Best 8 Spread Betting Platforms in the UK [Updated 2024]
Trading is risky and you might lose part, or all, of your capital invested. The information provided is for informational and educational purposes only and does not represent any type of financial advice and/or investment recommendation.
The top spread betting platforms are:
Pepperstone – Best for low fees
AvaTrade – Best for education
ActivTrades – Best for speedy execution
Moneta Markets – Best for no inactivity fees
Vantage Markets – Best for copy trading
FXCM – Best for forex spread betting
City Index – Best for liquidity
SwitchMarkets.com – Best for free VPS
Choosing the right brokerage for your needs is a personal decision, and in this article, we will look at the features, advantages and disadvantages of each broker before discussing the things that you might want to consider before you get started with spread betting.
Best Spread Betting Platform UK for Beginners and Experienced Traders
1. Pepperstone
Advantages
Well regulated
Low Fees
Investor protection
Disadvantages
CFDs only
Best for: Low fees
Pepperstone was established in 2010 and has built a great reputation as a CFD broker.
With Pepperstone being regulated by the FCA, investors are protected to a certain amount, which makes it considered safe for users.
Beginner traders will appreciate the level of education and excellent customer service available, while more experienced traders will be able to make the most of the super-fast execution offered.
Traders can choose the MetaTrader suite or cTrader as their preferred platform, and they are all available on the web as desktop apps and useful as a native mobile app on Apple iOS and Android for online trading on the go.
Traders using Pepperstone have access to more than 1,200 trading instrument CFDs, so there are a lot of choices.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.7% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
2. AvaTrade
Advantages
Regulated broker
Great educational resources
Fixed spreads
Disadvantages
High inactivity fees
Best for: Education
AvaTrade has had a long and strong history of being a preferred broker since being founded back in 2006.
Regulated by several top-tier institutions, including the FCA, AvaTrade offers negative balance protection to help you if you overuse leverage and face losing more money than you have available – which is a handy way to prevent bankruptcy.
With more than a thousand trading instruments available, including stocks, commodities, forex, cryptocurrencies and CFDs, traders looking to execute spread betting have a lot of choice in terms of markets.
While spread betting is commission-free, there is a minimum deposit of £100 to open a spread betting account with AvaTrade.
You can choose the way you want to access the markets because the MetaTrader suite is available on the web, on desktop and on mobile. There are excellent research tools available from both AvaTrade and MetaTrader, and a handy demo account.
3. ActivTrades
Advantages
No minimum deposit
Well-regulated
Low latency
Disadvantages
Copy trading is not available
Best for: Speedy execution
ActivTrades was founded in 2001 and is a safe broker because it is well-regulated.
Trading fees are low, and there are no deposit or withdrawal fees, which is excellent news for spread betting – but there aren’t that many trading instruments to choose from as the focus is on forex and CFDs.
This might not be a problem if you are taking on the direction of the currency market, however.
One of the biggest draws for ActivTrades is the excellent proprietary platform that is available as a web trader and on mobile.
This platform is simple to navigate, user-friendly, and offers low latency (less than 0.004s), which means that the trade is executed as fast as you need it to be, which is especially useful in the volatile forex market.
The education available is great and includes a demo account so that you can practice your new skills, but the research tools are a bit more limited, so experienced traders might find it difficult to establish a proper strategy.
Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread betting and CFDs work and whether you can afford to take the high risk of losing your money.
4. Moneta Markets
Advantages
Negative balance protection
Well-regulated
Great education
Disadvantages
Lacking deep research tools
Best for: No inactivity fees
Moneta Markets was established in 2009, and it is well-regulated with negative balance protection.
This is great for beginner traders who will want to protect themselves from losing more money than they have available.
Traders can choose to use MetaTrader 4 or the Moneta Markets proprietary platform WebTrader.
With MT4, traders can access Trading Central, which is an excellent resource for research tools like charting, analysis, and fundamental data, but the interface is dated, and it could do with a user experience revamp.
The WebTrader platform is much easier to understand and navigate, but for the experienced trader, the lack of in-depth research tools will probably be a turn-off.
Moneta Markets really excels with education.
The Master’s Course is a comprehensive selection of learning materials that are designed to give a complete beginner all the information that they need to be able to trade successfully and help more experienced traders too.
5. Vantage Markets
Advantages
Low fees
Well-regulated
Social trading available
Disadvantages
Not available in the US
Best for: Copy trading
Established in 2008, Vantage Markets offers a great depth of trading instruments and a wide range of trading account types to suit many different types of traders, including experienced and professional traders.
This doesn’t mean that the beginner trader isn’t catered for, as there are lots of tools and help available to get you started.
One of the best tools for the beginner is social or copy trading.
