If you are looking for a trading activity that lets you maximise all your profits, then you should consider checking our spread betting broker reviews. Spread betting in the UK is tax-free. Therefore, you need to invest in a suitable broker to increase your chances of making profits.
Not all of the UK’s brokers allow spread betting. For this reason, it is challenging for many investors, especially the newbies, to identify the best broker suited for their needs. Do not agonise though, because we are here to help. Below, our expert team has recommended the best spread betting brokers that underwent multiple testing and reviewing from Google Play, App Store, and TrustPilot.
Essence
- Spread betting is a speculative method where traders predict price movements of financial markets, betting on whether prices will rise or fall without owning the asset.
- Opt for an FCA-regulated spread betting broker for compliance, security, and a trustworthy trading environment.
- Select a broker aligned with your needs, considering available markets, platform usability, risk tools, and customer support for a personalised trading experience.
- Compare user reviews as they offer insights into platform reliability.
- At TradingGuide, our professional researchers conduct in-depth research, ensuring credibility and suitability in platform recommendations.
- Spread betting involves risks due to leverage. Employing a robust strategy is vital for risk management and successful trades.
- In the UK, spread betting is tax-free as it’s considered gambling.
- Practice spread betting with demo accounts provided by brokers to understand strategies and platform functionalities without risking real funds.
List of the Best Spread Betting Brokers in the UK 2024
- Pepperstone – Leading Spread betting Broker from Australia
- IG Markets – Leading Spread Betting Broker in the UK
- Spreadex – Spread Betting Broker with the Lowest Fees in the UK
- AvaTrade – Spread Betting Broker with the Excellent Research Tools
- FxPro – Top Spread Betting Broker For Professional Traders in the UK
- OANDA Europe LTD – Leading Spread Betting Broker For Mobile Users*
- City Index – Spread Betting Broker for Beginners in the UK
*76.6% of retail investor accounts lose money when trading CFDs with OANDA provider
How We Choose Spread Betting Brokers
Our process for selecting and recommending the best spread betting brokers in the UK is comprehensive and systematic. We take our responsibility to provide trustworthy recommendations seriously.
Our research process begins by identifying a wide range of spread betting brokers available in the market. We aim to compile a diverse selection to ensure that our readers can access various options catering to their individual needs and preferences.
Security is always a top priority in our evaluation criteria. Therefore, we prioritise spread betting brokers regulated by the Financial Conduct Authority (FCA). Regulatory compliance ensures that the broker operates within strict guidelines and provides a safe trading environment for its clients.
Once we have compiled a list of potential brokers, we thoroughly test their platforms and services. This includes evaluating factors such as trading conditions, platform functionality, customer support quality, and more. We then analyse and sample user testimonials on Google Play, the App Store, and Trustpilot to ensure we remain unbiased in our recommendations.
Overall, our recommendations are based on a combination of objective testing and analysis, making us a trustworthy source of information in navigating the financial space.
In this guide
Best Spread Betting Brokers in the UK
- List of the Best Spread Betting Brokers in the UK 2024
- Compare The Best Spread Betting Brokers in the UK
- Brief Overview of Our Recommended Spread Betting Brokers’ Fees and Assets
- What Do Other Traders Say?
- How To Choose the Right Spread Betting Broker in the UK
- How to Register a Spread Betting Account
- What is a Spread Betting Broker?
- How to Reduce Risks in Spread Betting
- Spread Betting vs Forex Trading
- FAQs
- Conclusion
Compare The Best Spread Betting Brokers in the UK
We started our research process by testing the best spread betting brokers in the UK. Our team of professionals had to set specific standards that each broker must meet in order to be listed on our recommendations list. It took us approximately 150 hours to get our final results. The following are the factors we considered when researching these spread betting broker reviews.
We also went out of our way to review these brokers’ honest user reviews from Apple’s App Store, Google Play, and Trustpilot. Take a look at our ratings below.
Compare brokers
Brief Overview of Our Recommended Spread Betting Brokers’ Fees and Assets
Spread betting necessitates a broker that mirrors your trading style and preferences. Here, you’ll find tables highlighting essential insights on fees and assets across our recommended spread betting brokers. Analyse and compare this information to make astute choices in line with your spread betting strategies and financial goals.
