Compare the best forex spread betting brokers in 2022

This guide shows you our expert recommendations for the best places to spread bet forex. Read on to find the top forex spread betting brokers and compare their best features.
Updated: Sep 9, 2022

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We compare all the top forex brokers, providing the information and guidance you need to make the right decisions when it comes to spread betting. Our guide takes you through all the key criteria you need to know when picking the best account to spread bet the forex market, with a focus on regulation, design, and spreads. 

What are the best forex spread betting platforms?

You can find a list of the best brokers below. Sign up by clicking the links in the table or read on to find out more about how spread bets work.

1
Min. Deposit
$ 10
Promotion
User Score
10
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Start Trading
Payment Methods:
Bitcoin, Credit Card, Debit Card, Visa
Full Regulations:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
2
Min. Deposit
$ 10
Promotion
User Score
10
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Start Trading
Payment Methods:
Bank Transfer, Wire Transfer
Full Regulations:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
3
Min. Deposit
$ 10
Promotion
User Score
9.9
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Start Trading
Payment Methods:
Bitcoin, Credit Card, Debit Card, Wire Transfer
Full Regulations:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.

What are forex spread betting platforms?

Forex spread betting platforms are companies that provide retail traders with access to online platforms that allow them to bet on the price movement of currency pairs. The best forex platforms are easy to use, well regulated, and carry strong reputations acquired through years of steady operation and stellar customer service.

What is spread betting in forex trading?

Spread betting is an investment vehicle that lets you speculate on the movement of currency pairs, without actually transacting in the forex market. The practice, which can be done for forex or other markets, consists of three main components:

  • The spread of the instrument
  • The direction of the trade, up or down
  • The size of the bet

In its most simple terms, a forex spread bet is when you decide which way the price of a currency pair is going to move and place a bet on the outcome.

How do forex spread betting brokers work?

These platforms enable clients to bet on the price of assets online or via a mobile app. Simply open your account, deposit funds, and you can start spread betting on the forex markets.

A broker offering usually provides two price quotes for a currency pair, the bid and the ask. The gap between the bid price and the ask price is called ‘the spread’. Traders bet on whether the price of the currency pair will be lower than the bid price, or higher than the ask price. 

For spread bettors, the narrower the spread is, the more attractive the currency pair becomes. That’s because narrower spreads mean lower transaction costs for those wanting to enter and exit a trade.

Let’s use an example to illustrate how it works when you place a forex spread bet on a currency pair: 

Say a broker quotes you an ask price of 1.1155 on the EUR/USD (Euro/U.S. Dollar) pair, with a bid price of 1.1150. If you think the Euro will strengthen compared to the Dollar, you could bet €0.5 for every point (also known as a “pip”) the euro rises above 1.1155. 

  • If the EUR/USD pair climbs to 1.1165, you would earn a profit of €5 (€0.5 x 10 pips). 
  • If the price of the Euro instead falls to 1.1145, you would lose €5.

The better you get at spread betting, the more you might consider using leverage. This allows you to borrow money from the broker to place bigger bets than you would normally be able to make using your own money alone.

So I don’t own the assets I’m trading?

Technically, no, you don’t own the assets; however, this is normal when trading forex. In the same way that trading commodities doesn’t require you to actually own any of the commodities whose price movement you’re betting on, doing so with forex doesn’t require you to own any of the currency pairs whose price movement you’re betting on.

Most forex trading is done using CFDs, which is a very similar process to spread betting. Rarely do you ever want to or need to own any of the individual currencies yourself. Spread bets are just a variation on the theme and allow you to bet on how you think forex markets are going to perform. 

You will, however, have to have money in your account in order to execute transactions. The currency you need usually corresponds to wherever the spread betting platform you’re using is located. For instance, a site in the United Kingdom would require British Pounds (GBP) as capital.

What should I look for in a broker?

The best spread betting forex websites are regulated by legally recognised agencies, provide an intuitive design that makes it easy to open an account, simple to deposit funds, and helpful in its educational content. It pays to do your homework and find the best platform that checks as many of the boxes below as possible:

  • Look for regulated platforms. The Financial Conduct Authority (FCA) regulates forex brokers in the United Kingdom. Make sure any platform you forex spread bet on is regulated with the FCA.
  • Good reputation. The best brokers should come with positive user reviews regarding such key criteria as opening trading accounts and seamless funds withdrawal. Awards, accolades, and positive publicity can also be useful markers when gauging a platform’s reputation.
  • Design and ease of use. You want a platform that makes the process of placing a bet as quick and easy as possible. Firstly, because you don’t want to get confused and make the wrong move. And secondly, because you’re betting on the very narrow windows between the bid and ask prices of currency pairs, making pinpoint accuracy essential. 
  • Analysis tools. Trading forex practice requires diligent analysis and tremendous discipline. Even with spread betting, the price changes are relatively small and it requires a lot of expertise to understand what moves the forex markets. The best trading platforms will offer advanced technical analysis tools to assist in key areas such as pattern recognition.
  • Customer service. You want to be sure you’re well taken care of on whichever platform you choose. That means insisting on live-chat capabilities 24 hours a day, seven days a week, and longer queries taking no more than one business day to produce a reply. Testing the broker’s customer service before depositing a large sum of money is a good idea.
  • Fees. This one is simple: The lower the spread-based transaction fees you have to pay, the better off you’ll be.

