Broker Review Contents
What is Spread Betting?
Spread betting allows traders/investors based in the UK to make a bet on a financial asset, whether it will go up or down, without owning the actual asset. If you bet that a financial market will go up, and the price ends up higher than the price at which you made the bet, you will make money. Otherwise, you will lose money on that bet. Spread betting allows UK investors to also bet on the value of an asset dropping. On this type of bet, also known as short selling, if the value of the market goes lower than where you shorted, you will make money. If the price is higher than the price at which you shorted, you will lose money. In this article, we will show what you need to consider when selecting a broker and a list of some of the Top Spread Betting Brokers.
What is the difference between financial and forex spread betting?
You can use financial spread betting to bet on whether the price of a financial product (index, stock, bonds, commodities) will go up or down, without owning the actual product. It means that you are essentially only betting on the price of the market. Thus, you enter a contract with the Spread betting provider – losing money on a bet means that money from your account will go to them. Winning money on a bet means that money from their account is moved to your account. In this type of spread betting you make bets in terms of GBP per point/tick.
Forex spread betting is similar to financial spread betting, but you bet on the exchange rate between two currencies. For example: if you bet that GBP/USD is going to go up (buy) on spread betting, it means that you are betting that the pound is going to appreciate against the US dollar. Therefore, if the GBP/USD rate goes up, you will make money, if it goes down you will lose. If you bet that GBP/USD is going to go down (sell) on spread betting, you are betting that the pound will lose value against the US dollar. For this type of spread betting, you make bets in terms of GBP per pip.
As a derivative product (you don’t own the actual asset, but you only bet on its price), spread betting allows you to utilize leverage when placing trades. Leverage allows you to borrow money from brokers/spread betting providers thus allowing you to place bigger bets, with smaller capital. This allows you to maximize returns on your capital, as the capital required to open trades would be smaller when compared with trading without leverage. However, it’s also important to note that although potential gains could be bigger when trading with leverage, leverage also increases the risks involved with trading and could also lead to bigger losses.
Spread betting can be capital-gains tax free in some cases, but it’s better to consult with a tax specialist regarding this.
Key Points to Consider when choosing a spread betting broker
Trust and Regulation– Trusting your spread betting brokerage is important, consider brokers which are regulated by top regulators. FCA regulated brokers keep client funds segregated from their company funds. Should a broker become insolvent, the FSCS (Financial Services Compensation Scheme) protects clients in case of a shortfall in the client funds. They cover up to 85,000GBP per trader. Some brokers purchase additional insurance for clients, where in case of broker default, clients are covered for up to 1million GBP.
Experience – How long has the spread betting broker been in business for? What is their reputation in the industry and among traders?
Customer service – Do they offer 24/5 or 24/7 support? Are they accessible via phone/chat/email? Some brokers offer personal account managers for clients. These account managers can be the point of contact for the client, resolving any issues and maintaining a good relationship with the client. Some brokers also offer support in multiple languages.
Platforms – Most spread betting brokers offer the industry standard Metatrader 4 an Metatrader 5 platforms. Some also offer platforms that are unique to them. Considering whether the platform is easy to learn, and whether it’s available for desktop, mobile or browser is important.
Educational materials and trading tools – Consider whether the broker offers educational materials for traders of different levels of experience. Some spread betting brokers offer market analysis to help traders find trades. They also do webinars to help traders learn how to trade. They can also offer different tools such as analyst reports, signal services and many others.
Markets offered – The number of markets and symbols you have access to. Typically, bigger spread betting providers would be able to offer more.
Funding methods – what options do you have for funding your spread betting account? Are they fast and easy to use?
There are many top brokers which offer spread betting for UK residents, but today we will show you our list based on the above criteria.
Top Spread Betting brokers in 2023
Pepperstone
Pepperstone was launched in 2010 and since then it has gathered momentum to
become one of the most respected FX, CFDs and Spread Betting brokers. Trusted by more than 90,000 clients and regulated by the Financial Conduct Authority (FCA) and Australian Securities and Investments Commission (ASIC), they keep client money segregated from their company funds. Spread Betting clients in the UK are trading with Pepperstone UK and further to their funds being segregated, they are also covered by the Financial Services Compensation Scheme (FSCS). Thus, in terms of trust, regulation and experience they are one of the top spread betting providers in the UK.
Pepperstone Support
Pepperstone offer support in 8+ languages including English, Spanish, Chinese and Arabic. You can contact them via email, phone, whatsapp and chat. They offer support 24/5.
Pepperstone Platforms
In terms of platforms, Pepperstone offer both MT4 and MT5, the two mainstream trading platforms from Metaquotes. They also offer cTrader platform – another popular platform with retail traders. Metatrader platforms have web, desktop, and mobile versions.
