| Online Broker | Minimum Deposit | Spread Betting Platforms | About |
|---|---|---|---|
| AvaTrade | £100 Minimum Deposit | MT4 Spread Betting Platform | AvaTrade offers MT4 spread betting, allowing automated trading and offering features such as Guardian Angel (a trading feedback tool) About |
| Pepperstone | $200 Minimum Deposit | MT4, MT5, cTrader, TradingView Spread Betting Platforms | Pepperstone provides MT4 spread betting, allowing automated trading with EA robots About |
| ThinkMarkets | None Minimum Deposit | MT4, MT5 Spread Betting Platforms | ThinkMarkets offers spread betting on both MT4 and MT5 About |
MT4 Spread Betting - What Is Spread Betting
Spread betting is trading on the move in value of a market, without having to own the market. Each minimum move in value (for example a pip in Forex or a point in other markets) is worth a certain value (e.g. X pence per point). Thus as the market moves by points in a given direction the trader will either lose this amount or gain, depending on whether the direction is opposite to or the same as that chosen by the trader at the beginning of the trade. The trader can trade on multiples of this value (by changing the order size), thus increasing or decreasing the loss or gain.
The cost of trading a volume of a market is based on the cost of the market and the margin (or leverage) used by the trader. This is why decreasing margin (or increasing leverage) increases risk, as it allows the trader to trade larger volumes and thus increase their exposure to adverse moves in the market. Some markets may have a higher or lower minimum pip or point value.
It should be noted that markets typically have a bid/ask spread associated with them, thus the trader needs to make up this cost as well (which is why trades normally start with a loss). Spread Betting brokers can offer markets with low spreads, and sometimes low fixed spreads.
When spread betting, the trader can trade through the online trading platform provided by the broker. This will show information such as markets, order information, charting and tools and allow the trader to place a trade when they have opened an account.
Some brokers offer MetaTrader 4 (MT4) to spread bet. MT4 has charting and tools available, but also has access to a wider community which allows the trader to download indicators and Expert Advisors. Expert Advisors allow the trader to trade using automated trading strategies as well as trade at their own discretion. MT4 lets the trader modify and build both indicators and Expert Advisors.