Quick answers to key questions

Will I have to verify my account?

Yes. To open your online account, you’ll need to go through the verification steps to comply with financial service regulations. Verification will usually involve providing proof of identity, proof of address, and various financial proofs. 

This is often an automated process that will require you to upload documents such as a valid passport or driving license, bank statement or mortgage statement. In some cases, you might be required to take and upload a selfie too, for facial recognition purposes.

Is online trading secure?

Yes. Reputable spread betting brokers  use many of the same digital safeguards that you’ll find in a typical stock account run by a big brokerage to guard against hackers. Regulatory agencies provide further security by closely monitoring forex trading in places like the UK, as well as many smaller nations. 

What if I forget my password?

Just like other online platforms, most accounts allow you to reset your password using your email address and/or password recovery questions. Make sure to choose a secure password (ideally using non-common words, at least one capital letter, at least one digit, and at least one punctuation mark), so that others can’t access your account.

Can I trade multiple currency pairs?

Yes. The seven major forex pairs are:

  • The Euro/US Dollar Pair (EUR/USD) 
  • The US Dollar/Japanese Yen (USD/JPY) 
  • The British Pound Sterling/US Dollar (GBP/USD) 
  • The US Dollar/Swiss Franc (USD/CHF) 
  • The Australian Dollar/US Dollar (AUD/USD) 
  • The US Dollar/Canadian Dollar (USD/CAD) 
  • The New Zealand Dollar/US Dollar (NZD/USD)

However, many companies will let you bet on the price movement of 60 or more currency pairs.

Will I be charged a fee to trade?

Yes, although the charge is normally offered indirectly. Brokers make money through the spreads they charge clients, both when entering and exiting a trade. This is one of the main differences between spread bets and CFDs, because with CFDs you can expect to be charged a fixed fee or commission per trade.

How can I mitigate the risk of losing money rapidly due to spread betting?

One way to mitigate risk is to implement stop-loss orders. With a standard stop-loss order, the order will close out your position at the best available price once the set stop value has been reached. Meanwhile, a guaranteed stop-loss order guarantees to close your position at the exact value you have set, regardless of the underlying market conditions. Guaranteed stop-loss orders typically incur an additional charge from your broker. 

You can also mitigate through the use of arbitrage, which is betting two ways simultaneously. Arbitrage lets investors exploit the difference in prices between two markets, specifically when two companies offer different spreads on identical currencies.

What are the advantages of using an spread betting service to trade forex?

With spread betting you can trade forex around the clock and benefit from the fact any profits you make will be tax free. A good spread betting firm will offer all of the major and minor currency pairs, as well as some exotic currencies, so there should be a great range of ways to trade the forex markets.

However, spread betting is not available in many countries around the world. Spread betting tends to be popular in the United Kingdom and Ireland but is not available in the United States and many other places, for example. So you may have to use forex CFDs to trade the currency markets if you live outside the UK.

There are many similarities between spread bets and CFDs, such as the ability to go long or short and the fact you can use leverage. The main difference is in the cost of trading; you can place spread bets with no commission, whereas CFD trading normally comes with a trading fee.

And what are the risks of spread betting the fx market?

Forex spread betting typically takes experience and significant attention to detail to do well. Also, buying any asset using leverage, be it foreign currencies, commodities, stocks, or others, comes with a high risk of losing money. If you bet wrong, you’ll owe a lot more than you would have if you had only invested your own money. 

Should I use a forex spread betting platform?

Spread betting is a great way to trade forex if you understand the vagaries of the market. The biggest incentive to use spread betting is its tax free status, which is not possible with any other method of trading currency markets.

If you live in the United Kingdom, then you can avoid a UK capital gains tax by using spread betting. If you don’t, then you may have to consider using CFD trading instead.

Methodology: How we chose the top forex spread betting platforms

Our team of forex experts sampled the best forex trading platforms to find out which offered spread betting services. We then tested each of these platforms according to a set of criteria and rated how they performed. The criteria included the size of the spreads, the number of currency pairs available, and how easy it was to place a spread bet.

After our expert panel had been through all the platforms and given them a ranking, we combined them with online research and customer reviews to put together a final rating which you can see above.

No platform had the ability to influence the results, but we may be paid a commission if you start spread betting after signing up via one of the links on this page. You can find more information in the Invezz guide to how we make money.

FAQs

Is forex spread betting legal?
Can I transfer from a spread betting account into my PayPal account?
Can I use a forex spread betting platform on my mobile phone?
Can I remain anonymous when spread betting the forex market?
Are there minimum and maximum deposit/withdrawal amounts?
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Can I access my full trading history?
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Sources & references
Risk disclaimer

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 >

Harry Atkins
Financial Writer
Harry was a Financial Writer for Invezz, drawing on more than a decade writing, editing and managing high-profile content for blue chip companies, Harry’s considerable experience… 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.