Spread betting allows you to trade online without paying any capital gains tax on your profits. You can also trade with leverage and even short-sell your favorite markets. In this article, bestsoccertips will reveal the best spread betting sites for 2024. We rank the top spread betting providers based on supported assets, licenses, fees, payouts, and many other criteria.
What is a spread betting broker?
A spread betting broker allows you to trade on financial markets with transactions structured as bets. This means that technically, you are gambling rather than investing, so all profits are exempt from capital gains tax.
Financial spread betting is a type of tax-free trading in the UK because the transactions are structured as bets. Since there is no capital gains tax on gambling in the UK, profits can be tax-free. For more information, read our guide on why financial spread betting is tax-free.
When choosing a spread betting broker, you need to compare more than just costs. The main things to consider when selecting a trading platform are:
- Market Access: How many instruments can you spread bet on? (IG offers the most markets).
- Minimum Deposit: Can you trial the platform with a small amount of money when starting out? (Spreadex, CMC, and Pepperstone all have a minimum deposit of £1).
- Account Types: Do they offer both DMA spread betting and OTC (over-the-counter) trading? (IG offers the most account types).
- Inactivity Fees: Are there fees if you don’t use your account? (CMC, Pepperstone, and Spreadex do not charge inactivity fees).
- Established: How well-established is the spread betting platform? (IG is the oldest spread betting broker).
- PLC: Publicly listed spread betting companies must report their financial situation more frequently. (IG and CMC are listed on the LSE, City Index is owned by StoneX which is listed on NASDAQ).
Review of the Best Stock Spread Betting Brokers
To choose the best spread betting platform in the UK, you will need to evaluate various metrics. Not only the supported markets and fees but also the minimum bet size, the types of payments accepted, and the licenses.
Below, you will find comprehensive reviews of the 12 best spread betting platforms in the UK for 2024.
1. Pepperstone – Access Four Asset Classes for Spread Betting and High Leverage for Trading
Pepperstone is a reliable platform, licensed and regulated by the FCA, ensuring the safety of your funds. Being UK-based, it offers local customer service, allowing traders to reach out via phone or live chat at any time. Pepperstone is our top-rated spread betting platform for 2024.
In terms of spread betting markets, Pepperstone offers four asset classes. You can trade UK stocks like Royal Mail, BP, HSBC, and British American Tobacco, as well as international stocks like IBM, PayPal, Amazon, and Apple. The platform also supports stocks from Australia, Germany, and Hong Kong, with a minimum spread of 0.8 points plus the market spread.
You can spread bet on commodities such as gold, silver, wheat, natural gas, and oil. Indices like China A50, Nikkei 225, NASDAQ 100, and FTSE 100 are also available for trading. Additionally, Pepperstone supports forex spread betting with over 60 currency pairs, including major, minor, and exotic pairs, with spreads starting from 0.7 pips.
All spread betting markets on Pepperstone are commission-free. The platform earns from market spreads, which are indirectly paid when you enter and exit a position. There is no minimum deposit required, and signing up takes just a few seconds. Beginners can use a free demo account to get started.
Pepperstone also offers leverage, allowing you to amplify your spread betting position up to 1:30 for forex, 1:20 for gold and major indices, and 1:5 for stocks. These leverage limits comply with FCA guidelines and are consistent across all UK spread betting platforms.
2. XTB – A Reputable Spread Betting Platform Offering a Wide Range of Tradable Securities
XTB is the next platform on our list of the best spread betting platforms for traders. Established in 2002, XTB is renowned as one of the oldest multi-asset brokers. Since its inception, this platform has been providing exceptional trading services to residents in the UK and many other places.
The main attraction of XTB is that it offers trading accounts that allow users to trade over 2,100 CFDs on Forex, Indices, Commodities, Stocks, and ETFs.
When it comes to spread betting, XTB stands out by catering to various trading preferences and investor goals. It offers different types of accounts – Standard and Pro. The spreads and commissions on this platform depend on the account type and the market each trader wants to trade. For example, with standard accounts, XTB offers floating spreads.
To cater to professional traders looking to engage in the global investment market, XTB provides many industry-standard tools. Beginners still learning can always take advantage of XTB’s videos and educational materials. Additionally, this platform has a dedicated trading academy, with over 200 lessons to equip you with the necessary knowledge about the pros and cons of trading.