Pepperstone Educational materials and trading tools
Pepperstone has an educational section on its website with sections on trading forex and shares. They also have trading guides and hold regular webinars to help spread betting traders learn about markets. Pepperstone also have in house market analysts who post market analysis daily. Trading tools in the form of apps (Expert Advisers EAs) for MT4 and MT5 are available. Also, industry leading Autochartist tool can help traders to pick trading opportunities.
Pepperstone Markets offered
In terms of markets and symbols offered, you can access over 1200 symbols across the following markets: Forex, Commodities, Indices, Stocks and Cryptos.
Pepperstone Funding Methods
Popular funding methods that are available with Pepperstone include: Credit/Debit cards, Bank Transfer, Paypal and Skrill/Neteller.
ThinkMarkets
ThinkMarkets was established in 2010 and since then it has gathered momentum to become one of the leading FX, CFDs and Spread Betting brokers. Regulated by the Financial Conduct Authority (FCA), Financial Sector Conduct Authority (FSCA) and Australian Securities and Investments Commission (ASIC), they keep client money segregated from their company funds.
Spread Betting clients in the UK are trading with ThinkMarkets UK and further to their funds being segregated, they are also covered by the Financial Services Compensation Scheme (FSCS). ThinkMarkets have also purchased additional insurance which covers their clients for up to 1million GBP in the event of broker default. This makes them one of the top brokers in terms of safety of client funds and particularly attractive for high net worth spread betting traders who might want to deposit bigger sums. Thus, in terms of trust, regulation and experience they are one of the top spread betting providers in the UK.
ThinkMarkets Support
ThinkMarkets offer support in 8+ languages including English, Spanish, Chinese and Arabic. You can contact them via email, phone and chat. They offer support 24/7.
ThinkMarkets Platforms
In terms of platforms, ThinkMarkets offer both MT4 and MT5, the two mainstream trading platforms from Metaquotes. They also offer their unique platform called ThinkTrader– another popular platform with retail traders. Metatrader platforms have web, desktop, and mobile versions.
ThinkMarkets Educational materials and trading tools
ThinkMarkets has an educational section on its website with sections on trading forex and different asset classes. They also have trading guides and hold regular webinars to help spread betting traders learn about markets. ThinkMarkets also have in house market analysts who post market analysis daily. Trading tools in the form of apps (Expert Advisers EAs) for MT4 and MT5 are available. Also, industry leading Autochartist tool can help traders to pick trading opportunities.
ThinkMarkets Markets offered
In terms of markets and symbols offered when you spread bet with ThinkMarkets, you can access over 30 symbols across the following markets: Forex, Commodities, and Indices. This is where their offering on spread betting isn’t that good, as other provider offer more markets. If you want more symbols, you can try their CFD account which has more than 1000 symbols.
ThinkMarkets Funding Methods
Popular funding methods that are available with ThinkMarkets include: Credit/Debit cards, Bank Transfer and Skrill/Neteller.
Avatrade
Avatrade was founded in 2006 and since then it has become one of the best FX, CFDs and Spread Betting brokers. Regulated by the Central Bank of Ireland, Financial Sector Conduct Authority (FSCA), CySEC and Australian Securities and Investments Commission (ASIC), they keep client money segregated from their company funds. Spread Betting clients in the UK are trading with Avatrade EU (Central Bank of Ireland regulated) and further to their funds being segregated, they are also covered by compensation scheme.
Avatrade Support
Avatrade offer support in 10+ languages including English, Russian, Spanish, Chinese and Arabic. You can contact them via email, phone, and chat. They offer support 24/5.
Avatrade Platforms
In terms of platforms, Avatrade offer both MT4 and MT5, the two mainstream trading platforms from Metaquotes. They also offer their unique platform called AvatadeGO. Metatrader platforms have web, desktop, and mobile versions.
Avatrade Educational materials and trading tools
Avatrade has an educational section on its website which caters to traders with different types of ability – from beginners to experts. They also have trading guides and hold regular webinars to help spread betting traders learn about markets. Avatrade also have in house market analysts who post market analysis daily. They also have Avasocial app which allows you to copy other traders.
Avatrade Markets offered
In terms of markets and symbols offered when you spread bet with Avatrade, you can access over 200 symbols across the following markets: Forex, Commodities, Stocks, Crypto and Indices. Although this is a diverse range of symbols and markets, there are other spread betting providers who offer more.
Avatrade Funding Methods
Popular funding methods that are available with Avatrade include: Credit/Debit cards, Bank Transfer, Paypal and Skrill/Neteller.
Markets.com
Markets.com was established in 2008 and since then it has gathered momentum to become one of the leading FX, CFDs and Spread Betting brokers. Regulated by the Financial Conduct Authority (FCA), CySEC and Australian Securities and Investments Commission (ASIC), they keep client money segregated from their company funds.