Fees
| Best Spread Betting Broker | Fees | Minimum Deposit Requirement | Transaction | Inactivity |
|---|---|---|---|---|
| Pepperstone | From 0.0 pips | £0 | Free | None |
| IG Markets | From 0.6 pips | £0 | Free | £12 monthly |
| Spreadex | From 0.6 pips | £0 | Free | None |
| AvaTrade | 0.03 pips | £100 | Free | £50 quarterly |
| FxPro | From 0.0 pips | $100 | Free | $15 once + $5 monthly |
| OANDA Europe LTD | From 0.8 pips | £0 | Free | £10 monthly |
| City Index | From 0.0 pips | £100 | 2% deposit fee | £15 monthly |
Assets
| Best Spread Betting Broker | Forex | Stocks | Commodities | ETFs | Options |
|---|---|---|---|---|---|
| Pepperstone | Yes | Yes | Yes | Yes | No |
| IG Markets | Yes | Yes | Yes | Yes | Yes |
| Spreadex | Yes | Yes | Yes | Yes | Yes |
| AvaTrade | Yes | Yes | Yes | Yes | Yes |
| FxPro | Yes | Yes | Yes | Yes | No |
| OANDA Europe LTD | Yes | No | Yes | No | No |
| City Index | Yes | Yes | Yes | Yes | Yes |
1. Pepperstone – Leading Spread betting Broker from Australia
Pepperstone is an Australian-based CFD, forex and spreads betting broker in the UK. They provide a large number of assets for everyone looking to spread bet. In addition, they offer four of the most popular trading platforms on the market right now: TradingView, Metatrader 4, Metatrader 5, and cTrader.
As always, spread betting with Pepperstone is tax-free but there are many more benefits to spread betting in the UK with this broker. You can, for example, automate all your trading with sophisticated tools that limit the amount of active time you need to spend trading. There is also a massive collection of educational material for beginners as well as those with a little more experience.
Better yet, if you’re really experienced you can open a professional spread betting account with Pepperstone to gain even more benefits such as higher leverage and margin, and advanced tools. Just be aware that some protective measures such as negative balance protection do not apply to professional traders. Note, that spread betting is available on TradingView (USP).
✔ No dealing desk intervention
- Spread betting on a massive selection of assets including currency baskets
- Some of the best educational material on the market
- The option to open a professional trading account
- Spread betting on TV
- Somewhat expensive compared to competitors
| Type | Fee |
| Minimum Deposit | $200 |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
| Inactivity fee | No |
| Account fee | No |
2. IG Markets – Leading Spread Betting Broker in the UK
IG Markets tops the list as the leading spread betting broker in the UK because of its thousands of tradable market assets. Being a pioneer broker that was established in 1974, the broker has also grown to be the biggest spread betting broker in the UK, let alone globally.
IG Markets is regulated by the most stringent authorities, including the Financial Conduct Authority (FCA). It has one of the most advanced spread betting platforms perfectly tailored to suit both novice and professional investors. You will have access to technical tools and information on various markets.
Opening a trading account on IG Markets is quick and straightforward. You will be able to speculate on various financial markets, including forex, shares, and indices, without owning the underlying assets. This spread betting broker allows the application of leverage where you can open positions with margins, which are among the tightest in the industry. Its charges on spread are also very competitive, starting from 0.6 pips and vary according to the underlying market prices. Although IG Markets trading fees are relatively high, you can still test it using its risk-free demo account. The broker is backed up with many research and educational tools, including articles, webinars, live seminars, and courses to quickly improve your trading experience.
✔ Leading broker with low fees
- Competitive spreads
- Many educational tools, including a risk-free demo account
- World-class trading platform
- Thousands of tradable market assets
- High trading fees
| Type | Fee |
| Minimum account | £0 |
| Opening an account | £0 |
| Overnight funding | yes (depends on market) |
| Withdrawal fee | £0 |
| Inactivity fee | £12 per month after 2 years of inactivity |
| Advanced graphs (ProRealTime) | £30 per months |
3. Spreadex – Spread Betting Broker with the Lowest Fees in the UK
Spreadex is a global spread betting, CFD, and forex broker that was established in 1999. It offers more than 10,000 tradable instruments across various markets, including shares, commodities, and indices. Spreadex is a popular spread betting broker because it is highly regulated by tier-one financial authorities, including the Financial Conduct Authority (FCA). Your investment capital is safe with this broker.
