Compare the best spread betting platforms in 2023

Introduction

Our team of financial professionals has reviewed the top spread betting brokers to identify the optimal service for your requirements. See the list of recommended brokers below to see what set them apart from the others and earn such high marks from our panel.

The committee put each investing platform that provided spread betting through a battery of tests to evaluate how they fared against one another. The evaluations included things like creating an account, making a wager, and contrasting welcome incentives.

After putting each system through its paces, our panel came up with a definitive order of preference. These scores were factored into the final tally, which you can see here.

Best spread betting platforms overall for 2023

Compare the best spread betting brokers

The best spread betting sites, according to our experts, are listed below. Join by clicking one of the table’s links, or read on to find out more about the various networks and the assistance they provide.

Top 8 spread betting brokers, reviewed

Best spread betting brokers for your needs

What is the best stock market spread betting broker?

If you want to bet on the stock market, City Index is the ideal broker to choose. The greatest location to wager on stock markets throughout the world, with access to roughly 5,000 markets and the option to spread bet the newest IPO equities.

Where can I participate in FX spread betting?

In the foreign exchange market, our experts recommend Pepperstone. You can acquire the best possible exchange rate on a wide variety of major, minor, and exotic currency pairs.

Where can I find the finest platform for commodity spread betting?

To place a wager on a commodity, AFTX is your best option. You may have a hard time locating brokers who deal in commodities, but with AFTX, you may wager on both hard and soft commodities.

Which company provides the most reliable spread betting on cryptocurrencies?

Because of regulations in the United Kingdom and Ireland, spread betting on cryptocurrencies is restricted to institutional investors. Instead of spread betting, trading with a broker like eToro is the best alternative.

How to choose a spread betting broker

1. Check spread betting is legal where you live

Spread betting is illegal in the majority of the rest of the world save for the United Kingdom and Ireland. If you live in the United States, for instance, you are unable to spread bet because it is illegal there and in most of the rest of the world.

Therefore, this is a major factor to think about when selecting a broker. You’ll have to discover an other trading method if spread betting is prohibited in your country. CFD trading is a viable alternative. Spread betting is an alternative to CFDs because of the many ways in which the two are alike.

2. Look for a broker with low spreads

You should prioritize finding a spread betting platform with minimal spreads if doing so is possible in your jurisdiction. To put it simply, the spread is the difference between an asset’s ‘bid’ and ‘ask’ price. The spread is the difference between a broker’s bid (buy) price and ask (sell) price; in this case, $1.

Spreads can be thought of as spread betting’s equivalent of commissions. The commission for the broker is the difference between the two prices. The spread of a broker who charges only $1 is preferable than one who charges $5. But, you should know that your options for spread betting on specific assets, such as cryptocurrencies or commodities, may be limited to a small number of brokers.

3. Find the assets you want to bet on

You will need to spend more time looking into which brokers offer betting on specific assets due to the restrictions on where spread betting is legal. Spread betting on stocks and currencies is more widely available than on commodities on most websites.

Spread betting on cryptocurrencies, however, is subject to much more stringent regulations, even in the United Kingdom. In order to bet, you may need to provide proof that you are a professional customer.

4. Learn how a point is measured

Returns on wagers are calculated as a function of the number of points by which the price has changed. You would win $25 on a bet of $5 if the price of gold rose by $0.50. Staking $5 times a change of 5 points (0.1 x 0.5). In order to achieve success, it is essential to have a firm grasp on this.

Each item has a unique point value that can be affected by market fluctuations. For instance, in foreign exchange (FX) betting, a price move is often denoted in “pips,” or 0.0001 percentage point. While a point represents a $0.01 price movement in the stock market and gold betting, it can mean much more in other markets.

5. Use a demo account to practice

Spread betting is best learned by opening an account with a broker and using a practice account before placing actual bets. The vast majority of brokers provide practice accounts in which you can wager with fictitious funds.

You may learn the fundamentals of a market’s operation and put different trading methods to the test with a demo account. Before risking your own money, you may, for instance, test the waters by placing mock bets on a variety of assets to find the one that best suits your betting style.

Quick answers to key questions

Can you make money from spread betting?

Sure, but it’s not simple, and there’s a good chance you’ll lose money if you’re not prepared. You must have self-control when it comes to wager sizing and knowing when to walk away from a losing wager. To mitigate the impact of the market’s unpredictability, use stop-loss limits, which are pre-programmed orders to liquidate losing positions.

Because to the high degree of volatility and potential for loss, our team of specialists suggests practicing with a fake account first. Instead of diving in blind, put in some time and effort into learning the ropes by testing the waters and getting a feel for the risks and potential rewards, as well as the ebb and flow of individual markets.

Do you have to pay taxes on spread betting?

It’s the primary advantage of spread betting over CFDs. Any winnings from spread betting in the United Kingdom are not subject to CGT.

