
10 Best Spread Betting Platforms and Brokers for 2024
Spread betting allows traders to profit from fluctuations in the value of an underlying asset, even if they do not own the underlying asset. This is an exciting way to potentially make good profits from rising and falling prices.
Just as traders need a broker to invest money in the stock market, to make money from spread betting, traders also need a broker that allows traders to trade with leverage and enables short selling in their preferred markets. These allow you to speculate on the price of stock, index, commodity, forex, and fixed-income markets.
In this post, we have ranked, compared, and reviewed some of the best spread betting brokers in the world to help you choose the account that best suits your trading strategy. We evaluated them according to criteria such as platform options, cost, regulatory compliance, and instructional resources.
List of the Top 10 Spread Betting Platforms in 2024
Spread Betting Broker | Minimum Deposit | EURUSD typical spread | Leverage | Regulation |
---|---|---|---|---|
![]() | £0 | 0.09 pips | 1:30 | FCA, ASIC, DFSA |
![]() | £100 | 0.5 pips | 1:500 | FCA |
![]() | £100 | 0.9 pips | 1:30 | ASIC, FSCA, FSA |
![]() | £50 | 0.7 pips | 1:30 | FCA, ASIC, VFSC |
![]() | £0 | 0.5 pips | 1:30 | FCA, ASIC, FMA, MAS |
![]() | £100 | 0.07 pips | 1:30 | FCA, ASIC, MAS |
![]() | £0 | 0.16 pips | 1:30 | FCA, ASIC, CFTC |
![]() | £0 | 0.84 | 1:30 | FCA |
![]() | £100 | 0.7 pips | 1:300 | FCA, CySEC, and FSCA |
![]() | £50 | 0.3 pips | 1:30` | FCA, CySEC, and ASIC |

Pros and Cons
Pros
- Best MT4 spread betting broker
- Low fees and mostly free withdrawals
- Excellent package of indicators
- Offers a risk-free demo account that mirrors live market conditions
- Spread betting on TradingView
- Extensively regulated
- Good customer service
Pros
- No options spread betting
- Viewing live market spreads requires creating an account.
- No investor protection for clients outside UK, EU and EEA
- Withdrawal fee for clients outside EU and Australia
Fees
Minimum Deposit | £0 |
Inactivity Fees | No |
Account fee | No |
Deposit Fees | £0 |
Withdrawal Fee | £0 |
Trading Assets
Offer 1200+ trading instruments across three, free powerful platforms. including;
- Indices
- Equities
- Cryptocurrencies (Only Pro clients get access to cryptos.)
- Energy and commodities
Review
Pepperstone introduced spread betting in early 2021 with a focus on tight pricing for major instruments and automated trading through the trading platform.
Today, it is known for its competitive spreads, fast execution, and reliable platform. They offer a ton of assets to anyone who wants to place bets.
In addition to stocks from the UK and other countries, it supports betting markets spanning over a thousand. Spread betting is another option for indices, currencies, and commodities.
Pepperstone spreads betting accounts using a tiered system. More experienced traders may choose to sign up for Pepperstone’s Razor account; however, new customers usually sign up for regular accounts with the company. Razor accounts in the FX markets have lower spreads than regular accounts, but they do charge commissions.
Pepperstone is a great choice for traders who want low latency, are looking for a competitive and reliable broker, and want to bet on metaquotes, as its MT4 and MT5 packages are among the best.
Key Spread Betting Features:
- There is no minimum deposit amount here.
- Pepperstone offers leveraged trading on all supported markets and does not charge any commissions.
- Most withdrawals are free at Pepperstone, but consumers may be charged a fee by banks for international telegraphic transfers (TT).
- It does not charge inactivity fees. Unlike some investment accounts, the firm does not charge regular maintenance costs.
- Pepperstone offers the three most widely used trading platforms available today: cTrader, MetaTrader 4, MetaTrader 5, and TradingView.
- For retail customers only, Pepperstone offers negative balance insurance in the UK. This means that if the market swings dramatically against you and your risk capital is wiped out, your account will not fall below zero. Business accounts, on the other hand, may have negative equity and will need to post additional equity.
- The FCA regulates pepperstone.
Note: 75.3% of retail investor accounts lose money when trading CFDs with this provider

Pros and Cons
Pros
- High maximum leverage for experienced traders
- Low minimum deposit requirement
- Feature-rich FxPro Edge Spread Betting platform.
- Access 50 plus inbuilt technical indicators.
- Good customer support
Pros
- Comparatively small asset offerings to its peers
- The assets are exclusively available for spread betting and CFD trading.
- Spread betting is only available to UK residents.
Fees
Minimum Deposit | $/£100 |
Inactivity Fees | $/£15 once + $/£5 monthly |
Withdrawal Fee | $/£0 |
Trading Assets
FxPro provides traders with more than 2000 equities and 70 currency pairings, among other financial products.
Review
FxPro was founded in Cyprus in 2006 and is regulated by financial regulators such as CySEC in Cyprus, SCB in the Bahamas, FCA in the UK, and FSCA in South Africa. FxPro currently serves retail and institutional clients in over 170 countries.
It offers 2,100 CFD assets across six classes, including forex, shares, futures, metals, indices, and energies, with a user-friendly platform on both desktop and mobile devices. Traders can trade over 70 currency pairs, futures, and stocks with the FxPro broker.
FxPro has instant order execution, which is facilitated by four trading platforms: MT4, MT5, cTrader, and its proprietary trading platform for spread betting, called FxPro Edge.
It is worth noting that the broker charges inactivity fees but offers negative balance protection with a commission-free model, which includes competitive spreads of up to 0.6 pips on EUR/USD and GBP/USD.
For experienced traders, the remarkable 1:500 leverage range is quite helpful for sophisticated trading. Furthermore, this broker has strong research capabilities, reliable customer support, automated trading, and an extensive learning environment.
Key Spread Betting Features:
- Spread betting is only available to UK residents.
- The minimum spread on Forex pairs is 0.6 pips for the EUR/USD and GBP/USD pairs.
- The minimum bet size is 10 p per point for forex, indices, and commodities and 1 p per point for shares.
Note: 75.78% of retail investor accounts lose money when trading CFDs with this provider

