Our team has collected come of the best UK forex brokers for spread betting. Several factors were taken into consideration in order to ensure you the best list of spread betting brokers.
- If the broker was FCA regulated
- The platforms of the brokers available for spread betting
- The minimum deposit to start spread bet with the broker
- The assets you can spread bet on with the broker
- The minimum spread on forex charged by the broker
- The maximum leverage on forex of the broker
- The minimum bet accepted by the broker when available
Review
IG Markets
best spread betting broker overall
IG Markets provides spread betting in the UK under FCA regulation. IG Markets allows access to their MT4 platform, proprietary webtrader, and mobile apps. IG Markets requires a minimum deposit of £300 for spread betting.
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Regulations:
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Avg. EUR/USD Spread:
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About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- IG Markets provides spread betting to their UK and Irish clients under their FCA.
- IG has won several awards for their spread betting service.
- Spread betting with IG is available via the MT4 platform, proprietary webtrader, mobile apps.
- IG Spread Betting app is available for both iOS and Android.
- IG Markets spread betting is available on 17,000 CFD assets, including forex, indices, shares, commodities.
- The IG minimum deposit is £300 for spread betting traders.
- IG spreads start from 0.6 pips on forex with a maximum leverage up to 30:1 (retail) and up to 222:1 (professional).
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
Pepperstone
best forex spread betting service
Pepperstone offers spread betting to UK clients with FCA regulation. Pepperstone supports MT4, MT5, and cTrader platforms. Pepperstone recommends a deposit of £200 but does not require it for spread betting.
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Avg. EUR/USD Spread:
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About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
- Pepperstone has FCA regulation in place allowing UK and Irish clients to spread bet.
- Spread betting with Pepperstone is available on the MT4, MT5, and cTrader platforms.
- No minimum deposit is needed to start spread betting, though the broker recommends £200.
- Pepperstone provides 150 instruments to spread bet on including forex, indices, commodities, shares, ETFs.
- The Pepperstone spreads start from 0 pips with a maximum leverage up to 30:1 for retail clients and up to 500:1 for professional clients.
- The Pepperstone minimum bet accepted by the broker is £0.20.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,09 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
AvaTrade
best for fixed spread spread betting
AvaTrade provides spread betting for UK traders through the FCA. AvaTrade offers it via the MT4 platform. AvaTrade requires a minimum deposit of £100 to start spread betting.
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Avg. EUR/USD Spread:
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About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- Spread betting is provided by AvaTrade to their UK and Irish traders under the FCA.
- Spread betting is enabled via the AvaTrade MT4 platform.
- An AvaTrade minimum deposit of £100 is needed for a spread betting client to start.
- Spread betting with AvaTrade is available on 200+ assets, including forex, stocks, indices, commodities trading, and ETFs.
- AvaTrade charges fixed spreads from 0.9 pips on forex with a maximum leverage up to 30:1 (retail) and up to 400:1 (professional).
- The AvaTrade minimum bet is 0.10 per point.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
FxPro
flexible spread betting tools
FxPro enables spread betting in the UK under FCA regulation. FxPro allows it on their proprietary platform. FxPro requires a minimum deposit of £100 to begin spread betting.
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Avg. EUR/USD Spread:
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Platforms:
About FxPro
FxPro is a global online broker founded in 2006, offering trading on forex, CFDs, stocks, indices, commodities, and cryptocurrencies. FxPro provides multiple trading platforms including MetaTrader 4, MetaTrader 5, cTrader, and its proprietary FxPro Platform. FxPro is regulated by multiple authorities including FCA, CySEC, SCB, FSC and KNN. FxPro serves clients in over 170 countries and has won numerous industry awards. The FxPro CEO is Charalambos Psimolophitis.
FxPro Features
The features of FxPro are listed below.
- FxPro is FCA regulated and provides spread betting to their UK and Irish traders.
- You can engage in Spread Betting with the FxPro Spread betting platform.
- The minimum deposit to open a FxPro account and start spread betting is £100.
- Spread betting with FxPro can be done on 100+ instruments including forex, shares, indices, metals, and energies.
- FxPro spreads start from 0 pips on forex depending on the platform with a leverage of up to 30:1 for retail traders and up to 200:1 for professional traders.
FxPro Pros and Cons
Advantages of FxPro
The advantages of FxPro are listed below.
- Regulated and Trusted Forex broker
- Diverse Trading Platforms
- Wide Range of Instruments
Disadvantages of FxPro
The disadvantages of FxPro are listed below.
