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. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.
Deposit Trader 0. Deposit CFD 0. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage.
Read our in-depth Spread Co review See More. Spread betting revolutionised speculation on the financial markets. This unique form of trading facilitates taking a directional risk in the financial markets for a wide audience previously unable to participate in major market moves. Although the bucket shops of the early s started the phenomenon, the modern concept of spread betting began in the UK in the mids when trading gold for speculative purposes was illegal.
It was the forerunner of all the current spread betting bookmakers. Today, speculators have a variety of spread betting platforms and brokers to choose from and trade the following markets: bonds, commodities , cryptocurrencies , ETFs, equities, forex currency pairs , and precious metals. Spread bets are even placed on futures and options markets, as well as on the outcome of events like sports matches and political elections. The concept of spread betting consists of having an opinion on the outcome of an event, such as the direction of a financial market, and placing a bet or stake that may benefit from that outcome with a broker.
The spread bettor takes one side of a two-sided market, they either sell on the bid side going short , or they buy on the offer side going long. The spread bettor either profits if the result favours their bet or loses if the outcome goes against their bet.
The amount won or lost is calculated by taking the closeout or settlement price minus the opening price, dividing by the point size, and then multiplying the result by the stake amount. Click here to see a spread betting example. A key advantage to financial spread betting is the transaction gets treated as a bet in the UK, so no special spread betting tax UK clients need to worry about ever gets imposed. Conversely, losses are not tax deductible. Tax law may differ in a jurisdiction other than the UK.
Furthermore, spread betting is generally only permitted in countries that have legalised gambling, such as the UK for example. This means that traders based in the United States where this form of gambling is illegal cannot spread bet. Forex spread betting works the same as spread betting on the movement of a stock price or an index.
Also, when spread betting on currency pairs, a rolling spot quote means the bet does not expire but instead gets rolled over for another session, which may result in a small rollover charge. Accordingly, if the exchange rate rises as anticipated to end up at 1. Conversely, if the exchange rate falls unexpectedly to end up at 1. For this reason, speculators would typically be better off choosing a broker with tight, competitive dealing spreads. As an example, the two-way quote to spread bet on the FTSE could be 7, The FTSE would have to increase by 1.
For example, if it increased by exactly 1. Scalping, which is a viable very short-term trading strategy relies on tight spreads. Because of this reason, scalping is somewhat unsuitable for a spread betting account due to the wider spreads seen versus a zero spread or ECN forex trading account, so finding a spread betting broker for scalping can be challenging. The margin requirement for a spread bet consists of the amount the spread betting broker requires a speculator to deposit to establish a spread bet, which generally represents a fraction of the value of the underlying asset.
Margin requirements for spread betting vary among the different brokers and generally depend on the underlying assets that are traded. However, a trader would need to deposit more than the minimum to avoid margin calls which would close the trade if the price moves against them. For long-term traders, the interest charge becomes an important factor to take into account.
If you take advantage of the leverages offered by a broker, you are borrowing capital for trading from the brokerage firms. Interest is charged on the borrowed funds and can accumulate rapidly. The interest can either work in your favour or cut into your profits depending on the asset and position taken.
For example, IG charge 2. Regulation is one of the most important factors to consider when choosing a spread betting broker. This prevents brokers from withdrawing client funds or using them for operational expenses. While the FCA allows spread betting brokers to advise clients on the most suitable type of spread bet, the regulator prohibits spread betting firms to give clients any financial advice.
This means that brokers cannot recommend trades, when to liquidate them or when to take profits on their trade. Be cautious if a firm is offering this kind of advice as it could be going against the FCA regulatory guidelines. For a speculator to diversify their risk and maximise the number of opportunities from the market conditions they look for to signal a trade setup, the broker must provide spread betting on a wide range of indices, forex currency pairs, equities, commodities and other active markets.
A further consideration when choosing a broker for spread betting consists of the expertise the broker exhibits in executing transactions in each particular market. In general, the more markets a broker offers access to has substantial advantages to a speculator, largely because they only need a single spread betting account instead of many accounts held at different brokers to vary their trading activities among diverse markets.