Opening a trading account on Spreadex is straightforward, and it does not have a minimum deposit requirement. Its trading platform is user-friendly and customisable to suit your investment requirements. The platform is also fast and backed up with advanced orders and charting tools for market analysis.
When it comes to its trading fees, this spread betting broker is known to offer competitive spreads starting from 0.6 pips. It’s forex and stock trading fees are also low, and it does not charge an inactivity fee. No wonder it excels as the best spread betting broker with the lowest fees in the UK.
Ultimately, Spreadex UK broker is the best for low-budget investors. It also allows you to spread bet on credit whether you are a beginner, intermediate, or professional. The amount of credit you will receive depends on your status.
✔Helpful customer service
- Low trading fees
- Advanced user-friendly and customisable trading platform
- Access to more than 10,000 markets
- Very responsive customer support
- No demo accounts for testing
- Limited educational and research tools
| Type | Fee |
| Minimum deposit | Free |
| Overnight fee | Yes |
| Deposit fee | Free |
| Withdrawal fee | Free |
| Inactivity fee | Free |
4. AvaTrade – Spread Betting Broker with the Excellent Research Tools
AvaTrade is one of the highly regulated brokers by tier-one jurisdictions in the UK. It was established in 2006, and since then, 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.
AvaTrade has a minimum deposit requirement of £100 for you to start investing. The account opening procedure is simple and straightforward, making it user-friendly to all investors. This broker’s trading platform is out of this world and comes in different forms, including AvaOptions, AvaSocial, and MetaTrader4, which enable you to socialise with other investors and take total control of your investment activities. You will find more than 60 currency pairs to trade with on this spread betting broker.
AvaTrade offers various market assets to spread bet with, including commodities, shares, forex, indices, and ETFs. We primarily recommend this broker to frequent investors because it charges an inactivity fee of £50, which you will incur if you do not open positions for three months.
Ultimately, AvaTrade is tailored to suit all investors. It has plenty of educational and research tools to improve your trading experience. Should you wish to give it a try, do not hesitate to sign up for a demo account. It is a risk-free version of a live account, so it will suit your trading needs if you exploit it accordingly.
✔ Quick deposits and withdrawals
- Tightest spreads
- Regulated by world-class authorities, including the Financial Conduct Authority (FCA)
- Advanced educational and research tools
- Beginner-friendly AvaSocial trading platform to interact with other traders and copy trades from the professionals
- Inactivity fees of £50 after three months of inactivity
| Type | Fee |
| 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 |
5. FxPro – Top Spread Betting Broker For Professional Traders in the UK
In our findings testing and comparing spread betting platforms in the UK, we believe FxPro is a viable choice for professional traders. We explored a user-friendly platform on both desktop and mobile devices, which, in our opinion, makes it easier for traders to manage their trades. FxPro lists over 2,100 CFD assets across six classes, including forex, shares, futures, metals, indices, and energy. All you need is to create an account and make a minimum deposit of £100 to get started.
One of the best elements of FxPro is swift order execution, facilitated by four trading platforms – MT4, MT5, cTrader, and FxPro Web. The commission-free model, featuring competitive spreads as low as 0.6 pips on major currency pairs, enhances FxPro’s allure. As professional users, the impressive 1:500 leverage limit proves invaluable for advanced trading. Other features we noted on this broker include automated trading, robust research tools, reliable support service, and a comprehensive learning environment.
✔ Trustworthy broker
- Low minimum deposit requirement
- Advanced trading platforms with quality research resources for professional traders
- High leverage limit for professional traders
- Reliable and responsive support service
- Limited asset offerings compared to its peers
- You can only trade the assets as CFDs and spread betting
| Type | Fee |
| Minimum deposit | $100 |
| Withdrawal fee | $0 |
| Inactivity fee | $15 once + $5 monthly |
6. OANDA Europe LTD – Leading Spread Betting Broker For Mobile Users
OANDA Europe LTD is recognized as one of the leading spread betting brokers catering to mobile users’ needs. With its user-friendly mobile app and advanced trading platform, OANDA Europe LTD offers a seamless and convenient spread betting experience on the go. Mobile users can enjoy real-time market data, execute trades, and access a wide range of CFD instruments from the palm of their hands. OANDA Europe LTD’s commitment to mobile trading ensures that users can stay connected to the markets and make informed trading decisions anytime, anywhere.