Pros and Cons
Pros
- Free spread betting demo account.
- Negative balance protection
- Outstanding selection of trading platforms meeting different trading requirements
- Numerous account choices.
- High-quality educational offering via SharpTrader
- Regulated by world-class authorities, including the Financial Conduct Authority (FCA)
Pros
- Inactivity cost of £50 in case of three months without trading activity
- Custumer support is not available 24/7
- No US clients accepted
Fees
Minimum Deposit | £100 |
Inactivity Fee | USD Account: $50 EUR Account: €50 GBP Account: £50 |
Administration Fee | USD Account: $100 EUR Account: €100 GBP Account: £100 |
Deposit Fee | $0 |
Withdrawal Fee | $0 |
Trading Assets
AvaTrade stands for having a strong portfolio that includes more than 1250 trading instruments.
- Forex: AvaTrade offers exposure to the dynamic forex market and a wide range of CFD alternatives by facilitating trading in a broad spectrum of currency pairs.
- Stocks and Commodities: Investing in businesses and raw materials worldwide is made possible by the platform’s extensive assortment of stocks and commodities.
- Cryptocurrencies: AvaTrade offers access to a wide range of digital assets, including well-known ones like Bitcoin, Ethereum, and others, and facilitates trading in cryptocurrencies.
- ETFs, Bonds, Treasuries, and Indices: AvaTrade provides exposure to a range of sectors and industries as well as diversification opportunities with its offers in bonds, treasuries, and indices.
Review
Founded in 2006. AvaTrade is a popular CFD and highly regulated broker in tier-one jurisdictions in the UK. It was voted the most reliable UK trading platform in 2023 by World Business Stars Magazine.
Since its establishment, it has grown to be one of the most sought-after spread-betting brokers. This is because of its competitive spreads and 0% trading commissions. Because of AvaTrade’s cheap spreads and leverage, traders can open huge positions with comparatively little capital.
To assist traders in managing their holdings, it offers a user-friendly platform with access to real-time market data, sophisticated charting tools, and risk management features, including stop-loss orders. The trading platform offered by this broker is fantastic and comes in several flavors, such as AvaSocial, AvaOptions, and MetaTrader4, which let you interact with other investors and have complete control over your investing endeavors. With this spread betting broker, you can trade with over 60 different currency pairings.
Ultimately, AvaTrade is designed to accommodate every investor. The account opening process is simple, making it user-friendly for all investors. A wide range of educational materials, a free spread betting demo account, and personalized feedback on trades are also available for beginner traders.
Key Spread Betting Features:
- The minimum bet size for Forex, Indices, and Commodities is 10 pesos per point.
- The minimum spread on Forex pairs is 0.90 pips for EUR/USD and GBP/USD.
- Maximum leverage of up to 1:30 for retail clients trading forex pairs.
- Spread betting is only available to UK residents.
- Spread bet from the MT4 trading platform.
Note: 71% of retail investor accounts lose money when trading CFDs with this provider

Pros and Cons
Pros
- Low forex fees
- No inactivity fee
- No withdrawal or deposit fee
- Social trading
- Spread bet from the MT4 and MT5 trading platforms.
Pros
- There are fewer spread betting options available than the broker’s CFD selection.
- Spread betting is only available to UK residents.
Fees
Minimum Deposit | £50 |
Inactivity Fee | No |
Deposit Fee | No |
Withdrawal Fee | No |
Trading Assets
Offer 300+ financial instruments, covering forex, stocks, ETFs, commodities, bonds and indices.
Review
Founded in 2009, it is a global online trading broker that offers a wide range of financial products, including spread betting.
With Vantage, you can trade thousands of financial instruments with the MetaTrader 4 trading platform from desktop, web, or mobile devices. You get access to over 30 drawing tools, over 80 built-in technical indicators, and multiple chart types.
The type of your trading account determines Vantage FX spreads. The amount of money you deposit into your account balance determines the type of your trading account. The EURUSD spread is 0.7 pips, and spreads are generally average. However, they may also be only 0.0 pips.
Beginners love Vantage for its unlimited demo accounts and webinars. spreads, free VPS hosting, and algorithmic trading on the broker’s MetaTrader platform draw in experienced traders. Expert traders particularly appreciate Vantage’s lack of restrictions on trading robots or trading techniques.
All traders benefit from Vantage’s favorable fee structure: tight spreads, low commissions, no inactivity fees, and no fees for deposits and withdrawals.
Vantage is authorized and regulated by the FCA in the UK, ASIC in Australia, VFSC in Vanuatu, and CIMA in the Cayman Islands. Overall, Vantage Markets is a good choice for spread speculators who are looking for a competitive and reliable broker.
Key Spread Betting Features:
- The minimum spread on forex pairs is 0.7 pips for EUR/USD and GBP/USD.
- The minimum bet size is 10 p per point for forex, indices, and commodities and 1 p per point for shares.
- Spread bets on the MT4 and MT5 trading platforms.
- Spread betting is only available to UK residents.

