The following reasons explain why spread trading might appeal to you:

Tax Free Profits
Unlike with traditional trading, any capital gains you make from spread trading are completely free of Capital Gains and Income tax. (Tax laws can change!!.)

Take advantages of markets going up OR down
One of the most obvious advantages of spread trading is the opportunity to short (or sell) the market. You can therefore profit from both rising and falling markets.

An additional weapon to your investment strategy
Many investors use spread trading to hedge their existing share portfolio. For example, if you have some shares which are decreasing in value in the short-term, you could “Sell” the value of the share using a sell bet with Capital Spreads and possibly make a profit to counter-balance the decreasing value of your shares.

Make your money do more
Spread trading also allows you to trade in sizes smaller than those usually available in the underlying market. Therefore your initial outlay would be less than would be the case should you be trading shares. However, it is strongly advised that you only risk between 0.5% and 5% of your capital in any given trade in order to manage your risk properly.

Spread trades are margined trading products, which means you need only deposit a small percentage of the full value of your trade leaving your excess capital to continue working hard elsewhere. For example, a £1 bet on a share is the equivalent of buying (or selling) 100 real shares. On most shares our minimum Initial Margin Requirement (deposit) is 3-5% of the underlying value of the shares which means that you can make a bet in a share with as little as 1/30th of the money required to buy the actual real shares from a stock broker.

Trade in South African Rand
On most trading platform you can trade on a huge variety of financial products in one place and in one currency. Capital Spreads, for example, currently offer 9 currency accounts which means you can avoid costly exchange rates and can, in general, trade in your own currency. South African Rand is one of these currencies.

No Commission or Fees
As spread trading companies are not stockbrokers, they do not charge commission or fees. They make our profit from the spread they add to the underlying market prices, which result in the given quotes.