Best Spread Betting Brokers in the UK
One popular type of betting is spread betting, which allows users to place bets on a wide range of different markets, including stocks, currencies, commodities, and more. There are numerous spread betting platforms in the world that provide UK users with great trading conditions and a wide range of markets to choose from.
This article will explore some of the best spread betting brokers in the UK and their trading conditions. Whether you are a seasoned trader or just starting out, there is sure to be a platform that suits your needs! Stay tuned for our recommendations and insights into the best spread betting platform UK around today.
What Is Spread Betting?
Spread betting is a financial derivative that allows traders to speculate on assets like forex, indices, commodities, or shares without buying the assets. Instead, they are betting on whether the price will rise or fall.
Unlike stock trading or Forex trading, spread betting allows traders to make money even when the price of an asset falls. For example, if a trader thinks that the price of a certain asset will fall, he sells that asset, which means placing a bet that the asset will fall in price.
Similarly, buying means placing a bet that the asset will rise. And if the asset performed as you speculated, you win that trade. But if it does not, you lose the trade.
The profits or losses are calculated by multiplying the bet size by the unit of movement of the asset you bet on. The bet size is the amount of money you bet per unit of movement. The unit of movement is measured in points or pips.
All spread bets have a duration between one day and a few months, but you can also choose to close them earlier or close them later.
Best Spread Betting Platforms in the UK
Given the popularity of spread betting in the UK, it is no surprise that there are numerous platforms to choose from. In the following table, we will explore some of the best spread betting brokers in the UK, including their trading conditions and features.
| Broker | FCA Regulation | Minimal Deposit | Markets | EURUSD typical spread | Benefits | |
|---|---|---|---|---|---|---|
Yes |
$100 |
Forex, Spot Indices, CFD for Energy, Spot metals, CFD for shares, CFD for agricultural products, CFD for indices, CFDs on Crypto |
0.5 pips |
Negative balance protection |
||
Yes |
$200 |
CFDs, Forex, Index, Stocks, Currency Indices, Commodities |
0.09 pips |
attractive trading conditions; fast order execution |
||
Yes |
$250 |
17,000+ Forex, Crypto, UK and US Stocks |
1 pip |
Huge range of assets |
||
Yes |
$1 |
Forex, Cryptocurrencies, Indices, Stocks, Commodities, Shares & ETFs |
0.7 pips |
Fast order execution, stable platform |
||
Yes |
$100 |
Currency pairs, CFDs on stocks, indices, commodities, metals, cryptocurrencies |
0.69 pips |
Low spreads, regulated by multiple regulators |
||
Yes |
$200 |
Currency pairs, CFDs on American, Australian, and European stocks, commodities, and indices |
0.7 pips |
Free trading signals |
||
Yes |
$100 |
Currencies, cryptocurrencies, stocks, indices, bonds, commodities, precious metals |
0.7 pips |
Wide range of Forex and CFD trading instruments |
FxPro
The FxPro broker was registered in July 2006 in Cyprus. The company’s activities are licensed by financial regulators: CySEC (Cyprus), Bahamas SCB, FCA (UK), and South African FSCA. FxPro is successfully operating in more than 170 countries for retail and institutional clients. The broker has received more than 85 awards, including “Best Forex Trading Platform” and “Best Trading Platform”. FxPro has become known for providing the best trading tools. With FxPro broker, traders can trade more than 70 currency pairs, futures and stocks (Twitter, Apple, Google). The company has stock indices, metals and energy resources at its disposal. FxPro sets high safety standards with the client's funds being kept in large international banks. They are insured and separated from the broker's equity.
Pepperstone
Regulated by the FCA, Pepperstone requires a minimum deposit of $200. Some of the markets they offer include CFDs, forex, index, stocks, currency indices, and commodities. Their typical EUR/USD spread is as low as 0.09 pips, and they offer a range of other trading benefits like attractive trading conditions and fast order execution.
IG Markets
With decades of experience in the industry, IG Markets is one of the best spread betting platforms in the UK at 1 pip. They are FCA-regulated and require a minimum deposit of only $250. Some of their most popular markets include stocks, forex, crypto, and more. Additionally, they offer various trading tools to help you make better decisions in the market.
CMC Markets
With competitive spreads of 0.7 pips and a minimum deposit of only $1, CMC Markets is another popular spread betting platform in the UK. They offer numerous markets to choose from, including forex, stocks, indices, shares and ETFs, commodities, and crypto. With their intuitive user interface, easy-to-use trading platform, and 24/7 customer support, they are a great choice for traders of all levels.
City Index
City Index is another highly regulated spread betting platform with a minimum deposit requirement of $100. They offer competitive spreads starting at 0.69 pips, and their most popular markets include forex, stocks, indices, commodities, and crypto.