Pros and Cons
Pros
- Excellent spread betting technology
- Hand-picked share baskets support industry-specific trading
- Spread bet the S&P 500 from just 0.5 points
- Client sentiment indicators
Pros
- Limited spread betting on smaller markets
- Complex spread system where the unit of measurement changes based on the market
Fees
Minimum Deposit | £0 |
Inactivity Fee | £10 monthly fee after 12 months of inactivity |
Account fee | No |
Deposit Fees | £0 |
Withdrawal Fee | £0 |
Trading Assets
CMC Markets supports over 12,000 spread betting markets, including shares, ETFs, bonds, indices, commodities, and forex.
Review
CMC Markets introduced financial spread betting in 2001 to complement its CFD and Forex trading. One of the largest private trading platforms for active traders in the market, the Market Maker spread betting platform, has now evolved into a “Next Generation” platform.
It offers a wide range of markets. You can bet on 330 forex pairs, not to mention indices, ETFs, and commodities. Additionally, you can bet on thousands of shares from overseas markets and hundreds of shares from the London Stock Exchange. It also includes US stocks like Amazon, Netflix, McDonald’s, and JPMorgan Chase. “Share Basket” is also supported by CMC Markets. With these, you can spread bets using well-chosen index funds that follow particular markets.
At CMC Markets, all spread betting fees include spreads and change depending on the asset. The minimum spread is only 0.6 points on forex and 0.5 points on the S&P 500 index. There are costs associated with keeping a spread betting position open overnight at CMC Markets, but there are no commissions for spread betting.
CMC Markets is an exceptional spread betting platform with innovative features that are suitable for traders looking to frequently trade on tight spreads. This broker is regulated by the FCA in the UK, the ASIC in Australia, the FMA in New Zealand, and the MAS in Singapore.
Note: 74% of retail investor accounts lose money when trading CFDs with this provider

Pros and Cons
Pros
- Supports over 8,500 spread betting markets
- US-listed shares can be traded from $0.015 per slide
- In-house trading platform designed with beginners in mind
- Tight spreads and thousands of markets to trade
- Excellent selection of introductory research and educational resources
Pros
- Minimum withdrawal of £100
- Customer service available 24/5
Fees
Minimum Deposit | £100 |
Overnight fee | +2.5% on long positions |
Inactivity fee | $15 |
Deposit Fees | 2% |
Withdrawal Fee | $0 |
EUR/USD spreads from | 0.5 points |
Trade major indices with spreads from | 0.4 points |
Trade US Crude with spreads from | 1.5 points |
Commission on shares | 0.08% |
Spot gold spreads from | 0.5 points |
Trading Assets
The City Index has a wide selection of over 12,000 assets. Traders can trade CFDs on over 4500 shares and over 65 global currency pairs.
Review
City Index was founded in 1983 in London. It is one of the best-spread betting platforms for low and transparent fees. It offers a wide range of markets, including CFDs on forex, stocks, indices, commodities, metals, cryptocurrencies, and spread bets.
Traders can open positions by trading in major Forex pairs at as little as 0.2 points per slide. Commodities start at 0.05 points, while major indices like the S&P 500 start at 0.3 points. Trading in UK equities starts at 10 basis points per slide. US stock trades start at $0.015 on both sides of the market spread.
The City Index broker charges an inactivity fee if you fail to open a position for 12 months. There are also funding costs for leveraged positions held overnight. But there is no trading commission here. Plus, you’ll benefit from some of the highest minimum spreads on the market.
With many accolades to its name, CityIndex offers one of the most sophisticated trading platforms. The platform offers over 100 indicators as well as a huge range of drawing and analytical tools, making it highly customizable. There are also MT4 and WebTrader.
This is one of the best spread-betting brokers for beginners in the UK. Due to its many research tools for market analysis, novice investors will have no trouble placing and monitoring trades. To further improve the trading experience, educational tools are also available, such as tutorials, videos, and a test account.
The broker also offers a demo account that lets beginners test strategies using $10,000 of free cash, but the demo account is only free for 12 weeks.
City Index is licensed and regulated by the FCA in the UK, ASIC in Australia, and MAS in Singapore.
Note: 71% of retail investor accounts lose money when trading CFDs with this provider
- Minimum Deposit: £0
- Leverage: 1:30 for retail traders, 1:200 for professional traders
- Fees:
- Spread betting is charged on a spread-only basis.
- The spread on shares is based on a percentage. Basis points are used to quote other assets.
- Regulation: FCA, ASIC, CFTC

Pros and Cons
Pros
- Spread bet over 17,000 UK and international markets
- Good liquidity for large spread bet positions
- Excellent web and mobile platforms
- Spread betting on smaller-cap stocks
- Negative balance protection available
- Robust research materials
- Top-rated telephone support team
Pros
- Share spreads are quoted as a variable commission
- Inactivity fee after 2 years
- No copy trading
- A minimum deposit of £250 is required if transferring through PayPal or debit cards.
Fees
Minimum Deposit | £0 |
Inactivity Fee | USD Account: $12 EUR Account: €14 GBP Account: £12 |
Account fee | No |
Deposit Fee | $0 |
Withdrawal Fee | $0 |
Trading Assets
An industry-leading 17,000+ markets, including 51 currency pairs, 38 commodities, 34 indices, and over 10,000 UK and foreign stocks, are available for traders to wager on with IG.
Review
IG Markets is a UK-registered broker established in 1974 and regulated by the FCA. It is an award-winning and world-leading online trading broker and investment provider that provides traders with access to opportunities in thousands of financial markets through its intuitive trading platform and apps.
They serve clients around the world from offices in 15 countries across five continents. IG Group is one of the largest trading brokers in the world.
IG is best known for its share-dealing accounts; it supports over 17,000 spread betting markets. It is the only spread-betting business that provides weekend trading on important foreign exchange pairs and indexes. Most spread betting markets come with two options: daily or quarterly expiration dates. This indicates that IG can be used with swing and day trading approaches.
Traders can place bets on major forex pairs for just 0.6 points per slide. He can also trade the FTSE 100 and AUS 200 at just 1 point. Commodities are also competitive, with the spot market for gold trading at an average of 0.3 points.
Apart from the spread, IG does not charge commission for spread betting. However, there are costs associated with extending the duration of a spread bet. Additionally, it offers a minimum bet size for each asset type, which typically ranges from £1 to £5.
For spread betting and CFD trading, IG Markets employs a proprietary trading platform. It also offers a free demo account if you want to trade with risk-free funds. Read full review
Key Spread Betting Features:
- Offer advanced platform and charting (L2 dealer, ProRealTime, and MT4)
- Spread betting is only available to UK residents.
- Minimum spread on forex pairs: 0.6 pips for EUR/USD.
- Extended trading hours
- Extensive range of products
- Negative balance protection for retail clients
- Demo account
Note: 70% of retail investor accounts lose money when trading CFDs with this provider
- Minimum Deposit: £0
- Leverage: 1:30
- Fees
- Spread-only markets that vary depending on the instrument
- When a position is closed, the majority of markets do not attract a spread.
- Regulation: FCA