- Inactivity Fee
- Limited Educational Resources
- No Guaranteed Stop-Loss Orders
Capital.com
flexible spread betting service
Capital.com offers spread betting to UK clients with FCA regulation. Capital.com supports spread betting on their proprietary platform. Capital.com sets a minimum deposit of £20 to start.
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Avg. EUR/USD Spread:
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About Capital.com
Capital.com is a global online broker founded in 2016, offering trading on forex, stocks, indices, commodities, and cryptocurrencies through CFDs. Capital.com provides proprietary web and mobile platforms alongside MetaTrader 4 and 5. Capital.com is regulated by multiple authorities including FCA, ASIC, CySEC, and SCB. Capital.com is known for its AI-powered trading insights and extensive educational resources. The Capital.com Group CEO is Kypros Zoumidou.
Capital.com Features
The features of Capital.com are listed below.
- Capital.com is regulated by the FCA and enables spread betting under that entity for UK and Irish clients.
- FCA clients can spread bet on the broker’s Proprietary platform.
- £20 is the minimum deposit to start spread betting with an Capital.com account.
- The spread betting service is available on 1000+ Capital.com assets, including forex, indices and more
- While spread betting, Capital.com raders have access to tight preads with leverage up to 30:1.
Capital.com Pros and Cons
Advantages of Capital.com
The advantages of Capital.com are listed below.
- Advanced Technology
- Low Trading Costs
- Regulated and Secure
Disadvantages of Capital.com
The disadvantages of Capital.com are listed below.
- Limited Protection for Professional Clients
- Charges Inactive Fees
- Not user-friendly
Oanda
best for beginners
Oanda provides spread betting for UK clients under FCA regulation. Oanda does not require a minimum deposit for a spread betting account. Oanda offers spread betting on their MT4 platform.
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Avg. EUR/USD Spread:
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About Oanda
OANDA is a global multi-asset broker founded in 1996, offering trading on forex, CFDs, commodities, indices, and cryptocurrencies. OANDA provides proprietary platforms and API solutions. OANDA is regulated by multiple authorities including FCA, ASIC, and MAS. OANDA is known for competitive spreads, fast execution, and currency data services. OANDA serves both retail and institutional clients worldwide. The Oanda Chief Executive Officer is Gavin Bambury since August 2019.
Oanda Features
The features of Oanda are listed below.
- Oanda is FCA regulated and offers spread betting to their UK and Irish traders.
- You can spread bet with the Oanda MT4 platform.
- Oanda offers a spread betting sub-account with 100+ assets, including forex, indices, bonds, commodities, and metals.
- Oanda does not require a minimum deposit to open a spread betting account.
- Oanda spreads on forex start from 0.8 pips, with maximum leverage is up to 30:1 (retail) and up to 100:1 for professionals on forex.
Oanda Pros and Cons
Advantages of Oanda
The advantages of Oanda are listed below.
- Comprehensive Platforms
- Robust Education
- Highly Regulatory Trust
Disadvantages of Oanda
The disadvantages of Oanda are listed below.
- Higher Spreads
- Proprietary Platform Limitations
- Inactivity Fees
ActivTrades
best technical trading tools
ActivTrades offers spread betting in the UK under FCA regulation. ActivTrades supports it on MT4, MT5, and proprietary platforms. ActivTrades does not require a minimum deposit to engage in spread betting.
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Avg. EUR/USD Spread:
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About ActivTrades
ActivTrades is a global online broker founded in 2001, offering trading on forex, CFDs, indices, shares, commodities, and ETFs. ActivTrades provides MetaTrader platforms and its proprietary ActivTrader platform. ActivTrades is regulated by multiple authorities including the FCA. ActivTrades serves clients in over 140 countries and is known for competitive spreads and innovative trading tools. ActivTrades recently introduced zero commission on shares and fractional trading. The ActivTrades CEO and founder is Alex Pusco.
ActivTrades Features
The features of ActivTrades are listed below.
- Spread betting is offered to ActivTrades UK and Irish traders under FCA regulation.
- Spread betting is available via the ActivTrades MT4, MT5, and ActivTrader platforms.
- No minimum deposit is needed to start using an ActivTrades account.
- ActivTrades provides 500+ assets to spread bet on, including forex, shares, indices, and commodities.
- ActivTrades under FCA while spread betting find spreads from 0.5 pips with leverage up to 30:1 (retail) and 400:1 (professional).
- ActivTrades UK clients can start engaging in spread betting trading with a minimum stake of 10p per point.
ActivTrades Pros and Cons
Advantages of ActivTrades
The advantages of ActivTrades are listed below.