Vantage
Offering free trading signals, Vantage is one of the best spread bet UK platforms. Their minimum deposit requirement is $200, and they offer competitive spreads starting at 0.7 pips. Additionally, they have a wide range of markets to choose from, including commodities, indices, and CFDs on American, Australian, and European stocks.
Markets.com
With competitive spreads starting at 0.7 pips and a minimum deposit requirement of just $100, Markets.com is another popular UK spread betting platform. They offer numerous markets to choose from, including forex, stocks, indices, commodities, and crypto.
How To Choose a Spread Betting Platform?
If you want to receive a great trading experience while spread betting, you should make sure that you choose the best spread betting broker. To help you learn how to choose one, the Traders Union experts have created a short list of features of a great spread betting broker. Here they are:
1. FCA Regulation
Trading with an FCA regulated ensures that your funds are safe. Being regulated by other financial regulators is a plus, but FCA regulation is a must for UK traders.
2. Low spreads and commissions
Most brokers do not have additional commissions for spread betting because they earn money from the spread they have for the assets you choose. So you should choose a broker that has low spreads.
3. Big choice of assets
A broker that has a big choice of trading assets offers more opportunities for you to take advantage of price fluctuations of different markets.
4. Demo account
A demo account allows beginners to test new strategies in real market situations without risking their money. But some brokers offer the demo accounts for free for a limited amount of time. So you should choose a broker that allows you to use the demo account for free.
5. Low bet sizes
In spread betting, traders choose how much they want to risk for a unit of price movements. Brokers usually have minimum bet sizes for different assets. As a beginner, you should not place big bet sizes, so you should choose a broker that has low bet sizes for spread betting.
6. Reliability
A broker’s reliability is determined by its execution speed and other trading conditions that determine the trading experience it offers to its users. One of the best ways to find out a broker’s reliability is to read reviews from its previous users.
7. Low leverage
It is not recommended for beginners to trade with high leverage because although it can increase their profits, it can also increase their losses. Because beginners are more likely to lose money while spread betting, they should choose a broker that has low leverage.
Is Spread Betting Regulated in the UK?
Yes. All spread betting brokers in the UK are required to be regulated by the FCA, ensuring that they meet stringent regulatory requirements and provide high-quality trading conditions to users. In particular, this includes competitive spreads, fast order execution, and a wide range of markets to choose from. When choosing a spread betting platform in the UK, it is important to look for platforms that are FCA-regulated and offer high-quality trading conditions.
Spread Betting and UK Taxation
Spread betting is extremely popular in the UK, in large part due to the tax system. Financial spread betting is generally considered a tax-free form of trading, meaning that users can keep more of their profits from trading.
You won't be expected to pay stamp duty and capital gains tax on your spread betting profits, making it an attractive option for traders in the UK. However, it is important to consult a tax professional when doing financial spread trading spread bets in the UK to ensure that you understand and comply with all relevant tax laws.
Is Spread Betting Risky?
Like all forms of trading, spread betting is a high-risk investment and should be approached with caution. While there is the potential for large profits, many newbies lose money when trading spread bets due to factors like market volatility, lack of experience, and high levels of competition.
That said, the potential profits from spread betting can be extremely tempting and make it an attractive option for many investors. For this reason, it is important to carefully research the risks and benefits of spread betting before getting started.
Additionally, you should always consult with a financial advisor or tax professional when doing financial trading in order to ensure that you are abiding by all relevant laws and regulations. It also helps to start with a demo account to gain some experience and build up your skills before doing real-money trading.
Summary
Trading spread bets can be a great way to make large profits, but it is important to approach it with caution. In particular, it is important to look for regulated UK spread betting platforms that offer high-quality trading conditions and abide by all relevant tax laws. When choosing a platform, you should also consider factors like the types of markets they offer, their order execution times, and the quality of their customer support.
FAQ
What is spread betting?
Spread betting is a form of high-risk trading in which investors place bets on the future price movements of various financial assets. This can include stocks, indices, commodities, forex, and more.
Who can trade spread bets in the UK?
In the UK, anyone can trade financial spread bets as long as they are over 18 and have registered with a regulated spread betting platform. This typically involves creating an account with a broker and depositing some funds to begin trading.
Is there any risk involved in trading spreads?
Yes. As with all forms of trading, there is a risk of loss when doing financial spread betting. However, this can be minimised by taking the time to research and understand the markets and risks before getting started.
Which are the best spread betting brokers in the UK?
There are many different UK-based spread betting platforms to choose from, including FX Pro, Markets.com, and Pepperstone. These platforms offer competitive spreads and a wide range of markets to choose from, as well as fast order execution and high levels of customer support.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!