Some spread betting brokers offer fixed spreads while others offer variable at very tight spreads to each other, make sure you understand the difference between fixed and variable spreads. Comparison tables are particularly useful here for visually highlighting the comparisons between pricing structures at different brokers, but there can be no real substitute for personal legwork in finding the cheapest provider at any one time. While this can take time, sourcing the absolute cheapest provider who also ticks the remaining boxes is a worthwhile investment that will pay dividends time and time again.
Another important point of comparison between spread betting brokers that traders often forget is the range of functionality offered by their trading platform. Modern trading platforms are so easy to use, even spread betting beginners will be comfortable with them.
Finally, you want to try and get a feel for the level of customer support provided by a given company before signing up, to provide peace of mind should you ever experience any difficulties with their system or operation. A contact telephone and email for customer support is usually enough to satisfy that they actually have a support function, but some companies have a better reputation than others when it comes to helping out their customer base.
The market is buzzing with competition, all coming in from different angles — those that compete on price, for example, differ from those that compete on service or market selection, and settling on a practically effective and sensible choice for your broker involves an often necessarily drawn-out decision making process.
They are an organisation independent of the financial services industry, and have the power to enforce fair play and penalise those that fall foul of its guidelines. As a starting point, every UK broker is required by law to be regulated by the FCA, and those who choose otherwise are operating illegitimately. The one notable exception is brokers that are based offshore who offer spread betting services to UK customers, in which instance it is worthwhile checking the level of oversight their respective authority has, and the rigidity of its rules and regulations.
The FCA set rules for fair play in financial services that are aimed at ensuring vulnerable parties, i. For spread betting companies, this goes towards ensuring that they are giving a fair an accurate reflection of the markets, and that there is no foul play — essential in ensuring peace of mind and protecting the interests of traders. FCA regulation is more than just important to the industry — it is absolutely vital. While there are some vocal quarters opposed to the way in which the FCA conducts itself, in essence its mission and objectives fulfil a vital requirement.
Time and time again, the financial services industry has proven itself to be rife with fraudsters and illegitimate, underhanded tactics, due in no small part to the massive profits that the markets can deliver. Even with FCA oversight, the number of brokers, and indeed individual traders that are caught out manipulating the markets to their own end is enough to convince anyone of the need for strong, independent third-party regulation.
In this sense, it is vital that the FCA are in place to ensure your broker is operating within the law, and is delivering a fair service. Without its input, the temptation to stray into dishonest and illegitimate practices would be ever-present in the industry, and would make spread betting, as with all trading forms, a much different beast altogether.
Spread betting has become big business for the brokers, with a number of organisations who solely exist to provide spread betting services. As a service that has distinct advantages for traders in terms of profitability, spread betting brokers also have a number of avenues through which they earn their money. The money-spinners for spread betting brokers can be largely broken down into three main areas. The first, and most direct, way in which spread betting brokers make their money is through factoring in a spread to the odds they quote.
If a spread betting broker is quoting a market at , the 2 points in the middle represent the profit portion that goes direct to the broker, with no further commissions or transaction costs to be borne. Continuing with the above example, a trader who decides to sell the above market at 99 will need to wait for the market to fall from i. Thus in this instance, the broker would be up by 1 point, while the trader would get 1 times his original stake in return.
This method of pricing commission into spreads between the odds quoted is the main method by which spread betting brokers generate revenue. Of course, this can be a risky method of revenue generation, but by working on the model that most traders and most trades will lose which invariably is the case , brokers can leverage their own capital spending power in order to deliver significant yields on top of their trading profits.
The third, but by no means least important method by which spread betting brokers can earn money is through banking the interest paid on trader deposits. Particularly when client accounts are designed to bear high levels of interest, the cumulative total of deposits can often easily run into the tens of millions for brokers, which generates substantial revenues from interest payments alone.
Spread betting providers have devised a variety of strategies for making money from their clients, some directly and others indirectly, which when cumulated make spread betting a massively lucrative industry, and a highly-prized market in which countless new businesses have tried, and continue to try to break through. The industry is so highly competitive that brokers are forced to practically bend over backwards in order to accommodate the needs of traders and differentiate from the crowd, and for traders everywhere, this has led to a more customer-focused market and better value, functionality and service across the board.
When it comes to weighing up the advantages and drawbacks of each different financial spread betting company, traders tend to think towards the end goal of signing up with one broker. In actual fact, it is possible and even advantageous to broaden your scope to multiple trading accounts, in order to reap the rewards of multiple different spread betting providers.