- Low Trading Costs
- User-Friendly Platforms
- Regulatory Compliance
Disadvantages of ActivTrades
The disadvantages of ActivTrades are listed below.
- Limited Product Range
- Withdrawal Fees
City Index
wide choice of spread betting instruments
City Index provides spread betting for UK clients under FCA regulation. City Index allows it on Webtrader and MT4 platforms. City Index sets a minimum deposit of £100 for spread betting.
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Avg. EUR/USD Spread:
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About City Index
City Index is a global forex and CFD broker founded in 1983, offering trading on currencies, indices, commodities, cryptocurrencies, and stocks. City Index provides proprietary platforms alongside MetaTrader 4. City Index is regulated by multiple top-tier authorities including FCA, ASIC, and MAS. City Index is known for competitive spreads, extensive research tools, and educational resources. City Index is part of the NASDAQ-listed StoneX Group. The City Index’s parent company “StoneX Group Inc.” CEO is Sean O’Connor.
City Index Features
The features of City Index are listed below.
- City Index provides spread betting under the FCA regulation for UK and Irish clients.
- City Index has won the Best Spread Betting Provider award in 2019.
- The platforms where City Index allows spread betting are the Webtrader and the MT4 platforms.
- The City Index minimum deposit is £100 for Spread betting traders.
- City Index offers 8,000+ markets, including forex, indices, shares, commodities, metals, and bonds.
- The City Index minimum bet is £10.
- UK and Irish clients will find City Index spreads start from 0.5 pips on forex with a max. leverage up to 30:1 (retail) and up to 500:1 (professional).
City Index Pros and Cons
Advantages of City Index
The advantages of City Index are listed below.
- Regulatory Trust
- Advanced Trading Tools
- Diverse Market Access
Disadvantages of City Index
The disadvantages of City Index are listed below.
- Limited MetaTrader Options
- Educational Content Gaps
- Customer Support Issues
LCG
best spread betting platform
LCG offers spread betting to UK clients under FCA regulation. LCG provides it on the MT4 and proprietary platforms. LCG requires a £100 deposit to start spread betting.
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Avg. EUR/USD Spread:
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Platforms:
About LCG
London Capital Group (LCG) is a global forex and CFD broker established in 1996. LCG offers trading on currencies, commodities, indices, stocks, and cryptocurrencies. LCG provides MetaTrader 4 and a proprietary LCG Trader platform. LCG is regulated by multiple authorities including the FCA and SCB. The CEO of LCG is Dave Worsfold, and the LCG managing director is Matt Basi.
LCG Features
The features of LCG are listed below.
- LCG offers spread betting for Irish and UK clients under FCA
- The LCG platforms available for spread betting traders are the LCG Trader and MT4 platforms.
- LCG clients need to make a £100 minimum deposit to start spread betting.
- Spread betting is available across 7,000+ LCG assets, including forex, metals, indices, shares, bonds, commodities, and ETFs.
- Spread betting with LCG comes with spreads from 0.8 pips with a maximum retail leverage of 30:1 and maximum professional leverage of 500:1.
LCG Pros and Cons
Advantages of LCG
The advantages of LCG are listed below.
- Established Reputation
- Negative Balance Protection
- Diverse Trading Instruments
Disadvantages of LCG
The disadvantages of LCG are listed below.
- High Minimum Deposit for ECN Accounts
- Wider Spreads on Classic Accounts
- Inactivity Fees
Markets.com
best educational materials
Markets.com offers spread betting to UK clients under FCA regulation. Markets.com provides it through marketsx, MT4, and MT5 platforms. Markets.com requires a minimum deposit of £100 to engage in spread betting.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Markets.com
Markets.com is a global online broker established in 2008, offering trading on forex, stocks, indices, commodities, and cryptocurrencies through CFDs. Markets.com provides proprietary web and mobile platforms alongside MetaTrader 4 and 5. Markets.com is regulated by multiple authorities including CySEC, FCA, ASIC, FSCA, and FSC. Markets.com is known for its extensive educational resources and AI-powered trading insights. The Markets.com parent company “Finalto Group” CEO is Matthew Maloney.
Markets.com Features
The features of Markets.com are listed below.
- Markets.com offers spread betting under its FCA entity to UK and Irish traders.
- Markets.com clients can engage in spread betting via the marketsx platform, as well as MT4 and MT5.
- Markets.com clients can start spread betting with a minimum deposit of £100.
- Markets.com has more than 220 assets available for spread betting , including forex, indices, shares, ETFs, and commodities.