OANDA Europe LTD’s app is available on Google Play and the App Store. With it, you can enjoy quality research materials, including over 50 technical indicators, 32 overlay tools, 11 drawing materials, and 9 chart types. There is also a virtually funded demo account for testing it before making a final decision.
✔ Fast and user-friendly account opening
- User-friendly mobile app designed for easy navigation and efficient trading.
- Real-time market data and advanced charting tools for comprehensive market analysis.
- Access to a wide range of financial instruments, including forex, commodities, indices, and more.
- Low spreads and flexible leverage options for enhanced trading opportunities.
- Secure and reliable platform with robust risk management features.
- The broker only supports forex and CFD instruments, which can inconvenience investors looking to own purchased assets.
- The mobile app security can be improved since it doesn’t feature face or touch ID
Note: 76.6% of retail investor accounts lose money when trading CFDs with this provider.
7. City Index – Spread Betting Broker for Beginners in the UK
City Index is one of the best spread betting brokers for beginners in the UK because it is backed up with plenty of educational and research tools to improve your trading skills. The technical indicators, charting tools, and Reuter’s news fees are precisely what beginners in the UK need to quickly analyse the trading markets and make informed decisions.
City Index began its operations in 1983 and has become one of the global spread betting brokers offering more than 12,000 tradable instruments. It is regulated by the most stringent global authorities, including the Financial Conduct Authority, making it a safe broker for your investment capital.
The spreads of this broker are among the tightest in the industry, starting from 0.5 pips. Although the trading commission varies depending on the market assets, City Index broker charges an inactivity fee should you fail to open a position for 12 months. There are also financing costs for leveraged positions held overnight.
We must admit that this spread betting broker’s trading platform is speedy and performs seamlessly on all devices. Novice investors wouldn’t have a hard time placing and monitoring trades because of its many research tools for market analysis. Additionally, there are educational resources, including videos, guides, and a demo account, to improve your trading experience.
✔ Large product catalogue
- Plethora of research and educational tools
- Competitive spreads
- Easy-to-use and customisable trading platform
- Customer service available 24/5
| Type | Fee |
| Minimum deposit | £100 |
| Overnight fee | +2.5% on long positions |
| Deposit fee | 2% |
| Withdrawal fee | 0$ |
| Inactivity fee | $15 |
| EUR/USD spreads from | 0.5 pts |
| Trade major indices with spreads from | 0.4 pt |
| Commission on shares | 0.08% |
| Trade US Crude with spreads from | 1.5 pts |
| Spot gold spreads from | 0.5 pts |
What Do Other Traders Say?
Understanding the experiences of fellow traders is pivotal in choosing the right spread betting broker in the UK. Below, we present some of the user feedback we bumped into on Google Play, the App Store, and Trustpilot. Explore these insights, which provide a diverse perspective, aiding in your selection process.
Pepperstone
Pepperstone receives acclaim for its efficient spread betting infrastructure and low-latency execution. Users value the availability of multiple trading platforms and competitive spreads offered by the broker.
-
“The most important thing is customer support, it leads trust, pepperstone is doing great in this department.” – Brendan Coetzee
-
“I’ve used many trading platforms, and this is my favourite. Took me a while to get used to it, as it was slightly different from what I was used to, but now love it & all its features.” – Jana from Gold Coast
-
“Easy to open. Easy to use. Easy to add money. Easy to withdraw money. Good customer service. Fast execution. Less spreads. Just learn how to trade and have fun.” – Pruthviraj Rathod.
AvaTrade
Traders commend AvaTrade for its comprehensive spread betting options and educational resources. The platform’s user-friendly interface and analytical tools are highlighted by users.
-
“I love the interface of the app and ui making it easy for me to understand how to navigate through the app. Thanks to my account manager (Alev Nazli) she’s really doing a great job ?” – Ebughe endurance
-
“Very smooth and clean, educational videos to support your understanding of the system and trading in general. Interactive customer service that actively try to support you as best they can, very friendly and understanding” – Jaundre Koekemoer
-
“Application is easy to use. The customer services is very helpful. And it’s a great way to learn and trade with professional help alway their to assist” – Stefan Strydom
Spreadex
Spreadex earns praise for its intuitive platform and accessibility in spread betting. Users appreciate the simplicity of the interface and diverse range of markets available, making it an attractive choice for spread betting enthusiasts.