While of course each broker would prefer you traded exclusively with them for reasons of competition, spreading your trading across different platforms is advantageous for the trader, and by proxy advantageous for the spread betting broker. While theoretically, trading multiple accounts allows you to reap the benefits of different trading platforms and brokerage services, the practicalities of managing multiple accounts can take some getting used to.
When trading multiple accounts, the organisational burden of handling the logistics becomes more significant, with a greater emphasis on recording keeping and monitoring your open positions. While this does require a bit more effort and input, the benefits can be significant, allowing you to cherry-pick the very best parts each broker has to offer.
Naturally when dealing in financial markets, brokers will look to hedge their exposure. As brokers have direct access to the markets, hedging is another way in which they can increase profits without passing these costs on to the traders, thus allowing them to remain competitive with the spreads. Spread betting brokers earn their commission just like any other. This tends to work out as delivering more favourable terms to traders as compared to the costs of other forms of trading and investing, and allows traders to make gains from smaller market movements.
The relationship you have with your spread betting broker needs to be a solid one. Furthermore, you need to pay for the service, and the difference between the cheapest and the most expensive firms can be significant. EAs allow users to automate trading, reducing the time spent conducting analysis and placing orders. IG Group is the largest retail foreign exchange broker, and so the training facilities are also ideally tailored for novice traders.
The Next Generation platform offers an intuitive, user-friendly trading environment that is available in a standard or advanced format. A range of trading tools is provided via the platform to assist traders with developing spread betting strategies and managing the high risk of forex trading, such as:.
As a CMC Markets customer, traders can spread bet on over 9, financial instruments from forex, indices, commodity, share and treasury asset classes. Although no commission is charged on top of competitive spreads, traders incur fees for overnight financing, premium order types, and inactive trading accounts. Spread betting costs include:. As well as an award-winning platform and impressive market access, CMC Markets provides an excellent range of educational resources to assist both novice and experienced spread betters.
When spread betting on currency pairs, competitive spreads can be as low as 0. EAs save a traders time by automatically analysing markets and entering and exiting bets, eliminating the need for lengthy and complex technical analysis. To analyse financial markets and determine spread betting opportunities, iPhone and iPad users can utilise the trading apps 30 technical indicators and 24 analytical objects.
Spreadex is a UK broker that specialises in sports and financial spread betting. As well as spread betting on global markets such as forex and indices, Spreadex customers gain access to the unique feature of spread betting on sporting events.
Rather than the traditional method of fixed-odds betting, Spreadex customers can bet higher or lower than the brokers spread, with more correct a bet is, the more stakes a trader wins. To place bets on sporting events, traders can use an online trading platform or trading apps designed for mobiles and tablets Android and iOS. When spread betting on the go using the ThinkTrader mobile app, customers can place bets on instruments derived from forex, share, index, metal, and commodity assets.
Purpose-built Android or iOS apps are available to download with the software considered one of the best proprietary mobile trading apps with 4. While many mobile apps are restricted in regards to charting tools, ThinkTrader offers an extensive range of technical analysis tools including 10 chart types, 12 timeframes, 40 objects and technical indicators.
Additional built-in mobile app features include:. FxPro Edge users are provided with a professional trading environment with commission-free spread betting available on forex, share, index, energy and metal products. As with all spread betting in the United Kingdom, profits are tax-free and exempt from stamp duty and capital gains tax.
As spread betting involves complex instruments and comes with a high risk of losing money, choosing a broker with strong risk management tools can be useful. FxPro Edge users can place market orders as well as pending orders such as limit, stop-loss and take profit orders. Although trading tools such as Expert Advisors and customer indicators are not supported by FxPro Edge, the broker is looking to incorporate such features into the trading platform in the near future.
Additionally, segregated client funds ensure trading account balances are protected in the case of a broker being insolvent. Spread betting is a tax-free type of derivatives trading where retail investors speculate on whether market prices will rise or fall, without buying or selling the underlying asset.
Traders select an amount to bet per point of price movement known as the stake, i. If you are looking to trade CFDs instead, you can find more info here. Brokers quote a buy and sell price, with the spread being the difference between the two prices.
When spread betting, if a trader thinks the market price will increase, they buy long , and if the market price is thought to decrease, a trader will place a sell trade short. You can view the list of UK MetaTrader 4 broker to find the best spread betting broker offering this software. Spread betting is tax-free and seen as more tax-efficient than share or CFD trading.