Spread Betting clients in the UK are trading with Markets.com UK entity and further to their funds being segregated, they are also covered by the Financial Services Compensation Scheme (FSCS). Markets.com have also purchased additional insurance which covers their clients for up to 1million GBP in the event of broker default. This makes them one of the best brokers in terms of safety of client funds and particularly attractive for high net worth spread betting traders who might want to deposit bigger sums. Thus, in terms of trust, regulation and experience they are one of the top spread betting providers in the UK.
Markets.com Support
Markets.com offer support in 8+ languages including English, Spanish, Chinese and Arabic. You can contact them via email, phone, and chat. They offer support 24/5.
Markets.com Platforms
In terms of platforms, Markets.com offer both MT4 and MT5, the two mainstream trading platforms from Metaquotes. They also offer their unique platform called MarketsX– another popular platform with retail traders. Metatrader platforms have web, desktop, and mobile versions. Spread betting customers should keep in mind that Markets.com offer spread betting only on their MarketsX platform.
Markets.com Educational materials and trading tools
Markets.com has an educational section on its website known as the knowledge center. They also have trading guides and hold regular webinars to help spread betting traders learn about markets. Markets.com also have in house market analysts who post market analysis daily. Trading tools such as: blogger opinions, hedge fund sentiment, insider trades, analyst recommendations and many more are available to Markets.com customers.
Markets.com Markets offered
In terms of markets and symbols offered when you spread bet with Markets.com, you can access over 200 symbols across the following markets: Forex, Commodities, Stocks, ETFs, Bonds, and Indices.
Markets.com Funding Methods
Popular funding methods that are available with Markets.com include: Credit/Debit cards, Bank Transfer, Paypal and Skrill/Neteller.
FXCM
FXCM was established in 1999 and since then it has gathered momentum to become one of the leading FX, CFDs and Spread Betting brokers. Regulated by the Financial Conduct Authority (FCA), and CySEC, they keep client money segregated from their company funds. Spread Betting clients in the UK are trading with FXCM UK and further to their funds being segregated, they are also covered by the Financial Services Compensation Scheme (FSCS).
FXCM Support
FXCM offer support in 10+ languages including English, Spanish, Chinese and Arabic. You can contact them via email, phone, and chat. They offer support 24/5.
FXCM Platforms
In terms of platforms, FXCM offer MT4, the leading trading platform from Metaquotes. They also offer their unique platform called Trading Station– another popular platform with retail traders. NinjaTrader is also an option for FXCM clients. Their platforms have web, desktop, and mobile versions.
FXCM Educational materials and trading tools
FXCM has an educational section on its website with sections on trading forex and different asset classes. They also have trading guides and hold regular webinars to help spread betting traders learn about markets. FXCM also have in house market analysts who post market analysis daily.
FXCM Markets offered
In terms of markets and symbols offered when you spread bet with FXCM, you can access over 90 symbols across the following markets: Forex, Stocks, Commodities, and Indices. This is where their offering on spread betting isn’t that good, as other provider offer more markets.
FXCM Funding Methods
Popular funding methods that are available with FXCM include: Credit/Debit cards and Bank Transfer.
IG
IG was established in 1974 and since then it gathered momentum to become one of the leading FX, CFDs and Spread Betting brokers. Regulated by the Financial Conduct Authority (FCA), Financial Sector Conduct Authority (FSCA) and Australian Securities and Investments Commission (ASIC), they keep client money segregated from their company funds. Spread Betting clients in the UK trade with IG UK and further to their funds being segregated, they are also covered by the Financial Services Compensation Scheme (FSCS).
IG Support
IG offer support in many languages including English, Spanish, German and Portuguese. You can contact them via email, phone, and chat. They offer support 24/7.
IG Platforms
In terms of platforms, IG offer MT4, one of the mainstream trading platforms from Metaquotes. They also offer their unique platform which is very popular platform with retail traders. Their platforms have web, desktop, and mobile versions.
IG Educational materials and trading tools
IG has an educational section on its website with sections on trading forex and different asset classes. They also have trading guides and hold regular webinars to help spread betting traders learn about markets. They focus on interactive education with online trading courses and IG Academy. IG also have in house market analysts who post market analysis daily. Trading tools in the form of apps (Expert Advisers EAs) for MT4 are available. Trading signals and Pro-real time charts are at your disposal as well.
IG Markets offered
Finally in terms of markets and symbols offered when you spread bet with IG, you can access over 17000 symbols across the following markets: Forex, Stocks, ETFs, Commodities, and Indices.
Conclusion
In conclusion, selecting a broker that matches your trading needs is an important first step in your trading journey. We at CompareBroker put a lot of effort in making sure that you can do that effectively. Consider the main points mentioned above regarding regulation, markets, educational materials, support etc. We believe that the list of best spread betting brokers summarises these points well, but should you need further information we have individual reviews for each of the brokers on our website. In case you are looking for something more in a broker, you can also try our filtration system to find the one you need.
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