This is a trading strategy that allows you to follow the movements of other (successful) traders to see how they make decisions and act when the market moves.
This can help you understand more about what goes into making a profit on the market.
While the minimum deposit of $200 is a bit higher than some of the other options available, there are many research and educational tools available, as well as a demo account so you can get practicing.
Trading Forex and CFDs involves significant risk of losing of your invested capital and is not suitable for all investors. 64.86% of retail investor accounts lose money when trading CFDs with this provider. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
6. FXCM
Advantages
Low minimum deposit
Discount for volume trading
User-friendly
Disadvantages
Limited trading instruments
Best for: Forex trading
Established in 1999 and now owned by the Jefferies Financial Group, which is listed on the New York Stock Exchange, this UK-based broker is an excellent choice for those who are concerned about safety.
Alongside a large number of currency pairs, traders can use spread betting strategies on shares, indices, commodities and cryptocurrency.
High-quality educational content means that beginners can feel fully supported while using the broker. The more advanced trader will be able to take advantage of a wide range of research tools.
The minimum deposit is just £50, and although account opening can take a few days, it is simple enough to get started.
Some of the fees might be considered on the high side, especially if you want to withdraw to a bank account, but the fee structure is very transparent, so you will always know what each stake or trade is likely to cost you.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
7. City Index
Advantages
Low fees
Financial strength
Well-regulated
Disadvantages
Customer service could be better
Best for: Liquidity
City Index was founded in 1983, which makes it the oldest financial services company on this list.
In the almost 40 years that it has been providing trading opportunities, it has developed a reputation for excellent financial strength and liquidity, which is excellent for spread betting.
Well-regulated with StoneX Financial Ltd as a parent company, City Index is a discount broker with a background that makes it a safe place for you to open an account.
City Index offers access to more than 12,000 markets around the world, so you will be spoiled for choice, and with good research tools and world-class education available, both beginner and more experienced traders will feel comfortable using this broker.
The trading platform is simple to use with an intuitive interface, and although the customer support service is not available at weekends, it is available all day throughout the week, with fast and useful response times.
8. SwitchMarkets.com
Advantages
Low non-trading fees
Free VPS
High leverage available
Disadvantages
Not FCA regulated
Best for: Free VPS
SwitchMarkets is a broker that is great for traders who are looking to make the most of algorithmic trading and Expert Advisors (EAs), thanks to the offer of a free VPS.
The Virtual Private Server allows EAs or robots to run consistently, protecting the automated trading actions from interruptions in service.
With access to many trading instruments and a platform that is easy to navigate and full of helpful tools, SwitchMarkets has a lot to offer both the beginner and more experienced trader.
There are educational materials to hand as well as a demo account, and a great selection of research tools.
Although SwitchMarkets is not regulated by the FCA, it is regulated by ASIC, which is another top-tier, high-trust authority, so it can still be considered safe for traders in the UK.
Risk warning: Trading OTC derivatives is risky; please read our PDS and disclaimer before trading with us. We encourage you to seek your own independent advice and to consider your own financial situation, needs and objectives prior to making any decisions.
What Is Spread Betting?
Spread betting is a way to trade on the markets without actually purchasing an asset, and it is simple enough for even beginner traders to try.
With spread betting in the UK, you can wager on the market by predicting which way you think it will move – whether the price of an asset or an index will go up (bull market) or whether you think the price will go down (bear market).
This speculation strategy has a defined period until the bet expires, and your profit depends on the spread size (the difference between the buy price and the selling price) and how much you are betting per unit.
Although you might be using spread betting with a particular asset, you will not physically own that asset, and you can use a spread betting strategy on a huge range of financial instruments, from stocks to forex, commodities, ETFs and cryptocurrency.
More experienced traders might use spread betting as a hedging tool that is part of a wider portfolio of different types of trading; correctly betting on a particular market going down can make you a profit even if the price of a particular stock you hold in that market is also going down.
Spread betting is also popular because there tend to be lower trading fees associated with it than with other types of trading; you are less likely to have to pay a commission.
For example, because it is effectively a gamble that you are taking on the direction of the market, any profits are not subject to capital gains tax or stamp duty.
If you are considering trying spread betting for yourself, then you will need to find a broker and a trading platform that is suitable.
Tips for How to Spread Bet
Understand the Risks and Rewards
Spread betting is a gamble, and you need to understand both the risks and rewards that come from this strategy.
Spread betting is the most popular leveraged trading product in the UK, and while this might be attributed to the tax-free profits that can be generated, it can also lead to magnified losses through high leverage, slippage when the market is highly volatile, and the possibility that the whole bet could land you owing more than you have.
