5 Best Spread Betting Platforms & Brokers in the UK for 2025

Spread betting is a unique and dynamic way to invest in financial markets, one that allows you to speculate on the price movements of various assets without owning the underlying securities.

This form of trading is particularly popular in the UK due to its tax-free status on profits and the flexibility it offers in trading a wide range of markets, including stocks, commodities, forex, and indices.

In this guide, we compare the best spread betting platforms available in the UK, helping you identify which broker is right for your trading needs. We explore key factors such as user experience, range of markets, fees and spreads, educational resources, and customer support.

Whether you’re a seasoned trader or a beginner looking to explore spread betting, our comparison will provide you with the insights you need to make an informed decision.

Best spread betting brokers in the UK overall for 2025

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1. IG Markets: Best for trusted and transparent trading
2. XTB: Best for offering global CFD markets to retail traders
3. Pepperstone: Best low spread & no commission broker
4. eToro: Best for beginners, copy-trading & demo-account
5. AvaTrade: Best regulated broker for secure trading

What are the best UK spread betting platforms?

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

Top 5 spread betting brokers, reviewed

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What are spread betting platforms?

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Spread betting platforms are online trading platforms that enable individuals to speculate on the price movements of various financial instruments without actually owning the underlying assets.

These platforms allow traders to place bets on whether they believe the price of an asset will rise or fall, using a system of points or “spreads.” Spread betting platforms provide a user-friendly interface and access to a wide range of markets, including stocks, indices, commodities, and currencies.

Key features of spread betting platforms include:

• Leverage. Spread betting platforms often offer leverage, allowing traders to control a larger position with a relatively small amount of capital. This can amplify both potential gains and losses.
• Tax efficiency. In the UK, profits from financial spread betting are typically exempt from capital gains tax and stamp duty, making it an attractive option for traders.
• Wide market access. These platforms provide access to global markets and a variety of asset classes, enabling traders to diversify their bets.
• Real-time data and tools. Most platforms offer real-time market data, charting tools, and analysis to help traders make informed decisions.

What is spread betting?

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Spread betting is a form of derivative trading that allows individuals to speculate on the future direction of a financial market’s price movement. It is called “spread” betting because it involves betting on the spread, or difference, between the buy and sell prices quoted by a broker. Instead of buying an asset, traders bet on whether the price will go up or down.

Key aspects of spread betting include:

• Bid-Ask spread. The spread represents the difference between the bid (buy) price and the ask (sell) price. When you open a position, you place a bet on whether the market will move above the bid or below the ask.
• Long and short positions. You can bet on the market rising (going long) or falling (going short). If the market moves in the direction of the bet, you make a profit; if it moves against you, you incur a loss.
• Leverage and margin. Spread betting typically involves trading on margin, meaning you only need to deposit a small percentage of the total trade value. This can magnify your profits, but also increases the risk of losses.
• Tax benefits. In the UK, profits from spread betting are not subject to capital gains tax, making it a popular choice for tax-efficient trading.

Spread betting offers a flexible and potentially lucrative way to trade a variety of markets, but it also carries a high level of risk, particularly due to the leverage involved. It’s important to fully understand the mechanics and risks before engaging in spread betting.

How do spread betting platforms work?

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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.

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?

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Technically, no, you don’t own the assets;

this is completely normal across various asset classes. Whether you’re trading commodities, stocks, indices, or currencies, you don’t actually need to own the underlying assets to profit from their price movements.

Most trading is done through derivatives like CFDs (Contracts for Difference), which allow you to speculate on price changes without having to own the asset itself. Spread betting is another method where you can bet on the direction in which you think the market will move, without needing to purchase the underlying asset.

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. If you’re trading on a UK-based spread betting broker, for example, you’ll need to fund your account with British Pounds (GBP).

What should I look for in a broker?

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The best spread betting 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 spread betting broker that checks as many of the boxes below as possible:

• Look for regulated platforms. The Financial Conduct Authority (FCA) regulates spread betting in the United Kingdom. Make sure any platform you spread bet on is regulated by 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 trading 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. Secondly, because you’re betting on the very narrow windows between the bid and ask prices of currency pairs, pinpoint accuracy is essential. 
• Analysis tools. Trading 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 financial 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 trading 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.

How to choose a spread betting broker

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Our experts unanimously chose these features as those a beginner should look for to get the best and safest experience.

1. Check spread betting is legal where you live

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Spread betting is only legal in parts of Europe, most notably the UK and Ireland. It is not permitted in most of the rest of the world, so you can’t spread bet as a United States resident, for example.

This is obviously a hugely important consideration when choosing a broker. If spread betting is illegal where you live, then you need to find another way to trade. A good option is to trade CFDs instead. There are a lot of similarities between spread betting and CFDs, so it’s a good alternative.

2. Look for a broker with low spreads

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If you are able to spread bet where you live, then low spreads are the next most important thing to look for. The spread refers to the difference between the ‘bid’ and ‘ask’ price for an asset. If a broker offers a bid (buy) price of £51 and an ask (sell) price of £50, then the difference – £1 – is the spread.

Spreads are effectively the trading fees for spread betting. The difference between the two prices is the broker’s fee. A broker where the spread is £1 is better value than one where the spread is £5. But be aware that you might not have much choice in the matter if there are only a handful of brokers that let you spread bet certain assets, like cryptocurrency or commodities.

3. Find the assets you want to bet on

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As there are strict limits on where spread betting is allowed, you need to spend more time researching which brokers offer betting on which assets. As a general rule, it’s easier to find platforms that offer spread betting on the stock market and forex compared to commodities.

Cryptocurrency is a different matter altogether, where the limits on spread betting are extremely strict, even in the United Kingdom. You may have to prove you are a professional client to be able to bet.