Pros and Cons
Pros
- Smaller cap stock spread betting
- Low trading fees
- Advanced user-friendly and customizable trading platform
- Excellent customer service
Pros
- Financial spreads are higher than other providers
- Limited spread betting on options
- Does not offer a demo account
Fees
Minimum Deposit | £0 |
Overnight fee | Yes |
Inactivity fee | No |
Deposit Fee | No |
Withdrawal Fee | No |
Trading Assets
Spreadex offers 60+ forex pairs, 17 commodity CFDs, and 1000 index and stock CFDs.
Review
Founded in 1999, Spreadex is governed by the Gambling Commission and the FCA. It is one of the few spread betting sites that offers coverage of traditional sporting events. You can bet on a variety of sports, including snooker, rugby, football, and cricket. The number of points you get right or wrong determines your profit or loss. In addition, Spreadex also covers traditional financial markets. You will have access to thousands of stocks, indices, currencies, and commodities.
Spreadex offers a simple yet innovative spread-betting platform for trading a variety of assets. In addition to providing access to over 10,000 markets, Spreadex has recently reduced spreads on significant assets and, unlike some other providers, continues to provide access to small-cap companies.
The minimum spreads in terms of fees are market-driven. For example, for four points, you can trade the Germany 40 and the FTSE 100. In markets with expiry periods of three to six months, the spread for gold starts at 0.5 points. In short-term markets, this increases to 0.8 points.
It has no inactivity costs and offers cheap trading fees for stocks and currencies. Here’s why it’s the top spread betting broker with the lowest fees in the UK: It is best for investors with a low budget. It also allows you to spread bets on credit, whether you are a beginner, intermediate, or professional. The amount of credit you receive depends on your situation.
Spreadex offers its unique trading platform on the web and mobile devices, enhancing the spread trading experience. These platforms are known for their excellent charting tools, customization capabilities, and dependability. Some of the anticipated features are available to traders, including trading via charts, pattern recognition, and a variety of sophisticated technical indicators.
There are plenty of instructional resources available on the platform, such as platform tutorials, a video training center, and a blog dedicated to financial trading. To aid traders in their market analysis, they can also access a thorough economic journal and sophisticated charting tools.
Note: 72% of retail investor accounts lose money when trading CFDs with this provider

Pros and Cons
Pros
- Spread-only pricing model – so no trading commissions
- Simple spread betting dashboard available via web browsers
Pros
- Minimum deposit of £100
- Spreads are not competitive
Fees
Minimum Deposit | £0 |
Inactivity Fee | $/£10 per month after 3 month of inactivity |
Account fee | No |
Deposit Fee | $/£0 |
Withdrawal Fee | $/£0 |
Trading Assets
Markets.com offers a large variety of over 2,200 assets, including forex, cryptocurrencies, stocks, indices, bonds, commodities, and precious metals.
Review
Since 2008, the broker has been providing services for smooth trading and investment to clients all over the world. Markets.com is regulated in the UK by the FCA, in Cyprus by the CySEC, and in South Africa by the FSCA, which makes it the best broker for spread betting.
Markets.com has a spread-only pricing model, meaning you don’t have to pay traditional trading commissions. Spreads are variable and depend on the market being traded. The average EURUSD spread at this broker is 0.7 pips.
The minimum deposit amount is £100. The minimum withdrawal amount is £100 for a bank transfer or £10 for a debit card. Apart from this, the broker also charges an inactivity fee.
The Markets.com web platform is known for its fast execution speed. This broker uses the popular MetaTrader 4 and MetaTrader 5 trading platforms as well as a proprietary trading platform.
Simple but intuitive trading platform that is suitable for beginners. It also offers a free demo account and educational materials to help beginners improve their trading skills.
Note: 67% of retail investor accounts lose money when trading CFDs with this provider

