Main Features of Spread Betting

Why is spread betting different from other "normal" forms of trading? After all isn't that what any trade or investment decision is - speculating on the future price of a financial instrument? Well spread betting has a number of both common characteristics and distinct features to the usual forms of trading. The key characteristics of spread betting are as follows.

Spread betting is tax free
In the UK, where spread betting is predominantly based, all profits generated through spread bet trading are tax free for UK residents. At the time of writing it is also the case with some other countries like Sweden. This means there are no capital or income taxes payable. This can be a double-edged sword as any realised trading losses are not tax deductible. The tax position of trading gains made via spread betting for traders who are not UK residents is likely to be different, so non-UK spread betting traders should contact the tax authorities in their own respective country to clarify how spread betting gains are dealt with for tax purposes.

Spread betting is a margined product
Spread betting is a margined product meaning that a position can be taken with only a fraction of its full value required as the initial deposit. The result of which is that very large profits can be made from a relatively small initial stake. In order to place a trade, an initial deposit called "initial margin requirement" (IMR) needs to be paid. This margin payment is can be as small as 1/10th or even 1/100th of the full value of what is being purchased. Margin trading therefore allows a trader to take a much larger position than would otherwise be taken with the amount of the initial stake, which can result in much greater profits than would otherwise be achievable. Conversely, it could also mean much greater losses than would otherwise be incurred.

Spread betting is (almost) fee free
With spread betting there are no broker commissions or stamp duty (UK) to pay. Although there are no direct fees payable, spread betting companies, or firms, make their profits from the spread offered, which in most cases nowadays is similar to the spread size on the underlying financial product being traded. However, it is worth pointing out that if a spread bet trade is held overnight there is usually a small overnight financing charge payable.

Spread betting is possible on a vast range of financial products
The majority of spread bet trades are taken on equities (stocks), but because the range of financial products that can be traded via spread trading has greatly increased in the last few years the percentage of equity (or stock) spread bets have decreased relative to other spread trades placed. Other popular spread bet trading products now include Forex (both Spot Forex and Forex Futures); global stock indices, eg, DAX 30 index, FTSE100 index, NASDAQ index, the Dow Jones; individual financial stock sectors, eg, Banks, Telecoms, Pharmaceuticals; individual global stocks, eg, individual companies on the S&P500 or FTSE 250; futures and options; commodities and even interest rate futures. It is also possible to spread bet on the value of house prices!

Spread betting with familiar order types
For most investors the types of spread bet orders will be very familiar. Apart from the usual instant execution order, where the trade is executed immediately, other types of orders include OCO (One Cancels the Other) orders, Stop orders (guaranteed and not-guaranteed, and Limit orders.

Spread betting long and short
With spread bet trading it is possible to go "short", or sell an underlying financial instrument as it is to go "long" or buy an underlying instrument (assuming that a regulator does not prevent short trading as actually happened during the recent financial crisis).

Trade on International Financial Markets with No Currency Exchange Risk
When you place a spread bet trade on a financial instrument for example on stock listed on a foreign stock exchange, you will place a bet, or trade, using the base currency of your chosen trading account (£, $, or €) held with your spread betting company. The whole of the trade will be handled or processed in your chosen currency thereby removing any potential currency risk.

Best Forex Trading Awards

Widely recognised as a leader in online trading, ACM has on many occasions been awarded for the excellence of its products and services.

Listed below are some of the recognitions granted.

ACM Awarded Best Online Currency Trading Services 2009

In April 2009, ACM was awarded Best Online Currency Trading Services by World Finance at the London Stock Exchange

Based on criteria such as innovation, quality of products, market development and excellence in client representation established by the World Finance panel of independent awards adjudicators, 40'000 industry decision-makers designated ACM as the 2009 winner.


The World Finance Awards were created in 2007 to identify industry leaders that represent the benchmark of achievement and best practices in the Financial & Business World.

Considering the recent turmoil across the world-wide banking system, many analysts have started to look for alternative options where attaining liquidity is not so difficult and where the future of wealth is guaranteed. The magazine's team of researchers therefore found appropriate to expand this year’s awards in order to transpire the promise found in these new banking systems.

ACM considers this prestigious award as an incentive to continue exceeding its clients' expectations.

ACM awarded Best Forex Broker and Best Forex Trading Platform 2009

ACM consolidates its status as the leading online foreign currency trading firm, and was awarded Best Forex Broker and Best Forex Trading Platform for the second year running at the Banker Middle East awards held at the Emirates Towers in Dubai in February 2009.

This award confirms what has built ACM’s sterling reputation; Service and Technology.
Our business philosophy combined with the easiest and most user-friendly platform now sets the benchmark in the industry.

