Many traders find Spread Betting better than CFD trading in the UK due to its tax benefits. Our experts look at the UK’s best spread betting platforms to bet with from the top brokers. See the best spread betting platforms UK and choose a platform
To help you choose the right trading platform, here are our best spread betting platforms in the UK
Spread betting and CFD trading are similar in the sense that investors are trading leveraged products and speculating on the direction a financial market will move.
The main difference is that when spread betting, a trader is not buying and selling a contract. Rather, traders bet on price movements, deciding on the amount to bet per point of price movement. Spread betters decide the ‘stake’ per price movement they wish to trade, with profits being made when the market moves in favour of the bet.
When compared to CFD trading, spread betting is more tax efficient. UK tax laws mean any gains made from CFD trading are subject to Capital Gains Tax (CGT),. As spread betting involves no contracts, profits avoid both stamp duty and Capital Gains Tax which means it can considered a tax-free trading strategy.
Pepperstone is a no dealing desk (NDD) broker that offers tight spreads on a range of asset classes. As well as spread betting with currency pairs, Pepperstone clients gain access to thousands of index, commodity, treasury and stock markets.
Pepperstone gained its reputation as one of the best brokers for ultra-tight forex spreads due to its NDD execution and top-tier liquidity providers.
When spread betting forex, traders do not pay any flat-rate commission and therefore bet on spreads available to those using Pepperstone Standard account.
With the Standard account, Pepperstone offers minimum spreads as low as 1.0 pips on major currency pairs such as the EUR/GBP, AUD/JPY, AUD/USD, CHF/JPY, CHF/SGD and EUR/USD. The table below shows the average spreads for major currency available to spread bet with Pepperstone. Compared to brokers such as CMC Markets and FxPro, Pepperstone offers tighter average spreads on a wider range of fx pairs than its competitors.
Spread Betting: Standard Account, No Commission Spreads | |||||
|---|---|---|---|---|---|
 | 1.13 | 1.41 | 1.44 | 1.22 | 1.14 |
 | 1.20 | 1.40 | 1.50 | 1.60 | 1.40 |
 | 1.58 | 1.74 | 2.39 | 2.09 | 1.96 |
 | 1.70 | 2.00 | 2.40 | 2.30 | 1.90 |
 | 1.20 | 1.50 | 1.70 | 1.80 | 2.30 |
 | 1.40 | 2.20 | 1.80 | 3.00 | 1.20 |
 | 1.40 | 2.50 | 2.10 | 2.60 | 2.50 |
When spread betting with Pepperstone, customers can choose between MetaTrader 4 (MT4) and MetaTrader 5 (MT5)trading platforms. Both platforms offer a good range of financial instruments as well as various technical analysis tools to develop spread betting trading strategies. Trading tools and features available on both MT4 and MT5 include:
MT4 and MT5 are available as desktop platforms, web trader platforms or mobile and tablet trading apps that are compatible with iOS and Android devices.
Before spread betting with real money, traders can sign up for Pepperstone’s demo account that is available with both MetaTrader 4 and MetaTrader 5. To start trading with real money, a Pepperstone spread betting account can easily be opened online with no initial minimum deposit, although the broker recommends depositing at least £200. To deposit and withdraw funds from a trading account, customers can make bank transfers and use a credit card (Mastercard and Visa).
As a spread betting and CFD broker, Pepperstone is overseen by the Financial Conduct Authority in the United Kingdom. The FCA ensures brokers follow UK regulation and that retail investor accounts are receiving a fair brokerage service. While Pepperstone’s Australian subsidiary is regulated by the Australian Securities and Investments Commission (ASIC), spread betting is not permitted in Australia and even outside the UK.
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City Index is a UK broker offering spread betting on a range of asset classes with 4,000 different financial products to bet on. These global markets can be accessed through the broker’s web trader platform or via the trading apps they offer designed for mobiles and tablet devices.
When spread betting with City Index, customers can bet on a range of financial instruments that are competitively priced. As with all spread betting in the UK, profits are tax-free and exempt from stamp duty and Capital Gains Tax (CGT).
As shown above, the UK broker offers tight spreads, starting as low as 0.5 pips for major currency pairs. For instance, spreads for the Euro/United States Dollar (EUR/USD) fx pair can be as low as 0.5 pips, with average spreads of 0.8 pips.
City Index’s full forex product range consists of 65 different currency pairs, along with a solid selection of indices, shares, cryptocurrencies, commodities, metals, bonds and interest rates.
Although no commission fees are incurred when spread betting with City Index, traders do face overnight financing fees, inactivity fees for dormant accounts, and premiums for Guaranteed Stop Loss Orders (GSLOs).
To manage the high risk of spread betting, stop-loss orders and limit orders are available to lock in profits and minimise losses.
As well as free order types, spread betters can pay a premium to place GSLOs. GSLOs ensure positions are closed at the exact price selected by the trader, whereas stop loss and limit orders do not provide guarantees that the preselected prices will be matched.
City Index’s proprietary online trading platform is powered by HTML 5 technology and accessible from any browser. Although the web trader platform may lack MT4’s Expert Advisor and automated trading features, a comprehensive suite of inbuilt technical analysis tools are provided.
City Index’s Web Trader platform features include:
City Index offers two trading apps specifically designed for iOS and Android devices. Many of City Index’s web trader features are available on the mobile apps, including different order types such as GSLOs, one-click trading, Reuters news and custom indicators.
