Spread betting comes of age

More and more investors are turning to spread betting as a way to make money. Cris Sholto Heaton explains why, and outlines the risks involved.

Spread betting grew strongly in popularity in the years after the global financial crisis, as high volatility and low expectations of steady capital gains saw traders look for alternative ways to make money.

The number of people placing at least one spread bet a year or using contracts for difference (CFDs), a similar instrument peaked at more than 100,000 in 2012, according to research firm Investments Trends.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.