-
“Easy to use Platform, v friendly staff. Never had any issues” – Matthew Hill
-
“Been with Spreadex more than ten years, great range of markets, particularly among UK smaller caps. Pay up quickly when a short goes to ‘zero’ too, much better experience than I have had with CMC for example.” – TheAceTrader
-
“A very useful financial spread betting app that should cover all your needs. It’s definitely the most useable of the broker apps that I’ve tried. A great platform that lets you analyse the markets, place spread bets & manage your risk and positions all on your phone. They’ve also got a great range of tools and excellent customer service which I found very attractive. 10/10 for my experience with Spreadex thus far” – JakeReadman
FxPro
Feedback for FXPro highlights traders’ appreciation for its competitive spreads, versatile spread betting options, and robust trading platforms. Users consistently praise its user-friendly interface and diverse analytical tools, considering these aspects as key strengths of the platform.
-
“I just love this app, everything is clear, it’s perfect for all types of investor also for long term invest.” – Dibakar Barua
-
“While providing the services, they did it quickly and proactively. The provides a wide range of functions that are useful while generating monthly and yearly returns. The dashboard is designed to be easy to use and understand” – Nitesh Saini
OANDA
Users appreciate OANDA for its range of spread betting options and the reliability of its platform. However, some users mention the need for additional educational resources and improved customer service.
-
“Account was easy to open and was contacted next day by Luke a VERY helpful account manager who was very knowledgeable and answered all my questions quickly. Happy with service.” – Lucy P T
-
“The most reliable broker out there I’ve been with them for years and they’ve never disappointed me and when it comes to withdrawal they are super fast I would rate them 10/10 but obviously no broker is perfect but so far so good” – Zukisa Gaca
-
“iOS 12.3.1 is the software I’m currently using and the app crashes out of the blue a lot and I’m using the app on my iPad Pro 11 inch with iOS 12.3.1 and on my iPhone XR running the same software! The only way to describe the crash is that it happens out of the blue I could launch the app and it runs fine for a few minutes and then it just crashes and kicks me back to the home screen and then sometimes I’ll open the app pull up a chart and try to switch between the different time frames and it will crash! Please fix this I do most of my trades from my mobile devices and I love the oanda app but the random crashes Haagen got to go thanks in advance!!!” – Michael
City Index
Traders commend City Index for its diverse range of spread betting markets and user-friendly platform. Users value the availability of research tools and responsive customer support.
-
“I must say I’m not sure why people are writing bad reviews, I have been a trader for a few years now with city index and I must say I can not fault them at all.” – gp.c
-
“Very quick and responsive to my question through the online chat support. City Index is outstanding, I truly love trading with them.” – Chris Colquhoun
How To Choose the Right Spread Betting Broker in the UK
Many investors in the UK find it challenging to choose the right spread betting broker for their trading requirements. Since spread betting in the UK is tax-free, most investors in the UK wish to try it. Therefore before you give spread betting a try, make sure that the broker you are using has the following characteristics.
Above everything else, this is the first factor you should consider when choosing a spread betting broker. They must be licensed and regulated by world-class financial authorities, including the UK’s Financial Conduct Authority. Note that trading with a regulated broker secures your investment and keeps you from getting in trouble with the law.
It’s a no-brainer that spread betting involves the speculation of markets’ asset prices. You will predict the rise and fall of asset prices without owning the underlying assets. You will find brokers charging fixed and variable spreads. Therefore ensure you choose a broker charging spreads that complement your trading activities.
The best trading platform should be fast and customisable. It should also be backed up with adequate trading tools, including educational and research tools that let you learn and analyse the market.
Suppose you are a novice investor looking to invest in spread betting in a more extended period. In that case, you need to choose a broker offering a wide variety of tradable instruments. Whereas you will have specific markets to spread bet on, you must have extra options if you feel like trying something new.
Choosing a broker with reliable customer support service is of utmost importance. If you are a beginner, you will require clarifications at some point. Therefore, ensure that the customer support service is reliable and available through various communication channels, including email, phone, and live chat.
The best spread betting broker must allow various payment methods, including debit/credit cards, bank transfers, and e-wallet. As much as you may feel like this is not essential, there are brokers out there that only accept the traditional payment modes.
All licensed and regulated brokers are excellent in their own way. They are tailored to suit different investors. That is why it is always advisable to test them before risking your funds. The demo account is the tool that most inventors use since it gives you the feel of how the live training account works. Note that the broker will reward you with virtual funds immediately when you complete signing up.
