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Spread betting is a popular derivative trading method that allows traders to speculate on the price movements of a wide range of assets, including stocks, indices, commodities, and currencies. It’s a great way to gain exposure to markets without actually owning the underlying assets.
Finding the right broker can be challenging with so many options available. To help traders make informed decisions, this guide evaluates and ranks top spread betting brokers based on key factors. These include regulation by authorities like the FCA (UK) or CBI (Ireland), available products, and associated fees. This comprehensive approach ensures that traders can identify brokers that align with their needs and trading preferences.
Best spread betting brokers 2025 compared
The spread size is crucial for active trading styles and bot trading. STP/ECN brokers typically offer the lowest spreads for EUR/USD, with an average spread of around 0.1 pips. Additionally, these brokers usually charge a small commission per standard lot, ranging from $1.5 to $3.5. We prepared a list of the best brokers with the lowest spread for the EUR/USD currency pairs.
Best spread betting brokers for 2025
| Currency pairs | 34 | 85 | 85 | 70 | 85 |
|---|---|---|---|---|---|
| Min deposit | $10,00 | $0,00 | $0,00 | $0,00 | $0,00 |
| Max leverage | 1:400 (FSCM), 1:400 (FSCA), 1:30 (ASIC), 1:3000 (MISA) | 1:30 (FCA), 1:500 (FSCA) | 1:30 (FCA), 1:500 (FSCA) | 1:2000 (FSCM), 1:500 (FSCA) | 1:30 (FCA), 1:500 (FSCA) |
| Average Spread EUR/USD | 1.2 Pips | 1.6 Pips | 1.6 Pips | 1.3 Pips | 1.6 Pips |
| Regulation | FSCA (ZA), ASIC (AU), FCA (GB) | FSCA (ZA), FSA (JP), NFA (US) | FSCA (ZA), FSA (JP), NFA (US) | FSCA (ZA) | FSCA (ZA), FSA (JP), NFA (US) |
What is spread betting?
Spread betting is a financial derivative that allows traders to speculate on assets like Forex, indices, commodities, or shares without buying the assets. Instead, they are betting on whether the price will rise or fall.
Unlike stock trading or Forex trading, spread betting allows traders to make money even when the price of an asset falls. For example, if a trader thinks that the price of a certain asset will fall, he sells that asset, which means placing a bet that the asset will fall in price.
Similarly, buying means placing a bet that the asset will rise. And if the asset performed as you speculated, you win that trade. But if it does not, you lose the trade.
The profits or losses are calculated by multiplying the bet size by the unit of movement of the asset you bet on. The bet size is the amount of money you bet per unit of movement. The unit of movement is measured in points or pips.
All spread bets have a duration between one day and a few months, but you can also choose to close them earlier or close them later.
Spread betting vs Forex trading
Compared spread betting and Forex trading
| Aspect | Spread betting | Forex trading |
| Definition | Speculating on the price movement of financial instruments without owning the underlying asset. | Buying and selling currencies in the foreign exchange market to profit from exchange rate fluctuations. |
| Ownership | No ownership of the underlying asset. | Ownership of the actual currency pairs traded. |
| Leverage | Offers leverage, allowing control of larger positions with a smaller deposit. | Offers leverage, enabling traders to control significant positions with a relatively small margin. |
| Regulation | Considered a form of gambling in some jurisdictions, leading to varied regulatory oversight. | Subject to stringent regulatory oversight in many countries. |
| Market access | Allows speculation on a wide range of markets, including stocks, commodities, and indices. | Focused solely on currency pairs in the foreign exchange market. |
| Trading costs | Typically commission-free; costs are incorporated into the spread. | May involve spreads, commissions, and potential overnight financing fees. |
Is spread betting risky?
Spread betting involves significant risks, largely due to its leveraged nature, which can amplify both profits and losses. Leverage allows traders to control large positions with a small margin, but this also means that even slight market movements can result in substantial losses, often exceeding the initial investment.
Market volatility further heightens the risk, as sudden and unpredictable price changes can quickly lead to unfavorable outcomes. Additionally, margin calls are a common risk in spread betting. If the market moves against a trader’s position, brokers may require additional funds to maintain the trade, and failure to provide these funds can lead to forced closure of positions at a loss.
