Spread betting allows you to speculate on the price movement of various financial assets without having to buy the underlying asset itself. Unlike traditional trading, where you buy and sell the actual asset, spread betting involves placing a bet on whether the price of an asset will rise or fall.
The key selling point of spread betting is that it is tax-free in the UK. This means traders can pocket 100% of their profits without having to split any of their earnings with the tax man. This tax advantage has undoubtedly contributed to the rise in popularity of spread betting in the UK. Additionally, the fact that large forex retail brokers such as FXTM and Pepperstone have entered the spread betting market has further fuelled this growth, providing traders with more options and increased competition among providers.
Choosing the right spread betting broker is not an exact science, but there are several important factors to consider. Similar to selecting any other type of broker, you should prioritise low fees, responsive customer support, and a user-friendly trading platform. Most established spread betting firms use their own proprietary trading platforms, whereas newcomers may offer third-party platforms like MetaTrader 4/5 or cTrader.
Traders should also consider the range of financial instruments available, such as stocks & shares, indices, commodities, forex pairs and funds. Additionally, you should review their margin requirements, as these can vary significantly between brokers. Educational resources and research tools provided by the broker can also be valuable, especially for newer traders.
Spread Betting Brokers
The following spread betting brokers are regulated by the FCA and are members of the Financial Services Compensation Scheme (FSCS). In the event of liquidation, clients may be compensated up to £85,000 by the FSCS.
IG
70% of retail investor accounts lose money when trading CFDs with this provider.
IG Group Holdings, better known as IG, has been around since the 70s offering spread betting. The broker has over 1,700 markets available to trade including stocks & shares, commodities, forex, ETFs, Bonds, Futures and Interest Rates.
Account Types
- Spread Betting
- CFDs
Spreads
- Indices From 0.8
- Forex From 0.6
- CMDTY From 0.1
- View Fees^
Leverage
- Indices 1:20
- Forex 1:30
- Commodities 1:20
- Shares 1:5
CMC Markets
69% of retail investor accounts lose money when trading CFDs with this provider.
CMC Markets is a global provider of online trading services, offering a range of financial instruments including forex, indices, commodities, and shares. Founded in 1989, the company is known for its competitive spreads, advanced trading platforms, and comprehensive market analysis tools. CMC Markets serves both retail and institutional clients, providing access to over 10,000 financial products with leverage options tailored to different asset classes.
Account Types
- Spread Betting
- CFDs
Spreads
- Indices From 0.3
- Forex From 0.7
- CMDTY From 0.3
- View Fees^
Leverage
- Indices 1:20
- Forex 1:30
- Commodities 1:20
- Shares 1:5
City Index
71% of retail investor accounts lose money when trading CFDs with this provider.
City Index, founded in 1983, is a well-established provider of spread betting services, offering access to a variety of financial instruments, including forex, indices, commodities, and shares. The broker provides tight spreads and multiple trading platforms, such as its proprietary Web Trader and mobile apps. City Index supports both beginner and experienced traders with educational resources and market analysis tools.
Account Types
- Spread Betting
- CFDs
Spreads
- Indices From 0.4
- Forex From 0.5
- CMDTY From 0.3
- View Fees^
Leverage
- Indices 1:20
- Forex 1:30
- Commodities 1:20
- Shares 1:5
Spreadex
64% of retail investor accounts lose money when trading CFDs with this provider.
Spreadex, founded in 1999, is a UK-based provider of spread betting and CFD trading services, offering access to a wide range of financial markets, including forex, indices, commodities, and shares. The platform is known for its competitive spreads and user-friendly interface, available on both web and mobile. Traders can also execute trades through TradingView, enhancing their analysis and trading experience.
Account Types
- Spread Betting
- CFDs
Spreads
- Indices From 0.6
- Forex From 0.6
- CMDTY From 0.4
- View Fees^
Leverage
- Indices 1:20
- Forex 1:30
- Commodities 1:20
- Shares 1:5
Trade Nation
73.6% of retail investor accounts lose money when trading CFDs with this provider.
Trade Nation is a broker that offers spread betting and CFD trading on various financial markets, including forex, indices, commodities, and shares. Traders have a choice between the MetaTrader 4 (MT4) platform and Trade Nation’s own TN platform, which can be integrated with TradingView for enhanced charting and analysis capabilities.
Account Types
- Spread Betting
- CFDs
Spreads
- Indices From 0.4
- Forex From 0.6
- CMDTY From 0.3
- View Fees^
Leverage
- Indices 1:20
- Forex 1:30
- Commodities 1:20
- Shares 1:5
Lowest Spreads
Based on the average spread calculations:
- City Index has the lowest overall average spread (0.4).
- CMC Markets and Trade Nation are tied for the second-lowest overall average spread (0.433).
- IG has an average spread of 0.5.
- Spreadex has the highest average spread (0.533).
- Lowest Spread for Indices: CMC Markets (From 0.3)
- Lowest Spread for Forex: City Index (From 0.5)
- Lowest Spread for Commodities: IG (From 0.1)
The spreads listed are based on minimum values and can widen depending on market conditions. Traders should also consider potential overnight costs and commission fees when evaluating overall trading costs.