On Tuesday of this week we had to endure another budget in the UK. It was the first one from the coalition government and it was an emergency one. One of the key things in there for investors and traders was the increase in capital gains tax.

This will hit seasoned traders quite hard as they are likely to make profits well in excess of the threshold allowance. This is not something that concerns me too much as I do my trading through financial spread betting.

This is not the only advantage of financial spread betting. Another is one that you could’ve take advantage of yesterday’s falling markets as well. The markets don’t trade up all the time and yesterday was no exception. You could take a short position in the market and make money from falls.

The stock market was in decline as a different market was going up. The currency market and the pound started to show some strength. A trading option open to you yesterday was taking your profits from your short position in the stock market and go long in the pound. With financial spread betting you can do all of that from the same account.

I know people who want to invest and want to trade but they complain about not having the start up capital. There is no disadvantage to trading small in financial spread betting. You don’t pay commission so you can start trading from as little as a few hundred quid.

Like anything, there are drawbacks. You trade on a margin which is a positive for a lot of people. There are people for whom this type of trading is not suitable for. These are the people who can’t manage their risks properly.

I think yesterday really showed me why I like financial spread betting so much. For me it has many benefits over other methods of trading.