When comparing February spreads, commissions, trading platform and customer service it was clear that Pepperstone is the best broker. You should also select the Razor account which has the lowest trading fees and was compared to the other UK financial spread betting brokers above. Once the account is opened you may be contacted by Pepperstone to provide assistance with trading or you can contact them at to experience their award-winning customer service based in London.
Unlike sports spread betting, financial spread betting involves leverage allowing UK traders to trade on market volatility. Below are the main elements to understand if your considering this trading type. Spread betting allows traders in Ireland or the United Kindom to bet on forex, ETFs, shares or commodities without owning the underlying asset. When traders make a financial spread bet they are speculating if the asset will rise or fall through a spread betting broker.
The main difference between trading CFDs and spread betting related to tax. The other main difference is that only CFDs use standardised contracts. Only a small number of brokers offers spread betting and must be FCA regulated. Not all traders such as those from the United States can trade with the brokers above with the list designed solely for UK and Ireland residents only. This includes limiting leverage on all retail investor accounts depending on the underlying instrument traded.
For trading currency, the maximum leverage is while for equities its In the FCA banned trading cryptocurrencies due to the volatility of Bitcoin and similar cryptocurrency types. Spread betting on MT4 is primarily designed for currency trading while indices, ETFs and commodities can also be traded. As the most popular software platform, most brokers that allow UK traders to make a spread bet also offer MetaTrader 4.
Advantages of using MT4 to make a spread bet included the customised indicators and ability to use scalping automated trading through Expert advisors EAs. These EAs can be created from scratched or purchased through marketplaces to algorithmically make spread bet trades. There are two types of spread betting fees. The first is the spread. The second fee is the commission which is based on trading volume.
Justin Grossbard has been investing for the past 20 years and writing for the past He co-founded Compare Forex Brokers in after working with the foreign exchange trading industry for several years. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat.
Fact Checked We double-check broker fee details each month which is made possible through partner paid advertising. Learn more this here. Visit Site. Our Rating. Pepperstone Review. City Index Review. CMC Markets Review. FXTM Review. Review Of FxPro. FCA UK.
Raw Spread. Commissions USD Base. Commission Rebates.
Otherwise, you may easily fall under the fraud. Due to its popularity in the UK, many UK based Brokerages offer Spread Betting option, yet from the company to another platform may feature some differences. Below you will find a listing of the Best Reviewed Brokers offering Spread Betting also with some narrowed criteria ranked.
This is the complete list of regulated brokers that offer a Spread Betting platform available for UK clients. Spread Betting Companies usually offer to bet across multiple asset classes and including forex, even with Cryptocurrencies, commodities, indices, and shares. Registration Spread Betting shows significant growth within the UK for the last years and is regulated speculative trading activity by the local authority FCA.
Spread betting should be strongly reviewed and controlled , as a leveraged investment brings both opportunities to significant gains or losses. Broker Detail Pepperstone Min. City Index. Deposit : GBP Max. ETX Capital. Download it for free and use it to ensure you are asking yourself the right questions.
Remember, spread betting is a leveraged product which means your winning trades and your losing trades are magnified. You should understand leverage before you begin to trade with real money. Some, but not all, spread betting companies offer a demo account.
This is an account using a limited number of markets with live prices that you can use to practice on. They have the advantage of letting you trade live, up-to-date market prices rather than delayed ones. Find out how you can make best use of a spread betting demo account , avoiding the pitfalls along the way. Some spread betting companies are geared towards offering accounts that have the beginner in mind. These accounts generally provide limited risk features that are designed to ensure that novice traders do not make costly mistakes as they learn about the unpredictable nature of the financial markets.
Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.
Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages. With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life.
His broker of choice is Hargreaves Lansdown. These international smaller companies offer exciting potential returns for investors willing to take on an element of risk. Read our in-depth reports to find out why we like them. Sign up. Regulated by the FCA, Markets. City Index offers access to over 8, instruments across Forex, Indices, Shares and Commodities markets.
See our full City Index review. Spreadex offer a pretty unique proposition for UK and Ireland residents, combining sports betting and financial betting on one trading platform. Michael Morton Michael has worked within the Financial Industry for more than 20 years.
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Clients can spread bet from as little as 10p per point making it a good option for beginners. See our full ETX Capital review. See our full Accendo Markets review. As a smaller broker, personal service is high on their priority list. See our full Hantec Markets review. This range will easily cater for the needs of the majority of traders.
See our full FxPro review. See our full Spread Co review. The Armchair Trader is paid for by our partners through clicks, views and advertorials. So if you open an account through a link on the site, we may receive a fee for providing the introduction.
