Spread Betting vs ETFs

How does Spread Betting compare to the cost of trading Exchange Traded Funds (ETFs)?

Well it turns out that in many cases Spread Betting is a much more cost efficient way of trading.

Example: Profiting from a falling euro price
Let's say you want to profit from the Euro falling against the Dollar. You can do this by buying the ProShares UltraShort Euro ETF (Ticker: EUO). Or you could simply open a spread bet on the price of the euro falling.

The UltraShort Euro ETF charges a 0.95% annual fee. Many Spread Betting will only charge 0.20% for the very same exposure. Not to mention the fact that there is no commission or stamp duty to be paid when you spread bet.