- FCA clients can find spreads on 0.6 pips with maximum leverage is up to 30:1 (retail) and up to 300:1 (professional).
Markets.com Pros and Cons
Advantages of Markets.com
The advantages of Markets.com are listed below.
- High Trust Score
- Wide Range of Trading Platforms
- Comprehensive Educational Resources
Disadvantages of Markets.com
The disadvantages of Markets.com are listed below.
- Above Average Spread Costs
- Limited Payment Options
What is Spread Betting exactly?
Financial Spread betting is betting on the spread of a market and how it is going to move. So, given that you are betting on the spread, your investment is not on the actual asset at all. Instead, the value of your money will rise and fall based on your predictions of the spread movement in that market.
Very simply, you are betting on the spread rising or falling. If you bet on the spread rising and it does, then you will make a profit and vice versa.
Which countries allow spread betting?
Spread betting, due to the perception that it is closer to gambling than investing, is not legal in every country. It is however permitted in the UK, Ireland, Macau, Hong Kong, Taiwan, and some other countries.
With that said, you should always verify with the local regulator as well as with the spread betting company first.
Countries where spread betting is currently illegal include the US, some European countries, China, Japan, and Australia. In some Islamic countries too where gambling is illegal, spread betting is also considered to be illegal regardless of whether you have an Islamic trading account.
Why is spread betting illegal in so many countries?
What makes spread betting illegal in some countries is its very high-risk nature. This and the comparisons that some people make between spread betting and gambling all play a role in its legality within some countries.
To illustrate why many consider spread betting to be very high risk, let’s take a look at the following example. Here’s what would happen if your CFD investment loses 10 pips of value.
Losses with standard trading:
- Let’s say you are not investing in Forex but rather in a CFD Stock worth $100.
- If you invest $100 for buying it and it falls to $99.90 (10 pips), you lost only $0.10.
Losses with spread betting:
- Let’s make the same example. However keep in mind that with spread betting you do not buy the whole asset, which is the $100 stock. In fact what happens is that you have to choose an amount of money to “bet”.
- If you bet $1 on the rise when the stock is at $100, and it falls to $99,90, you actually lost $1 per every pip ($1 * 10pips = $10).
- This means that if you would have bet $100, which was the actual value of the CFD stock, you would have lost $1,000.
These same high-risk losses can also lead to profits in other cases.
Forex Spread Betting: How to calculate earnings/losses
To help you calculate your earnings or losses when spread betting, let’s take a look at an example with the major forex currency pair EUR/USD.
Let’s presume that EUR/USD pricing is 1.0940/1.0941
With spread betting, when you bet $10 that the spread will rise, you’ll earn $10 for every pip (0.0001) increment above 1.0941. Let’s say you close the position to 1.0950, you’ve earned 9 pips, equivalent to $90.
But you should be careful because if the spread goes the other way around, you’ll lose a lot of money. In case of a -9pips loss, you’ll lose $90, and not just the $10 you bet in the first place.
In other words, you earn/lose 100% of the investment for every pip rise/fall. 5 pips, for example, equal a +/- 500% on the investment.
There are many spread betting sites where you can find tools and calculators to understand things easily.
Is spread betting worth it?
Spread betting first of all, like any other form of trading, is not without risk to your funds. Only you as a trader who is interested in spread betting can really make the final decision if it is for you or not.
If you are spread betting then you can potentially make big returns within a short period of time, though the all-or-nothing nature of the trading style also means that you could potentially make losses. The margin between significant gains and losses in spread betting is slim. This is something that makes it very exciting and does attract many traders.
However many others tend to avoid this type of account due to its purely speculative and risky nature, and that’s why they usually choose the best lowest spread forex brokers.
Spread betting alternatives
If spread betting has been deemed to be too risky, or even illegal in your country of trading, then you will not be able to engage in spread betting. There is still plenty of other trading types and potential you can engage in.
The recommendation would be to try some other derivative instruments trading. This means that futures, options, or CFDs trading could all be potentially good choices with the exception of the US where CFDs trading is also not permitted.
Check our listing of top forex brokers for more alternatives that may fit your trading needs.
How to choose a spread betting broker
When choosing the best spread betting broker for you, what you are doing is betting on the spread. For that reason, you should try to choose a broker that has the most competitive spreads and the lowest commission in place.
Taxes with spread betting
Spread betting is usually considered to be tax-free in the sense that you will not likely be charged any capital gains tax on earnings and profits you make. Similarly, there would be no rebate possibility in the case of losses.
With that said, it may depend on the country you are spread betting from, and it is always advisable to consult with a professional tax advisor on these matters.