How to Register a Spread Betting Account
After you’ve found the best spread betting broker for you, you need to register an account, verify your identity, and fund your account. The process is surprisingly easy and if you’ve ever registered an online account before, you should be familiar with the process.
What’s more, the registration process is universal and follows Financial Conduct Authority’s (FCA) strict regulations.
Get started by following the links provided on this page to get directed directly to your picked broker. Brokers allow you to register an account on any device that they support meaning you can register using your computer or smartphone. The account will be available on both devices after the process.
You might have to download a trading app from the broker before you can get started. But today most brokers offer browser-based platforms that require no download.
During the next step, you’re asked to provide personal information as a foundation for your account. This is the same information that you provide when registering on social media and other online services, ie. full name, address, email address, etc.
Before you get access to your account, you will have to verify your identity and address. Therefore, make sure that you only provide accurate and verifiable information.
You are now going to verify your identity and prove to the broker that you are you. This involves providing at least two different documents: a copy of your passport (Proof of Identity) and a recent utility bill (Proof of Residence).
In some cases, the broker might ask you to provide more information to further verify your identity.
At this stage in the process, you have access to your account and can also use your broker’s demo account. However, before you can start spread betting properly, you need to fund your account.
Now, most spread betting brokers in the UK have a minimum requirement that you have to fulfill. These requirements vary from £50 to £300 so make sure you pick a broker that you can afford. Also, some brokers have no minimum deposit requirements, meaning you can fund your account with any amount you see fit.
That is all you have to do. As soon as your deposit has reached your account, you’re ready to start spread betting.
We suggest that you study spread betting before you get started, that way you will improve your chances of making a profit while limiting unnecessary losses.
What is a Spread Betting Broker?
A spread betting broker is a financial intermediary that allows traders to speculate on the price movements of various financial instruments, such as stocks, commodities, indices, currencies, and more, without owning the underlying assets. In spread betting, traders bet on whether the price of an asset will rise or fall. The broker then provides the platform for placing these bets and typically earns its revenue from the spread, which is the difference between the buying and selling prices of the asset.
What Does Spread Mean in Trading?
Spread in trading refers to the difference between the buy and sell price of an asset. Simply put, it is the cost that a trader incurs when they enter a trade. Spread exists in every financial market, including forex, stocks, and commodities, and it can either be fixed or variable. A fixed spread means that the difference between the buy and sell price remains constant, regardless of market conditions, while a variable spread can fluctuate depending on market volatility.
Spread is essential in trading, as it determines a trade’s profitability. For instance, when you enter a long position, you will pay the ask price, which is typically higher than the bid price. However, you will receive the bid price when you exit a trade. The difference between the two prices is the spread, usually paid to a broker for its services.
How to Reduce Risks in Spread Betting
Spread betting can be lucrative yet risky, but with careful planning and risk management strategies, you can mitigate potential losses and increase your chances of success. Here are some effective ways to reduce risks in spread betting.
- Educate Yourself – Before you venture into spread betting, ensure you have a solid understanding of the financial markets, trading strategies, and the mechanics of spread betting itself. Knowledge is your best defence against unnecessary risks.
- Practice Risk Management – Develop a clear risk management strategy that outlines your risk tolerance, position sizing rules, and criteria for entering and exiting trades. Stick to your plan even in the face of market fluctuations.
- Diversify Your Portfolio – Avoid putting all your capital into a single trade or asset. Diversification helps spread risk across different instruments, reducing the impact of adverse movements in any one market.
- Start Small – Begin with a modest capital allocation and gradually increase your position sizes as you gain experience and confidence in your trading strategy. This approach allows you to test the waters without risking significant amounts of capital upfront.
- Use Leverage Wisely – While leverage can amplify profits, it also magnifies losses. Exercise caution when using leverage, and avoid overleveraging your positions. Consider using lower leverage ratios to minimise risk.
- Stay Informed – Stay abreast of market news, economic indicators, and geopolitical events that could impact the financial markets. Being well-informed allows you to make more educated trading decisions and react promptly to changing market conditions.
- Monitor Your Trades – Regularly review your open positions and reassess their risk-reward profiles. Adjust your stop-loss levels and take-profit targets as needed based on evolving market dynamics.
- Control Your Emotions – Emotional decision-making can lead to impulsive actions and irrational trading behaviour. Maintain discipline and objectivity in your approach to spread betting, and avoid letting fear or greed dictate your actions.
