5 BEST Spread Betting Brokers For 2024: Reviewed By Dumb Little Man

Spread betting brokers offer a unique way for traders to speculate on the price movements of various financial instruments. This form of trading involves betting on the direction in which an asset’s price will move, without actually owning the asset. It’s a leveraged product, meaning traders can gain large exposure for a relatively small initial deposit, amplifying both potential profits and losses.

Choosing the best spread betting broker is crucial for traders. A suitable broker not only provides competitive spreads but also ensures reliable trade execution and robust platform features. This decision is challenging due to the sheer number of brokers available and the varying levels of service and reliability they offer.

For traders, particularly those new to spread betting, selecting the right broker is important for a secure and efficient trading experience. Factors like regulatory compliance, customer support, and educational resources play a significant role in this choice. It’s not just about low costs; it’s about finding a broker that aligns with individual trading needs and goals.

What is Spread Betting and How Does it Work?

Spread betting is a financial derivative strategy, enabling traders to speculate on the price movements of a wide range of financial markets. Traders bet on whether the price of a particular asset will rise or fall. Importantly, this method doesn’t involve owning the underlying asset, differentiating it from traditional trading.

This form of trading works on the principle of margins and leverage. Traders bet a certain amount per point movement in their chosen market. For example, if they bet $10 per point, and the asset moves 10 points in their favor, they gain $100. Conversely, a 10-point move against them leads to a $100 loss.

Spread betting is attractive due to its tax efficiency in some jurisdictions, as profits are often exempt from capital gains tax. However, it’s vital to remember that tax laws can vary and change. Additionally, spread betting involves high risk due to leverage, which can amplify both gains and losses. Therefore, it’s essential for traders to understand the risks and manage their trades responsibly.

>>Also Read: What Is Spread Betting And How Does It Work (2024)

Spread Betting vs CFD Trading: What’s the Difference?

Spread betting and CFD (Contract for Difference) trading are two popular forms of derivative trading, allowing traders to speculate on price movements without owning the underlying asset. While they share similarities, key differences set them apart.

In spread betting, traders bet on the direction in which a market’s price will move. Profits or losses are determined by the accuracy of their bet and the extent of the market’s movement. This method is typically tax-efficient in some jurisdictions, as profits may not be subject to capital gains tax.

CFD trading, on the other hand, involves buying or selling a number of units for a particular instrument, based on the speculation of the market’s price direction. CFDs are subject to capital gains tax, but traders benefit from the ability to offset losses against profits for tax purposes.

Both spread betting and CFD trading use leverage, allowing traders to gain significant market exposure with a relatively small initial deposit. However, it’s important to remember that leverage can amplify both profits and losses. Risk management is crucial in both trading forms, given the high level of risk due to leverage.

How Do We Rank the Best Spread BettingBrokers?

Ranking the best spread betting brokers involves a comprehensive evaluation process. Our team of experienced traders assesses each broker based on a multitude of factors. This multi-dimensional approach ensures a thorough and fair analysis of each broker’s offerings and performance.

Key factors in our evaluation include trading volume and account types, which reflect the broker’s market presence and flexibility in catering to different traders. Trading costs, leverage offers, and fee structures are critical in determining the financial feasibility for traders. Brokers offering competitive costs and flexible leverage options typically score higher in our rankings.

Regulatory compliance is a non-negotiable criterion. Brokers regulated by reputable authorities provide a level of security and trustworthiness. Minimum deposits and average spreads are also scrutinized, as they directly affect the accessibility and potential profitability for traders. Brokers with lower minimum deposits and tighter spreads are often more appealing to a wide range of traders.

Our unique ranking algorithm considers experience and more subjective measures, incorporating insights from our panel of retail traders. We also analyze reviews on the broker’s website to gauge customer satisfaction. This combination of quantitative data and qualitative feedback results in a comprehensive and balanced overall rating for each broker.

Best Spread Betting Brokers: Overview

5 Best Spread Betting Brokers: Detailed Insights

#1. Best Overall Spread Betting Broker: Pepperstone

Pepperstone, established in 2010 in Melbourne, Australia, stands out as the best overall spread betting broker. Founded by professional traders dissatisfied with the services of existing brokers, Pepperstone aimed to revolutionize the online trading world. They focused on eliminating common issues such as high commissions and delayed order execution, setting a new standard in the industry.

