Best Spread Betting Platform UK

As a UK resident who wants to trade tax free, you might consider financial spread betting which is very popular in the United Kingdom. In order to get started with financial spread betting you will need a solid broker that provides you with the spread betting platform. You will be able to spread bet on shares, commodities, precious metals, stock market indices and forex in a tax efficient way, meaning you will not have to worry about taxes on profits from spread betting! In fact spread betting falls under gambling in the UK, which is free from capital gains tax.

In this article, we review the best UK spread betting platforms of 2022.

Best Spread Betting Platform UK List

Below is a carefully compiled list of the top spread betting platforms that accept UK traders. You can read the review of each broker below.

  • Pepperstone – Overall Top Spread Betting Broker UK 2022
  • Capital.com  – Best Spread Betting Platform UK for Beginners
  • IG.com – Spread Betting Platform UK with 15000+ Markets
  • Markets.com – Top Spread Betting Platform UK for Low Stakes

Best Spread Betting Platforms UK Reviewed

 

Pepperstone offers The Best Spread Betting Platform UK for Beginners 

 

Pepperstone allows UK beginner traders to start financial spread betting with low stakes from just 20p.

Pepperstone is one of the leading brokerage platforms in the world. It is regulated in two tier-1 jurisdictions, which makes it one of the safest brokers to work with. The platform also offers a variety of trading tools and features that make spread betting easier and more enjoyable. Here are the factors that make Pepperstone a top trading platform for those looking to engage in spread betting.

I. Regulation & Licenses

This is a requirement for all spread betting brokers but some  platforms are regulated in more jurisdictions than others. In the United Kingdom, Pepperstone spread betting broker is registered and regulated by the Financial Conduct Authority (FCA), the biggest financial regulatory body in the UK. 

II. Trading Platforms

The spread betting broker also offers traders an opportunity to choose from a variety of trading platforms including the MetaTrader 4 and 5, the cTrader platforms as well as, their associated web trader versions.  

The Metatrader MT4 platform is very useful when building an automated trading system, but its web-based version comes short. This can be remedied by using the cTrader web platform, which works in a similar way to its desktop version.

Pepperstone also offers its traders a variety of research materials to improve their trading activity. It is one of the top spread betting  platforms UK when it comes to education and research and beginner traders would find this information useful to kickstarting their trading career.

In general, traders can choose from up to 11 available trading platforms when using Pepperstone as their broker. Some of these have very exciting tools that can help improve their profit potential in spread betting.

III. Leverage and Spread

Pepperstone spread betting broker provides leverage of up to 500:1 for professional traders while those who qualify as retail clients can access a leverage of up to 30:1. The low leverage limit for retail traders helps to protect them against unnecessary risk, which shows that the broker is conscious on client risk.

This spread betting broker also offers some of the tightest spreads in the market with the GBP/USD spread of 0.59 pips and the WTI Crude oil spread of 0.7 pips, among others.

IV. On the go trading via mobile devices

Pepperstone has mobile versions of all of top trading platforms including the MT4 and 5 and cTrader. This enables spread betting traders to trade from anywhere in the world where there is internet connection regardless of whether they are seated next to their computers. This can be useful for those who engage in intra-day trading.

Pros
  • Best Spread Betting Broker UK 2021
  • No Capital Tax  Spread Betting UK
  • Regulated by the FCA UK
  • Raw Zero Account
  • Access to all main spread betting markets
  • Competitive spread betting fees
Cons
  • Not available for USA traders
  • No real stocks available (only CFDs)

 

Visit Pepperstone

Trading Costs, Spreads 4.8
Trading platforms (MT4.MT5) 4.8
Customer support 4.8
Trading experience 4.8
Education for traders 4.8

How to Find the Best Spread Betting Platform UK 

So assuming that now you have some idea of what spread betting is, the next step would be to identify a trading platform that will help you learn more about the practice. Some novice traders will normally commit to learnings more about a new trading method before committing to trade.

This can be done by interacting with expert traders on popular online trading communities, independent websites like this one, or by hiring a professional coach.

Spread betting is often offered as an additional form of trading by brokers. Very few brokers offer spread betting as the only service on their platforms. 

Therefore, when looking for the top UK spread betting platform , it is important to look beyond those that specialize in financial spread betting.

Regulation 

In the UK, Financial spread betting brokers are heavily regulated.

FCA (Financial Conduct Authority) is the main government regulator of all spread betting platforms UK.

 

Access to financial markets

If you try to find the top spread betting platform UK that will fit your trading needs, always check first what financial markets and instruments the platform offers.

Majority of  regulated UK spread betting providers provide the traders with access to the following market instruments :

  • Shares listed on the London Stock Exchange and abroad (USA etc)
  • Commodities and precious metals (Gold, Silver)
  • FOREX currency pairs
  • Stock market indices S&P500, NASDAQ100, VIX, FTSE100, DAX etc

Spread Betting Fees

Spread betting fees can be a little confusing for beginners.

  1. Commision fees

  2. Spreads

  3. Overnight SWAPS fees

 

Demo spread betting account

Demo account have historically proven to be an important tool for beginners in the world of financial spread betting.  

Opening a demo spread betting account can help you gain experience in the market without risking your finances. You will be able to notice the key differences and similarities with traditional forex trading. This can also help you decide whether to stik with traditional fx trading or add spread betting to your portfolio.

Start with a small stake spread betting platforms UK

Unlike general forex trading, financial spread betting applies a fixed rate on every point lost or gained in a trade.

The trader chooses the fixed amount they are prepared to lose and want gain per pip. It can be £1 per point or £10 per point.

For a beginner, it is important to start with the lowest stake per point level you can get. So, in the case of £1 per point, a trader would gain or lose £50.00 is the trade swings by 50 points.

The benefit of a low stake spread betting platform UK is that a trader limits the potential risk of loss. On the downside, it also limits the potential gains made on a winning stake.

It all depends on the risk appetite of the trader.


How to Get Started with the Top Spread Betting Broker UK

 

  1. Open a Spread Betting Account

  2. Verify your Spread Betting Account (KYC check)

  3. Deposit funds

  4. Decide and Select Spread Betting Market

  5. Place Your First Spread Betting Order

 


What is Financial Spread Betting ?

Spread betting is an online trading strategy where investors try to predict the direction a given derivatives asset could move within a specified time. They then stake a fixed amount to be gained or lost per every pip the asset adds or loses during an open session. By definition, a spread in the global financial markets represents the difference between the bid and ask prices for a listed asset.

In spread betting, the spread is the difference between the price of the asset at the time of opening a trading position and the time the position expires. Spread betting is only legal in the United Kingdom and various parts of continental Europe.

However, taxation differs from country to country, with the UK being one of the most tax attractive markets for spread betting traders with literally zero capital gains tax in most cases!

Risk disclaimer: Spread betting and CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. Between [74-89]% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.