Pros and Cons
Pros
- No commissions are charged on any spread betting markets
- Supports smaller bet sizes
- Extensive technical research tools
- Spread bet via its native desktop software or mobile app
- Free demo account that supports spread betting
Pros
- Limited product portfolio
- High bank withdrawal fees
- Guaranteed stop-loss orders at an extra fee
- FXCM web trading dashboard doesn’t support spread betting
Fees
Minimum Deposit | £50 |
Inactivity Fee | Yes (applies after 1 year of inactivity). |
Account Fee | No |
Deposit Fee | £0 (through a credit or debit card) |
Withdrawal Fee | £0 (through a credit or debit card) |
Trading Assets
FXCM offers over 440 assets, including shares, indices, forex, and commodities.
Review
FXCM was founded in 1999 and is registered in the United Kingdom. It is regulated by the FCA in the UK, ASIC in Australia, and CySEC in the EU. It offers a wide range of financial services to traders from almost every country in the world.
FXCM is a spread betting and CFD provider that offers smaller bet sizes than other top brokers. If you want to place lower bets, FXCM is the ideal broker to choose. For novice traders and scalpers, placing small bets can be a great way to minimize risk and minimize exposure in unregulated markets.
It supports four asset classes: shares, indices, commodities, and forex. There is also a wide choice of trading platforms, including MetaTrader 4, MetaTrader 5, ZuluTrade, and Trading Station Web. Additionally, its mobile trading platform is quite user-friendly and offers a wide range of order types, but it does not offer two-step or touch/face ID authentication for login.
FXCM’s spreads are a bit higher than those of other brokers, starting at 1.3 pips, and the average EURUSD spread is also 1.3 pips. There are no additional fees for spread betting, and inactivity fees apply after one year.
It is a solid choice for Forex and CFD traders who value a user-friendly platform, extensive research tools, and educational resources. The broker is renowned for its extensive library of technical indicators and excellent instructional materials, as well as its powerful technical research tools.
FXCM is great for beginners due to its wide range of educational materials and its simple and quick account opening process. Here, beginner traders can use a demo trading account to test their strategies in real market conditions.
Please note that, due to Brexit, FXCM UK does not accept applications from Ireland; however, it is accepting applications from Northern Ireland.
Note: 72% of retail investor accounts lose money when trading CFDs with this provider
What is spread betting?
Spread betting is a financial derivative technique by which investors can speculate on price movements in various financial markets, such as indices, stocks, currencies, and commodities, without purchasing the underlying asset.
As the name suggests, it is a bet, not an investment. If the trader believes the price of an asset will climb, he places a bet to ‘purchase’ it. At the same time, if he believes the price of an asset will fall, he bets on selling it.
Thus, spread betting enables traders to profit from both rising and declining markets. The degree of fluctuation in the asset’s value and the accuracy of the trader’s predictions are used to establish the spread betting profit or loss.
In this approach, the accuracy of the forecast increases the probability of profit. However, if the market moves contrary to the trader’s position, losses may exceed the trader’s initial investment.
What is Spread?
In spread betting, the “spread” is the difference between the buy (bid) and sell (ask) prices of an asset.
Important Note: Despite its American origins, spread betting is illegal in the United States.
Benefits and Limitations of Spread Betting
Benefits of Spread Betting
- Profit potential in rising and falling markets: Spread betting allows traders to make profits in both rising and falling financial markets.
- Leverage: Margin trading is a common practice in spread betting, which enables traders to manage large holdings with comparatively little capital. Profits can be increased by leverage, resulting in larger returns on investment.
- No commissions: Spread betting providers make money from the spreads they offer and do not charge any separate commissions, making it easier for investors to track trading costs and determine their position size.
- Tax benefits (in some jurisdictions): In some areas, such as the UK, profits from spread betting are often exempt from capital gains tax, which can increase net returns for profitable traders.
Limitations of Spread Betting
- High Risk: Spread betting is a high-risk trade with the potential to lose more than the money you initially invested. This is because spread betting also uses leverage, and leverage increases both profits and losses. Traders who use leverage to secure their positions are always at risk of incurring significant losses.
- Volatility and Market Uncertainty: Financial markets are extremely unpredictable and volatile, making it difficult to predict price movements with accuracy. Unforeseen circumstances or sudden market fluctuations can result in significant losses for spread speculators.
- Wide Spreads: During times of instability, spread betting companies may widen their spread. This can result in stop-loss orders and increased trading fees.
- Costs and other fees: Spreads, or the difference between buy and sell prices, are usually charged by spread betting providers along with additional costs, which can reduce profits, especially for regular traders. Additionally, overnight funding charges may also be imposed on positions held overnight.
How do I place a bet?
If you want to engage in spread betting, you need to follow the following steps:
Open a Trading Account
First of all, you will need an account. You will use your account to open positions, research new opportunities, add funds, and monitor your profits or losses.
Choose a Market
Once the account is opened, you will decide which markets you want to trade. Spread betting allows you to speculate on a wide range of assets, including stocks, indices, currencies, commodities, and more.
Decide to buy or sell.
Spread betting allows you to open your position by either purchasing or selling a market. Click ‘buy’ if you think the price will increase in value, or ‘ sell’ if you think the price will fall in value.
Set your spread bet stake size.
You then need to choose how many pounds you want to wager per point. The size of your stake determines how much you make or lose per point in your chosen market.
You should understand that a stake of £10 means that you will win or lose £10 for every point that the market rises or falls in your favor.
Stake size and spread
Once you choose your stake, you can multiply it by the market spread to calculate how much you will pay to open your position. For example, if the spread is 1.2 points and you are betting £2 per point, you will pay £2.40 for the trade.
Stake Size and Margin
As we already mentioned, spread betting is a leveraged product, which means you only need to have a fraction of the total value of the trade-in your account to open it. The amount of money you have to keep in your account is called your margin.
For example, let’s say the UK 100 is trading at 7,953 and has a 5% margin requirement, and you want to bet £3 per point, giving you a total position size of 7,953 x £3 = £23,859. But because spread betting is leveraged, you only need 5% of this in your account, which comes to £1,192.95.
The higher your stake, the more margin you need in your account to trade. If you want to get £5 per point, you will need (7,953 x 5% of 5) = £1,988.25.
Here, you always have to ensure that you always have enough margin in your account to open trades.

