Do I need a broker to spread bet crypto?

Brokers have the best prices and make spread betting accessible to all. This guide explains if you need to use a broker to spread bet on cryptocurrencies.
By:  &  James Knight
Updated: Aug 11, 2022

This beginner friendly guide explains everything you need to know about using a broker to spread bet crypto. Read on to learn if you need to use a broker and find our experts’ recommendations to get started. 

What is a crypto spread betting broker?

It’s an online company that lets you trade the cryptocurrency market through spread betting. Brokers are traditionally considered as ‘middlemen’ between traders and exchanges. However, in the case of spread betting, the broker acts as a market maker as there is no exchange involved. 

Most spread betting brokers also offer other types of derivatives such as CFDs, futures contracts, and spot. Spread betting is allowed in only a few countries such as the United Kingdom, so most brokers offering it tend to be based in Europe. Spread betting is considered as gambling and as a result, offers the ability to earn tax-free profits. 

Can I spread bet on the crypto market without a broker?

No, it is not possible to spread bet on the crypto market without using a broker. Spread betting is a type of derivative that can only be accessed through the use of an online brokerage company. Spread betting brokers offer markets on thousands of financial instruments and many now include cryptocurrencies. 

As crypto trading is a fairly new concept (compared to other assets), most brokers are limited in the coins they offer. Usually you will be able to trade the biggest coins like Bitcoin and Ethereum. Some platforms also let you spread bet on altcoins like Doge and Litecoin. 

Is crypto spread betting right for me?

It could be but depends on a few factors, such as specific regulations where you live. You can only use a spread betting broker to trade crypto if you’re located in a region where it is allowed. The rules surrounding crypto trading are also unfavourable for many where spread betting is legal. 

In the United Kingdom, the sale and promotion of cryptocurrency derivatives to retail clients has been banned by the FCA since 6 January 2021. Crypto spread betting is only available to traders who can pass certain criteria and be classed as ‘professionals’. The requirements to become a professional are difficult to achieve for many retail traders.

Other regions where spread betting is available have slightly different rules and crypto trading may be more accessible. There are other options available such as CFDs, using a broker located in another jurisdiction, or registering with a crypto exchange. These options may not provide the same benefits but often are a better or more suitable choice. 

Should I use a crypto spread betting broker?

If you already trade the crypto market and live in a country where spread betting is available, then you could consider switching. As mentioned above, in the UK you can only spread bet crypto if you’re a professional. In parts of Europe, the same rules don’t apply and crypto spread betting is more accessible. 

If you do meet the criteria then spread betting is often a better option. Any profits you make are tax free and you’ll also likely save money as its commission free. There are other savings such as not having to pay for a wallet to store your coins. On the flip side, spread betting brokers do not provide the best prices and often have high spreads compared to exchanges. 

What should I do now?

If you’re ready to start crypto spread betting then you’ll need to register with an online brokerage. There are lots to choose from and it’s recommended that you take the time to research the options available. Here on Invezz we have lots of independent reviews for some of the best known brokers around to help you choose the right one for you. 

On our website you’ll also find dedicated cryptocurrency and spread betting sections where you can learn more about both using our easy to understand guides. If you’re new to crypto then you can visit our free courses where you can learn basic trading techniques and strategies.

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

Prash Raval
Financial Writer
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a… read more.
James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.