Spread Betting vs Forex Trading
Spread betting and forex trading are two distinct methods for engaging in the financial markets, each with its unique characteristics and appeal.
Spread betting entails speculating on the price movements of various financial instruments without taking ownership of the underlying assets. This method allows traders to bet on diverse assets, including stocks, commodities, indices, cryptocurrencies, and currencies.
In contrast, forex trading involves the buying and selling of currencies to profit from fluctuations in exchange rates. Unlike spread betting, forex traders own the currencies they trade and can choose to hold them for extended periods. Additionally, forex trading offers more flexibility regarding trading options, such as leverage usage and various order types.
Another difference lies in the tax treatment. Spread betting profits are typically tax-free in the UK, as they are viewed as a form of gambling. On the other hand, earnings from forex trading may be subject to capital gains tax or other levies.
Moreover, spread betting and forex trading are regulated differently, with spread betting often being governed as a form of gambling. Forex trading is regulated as a financial activity by relevant authorities.
While spread betting is generally not compatible with Islamic finance principles due to its resemblance to gambling, it restricts Muslim traders. However, forex trading can be structured to comply with Islamic laws, allowing Muslim traders to participate in the forex market.
FAQs
Spread betting brokers are compensated from the spreads charged to their clients. They also make money by adding a small margin to the usual market spread. For example, if a share’s buying price is £200, and the selling price £202, a broker may quote it as £199 buying price and £203 selling price in a spread bet.
Yes. With a good strategy and broker, spread betting can yield you good tax-free profits. You can find all the top companies in our spread betting broker reviews above.
Yes. Spread betting in the UK is classed as gambling and so any profits you earn spread betting will not be taxed.
First, You need to identify your investment capital and tradable instruments. Then, you can proceed to determine the best spread betting broker for your investment requirements. Sign up for a trading account and have access to multiple instruments to spread bet on. Click either buy or sell, place your stake, add stop loss and monitor your trading activity.
Yes. Spread betting is legal only if you are investing in a broker that is licensed and regulated by world-class authorities, including the UK’s stringent Financial Conduct Authority (FCA). The icing on the cake is that spread betting is tax-free!
Both CFD and spread betting are high-risk investments that can be highly profitable if you have the right strategy and brokers like the ones we recommend above. However, what makes spread betting better is that, unlike CFDs, its profits are free from capital gains tax.
While spread betting is legal in few countries globally, it remains popular in the UK because it is tax-free. To succeed in spread betting, make sure that you choose a suitable best broker like the ones we recommend in our mini-reviews above.
Conclusion
Spread betting in the UK has become popular. Therefore, make sure you start your investment journey by choosing a suitable broker for your investment needs. With the best spread betting broker in your corner, you have a higher chance of making profits. Additionally, be knowledgeable and strategic and take losses as a learning process. You will find yourself being a successful and independent spread betting investor after a few trades.
How we test?
Our test process is really based on two different aspects: our independent tests and research, as well as user reviews from Google Play, the App Store, and Trustpilot, etc.
The first thing we do when testing is to check every detail and test every tool and instrument. Our experts spend more than 200 hours on every article. We pay special attention to the specific function or the criteria that we’re comparing during the comparing stage. This means that we must determine which broker is more suited for beginners, and which is better suited for experts, for example. Find out more about our test process here.
Do CMC Markets have any hidden fees? Or inactivity fees? Can’t find this info
Like all brokers, CMC Markets has fees for certain services and products, including a $15 inactivity fee. You can find more information about CMC Markets in our review and by following one of the CMC Markets links in this guide.
What is the most important information to view when spread betting?
You need practice. First, create your spread betting account. You need right select a market to trade. Choose a more suitable broker for you and always monitor your position until close your trade. Good luck
Currently, I navigate gold and oil trading effortlessly. The advice on selecting a spread betting broker proved invaluable. The step-by-step registration guide facilitated my seamless entry into an FCA-regulated broker. The ease of use and diverse market options add joy to my trading experience.Many thanks to the creators for breaking down intricate concepts and making trading not just understandable but enjoyable!
I use the AvaTrade platform and I have been impressed with its user-friendly interface, diverse asset selection, extensive educational resources, responsive customer support, robust risk management tools, competitive pricing and compliance. Whether you are a newbie or an experienced trader, AvaTrade offers a reliable platform for trading success.