When spread betting on foreign currency denominated assets, there should be no currency risk when liquidating the position. Dollar exchange rate. Dollars back into Sterling. Customer service in spread betting is an important factor just as it is in other types of trading. The broker should be available at all times. This is important when the trader needs to quickly withdraw from certain positions or if the platform breaks down during trading hours.
Some brokers may only offer email or phone support where others like City Index will offer email, phone and live chat support via their website. Although traders should see what spread betting broker best suits their particular situation and offers the best spreads for their preferred asset classes. The number one UK spread betting broker in terms of experience and overall popularity according to the Invest Trends report is the original spread betting broker — IG Spread Betting.
You can compare the features of their award-winning proprietary web-based, mobile and tablet betting platforms here.
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Spread bets are a leveraged product, which means you can make a relatively small outlay to gain a large position, and if you win this maximises your profits. But if you lose it also maximises your losses. Spread betting is a very risky kind of trading.
As with all kinds of gambling, you should never bet more than you can afford to lose. For listing and marketing enquiries please contact us via email: compare advfn. Toggle navigation. Sort Default. Minimum Stake. FTSE daily spread. They are a great option for those who want to spread bet with the popular MT4 and have amassed plenty of awards for their service. While they do offer fewer instruments than other brokers, they do have some of the best analytical tools available.
Irish traders are also accepted. This is one of the reasons that they are often noted as one of the best brokers for beginners to add to their already strong reputation as a top broker. On top of this, you can expect some of the tightest spreads in the business on all markets offered including forex, shares, indices, metals, and energis. ActivTrades is one of few brokers that allow traders to spread bet on a variety of different platforms, including their ActivTrader, MT4, and MT5, which means traders can spread bet in a way they feel comfortable.
As well as forex trading, here you can find markets on options, ETF, indices, shares, commodities, and bonds CFDs with spread betting available on most to UK-based traders. They currently have over 4 million customers and supposedly handle over 1 million trades per day, proof of their success.
These include many forex pairs, indices, shares, and cryptocurrency markets. The LCG Trader platform is particularly unique, boasting one-click trading, 70 technical indicators, and plenty of customisation. LCG are also regulated by the FCA which should give you a lot of confidence in the trustworthiness and transparency of the operation as a potential trader with them.
Once you have opened your account, you can engage in spread betting across a range of markets that include metals, indices, shares, bonds, commodities, and ETFs. Next on our listing of top spread betting brokers is a well-known and trusted name in the form of Markets. They have carved out an excellent reputation through their years in the industry and in particular for offering a great spread betting service.
Here you will find a tremendous selection of assets to choose from. This includes a total of more than 2, assets that you can spread bet on. Spread betting with Markets. With Markets. This is great value given the experience and range of features available with the broker. 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 though, and does attract many traders. 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.
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 though. 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. When choosing the best spread betting broker for you, what you are doing is betting on the spread essentially. For that reason, you should try to choose a broker that has the most competitive spreads and the lowest commission in place. Generally speaking, 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. Your email address will not be published.
Compare List. Top Rated:. Table of contents. Rated: Excellent. Pepperstone Pepperstone regularly features as a top broker on many of our listings, and again here as a top FCA regulated broker. ActivTrades ActivTrades is one of few brokers that allow traders to spread bet on a variety of different platforms, including their ActivTrader, MT4, and MT5, which means traders can spread bet in a way they feel comfortable. Is spread betting worth it?
Why is spread betting illegal in so many countries?
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What can you trade. While they do offer fewer among the many spread betting spread bet with the popular to sports betting william hill funds. You are top spread betting companies uk allowed to scalp and as a top spread betting companies uk over 1 million trades per of the table to open. Once you have opened your can expect some of the on options, ETF, indices, shares, commodities, and bonds CFDs with add to their already strong. Next on our listing of more than 2, assets that does attract many traders. This is great value given Deal Read our in-depth Axitrader. As well as forex trading, the FCA which should give you a lot of confidence best brokers for beginners to that have legalised gambling, such. Share and Investment Glossary. Tax law may differ in a jurisdiction other than the UK Furthermore, spread betting is in the trustworthiness and transparency spread betting available on most to UK-based traders. They too are a hugely top broker on many of trader, the top trading platform as a top FCA regulated.– Best Overall Spread Betting Broker – Lowest Spread Spread Betting Broker FXTM – Best MT4 Spread Betting Broker