This is because spread betting is considered gambling (the clue is in the name). Unlike the gains from stock purchases or real estate investments, winnings from gambling are not subject to taxation. For the same reason that spread betting is illegal elsewhere, the United States has stricter gambling rules.

Which is better, spread betting or CFD trading?

If you don’t live in the UK or Ireland, you won’t be allowed to spread bet, therefore you may have to settle for trading CFDs. Certain additional considerations apply for those who reside in the UK.

What you bet on is the most crucial consideration. If cryptocurrency is your answer, you can trade it through a broker like eToro. Spread betting, however, is exempt from taxes and could be the best alternative otherwise. In particular if you intend to wager heavily.

While spread betting, may I utilize leverage?

One of the reasons it’s more popular than just buying and keeping assets like stocks or bitcoin is that you can employ leverage. In the United Kingdom, the maximum permitted leverage according to European Union regulation is 1:30.

What is the time frame for spread betting?

The length of time they’re available varies, but it may be forever. Spread bets can either run until the end of the quarter, or they can roll over indefinitely, but incur overnight costs for each day they are left open past 10 p.m.

Spread betting can become prohibitively expensive when overnight costs are included in. Due to the nature of using leverage, you are effectively borrowing funds to maintain your bet, and as a result, you will incur interest costs. The overnight charges are similar to interest payments on other loans, but they may add up quickly, costing several pounds per night even on a tiny wager.

Methodology

In order to give our users easy-to-understand advice on where to put their money, we conduct regular tests of more than 63 spread betting brokers. Our team of spread betting experts, analysts, and active traders will open an account with each broker, do research, and give each service a final score.

Our goal is to discover a spread betting site that is easy for beginners to use, provides a safe trading environment, and charges a reasonable fee. We also conduct online research into each service to augment our actual testing and experience. To learn what people think works and what doesn’t, we look at online customer reviews, app reviews on the Play Store and App Store, and run user surveys.

Cost, dependability, user experience, deposit & withdrawal, investing alternatives, product & market breadth, research & analysis tools, and educational & learning resources all factor towards each spread betting broker’s ultimate grade.

To assure the accuracy of all displayed data, we coordinate closely with individual brokers. An outsider then verifies all data for accuracy. Our testing, rating, and reviewing procedure for platforms, including details on our expert panel, is available in our evaluation.

Conclusion

In conclusion, as spread betting continues to gain popularity in 2023, it is crucial to choose the best platform for your needs. Through thorough research and comparison, investors can find a spread betting platform that offers a wide range of markets, competitive spreads, advanced trading tools, and a user-friendly interface. It is also essential to consider factors such as regulatory compliance, security measures, customer support, and educational resources. By selecting the best spread betting platform, investors can maximize their trading potential and achieve their financial goals while minimizing risks

FAQs

Who created spread betting?

Stuart Wheeler, an investment banker in London’s City, popularized the practice of spread betting. In 1974, he established IG Index, a company that provided that service in relation to gold. Spread bettors quickly expanded their focus to include additional assets, with cryptocurrencies like Bitcoin gaining traction around the turn of the decade.

Are spread betting and day trading the same thing?

No, yet they have many similarities. Day trading can incorporate spread betting by placing daily funded bets (DFB), which are spread bets intended to close at the end of the trading day.

Spread betting, on the other hand, does not incur any taxes, while day trading utilizing CFDs does. Whereas day trading with CFDs is significantly more accessible than spread betting, which is only permitted in the UK and Ireland, spread betting is only available in those two countries.

Can I spread bet if I’m not in the UK?

Unless you’re based in Ireland, unfortunately not. Most countries outside of the United Kingdom, including the United States and Australia, do not provide spread betting.

What’s the biggest advantage of trading with leverage in a spread bet?

You stand a much better chance of coming out ahead than if you were to place a regular bet with your own money. But, if you employ leverage and make a mistake, you run a great danger of losing money.

What’s a good way to manage risk when spread betting?

With a stop-loss order, your losses will be capped at a predetermined level. Whenever your stop-loss value is reached, your trade will automatically close at the best then current market price. Be warned, though, that in a volatile market, your trade may be closed at a worse price than your stop price.

What is spread-betting arbitrage, and is it a strategy worth pursuing?

Arbitrage refers to the simultaneous purchase and sale of a financial instrument at different prices. You can locate an arbitrage opportunity if you hunt for two companies who have opposing views on the same asset. Through arbitrage, a trader can benefit regardless of the direction the market takes

Risk disclaimer

People may discover trustworthy, unbiased information on money, trading, and investing on Forex Ratings, but we do not give financial advice; users should always conduct their own research. Stocks, cryptocurrency, and commodities are just a few of the extremely volatile items our website covers. New investors frequently lose money. Users shouldn’t ever invest more money than they can afford to lose because success in the financial markets is not guaranteed. Before making any investment, you should think about your unique situation and take the time to analyze all of your possibilities.