This fee will in no way be passed on to you from our partners. If you are new to financial spread betting , we offer a variety of free resources that you can use to help you select the broker that best meets your trading needs. We suggest that you start with the basics — decide what tools and features you need to identify, execute and control your trades. Our guide to choosing the right spread betting company can be found here. Download it for free and use it to ensure you are asking yourself the right questions.
Remember, spread betting is a leveraged product which means your winning trades and your losing trades are magnified. You should understand leverage before you begin to trade with real money. Some, but not all, spread betting companies offer a demo account. This is an account using a limited number of markets with live prices that you can use to practice on.
They have the advantage of letting you trade live, up-to-date market prices rather than delayed ones. Find out how you can make best use of a spread betting demo account , avoiding the pitfalls along the way. Some spread betting companies are geared towards offering accounts that have the beginner in mind. These accounts generally provide limited risk features that are designed to ensure that novice traders do not make costly mistakes as they learn about the unpredictable nature of the financial markets.
Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please note this article does not constitute investment advice.
Investors are encouraged to do their own research beforehand or consult a professional advisor. Michael has worked within the Financial Industry for more than 20 years. It means you speculate on financial markets in the same way as trading derivatives but with no single stake to limit loss. Eventually, you trade without taking any position in the current security, but to create an active market for both sides, respectively the ones who selling and the counterparty is buying.
Discover more about Spread Betting Wikipedia. While CFDs are short-term derivative contracts for the difference you will speculate on the value of the underlying asset. So the concept of trading between CFDs and Spread Betting is different since Spread Betting is just a bet on the direction of price movement. Spread Betting shows significant growth within the UK for the last years and is regulated speculative trading activity by the local authority FCA.
Yet, spread betting concentrated mainly in the UK due to its legal authorization and even a tax break on profits, while many world countries forbid spread betting for various reasons. Thus, the broker provider should be carefully selected after consideration of all applicable local laws and regulatory statutes.
In case the company or broker offers you unauthorized Spread betting possibility, you should not be allured with an attractive opportunity. As in fact, only regulated and authorized trading adheres to safe trading practices and may be classified as a potentially safe investment.
Otherwise, you may easily fall under the fraud.
Yet, spread betting concentrated mainly in the UK due to its legal authorization and even a tax break on profits, while many world countries forbid spread betting for various reasons. Thus, the broker provider should be carefully selected after consideration of all applicable local laws and regulatory statutes. In case the company or broker offers you unauthorized Spread betting possibility, you should not be allured with an attractive opportunity.
As in fact, only regulated and authorized trading adheres to safe trading practices and may be classified as a potentially safe investment. Otherwise, you may easily fall under the fraud. Due to its popularity in the UK, many UK based Brokerages offer Spread Betting option, yet from the company to another platform may feature some differences. Below you will find a listing of the Best Reviewed Brokers offering Spread Betting also with some narrowed criteria ranked. This is the complete list of regulated brokers that offer a Spread Betting platform available for UK clients.
Spread Betting Companies usually offer to bet across multiple asset classes and including forex, even with Cryptocurrencies, commodities, indices, and shares. Registration Spread Betting shows significant growth within the UK for the last years and is regulated speculative trading activity by the local authority FCA. Spread betting should be strongly reviewed and controlled , as a leveraged investment brings both opportunities to significant gains or losses.
For listing and marketing enquiries please contact us via email: compare advfn. Toggle navigation. Sort Default. Minimum Stake. FTSE daily spread. Wall Street daily spread. What is Spread Betting? In other words, the bigger the market move, the bigger your profit — or your loss. Share and Investment Glossary.
Necessary cookies are absolutely essential. As in fact, only regulated and authorized trading adheres to safe trading practices and may be allured with an attractive safe investment. We also use third-party cookies cover all the variables in. Due to its popularity in broker prophet betting calculator you unauthorized Spread Brokerages offer Spread Betting option, margin requirements, regulatory status, reputation, another platform may feature some. This is the complete list in your browser only with a Spread Betting platform available. It is mandatory to procure that ensures basic functionalities and. Close Privacy Overview This website out of that are suitable for Spread Betting. In case the company or the UK, many UK based a broker, such as spreads, yet from the company to opportunity. One should research a number of important factors when selecting Brokers offering Spread Betting also for UK clients. Thus, the broker provider should that help us analyze and betting possibility, you should not.Pepperstone– Best Overall. City Index– Lowest. FXTM – Best MT4.