Place a stop-loss to manage the risk of spread betting.
Ultimately, before entering the market, it is important to consider how you will manage your risk. As we mentioned above, spread betting is a high-risk trade with the potential to lose more than the money you initially invested. This is because spread betting uses leverage, and leverage amplifies both profits and losses.
Therefore, you must have a strategy for risk management. There is no way to eliminate risk, but you can reduce your risk by using some tools and strategies. These strategies and tools are as follows:
- Stop-loss order
- Limit orders
Adding a stop or limit to your position will automatically close your trade when it reaches a certain level; a stop-loss order can minimize your potential losses, while a limit-close order helps lock in any profits. Can help.
Stop-loss order
Stop-loss is an order or instruction to automatically close your position at a certain price.
It is widely used by traders to minimize losses. Once a position reaches a set level of loss, a stop-loss order automatically closes it.
What will be the level of this loss? The traders themselves decide according to their risk appetite and then place a stop-loss order at that point so that their loss does not exceed that certain limit.

You can see the working pattern of stop loss in the above graphical representation. When prices fall below a specified price that is worse than the current market level, a stop-loss order automatically closes the trader’s position. Due to this, he avoids much loss.
If the stop-loss order had not been placed, the trader could have suffered huge losses.
Limit order
Another tool used in spread betting is called a limit order, also known as a take-profit order. This order closes the trade at a price better than the current market level.
A limit order is the exact opposite of a stop-loss order. Stop-loss orders close a position when a position reaches a specified level of loss; on the other hand, when a position reaches a specified level of profit, a limit order automatically closes the position.
These tools don’t need to help you protect yourself from loss, but these benefits prove useful in achieving the goal.
Let us take an example to understand it better. Let’s say the UK 100 reaches your profit target of £7,950, but you were not tracking the market at this time, so you are unable to exit your position, and the UK 100 falls to £7,600.
In this example, if you had placed a limit order at £7,950, your position would have been automatically closed there, and you would have made the assured predetermined profit.

Execute, monitor, and close your trades.
Once your position is opened, you will see your profit or loss updated in real-time. To exit your trade, you click the “Close Trade” button.
There are two main ways to open your position: Using market orders or opening orders.
- Market Order: A market order is executed at the best available price. If you want to open your position at the current market price, this is the easiest option.
- Open Order: If you want to execute your trade at a specified level instead of the current price, you can use an open order. These work similarly to stops and limits, but they open a position instead of closing it.
How to monitor your spread bets
Your profits and losses align with market movements. Every movement in the market has a direct impact on your profits and losses. So you keep monitoring all your open trades, whether you have stop-loss orders or limit orders.
But this also does not mean that you keep looking at the same thing all the time. It would be better if you used a tool like Price Alert for this. Price alerts let you know when your market reaches specific levels or experiences extreme volatility.
You can also track your trades in the ‘Open Positions’ section of your trading platform.
Close down your business.
When you are willing to close your position, you should place a bet in the opposite direction from where you opened it. If you bought at the beginning, you will sell now.
For this, select the ‘Closed Status’ option in the status window. Upon closing the trade, your net open profits and losses will be realized and immediately reflected in the cash balance of your account.
If your stop-loss or limit order is automatically triggered, this will be done for you. Of course, your stop loss will be canceled if you close your position manually.
Spread betting examples and calculators
When you place spread bets in your selected market, it is important to understand how much capital you are putting at risk. The calculation for this is as follows:
Capital at risk = bet size x market value (in points)
When you place a bet, the market value is displayed in points.
For example, if you were trading a Forex pair, instead of a price of ‘1.13220’, you would see a price of ‘11322.0’. So, trading £10 worth per activity point would mean you are putting a total of £113,220 at risk (11322.0 x 10).
Another important aspect of spread betting is leverage. Since spread betting is a leveraged product, you will only need to cover the margin as opposed to the full value of the trade. Spread betting calculations for margin are as follows:
Margin = Margin Factor x Total Exposure
When we consider the above example in this scenario and assume that the margin factor was 3.33%, you would only need to put in £3770.226 (3.33% x £113,220) to open the trade.
As we mentioned earlier, leverage can potentially increase your profits and losses, as they are calculated using the full size of your trade—in this case, £113,220—and not just margin.
To understand how spread betting works, let us use some examples:
How to bet on stocks: examples
To understand how to bet on the shares, let us take the example of Standard Chartered PLC, which is currently trading at £703.25. If there was a one-point spread, you would be presented with a buy price of £703.75 and a sell price of £702.75.
You open a long spread bet position on Standard Chartered PLC, buying at £703.75 at £10 per movement. If the margin requirement for Standard Chartered PLC shares is 20%, you will need to deposit £1,407.50 (£10 x 703.75 x 20%).
If your spread bet on shares was correct,
Let’s say Standard Chartered PLC shares rose to £723.75. You could decide to close your position to take your profit.
You will close the spread bet position at the new sell price of £723.25. Since the market has moved 19.5 points in your favor (£723.25-£703.75), your profit will be £195 (19.5 x £10).
Here, you will not have to pay any tax on your profits. However, you will have to pay a funding fee to keep your position open overnight.
If your bet on the spread of shares was wrong,
However, assuming Standard Chartered PLC shares fell to £703.25, there would be a new selling price of £702.75. Since the market has moved against you by 21 points (£702.75-£723.75), you will lose £210 (21 x £10) plus any further funding expenses.
How to Bet on Indices: Examples
To understand how to bet on indices, we will take the example of the UK 100. The FTSE 100 is currently trading at 7,952.62.
The prices of bets in spreads are always quoted in pairs, meaning the selling price (bid) and the buying price (offer). The difference between these is known as the spread.
In this scenario, the selling price of the UK 100 is £7,952.62, and the buy price is £7,953.82, so the spread is 1.2 points (£7,952.62 – £7,953.82).
Here, you decide to buy the UK 100 at £5 per point if you think the FTSE 100 is going to rise. This is known as going long, and it means that for each point the index rises, you will make a profit of £5. And if it falls, you’ll lose £5 per point.
This is a long position, so you buy the UK100 at £7,952.62.