However, it is also an excellent way to make money even when the market is falling, and you can use multiple order types to protect your bet if they are available on the platform that you are using.
Build a Trading Plan
Planning is an important part of making any trading decisions, and with a plan, you are less likely to make any random trades or bets.
With a map of what you want to achieve available to you, you can be more disciplined and only make the bets that make sense so that you can remain consistent.
Having even the simplest template to follow is better than just making improvised decisions, especially if your goal is to make a profit.
You can use technical analysis to help pick a trading goal and choose the right instruments to make your plan work for you.
Practice Risk Management
Spread betting is treated as a gambling activity by HMRC, and that is because it can be riskier than other types of investment.
However, you can manage your risk in different ways, such as taking advantage of any negative balance protection that is available, using certain order types like stop loss or taking profit.
Only you will know what your risk appetite is, so keep to your trading plan and minimize your exposure.
Practice With Just One Market
Experienced traders will know that diversifying a portfolio is the best way to mitigate against loss and extend the opportunities for profit, but when you are just getting started, you are better off focusing on just one asset or one market.
Whatever your trading strategy is, you will need to take some time to understand the way the market moves, the events that can have an impact on whether the market turns, and how other people are trading.
Focusing on one market at a time will help you not lose focus and make the best decisions.
Have Discipline
Emotion can be the worst enemy of a trader, whether a professional or someone that is just doing it for fun.
While you might think that you have some sort of gut feeling about a market changing direction, it is much better, in the long run, to be disciplined and rely on research and evidence to make your decisions.
Your trading plan will really help here, too – you can follow the plan without attaching any fear or panic, or getting too excited about potential returns, so you don’t risk emotions making decisions for you.
Adopt a Professional Trader’s Psychology
Professional traders use strategies that they know and understand that provide consistent and replicable results.
By being dispassionate and adopting the psychology of a professional trader, you are more likely to make informed decisions, follow the trading plan, and manage the variables in the market better.
Use a Demo Account
Demo accounts are an excellent tool for both beginner traders and those who have more experience.
For the beginner, you can get used to using the platform and the features offered by the broker, as well as making good decisions – without any financial risk.
The more experienced trader might want to use a demo account to try out a new strategy in a zero-risk setting, and the demo account is the perfect place for this.
Spread Betting Strategies
Trend Following
In this trading strategy, research and technical analysis are used to define a trend. Using this information, a trader will only enter a position that follows that trend direction.
As a medium-term investment strategy, you will need an accurate system to define what direction the market is trending in, but it is relatively simple to understand. So a beginner can start using this strategy with a few indicators, such as relative strength index or moving average convergence divergence.
News Strategy
In a similar way, research on the effect that news can have on a market is part of the news strategy. It is a simple concept that makes it good for beginners, but it can take some time to master.
The news strategy is more short-term, where the trader will enter and exit markets based on what is happening in the news.
They need to place bets before and after a news release, guessing which way the market will react to whatever is being shared.
This approach needs a good grasp of global markets and fundamental data alongside a market perspective that is free of opinions and personal bias.
Using Spread Betting as a Hedging Tool
Traders who have a wide portfolio often use spread betting as a hedging tool to protect themselves from short-term losses in a falling market.
In practice, this means that they are, in essence, betting against the asset they hold in the short term, knowing that the market might be turning bearish.
They might take a bet that the market will drop and recoup some of the losses that the asset they hold might take in that same time period.
How to Choose the Best Spread Betting Broker/Platform
Customer Support
Discount brokers offer limited financial advice, but that doesn’t mean that you cannot contact them if something goes wrong or you need some help with something.
Customer service should be available 24/7, although many brokers offer support all day throughout the working week and nothing on the weekends.
You should also be able to contact them in different ways, whether that is through email, on the phone, or through live chat, and they should come back to you in good time with relevant information.
A good way to assess the customer support of a broker is to seek out independent reviews – using a search engine rather than relying on the ones that they might share on the website.
FCA Regulation
The Financial Conduct Authority (FCA) in the UK is the regulator that oversees financial institutions operating in the UK.
The FCA is considered to be a top-tier regulator on a global scale, and this means that any broker that is FCA regulated is a safe option for investors.
You can find out who regulates the brokers you are considering because they will list the regulatory bodies they adhere to on the website, often in the footer.
ASIC and CySEC are two other well-known top-tier regulators to look out for.
Low Spreads and Commissions
Fees should be an important consideration for any investor because you want to make the most of the money that you are betting rather than spending it all on fees and commissions for the broker.
There are several types of fees that you will need to consider when looking at the cost of investing, including:
Deposit and withdrawal fees
Minimum deposits
Account management fees
Inactivity fees
Commission
Spread
Spread betting doesn’t often incur commission fees, and the spread usually includes the money that the broker is charging for the use of their service.