The fully functional and customisable apps provide most of the online platforms charting tools with 60 inbuilt technical indicators and multiple timeframes included.
A major benefit to City Index’s trading apps is that traders can easily and instantly contact customer support via the apps live chat function.
CMC Markets is an FCA (Financial Conduct Authority, United Kingdom) regulated broker offering spread betting via its proprietary trading platform.
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 trading, such as:
As a CMC Markets customer, traders can spread bet on over 9,500 financial instruments from forex, indices, cryptocurrency, commodity, share and treasury asset classes.
Although no commission is charged on top of 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.
In addition to webinars, trading platform tutorials and spread betting guides, customers can contact CMC Markets via phone, email or live chat 24/5 with any questions they may have about the broker and spread betting.
ETX Capital is an FCA regulated broker offering spread betting services on their proprietary trading platform, TraderPro and MetaTrader 4 (MT4).
ETX Capital’s MT4 trading platform includes all the tools needed to effective spread betting trading strategies, including wide market access, technical analysis tools and automated trading features.
ETX Capital customers spread betting via MetaTrader 4 enjoy access to 7 different asset classes. When spread betting on currency pairs, spreads can be as low as 0.8 pips on major currency pairs such as the Euro/United States Dollar (EUR/USD). ETX Capital’s full spread betting product range accessible on MT4 includes:
ETX Capital offers MT4 as a desktop trading platform for Windows and Mac computers. The trading platform can easily be downloaded from the broker’s website and includes detailed installation and set setup instructions.
An advantage to spread betting through MetaTrader 4 and ETX Capital is the ability to create or download Expert Advisors (EAs or trading robots) to automate trading. EAs save a traders time by automatically analysing markets and entering and exiting bets, eliminating the need for lengthy and complex technical analysis.
Additional MT4 features and trading tools include:
Although the brokers MT4 mobile app is fully functional, it is not available on Android devices and restricted to iOS mobiles and tablets. 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).
Sporting events available to spread bet on include:
FxPro is an FCA regulated broker that offers a purpose-built proprietary spread betting platform – FxPro Edge.
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.
FxPro is overseen by financial authorities around the globe such as CySEC (Cyprus) and the FSCA (South Africa) but only permit spread betting to clients in the United Kingdom. FxPro is regulated by the Financial Conduct Authority (FCA) with the broker licensed to provide CFD trading and spread betting services to UK residents only.
To protect investors participating in spread betting and CFD trading, the FCA requires UK brokers to provide negative balance protection and automated closeout margins to ensure traders losses are limited. Additionally, segregated client funds ensure trading account balances are protected in the case of a broker being insolvent.
When spread betting with IG Markets, customers gain access to a range of CFDs along with a choice of trading platforms.
The brokers proprietary trading platform is offered as a desktop or web trader platform, along with trading apps designed for tablets and mobiles. For those wanting to use a third party spread betting platform, ProRealTime and MetaTrader 4 are other options.
When spread betting with IG Markets, customers can gain access to global markets and various asset classes. Available asset classes to spread bet include:
IG Markets proprietary software is a user-friendly, customisable platform suitable for all levels of trading experience. The web trader platform can be accessed from any browser, while mobile trading apps are compatible with Android and iOS devices.
An advantage to using IG Markets online trading platform is that users can utilise different order types such as Guaranteed Stop Loss Orders (GSLOs) to manage the high risk of spread betting. Platform features available on both the web trader platform and trading apps include:
Many traders prefer MetaTrader 4 due to the platforms Expert Advisor (EAs) functionality. EAs allow users to automate trading, reducing the time spent conducting analysis and placing orders. As well as MT4’s inbuilt technical indicators, IG Markets offers an add-on package that provides an additional 12 MT4 add-ons.
ThinkMarkets is an FCA regulated broker that offers spread betting via MetaTrader 4, MetaTrader 5 as well as their own proprietary software.
ThinkTrader, the broker’s proprietary web platform and mobile app provide traders with an intuitive spread betting environment for all levels of experience, with a range of charting and risk management tools.
When spread betting on the go using the ThinkTrader mobile app, customers can place bets on instruments derived from forex, share, index, metal, commodity and cryptocurrency assets.
Purpose-built Android or iOS apps are available to download with the software considered one of the best proprietary mobile trading apps with 4.8 stars on Apple’s App Store.
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 100 technical indicators. Additional built-in mobile app features include:
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.e. £10 per point.
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). For every point the market moves in the traders’ favour, a multiple of their stake is won.
The best-suited spread betting platform depends on the financial instruments a trader wishes to bet on, the risk management tools they require as well as the device they wish to use. For those wanting a choice of trading platforms, excellent market access and tight spreads, Pepperstone is one of the best brokers for spread betting in the UK.
Spread betting is tax-free and seen as more tax-efficient than share or CFD trading. While profits made from share and CFD trading are free from Stamp Duty charges yet subject to Capital Gains Tax (CGT), spread betting gains are exempt CGT as well as Stamp Duty.
Yes, spread betting is legal in the UK and overseen by the Financial Conduct Authority. In addition to being legal and regulated, profits made from spread betting are tax-free.
When choosing a UK broker that offers spread betting services, traders should look for good market access to a range of asset classes, low spreads and fees as well as trading platforms with analysis and risk management tools. Pepperstone is an excellent choice as the broker offers MT4 and MT5, ultra-tight spreads as well as different types of financial instruments including forex and cryptocurrency. To explore Pepperstone’s markets and trading platforms, a demo account is available for 30 days.
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