Margin Requirement
As we described above, spread betting uses leverage, meaning you don’t have to pay the entire value of your trade upfront. As such, UK100’s 5% margin requirement means you only need 5% of the full value of the position in your account to open it.
The total value of your position in this scenario (£5 per point x 7,952.62) is £39,763.10, giving you a margin requirement of £1,988.15.
Note: You do not need to calculate the margin requirement manually. As soon as you enter the stake size in the deal ticket, the broker platform whose services you are using automatically calculates it.
Remember, the higher the stake, the more money you have to deposit. You should always ensure that you have enough free equity in your account to sustain any losses and avoid being placed on a margin call.
Risk Management Strategy
In spread betting, leverage always increases both your profits and your losses. To minimize risk, it is always a good idea to use a risk management strategy.
For this, it is important that you at least decide that
- How much can you lose on a trade?
- How much profit are you targeting?
Then use stop-loss to automatically close your position at those levels. Along with this, you should use limit orders to ensure your profit.
For example, you might decide that your maximum loss here is £50, placing a stop at £7,902.
Also, if you want to aim for a profit of £100, make the risk worthwhile. So you need to place a limit order at £8,052.
- Stop loss will close your trade if the FTSE drops 50 points to £7,902.
- Take profit or limit order to close if FTSE rises 100 points to £8,052.
Winning in Spread Betting
Let’s say your prediction proves correct and the FTSE goes up, taking the index price to £8,012.62.
Your profit target from the trade was £8,052, but let’s assume you also became concerned about the impending bearish market here, so you decided to take your profits early.
As you initially bought the UK 100, you would need to sell it at £8,012.62 to close the position, giving you a 60-point return.
Your spread-bet profit
Multiplying 60 points by £5 per point will give you a total tax-free benefit of £300.

- You go long £5 per point at £7952.62
- The market price rises by 60 points.
- You make a profit of £300 (£5*60 points).
Please note here that since this is a daily-funded trade, you will be charged a small overnight funding fee if you keep your position open overnight.
Lose spread bet
Now think about it, what will happen if UK 100 falls?
Let’s say that instead of rising, the index falls to £7,902.62, leaving your spread bet open at a loss and triggering your stop loss.
Here the FTSE has fallen 50 points, which when multiplied by your £5 stake gives you a loss of £250.

- You go long £5 per point at £7952.62
- The market price drops by 50 points.
- You make a loss of £250 (£5*50 points).
Please note here that since this is a daily-funded trade, you will be charged a small overnight funding fee if you keep your position open overnight.
How to Bet on Forex Example (EUR/USD)
Next, let us look at the example of the largest Forex pair, EUR/USD.
Today the EUR/USD pair traded at 1.0838/1.0839. You can buy at 1.0838 and sell at 1.0839. And the spread is at 0.8 points.
You decide to open a short trade by selling EUR/USD at 1.08388, betting £3 per point to make £3 for every pip that EUR/USD falls.
However, you will lose £3 each time the pair moves up.
Margin in forex
The Forex market has lower margin requirements than other asset classes, which means you can use higher leverage. You will need only 3.33% of the full value of this position in your account to open it.
The value of the trade (3 x 10,838) is £32,514, leaving us with a margin requirement of £1,082.72.
You should ensure that you have excess funds in your account here, however, in case the situation goes against you and your margin decreases.
Risk Management When Shorting
By now you must be well aware of how important stop-loss orders are while trading.
Stop-loss orders are also important when trading short. Because there is no limit to how high the market will go, and there is no way to limit your losses unless you place a stop-loss order.
When shorting, let’s set a stop loss order 65 points away at 1.0903.
Along with this, we also use a take-profit order at 1.1033, which will automatically close the position if it earns a profit of 130 points.
With our bets of £3 per point, this would mean our maximum loss would be £195, and our profit target is £390.
Winning EUR/USD Trades
We assume here that EUR/USD falls to 1.0718, which will trigger your take-profit order, thereby closing your position with a 120-point profit. Multiplying that by your £3 stake gives you a profit of £360.

- You go short £3 per point at 1.0838
- The market falls by 120 points, triggering your limit order at 1.0718.
- You make a profit of £360 (£3*120 points).
What you need to be careful about here is that you don’t keep your position open for more than a day, so you don’t have to pay anything for overnight funding. So the only cost of placing this trade (£3 x 0.8) is the £2.40 spread.
Loss in EUR/USD trading
Let’s say the EUR/USD rises and you start making a loss on a EUR/USD trade. But you put a stop loss, which stops your losses at 1.0913. This would result in a loss of £180 in your position.

- You go short £3 per point at 1.0838
- The market rises by 60 points, triggering your stop-loss.
- You make a loss of £180 (£3*60 points).
How to spread bet on commodities example
Let’s lastly decide to bet on Gold. which is currently trading at £1,809.55, with a buy price of £1,809.95 and a sell price of £1,809.15. As you believe the price of gold is due to decline, we open a spread bet to sell the commodity for £40 per point of movement.
Gold has a margin factor of 5%, so you would need to put down £3,618.30 (£40 x £1,809.15 x 5%) to open the position.

