Spread Betting and CFD Broker Comparison

Spread Betting Broker Comparison

Compare Spread Betting Firms
Online BrokerMinimum DepositMinimum Fixed Forex SpreadMinimum Variable Forex SpreadCompare Broker with Broker
City IndexNone
Minimum Deposit
-
Minimum Fixed Forex Spread
0.5
Minimum Variable Forex Spread
ETX Capital£100
Minimum Deposit
-
Minimum Fixed Forex Spread
0.6
Minimum Variable Forex Spread
GKFX£20
Minimum Deposit
0.7
Minimum Fixed Forex Spread
-
Minimum Variable Forex Spread
Spread Co£200
Minimum Deposit
0.8
Minimum Fixed Forex Spread
-
Minimum Variable Forex Spread
ThinkMarketsNone
Minimum Deposit
-
Minimum Fixed Forex Spread
0.8
Minimum Variable Forex Spread

Financial Spread Betting

Explain spread betting

Spread betting is a type of trading, where the trader makes a profit or loss based on the difference between the value of a market at the beginning of the trade and the end of the trade. It is thus similar to CFD trading, where derivative contracts are exchanged based on the difference between the value of an underlying market at the beginning of a trade and its value at the end. In neither spread betting nor CFD trading does the trader own the underlying market. While commissions are not charged in spread betting, the bid/ask spread is factored, so this needs to be overcome by the movement of an market's value, like CFD trading. Spread betting allows leverage, but increasing leverage increases risk.

Is Forex spread betting ?

Spread betting is a strategy derived from an underlying market's value, which works for Forex as much as for anything else it is applicable to. So spread betting is a way to trade Forex, as well as Commodities, Equities, Indices and other markets.

Difference between spread betting and Forex trading

Spread betting is a way to trade Forex, like CFD trading. The experience of trading Forex on CFDs and spread betting is very similar. There may be differences in terms of the kinds of spreads offered and also the types of trading which may be allowed.

Forex spread betting brokers

All of the brokers in the table above offer Forex trading on their spread betting platforms.

Low spread no commission Forex

The brokers in the table do not charge commissions for spread betting and offer either low fixed or low variable Forex spreads.

Spread betting commodities

Spread betting companies typically offer a range of markets, which may include Commodity markets such as Energy (e.g. Oil and Gas), Metals (e.g. precious and/or base metals) and Soft Commodities (e.g Corn and Cocoa).

Regulation

All of the brokers in the table are regulated by the Financial Conduct Authority (FCA) in the UK.

CFD trading

All of these brokers also provide CFD trading.

Spread betting or CFDs

The experience of trading CFDs and spread betting is very similar. There are some differences, including features which are allowed on a spread betting and a CFD trading platform. For example, some kinds of trading may not be possible on a spread betting platform, and may be possible on a CFD platform, depending on the broker. But in general the experience is similar, so whether spread betting or CFD trading is chosen, may depend to some extent on the trader's location, as spread betting is typically offered to residents of the UK. However all the brokers on this page also offer CFD accounts, for clients in the UK and Ireland and other countries.

MT4 spread betting

MT4 is a popular platform which is used in CFD trading. Typically, spread betting brokers provide a trading platform for spread betting, which may also be used for CFD trading in some cases. But some brokers allow spread betting on MT4 (or use this for CFDs).

Spread betting strategies

Spread betting is based on the movement of value in the market, which are traced out on a chart, like all trading. Thus any trading strategy based on chart value can be used in spread betting. Typically brokers provide technical indicators, allowing technical analysis of value and also may offer a news feed and other kinds of news and updates to help with fundamental analysis.

Variable vs fixed spreads

Some brokers offer variable spreads, some fixed spreads. A current feature of spread betting is low fixed or variable spreads. The spread matters, because unlike trading with a commission charge, the spread needs to be covered in a trade, before the trade can break even.

Scalping spread betting

Some spread betting brokers provide low fixed spreads, and this may be tempting for scalpers. But spread betting providers are typically dealing desk brokers and may not welcome scalping. Variable spreads can also be low, but the possible widening of the spread may need to be considered, a factor which may also be important to news traders.

Spread betting demo account

All the brokers above provide demo accounts, which can be used to become familiar with the platform and practice trading and strategies.

Spread betting

  • No commission is charged
  • Tight variable or low fixed spreads can be available
  • A web trading platform is typically offered

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