4. Learn how a point is measured

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Spread betting price changes are measured in points and a point may mean different things depending on which asset you are betting on. For instance, in forex betting a price change is usually measured in pips – 0.0001 of movement. While in the stock market and gold betting a point normally refers to a price change of £0.10.

When you place a bet, payouts are based on the number of points of movement in the price. If you place a £5 bet on the price of gold, and the price increases by £0.5, you would earn £25. A £5 bet multiplied by 5 points of movement (0.1 x 0.5). It’s crucial to understand this so you know what needs to happen to be successful.

5. Use a demo account to practice

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The best way to get to grips with spread betting is by signing up to a broker and using a demo account to try it out before you start betting real money. Most brokers offer demo accounts, where you are assigned a set amount of virtual money to bet with.

Demo accounts not only teach you the basics about how a market works, but they also give you the chance to test out certain trading strategies. You could try betting on a few different assets to see which one suits you best, for example, before risking any of your own money.

Quick answers to key questions

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Will I have to verify my account?

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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 requires you to upload documents such as a valid passport or driving license, bank statement, or mortgage statement. In some cases, you might also be required to take and upload a selfie for facial recognition purposes.

Is spread betting regulated?

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Yes, in certain jurisdictions spread betting is a regulated service. In the United Kingdom, the Financial Conduct Authority regulates the spread betting industry, meaning you’ll benefit from added protection if you ever encounter major issues with your broker. You should remember that spread betting is not available everywhere. In the US, for example, it is banned:

Can you make money from spread betting?

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Yes, although it isn’t easy and there is a high risk of losing money if you’re inexperienced.. You need to be disciplined in terms of how you manage the size of your bets and when to cut your losses on a losing bet. Use stop-loss limits – automatic orders to close positions at a loss – to reduce the risk of volatile markets catching you out.

The volatility and danger of losing money are why our experts recommend starting with a demo account. You will get a better appreciation for risk management and rewards on offer and how individual markets move by testing it out rather than going in blind.

Is spread betting tax-free?

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Yes, it’s the biggest reason to choose spread betting over CFDs in the first place. In the UK, spread betting is exempt from a Capital Gains Tax, which means any profits you make are tax-free.

The reason for this is that spread betting is classed as a form of gambling (the clue is in the name). Gambling is tax-free, whereas profits from investments like buying stocks or real estate investments are liable to taxes. Spread betting is banned in the US for the same reason: it’s considered gambling, and betting laws are far more strict in the United States.

Should I spread bet or trade CFDs?

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Your location might influence your decision: if you live outside the UK and Ireland, you won’t be able to spread bets, so you should trade CFDs instead. If you live in the United Kingdom, there are some other factors to consider.

The most important thing is what you want to bet on. If the answer is crypto, then you need to use a broker like eToro and trade it. Otherwise, you have options and spread betting may well be the best choice, given its tax-free status. Particularly if you plan on betting a lot.

Can I use leverage in spread betting?

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Yes, the ability to use leverage is one of the things that makes it more popular than simply buying and holding assets, like shares or cryptocurrency. You can normally access leverage up to 1:30 in the UK, which is the maximum allowed under EU law for retail traders. Let’s take a look at the available leverage from the top 3 spread betting platforms in the UK:

How long are spread bets open for?

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It varies but they can be open more or less indefinitely. Generally, you can make spread bets that last until the end of the quarter, or you can make daily spread bets that keep rolling over indefinitely but are liable to overnight fees for each day you keep them open past 10 pm.

Overnight fees are an important consideration because they can make spread betting much more expensive. They are charged because you use leverage and are thus borrowing the money to keep the bet open. The overnight fees are effectively an interest payment, but like all short-term loans, they can be expensive: a few pounds a night, even for a small bet.

Can I trade multiple currency pairs when forex spread betting?

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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. Here’s a look at a few of the most common forex pairs available on the best spread betting forex platforms:

Will I be charged a fee to trade?

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Yes, although the spread betting costs 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. Here are the most common types of trading fees for spread betting:

In addition to the fees above, you may also be charged for other services and features, for example depositing and withdrawing funds. Below is a selection of other types of fees that may apply when you use the best UK spread betting trading platforms:

In addition to the fees listed above, you’ll also have to take into account spreads (the difference between the buy and sell price of an asset). All spread betting brokers have different spreads. The table below shows the spreads from some of the leading spread betting brokers:

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

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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 a spread betting broker?

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With spread betting, you can trade around the clock and benefit from the fact any profits you make will be tax-free.

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 CFDs 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?

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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 spread betting platform?

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Spread betting is a great way to trade if you understand the market’s vagaries. 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. If you’re interested, we also list the best CFD brokers.

Methodology: How we chose the best spread betting brokers

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Helping people make better financial decisions is at the heart of our mission at Invezz. 

We periodically test more than 63 spread betting brokers to provide our users with clear, accessible guidance on the investing options available. All testing is carried out by our panel of spread betting experts, analysts, and active traders who sign up to each broker, conduct research, and score each service.

Our tests are designed to find spread betting services that offer a beginner-friendly, secure trading experience at a fair price. To supplement our practical testing and experience, we research each service to gather any further relevant information. We read online customer reviews, app reviews on the Play Store and App Store, and conduct user surveys to get feedback from real people about what works, and what doesn’t.

Each spread betting broker is awarded a final score based on 130+ data points across 8 ranking categories: cost, reliability, user experience, deposit and withdrawals, investing options, range of products/markets, research and analysis tools, and the availability of educational and learning resources.

We work closely with individual brokers to ensure all factual information displayed here is accurate. All data is then fact-checked by an independent reviewer. You can learn more about our expert panel and how we test, rate, and review platforms in our review process.

FAQs

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