ISA vs CFD or Spread bet

[PirateRadio]

Hi,

I have been trading for over 4 years yet, from time to time use to do a rigorous homework for one shot opportunity, being new on IG which claims to be the oldest trading platform, I decided to ask a question that cannot be found anywhere else on the web:

What makes the difference investing or trading in an ISA account instead of Spread bet or CFD and vice versa, same analysis, same charts, same indicators, one shot with double fee on entry/ exit versus spread/ margins, daily fees and higher risk?

Looking forward to start from here!     

[ArvinIG]

17 hours ago, TradingBrotherBro said:

Hi,

I have been trading for over 4 years yet, from time to time use to do a rigorous homework for one shot opportunity, being new on IG which claims to be the oldest trading platform, I decided to ask a question that cannot be found anywhere else on the web:

What makes the difference investing or trading in an ISA account instead of Spread bet or CFD and vice versa, same analysis, same charts, same indicators, one shot with double fee on entry/ exit versus spread/ margins, daily fees and higher risk?

Looking forward to start from here!     

Hi @TradingBrotherBro,

Thank you for you post.

An ISA is an Individual Savings Account which receives generous tax breaks from the government to encourage you to invest or save.

While it’s not an investment in its own right, an ISA enables you to protect your savings and investments from tax on capital gains, dividends and interest.

On an ISA account your are capped by a maximum allowance. While on a traditional Share dealing account, there isn't a cap or tax advantages.

You can find differences between CFD and Share dealing here:
https://www.ig.com/uk/cfd-trading/cfds-vs-share-dealing

You can find differences between Spreab betting and share dealing:
https://www.ig.com/uk/spread-betting/spread-betting-vs-share-dealing

The main differences are that you are using leverage to gain exposure. Fees are different and risk are higher. 

For educational content you can browse on the IG Academy on  https://www.ig.com/uk/learn-to-trade/ig-academy

I hope that it helps !

All the best - Arvin