If your commodities spread bet was correct
Let’s say the price of gold did fall, down to a new price of £1,780.15. Then you required to close your position at the new buy price of £1,780.90.
As the market has moved in your favor by 28.25 points (1,809.15 – 1,780.90), you would be taking a profit of £847.50 (28.25 x £30). If you had kept your position open overnight, you would have had to pay funding charges.

If your commodities spread bet was incorrect
However, if you were incorrect and the market price of gold rose instead, to 1,845.60, you would have made a loss. You’d close your position, at the new buy price of 1,845.30.
As the market has moved against you by 36.15 points (1,809.15 – 1,845.30), your total loss for the commodity spread bet would be £1,084.50 (36.15 x £30), plus any funding charges.

Spread betting and taxation
Spread betting has significant tax advantages compared to other trading and investing activities. Winnings from stock, forex, and CFD trading are subject to UK capital gains tax, but winnings from betting are not subject to UK capital gains tax. This is because it is legally considered gambling rather than an investment.
Let’s say you made a profit of £20,000 by selling shares at a higher price, you will have to pay capital gains tax on that amount. However, if you had made a profit of £20,000 on a spread bet predicting the share price to rise, you would not be subject to capital gains tax.
Customer profits in spread betting are tax-free but spread betting firms or platforms are required to pay tax. They have to pay VAT on their earnings and commission. Customers must report any earnings on their annual tax filing, even if no taxes are due.
It is important to note here that taxes on spread betting vary according to the jurisdiction in which it is played. As
- United Kingdom (UK): Spread betting revenue in the UK is generally exempt from stamp duty and capital gains tax (CGT), this is a big advantage there. Exemptions apply to those whose main source of income is betting. As a result, betting profits are not taxed in the United Kingdom.
- Republic of Ireland: In Ireland, spread betting is generally exempt from capital gains tax, as it is in the UK. This exemption is applicable for both individual and corporate traders whose main activity is spread betting. As a result, profits derived from spread betting are generally exempt from taxation in Ireland.
- Other countries: There may be differences in the way betting is taxed in different countries. Spread betting winnings may be subject to various taxes or capital gains taxes in some jurisdictions. To fully understand the unique tax implications of spread betting operations, people are recommended to speak to a tax advisor or relevant tax body in their country.
Spread Betting vs Forex Trading
Particular | Spread Betting | Forex Trading |
---|---|---|
Nature of the Instruments Traded | In spread betting, traders speculate on the price movements of various financial instruments, including stocks, indices, currencies, commodities, and bonds, without actually owning the underlying assets. | Forex trading, also known as foreign exchange trading or currency trading, involves buying and selling currencies in the foreign exchange market. |
Ownership | No | Yes |
Profit from | Spread betting allows traders to profit from both rising and falling markets. | Forex traders aim to profit from fluctuations in exchange rates between different currency pairs. |
Tax Treatment | In certain jurisdictions such as the UK and Ireland, profits from spread betting are often exempt from capital gains tax and stamp duty. | Profits from forex trading may be subject to capital gains tax in some countries, depending on the individual’s tax residency and applicable tax laws. |
Leverage and Margin | Spread betting providers offer leverage. | Forex trading also involves margin trading, enabling traders to control larger positions with a smaller initial investment. |
Regulation | Many countries do not regulate | Yes |
How to Choose the Best Spread Betting Broker in the UK?
Choosing the best spread betting broker in the UK requires careful consideration of many factors to ensure that the broker meets your trading needs and preferences. Here are some things you can remember to help you choose the right spread betting broker:
- Regulation and reputation: Verify that the spread betting broker is regulated by the UK’s Financial Conduct Authority (FCA). Trading with an FCA-regulated company ensures that your funds are safe.
- Trading Platform: Evaluate the trading platform offered by the broker, and ensure that this is user-friendly and equipped with all the necessary features.
- Range of Markets: Next, you assess the range of financial markets offered by the broker, including stocks, indices, currencies, commodities, and bonds.
- Low spreads and commissions: Then, compare the available brokers and choose the one with low spreads and commissions.
- Leverage and Margin: Evaluate the brokers’ leverage and margin requirements.
- Customer Support: Also check the customer support of the brokers.
FAQs
What Is Spread Betting?
Spread betting is a way to bet on the change in the price of some security, such as indices, stocks, currencies, and commodities, without purchasing the underlying asset.
If traders expect an asset’s price to rise, they have to open a position to ‘buy’ and if they expect an asset’s price to fall, they have to opt to ‘sell’.
Is Spread Betting Legal In the U.S.?
The majority of US-based brokers do not offer spread betting because it may be unlawful or subject to strict regulatory scrutiny in several states.
Is Spread Betting Gambling?
Because no genuine position is taken in the underlying instrument, it may be considered gambling by regulatory and tax authorities in some jurisdictions.
Is spread betting risky?
Spread betting is truly very risky, so individuals need to understand the associated risks before getting involved in this type of trading. Because there is always a risk of losing more than the amount you invest in this business. Although there is a chance to make good profits, most people lose money instead of making money in the betting market, especially beginners.
Spread speculators should use conservative risk management strategies to minimize these risks, such as standard stop-loss orders and guaranteed stop-loss orders. Like stock trades, spread bet risks can be mitigated using stop-loss and take-profit orders. Some degree of risk can be avoided by using the right leverage in these strategies and by diversifying your trading portfolio.
Is spread betting profitable?
Is spread betting profitable or not? This question arises in the mind of almost every beginner, so let me tell you that yes, spread betting is profitable, but it should not be forgotten that along with being profitable, it is also equally risky.
Profit in spread betting depends on many factors, including the skill level of the individual trader, his market knowledge, risk management practices, his trading strategy, and market conditions. Some traders may achieve success through spread betting and make consistent profits, while other speculators may suffer losses.