Another concern is counterparty risk, as spread betting typically involves dealing with brokers directly. If a broker faces financial difficulties, it could impact the trader’s funds. Emotional decision-making can also exacerbate losses, as traders may overtrade or neglect risk management. To mitigate these risks, traders should adopt strategies such as stop-loss orders, proper position sizing, and ensuring they only trade with funds they can afford to lose.
How to spread bet?
Spread betting allows traders to speculate on the price movements of various financial markets without owning the underlying assets. Follow these steps to place a spread bet:
- Choose a market. Select a financial market to bet on, such as shares, indices, Forex, or commodities. For example, you might choose the FTSE 100 index.
- Decide to buy or sell. If you think the market price will rise, place a ‘buy’ bet (go long). If you expect the price to fall, place a ‘sell’ bet (go short). For instance, if you believe the FTSE 100 will increase, you would buy at the offered price.
- Determine your stake size. Decide how much to risk per point of market movement. For example, if you stake £10 per point, a 10-point movement in your favor results in a £100 profit, while a 10-point movement against you leads to a £100 loss.
- Implement risk management tools. Use stop-loss orders to automatically close your position at a set loss level, limiting potential losses. Similarly, set take-profit levels to secure profits when the market moves in your favor.
- Monitor and close your position. Keep track of your open positions and market conditions. You can close your bet at any time to secure profits or limit losses before reaching your stop-loss or take-profit levels.
How to choose the best spread betting broker?
Selecting the right spread betting broker is crucial for a successful trading experience. Consider the following factors:
- Regulation and security. Ensure the broker is authorized and regulated, which enforces strict standards to protect traders. This oversight ensures that the broker adheres to industry standards and offers a secure trading environment.
- Range of markets. A diverse selection of markets, including Forex, commodities, indices, and shares, allows for greater trading opportunities. Brokers like Spreadex offer a wide array of markets, enabling traders to diversify their portfolios.
- Trading costs. Evaluate the broker’s spreads, commissions, and overnight financing charges. Competitive pricing directly impacts profitability. For instance, some brokers provide tight spreads on major currency pairs, which can be beneficial for frequent traders.
- Trading platform. The platform should be user-friendly, reliable, and equipped with advanced charting tools and technical indicators. Features like mobile compatibility and fast execution speeds are essential for effective trading.
- Account types and minimum deposits. Consider whether the broker offers account types that align with your trading goals and assess the required minimum deposit. Some brokers cater to both beginners and experienced traders by offering various account options with different features and benefits.
- Risk management tools. Effective tools like guaranteed stop-loss orders and negative balance protection help manage potential losses. These features are crucial for maintaining control over trades and protecting your capital.
Top 5 tips for successful spread betting
Success in spread betting requires a disciplined approach and effective risk management. Here are five key tips to improve your trading performance:
- Develop and test a trading strategy. Before using real funds, create a detailed trading plan and test it with a demo account. This helps you refine your strategy and gain confidence without risking money.
- Manage position sizes carefully. Start with small bet sizes to minimize potential losses. As you gain experience and confidence in your strategy, you can gradually increase your stakes.
- Use leverage wisely. While leverage can amplify profits, it also increases the risk of significant losses. Only use leverage that aligns with your risk tolerance and trading plan.
- Choose less volatile markets. Focus on assets with predictable price movements. Avoid highly volatile markets unless you have experience and a clear strategy to manage the associated risks.
- Conduct thorough market research. Stay informed about market conditions, economic data, and relevant news. Proper research enhances your ability to make informed trading decisions.
Spread betting can be profitable if approached with advanced strategies
Methodology for compiling our ratings of Forex brokers
Infobrokers applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
- Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
- User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
- Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
- Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
- Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
- Other factors like brand popularity, client support, and educational resources are also evaluated.
Find out more about the unique broker assessment methodology developed by Infobrokers specialists.
Conclusion
Selecting the best spread betting platform depends on your trading goals, experience, and preferred markets. The ideal platform should offer competitive spreads, advanced trading tools, robust risk management features, and a user-friendly interface. Whether you prioritize low costs, a wide range of assets, or access to educational resources, evaluating these factors carefully will help you make an informed choice. Remember to consider regulatory oversight and customer support for a secure and smooth trading experience.