Above all, XTB is a platform for those who want to safely navigate the global trading market. With an extensive catalog of tradable securities, an intuitive mobile platform, advanced tools, dynamic customer support, and educational support, this platform has positioned itself as a major competitor in the vibrant trading landscape.
3. AvaTrade – A 0% Commission Spread Betting Platform with a Free Demo Account
AvaTrade was established in 2006 and is licensed in nine different countries. Furthermore, AvaTrade was voted the UK’s most trusted trading platform by World Business Stars Magazine in 2023. We also like AvaTrade for its low pricing structure. All supported spread betting markets in the UK and internationally can be traded without any commission fees.
Moreover, you will find that the spreads are very competitive. For example, if you want to spread bet on forex, the EUR/USD spread starts at 0.9 points. Dozens of major, minor, and exotic currency pairs are supported. If you are more interested in spread betting on stocks, you will have access to the UK, US, and European markets. The spread on large-cap US stocks like Apple, Amazon, and Netflix starts at 0.13% per slide.
AvaTrade is also popular for spread betting on commodity spot markets. You can spread bet on gold at $0.29 above the market price, which is competitive. You can also trade silver, cotton, oil, wheat, natural gas, and cocoa. We also find AvaTrade to be a great choice for spread betting on indices. Popular markets include the FTSE 100, S&P 500, Dow Jones, and many other international markets.
Other supported markets include options, ETFs, and bonds. If you like AvaTrade, you will need to deposit at least £100 to open an account. You can also opt for a free demo account – no deposit required. Payment methods at AvaTrade include debit/credit cards, bank transfers, and selected e-wallets.
4. Capital.com – Commission-Free Spread Betting on Thousands of Stocks from the UK and Abroad
Capital.com is the best spread betting platform in the UK for stocks. The platform supports thousands of stocks from various markets. In the UK, you can trade large-cap stocks like British American Tobacco, Glencore, and AstraZeneca, as well as small-cap stocks like ASOS and Boohoo. If you want to spread bet on international stocks, you can find companies from the US, Germany, Singapore, Hong Kong, Canada, Australia, and many other markets.
All stocks on Capital.com can be spread bet with leverage up to 1:5. If you are looking for higher leverage limits, check out Capital.com’s commodities section. You will be able to trade gold with 1:20 leverage and 1:10 on all other supported commodities. This includes silver, copper, corn, platinum, oil, natural gas, and wheat. You can also speculate on the prices of orange juice and soybeans.
Capital.com is also one of the best spread betting platforms for forex – supporting 125 currency pairs. All spread betting markets on Capital.com can be traded commission-free. You can start with just £20 when depositing with an e-wallet or debit/credit card. Capital.com is licensed and regulated by the FCA and is home to over 555,000 clients.
5. CMC Markets – Spread Bet on Over 12,000 Markets with 0% Commission
If you want to trade a wide variety of markets from a single account, CMC Markets might be the best spread betting platform for you. In total, you will have access to over 12,000 spread betting instruments. This includes the most popular asset classes on the market. For example, you can spread bet on 330 currency pairs, not to mention indices, ETFs, and commodities.
You can also spread bet on hundreds of stocks from the London Stock Exchange and thousands more from international markets. This includes US stocks like JPMorgan Chase, McDonald’s, Netflix, and Amazon. CMC Markets also supports ‘stock baskets.’ These allow you to spread bet on carefully selected index funds that track specific markets.
For example, automation and robotics, UK banks, renewable energy, and cybersecurity. All spread betting fees on CMC Markets are integrated into the spread and will vary depending on the asset. For instance, the S&P 500 can be traded from just 0.5 points. Forex spreads start from 0.6 points. You will not need to meet any minimum deposit requirement on this FCA-regulated spread betting platform.
Conclusion
In conclusion, Pepperstone stands out among spread betting sites for its reliability, extensive market coverage, and user-friendly features. Whether you are interested in trading UK and international stocks, commodities, indices, or forex, Pepperstone offers competitive spreads and commission-free trading. With robust customer support and FCA regulation, it ensures a secure trading environment. For both beginners and experienced traders, Pepperstone provides an excellent platform to explore and capitalize on various spread betting opportunities.
