Same broker, same markets, same underlying mechanics — but spread betting and CFDs are two different products, and which one is available to you depends almost entirely on where you live. Here's the actual difference, and why it matters.
The Core Mechanics Are Nearly Identical
Both products let you speculate on price movement — up or down — without owning the underlying asset, using leverage. You can go long or short on indices, individual shares, forex, and commodities with either. The trading platform, the charts, the risk management tools — all the same either way.
| Factor | Spread Betting | CFDs |
|---|---|---|
| Available to | UK and Ireland residents | Most other regions (some countries excluded) |
| Tax treatment (UK/Ireland) | Tax-free — no CGT, no income tax | CFDs are not tax-free — CGT may apply |
| How you trade | £ per point of movement | Number of contracts |
| Expiry | Can have expiry dates on some markets | No fixed expiry on most positions |
| Ownership | No underlying ownership — a bet on price movement | No underlying ownership — a contract for difference |
Country availability, tax treatment, and specific product rules can change — always confirm your own situation directly on the IG platform or with a qualified tax adviser before trading.
Which Applies to You?
UK or Ireland Resident
Spread betting is available to you — and it's completely tax-free under current UK and Irish law. No capital gains tax, no income tax, on any profits. This is the product most relevant to you, and it's genuinely one of the most tax-efficient ways to trade the markets.
See the Full Tax-Free BreakdownAnywhere Else
CFDs are the equivalent product available in most other regions. The tax-free advantage that applies to UK/Ireland spread betting doesn't apply to CFDs — your own local tax rules will govern how any profits are treated, and it's worth checking those directly. But the same platform, the same markets, and the same risk management discipline apply either way.
Open a Free IG AccountSome countries are excluded from IG account opening entirely — including the United States, where IG doesn't offer retail accounts. Always check current eligibility directly on IG's site for your specific country.
Why the Product Doesn't Change the Framework
It's easy to think spread betting and CFD trading require different approaches because the mechanics look slightly different on the ticket. They don't. Every calculator in the Trader's Edge Formula — the Blueprint, the Simulator, the Position Sizer, the Drawdown Defender, the Strategy Analyser — works identically regardless of which product you're using, because they're built around risk percentage and R:R, not the specific contract structure.
Same Framework, Wherever You're Trading From
Open a free IG account and your first month of the Trader's Edge Formula software is included — completely free, worldwide, regardless of whether you're spread betting or trading CFDs. Already have an account? Start a 7-day trial instead.
Free IG account + first month free, or 7-day trial • £97/month thereafter • Cancel anytime
Risk Warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with IG. Tax treatment depends on individual circumstances and country of residence, and may change. Always consult a qualified tax adviser regarding your own position.