Best Spread Betting Brokers For 2021

If you are interested in learning more about spread betting or looking for a new spread betting broker, then look no further. 

This quick but comprehensive guide will provide you with all the information you need to understand what spread betting is, how it works, how to get started and which spread betting brokers you should consider using to get a great deal.

Compare our Recommended Spread Betting Brokers:

Broker     Official Site   Max. Leverage Regulations Min. Deposit    Spreads From Review
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200:1 $0 0.14 (Fixed)
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500:1 $100 From 0 pips
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500:1     $200 From 0.1 pips
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400:1 $100 From 0.9 pips
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400:1   $100 From 0.5 pips
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What is Spread Betting?

Financial spread betting is when you speculate/ bet/ wager on the price movement of a financial asset, in the hope of making a profit.

When spread betting, you bet (trade) on whether the price of a financial asset, like Gold for instance, will rise or fall in value, without ever owning the asset.

Most spread betting brokers will provide access to many global financial markets, like indices, forex, cryptocurrencies, commodities, futures, ETFs, bonds and more.

Spread betting was launched in the 1970’s in the UK and was initially frowned upon. Even to this day, many people avoid spread betting because of the term “betting”, and the stigma that comes with it. But the term betting was intentionally added because it meant that any profits were not taxed.

Spread Betting Example

  • You have been following the price of the UK100 index and think it is overpriced.
  • You login to your spread betting account and enter a SELL trade (as you think the price will drop).
  • The price quoted by your spread betting broker is 6800 – 6801. You sell 5 units @ 6800.
  • In a couple of days’ time the UK100 index has fallen to 6699 – 6700.
  • You were right in your speculation (that the UK100 would drop in value) and decide to exit the trade to take the profit.
  • You BUY 5 units at 6700 to exit.
  • The profit on this trade is GBP 500! (5 units x 100-point decline in value)
  • On the other hand, say the price of the UK100 had increased to 6899 – 6900, you would have lost GBP 500.

Key Considerations When Choosing a Spread Betting Broker

When searching for a reputable spread betting broker, always consider the checklist below as a general guide.

Do you trust them?

Like most things in life, we need to be able to trust a person or product before we commit to them/ it. Spread betting is no different – do your research and see what others are saying about the broker you are considering.


Only ever trade with a regulated spread betting broker, otherwise your money is at risk. We feel that brokers regulated by the likes of ASIC in Australia and the FCA in the UK is a great place to start.

Trading costs

How much are they going to charge you to trade? Always compare spreads and commission costs before committing to one broker. Most spread betting brokers will not charge commission, but they will charge spread, and some are far more expensive than others.

Tradable instruments

Which assets are you hoping to trade? Ensure your broker of choice offers these otherwise they will not be any use to you! Most brokers offer a wide array of markets to trade, but it is always smart to check before signing up.

Customer support

Having a broker that offers excellent customer support is very important as you will need assistance from time-to-time. Find a brokerage that offers 24/5 support across email, phone, and live chat, and one that offers languages other than just English.


How long has your desired broker been operating for? Are they listed on a stock exchange or are they privately owned? Only trade with spread betting brokers that have been around for a minimum 2-3 years.

Trading Platform

Always look for a simple and easy-to-use trading platform to place your trades. Some platforms may offer fast execution, but the design and layout might be confusing – find a platform that makes you feel comfortable and confident.

Some of the Benefits of Spread Betting

  • Tax free. Any profits from financial spread betting are exempt from capital gains tax in the UK and Ireland (tax laws are subject to change).
  • Trade using margin. When you spread bet, you are trading on margin (or leverage). This means you can open greater position sizes with less money (than if you had to fund the full value of the position). As an example, if the margin rate for a product is 3%, and you wanted to place a spread bet worth £20,000, you would only need £600 in available funds on your account to open the trade.
  • Speculate on rising and falling markets. Spread betting allows you to short sell if you think a particular market is going to drop in value. This is unlike traditional investing, where you could only buy an asset.
  • Global markets. You can access thousands of global markets from one spread betting trading platform these days – how amazing is that!?
  • 24/5 trading. Most spread betting brokers will be open 24/5 Mon-Fri, giving you the opportunity to spread bet all around the clock.
  • Trade anywhere. These days, your spread betting broker will likely offer you the ability to trade at your desk using your PC or Mac, or via your mobile phone using an App.

Some of the Risks of Spread Betting

  • Significant losses. It should never be forgotten that spread betting is a very risky trading product and it is likely you will lose. Be careful and only spread bet with money you can afford to lose.
  • Gapping due to volatility. Slippage or gapping can occur during times of extreme market volatility and this can result in larges losses if your stop-loss price is slipped.
  • High trading costs. Unfortunately, some brokers do not play fair and take advantage of their clients by charging them wide spreads (the wider, the more expensive it is to trade), high commissions or needless ‘inactivity’ fees. Please compare brokers before opening a live account and getting ripped off.
  • Leverage. Financial spread betting is a highly leveraged trading product and those that are not experienced or familiar with leverage need to be very careful.

Is It Possible to Make Money Spread Betting?

Yes, absolutely, although the statistics do not lie – it is more likely that you will lose money when spread betting.

We would estimate that of all those that spread bet, only 20% – 30% would consistently make money. That leaves 70-80% who lose!

Spread betting, and online trading in general, requires skill, experience, discipline, and immense knowledge -as well as plenty of luck!