While going for the cheapest option might seem like a no-brainer, the brokers that have slightly higher fees might provide a more comprehensive service.
Choice of Assets, the Larger, the Better
The more trading instruments that a broker offers, the more choice you will have when it comes to creating a portfolio of investments.
Spread betting can happen across all markets, and a broker that offers more types of assets will give you more opportunities to develop your skills and knowledge.
Assets in different markets will also respond differently to news and movements. When currency markets are falling, commodity markets might be rising, for example.
The opportunity to use multiple markets for spread betting can help protect your investment.
Demo Account
The demo account is a beginner traders’ best friend, allowing you the chance to get used to all the features of the platform and the broker as well as how to place your bets without risking real money.
A broker that offers a demo account is definitely the best bet for a beginner, but also useful for a more experienced trader that might be looking for a new strategy.
Low Bet Size
Starting small is the safest way to begin your spread betting journey, so you want to choose a broker that allows small bet sizes.
This can still work for the more experienced trader thanks to the application of leverage, which can allow a small bet size to become magnified (along with the resulting profit or loss).
Reliability
A reliable broker is not only one that is considered safe but one that can offer market connection with low latency.
When markets are particularly volatile, microseconds can make the difference between profit and loss, so you want the trade to be executed as soon as you press the button.
A reliable broker will also have excellent customer service and a platform that is user-friendly and easy to navigate.
Adjustable Leverage
Leverage is an excellent tool for increasing profit margins, but it can amplify losses as well as profits. This makes it a tool that needs to be used carefully, and you will want to avoid high leverage, especially when you are just getting started.
Adjustable leverage means that you can choose whether you want to apply leverage to your stake and how much you are willing to risk for a bigger reward.
Frequently Asked Questions
Is spread betting a good strategy for beginners?
Spread betting is an excellent strategy for beginners because it is not about choosing the right asset but about choosing the correct movement of the market. And you can even make a profit when the markets are falling if that is what you have bet on.
What is the minimum deposit for spread betting platforms in the UK?
Spread betting providers have different minimum deposits in the UK, but in general terms, you will only have to put up a small percentage of the value of the underlying asset.
This can be as low as 3%. The deposit you need to open an account with a spread betting broker might be anything from £0 right through to £200 or even more.
Are the spread betting platforms in the UK regulated by law?
The best spread betting trading platforms UK are regulated by the Financial Conduct Authority (FCA), which is a top-tier regulatory authority that is recognized globally.
This protects your deposits and, in some cases, provides negative balance protection as well.
Are spread betting trading platforms safe?
Spread betting platforms that are well-regulated (by the FCA or ASIC) are considered to be safe; they need to meet certain financial safety criteria to be regulated.
However, any investment you make comes with inherent risk. You are not guaranteed to make a profit, and in fact, you could make a complete loss.
What financial spread betting platforms offer a demo account?
Almost all spread betting platforms available in the UK offer a demo account, which should be considered essential when you are looking at which platform to choose.
How can I start spread bet trading in the UK?
To start spread bet trading in the UK, you need to open an account with a broker that offers spread betting. This is simple to do and can usually be completed online.
Once you have an account, then you need to decide which asset or market you want to use to place your stake in and choose the way you think the market is going to move.
What do spread betting traders do?
Spread betting traders place stakes on the direction the market is moving, whether that is a bull (rising) or bear (falling) market.
Spread betting is an excellent hedging tool for professional traders because profits can be made on a falling market as well as a rising one.
Is spread betting tax-free in the UK?
Spread betting is considered a gamble in the UK, which means that HRMC does not charge either stamp duty or capital gains tax on any profits.
This can change depending on tax rules, so it is always worth checking for the most up-to-date knowledge.
Can you get rich from spread betting?
Making the right bets at the right time on the right market can make a profit, and with the right application of leverage, this profit can be magnified.
However, like all investments, the market can move in mysterious ways, and you could easily face enormous losses too.
Final Thoughts
Spread betting is a simple way to get started with trading, especially for beginner traders, because it is easy to understand and usually incurs fewer fees than other investment strategies.
Spread betting is a way of staking funds on whether the market is rising or falling and choosing the correct direction.
Traders can use research tools like fundamental data, news feeds, and technical analysis to decide on when to open and close a position, and by mitigating risk and following a trading plan, it is possible to adopt a professional trader mindset and take emotion out of the equation.
Choosing the top spread betting platforms UK will help you trade, both through fast and efficient access to the markets, trading tools, tools to help you learn (such as articles and lessons as well as a demo account), and tools to help you research the markets.
It is always wise to remember that spread betting is a gamble, and with or without leverage, your capital is at risk.
