can decide which is the most appropriate way for you to trade FX.

Key similarities

  • Leverage:
    All forms of FX trading at City Index benefit from being traded on margin. Learn more about trading on margin and the risks involved here
  • Stop losses & guaranteed stop losses:
    These are available on Advantage Web and AT Pro as well as our mobile apps
  • Range of currency pairs & margin factor:
    We offer over 65 currency pairs and the margin factor is the same for each pair regardless of whether the currency pair is being traded as a CFD, spread bet or as spot FX
  • Commission free:
    There are no commission charges when trading FX as a spread bet, CFD trade or spot FX trade
  • Trading platform:
    You can gain access to browser-based and downloadable platforms as well as native mobile and tablet trading platforms. Learn more about our trading platforms here.

Key differences

  • UK Capital Gains Tax:
    Currently in the UK, all gains made in spread betting are free from UK Capital Gains Tax. This benefit is not applicable to gains made in CFD trading or spot FX trading. UK Tax Laws are subject to change
  • City Index MT4:
    One of the most popular forex trading platforms today and fully compatible with expert advisors, available for spot FX trading only
  • Trade Sizes:
    Trade sizes differ across spread bets, CFDs and Forex trading. Spread bets trade in £ per point. With CFDs you buy a number of CFDs. With spot FX trading you buy lots in units of the base currency
  • P&L currency:
    Profit and loss in spread betting is displayed in the base currency of your account. Both CFDs and spot FX trading have the P&L calculated (and denominated) in the quote currency

Examples of a spread bet, CFD and Forex trade

Let’s say you think the euro will increase in value versus the dollar. You want to go long, or ‘buy’, EUR /USD at 1.0600. Below shows’ the example of how you would do this as a spread bet and the equivalent CFD trade and Forex trade.

Should you hold a position overnight then you will be charged overnight financing. This is based on the interest rate differential between the two currencies.

YOU MAY ALSO LIKE

11 SLAYING PICTURES OF MADAM BOSS SHOWING OFF HER SE_XY, CURVY BODY THAT HAVE SET SOCIAL MEDIA ON FIRE

Tyra Chikocho is a Zimbabwean gospel musician and comedian who is popularly known as Madam Boss. As a gospel musician she has staged shows alongside Shingisai Suluma, Kudzi Nyakudya and many others.

Chikocho was born on April 10, 1985, at Harare Hospital. She is a beauty therapist by profession. She was married to….more here