The judging panel also esteemed ACM’s leadership role in promoting responsible foreign currency trading, and raising awareness about currency exchange as an alternative investment option, given the crisis situation the World is experiencing this year.

Banker Middle East Product Awards is one the most highly sought awards in the banking and finance industries, and was established to encourage excellence and innovation among product and service providers.

ACM Banker Middle East 2008 Award

ACM Advanced Currency Markets was awarded the Banker Middle East prize for the best Forex Trading Platform.

The ACM online trading platform was recognized as the easiest to use platform for processing transactions, next to the ability to answer heavy data and information traffic, which is reflective of the Forex industry, known for its ability to adapt to the strong demand of real-time information as markets move instantaneously.

ACM's online trading platform was recognized by Banker Middle East as the best and most efficient and user-friendly trading platform in the region.

The Banker Middle East Product Awards 2008 will provide the benchmark on which banks measure their level of success. The Awards have been designed to be completely transparent and allow the industry to judge itself and celebrate the huge growth it has witnessed over the past year. Acknowledgement of product success is critical in ensuring the industry continues to be innovative and thrive.

The 2007 Forex winner is investing in many other developments and investments as ACM has expanded beyond Europe with an operating office in Dubai servicing the Middle East and Asia markets.

This of course is not the only award category that ACM Middle East & Asia has won during the course of the past year. A few months earlier, the head of the ACM Dubai Office Saber Daboussi was awarded the CEO of the Year Award for the Financial Sector, him being responsible for the remarkable growth the ACM has achieved throughout the Middle East and Asia markets.

ACM Best Forex Trading Platform 2007 Award

For the first edition of the "Best Forex Trading Platform" award, the judging panel of Market500 defined key parameters to determine the winner. Forex is known for its ability to adapt to the strong demand of real-time information as markets move instantaneously. The robustness of its platform is also key to its ability to answer heavy data and information traffic. Based on a select group of shortlisted companies, the panel of experts has chosen ACM Advanced Currency Markets, Switzerland, as the winner.

ACM Advanced Currency Markets is recognized as the easiest to use platform for processing transactions.

"We are not surprised that ease of use has been one of our main strengths as we do have a dedicated team working constantly at improving our user experience," explains ACM's CEO, Mr. Lloyd la Marca.

From a business development point of view, ACM's Managing Director, Nicholas Bang, sees a clear path for the business going forward: "Our platform is clearly efficient and we believe that the Forex market has clearly taken on a solid role in the online world. We have strong growth objectives for our company and the sector as a whole is booming."

Currently investing in many developments, the 2007 Forex Platform winner is starting to expand outside of Europe, with an operating office in Dubai. More foreign offices are to come. "Our platform has been really efficient at providing white labels to key financial institutions around the world and we are looking forward to having other partners around the globe," says Alexandre Axarlis, Director at ACM.

Forex Trading Software

Because of automatic forex trading systems, there has been an increase in interest and has gained in popularity. This was a market which only saw banks and other large financial investors as players but these days it has become attractive to medium and small time speculators. This market handles trading of currency of one country with that of another. Transactions worth trillions of dollars take place here every day without a break; no wonder then that this is one of the largest and most alive financial markets.

Anyone with a forex brokerage account and some experience in trading can now operate forex trading thanks to the internet, advanced networking and communication technologies. Close and constant monitoring is required if you want to keep your position as the global market never sleeps. The automated software system lets you choose a currency as well as its asking and selling price before you trade. Your buy and sell orders can get instantly executed so all you need is your seed money and a broker to help you.

The automatic systems can help you enjoy the profits from this forex trading without having to be a specialist. When managed accounts use the automated trading systems, the program can easily manage everything for you. Therefore automated systems help you save time as you do not handle the trading yourself. Unlike manual trading the auto trading platforms can help you manage more than one account at the simultaneously. When you want to trade in multiple markets with multiple systems, these programs allow you to do this.

The auto forex trading system allows you the flexibility of trading at any time without your presence. It is impossible to miss any profitable trade, even when you are nowhere close to your computer. It is then easy to operate on different systems and deploy several forex strategies. Since every system is activated according to specific trade movements, you can plan your investments and direct your risk accordingly.

To eradicate human emotions which often come in the way of making logical trading decisions, these automated forex trading systems are indispensable. You can now have the capacity to manage several currencies and monitor and trade them too.

Using an auto forex trading system does not spare you from learning the basics of trading, fundamental and technical analysis, study of market indicators, etc. The market is dictated by several factors; therefore there is no guaranteed success by simply using automated trading systems. The automated forex trading system is not purely mechanical; you can program it to suit your individual needs.