Excerpt from: Understanding Spread Betting
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| February 13, 2008 | | You don't pay commissions when placing spread bets | One of the advantages of spread betting is that you don't pay commissions. With stock brokers, you have to pay a commission on your earnings. Instead, in spread betting, the indexation company makes money on the bid-ask spread.
When placing spread bets, all you have to do is overcome the bid-ask spread, and then what you make is pure profit.
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