Pepperstone’s commitment to technological advancement and superior trading conditions has made it a global leader. The broker not only offers spread betting but also provides clients with advanced professional tools. These tools are designed to enhance trading efficiency and assist traders in mastering their craft. Their approach to improving the technical aspects of trading and their dedication to customer satisfaction have positioned Pepperstone at the forefront of the online trading industry.

☞ How Does It Work?

Opening a spread betting account with Pepperstone is a straightforward process. To begin, you need only an internet connection and a device like a computer or phone, along with a form of identification. This accessibility makes it easy for anyone to start trading.

The registration involves completing an online application, where you’ll answer questions about your employment and salary. While this may seem personal, it’s essential for the broker to assess if spread betting is suitable for you, ensuring responsible trading practices. Additionally, to comply with regulations against money laundering, you’ll need to verify your identity by providing a scanned copy of a document like a passport or driving license.

Once your application is submitted, approval often takes just minutes. You’ll receive a notification via email confirming your account status. Even before your account is approved, Pepperstone allows you to explore its trading platform. This “walk around” opportunity lets new users familiarize themselves with the platform’s various features, enhancing their readiness to trade once the account is active.

☞ Who Is It Best For?

Pepperstone is an ideal choice for traders seeking advanced trading capabilities and tax-efficient strategies. Its support for automated trading, with options to build custom Expert Advisors (EAs), caters to tech-savvy traders. The platform is also a great fit for those who prefer using industry-leading platforms like MT4, MT5, cTrader, and TradingView. With low latency and fast execution, it appeals to traders who value quick and efficient trade processing. Additionally, the competitive spreads and FCA regulation ensure a secure and cost-effective trading environment. However, Pepperstone might not be suitable for traders looking for micro or cent account options, as this feature is currently not available.

#2. Best Spread Betting Broker for Advanced Traders: Intertrader

InterTrader stands out as the best spread betting broker for advanced traders. Established in 2009, this brokerage service offers spread betting and CFD trading across various financial instruments, including shares, stock indices, Forex, and commodities. Its reputation for flexible and transparent trading services has been a key factor in its success.

A distinguishing feature of InterTrader is its market-neutral trading model. This unique approach ensures that for every position a client takes, an equivalent position is mirrored in the underlying market. This strategy eliminates potential conflicts of interest, as the broker does not profit from client losses or lose from client profits. This model is particularly beneficial for advanced traders who require a trading environment where their potential profits are not constrained by the broker’s risk limitations. 

InterTrader’s commitment to this model demonstrates its focus on providing a fair and transparent trading platform, making it a top choice for experienced traders looking for an edge in spread betting and CFD trading.

☞ How Does It Work?

At InterTrader, traders can choose from a variety of financial spread betting and CFD accounts, each offering competitive conditions and comprehensive services. This diversity caters to the varied needs and strategies of traders, ensuring a suitable option for every trading style.

The Spread Betting Account at InterTrader is designed for quick and flexible access to global markets. Instead of buying or selling actual stocks or futures contracts, traders bet on price movements. This account allows for betting starting from as low as £1 per point movement. It opens doors to a myriad of markets in the US, Asia, UK, and Europe, covering commodities, forex, shares, and indices. This wide range makes it an attractive option for traders looking to diversify their portfolios.

InterTrader’s CFD Account enables traders to speculate on market price movements without physically buying or selling the assets. Traders have control over when they close their positions, deciding when to realize profits or cut losses. To open a position, a margin deposit is required, which can potentially amplify the risk-return on investment. InterTrader provides options for trading CFDs from 10p per point on indices or from 0.01 of a lot on forex, offering flexibility and precision in managing trades.

☞ Who Is It Best For?

InterTrader is best suited for advanced traders who value a regulated trading environment with strong financial backing. Its affiliation with Entain Plc provides a level of stability and reliability. The protection offered by the Gibraltar Investor Compensation Scheme (GICS) up to €20,000/$22,000 adds an extra layer of security for retail customers. Being overseen by the UK’s FCA further enhances its trustworthiness and accountability.

#3. Best Spread Betting Broker for Beginners: FOREX.com

FOREX.com is recognized as the best spread betting broker for beginners, offering a broad range of options from spread betting to CFDs across various asset classes. While not all regions have access to every offering, the extensive selection makes it an appealing choice for novice traders. This broker’s long track record and regulation by top financial tiers contribute to its reputation as a safe and reliable platform for beginners.

The diversity of trading options at FOREX.com extends beyond its name. In addition to forex, it provides access to indices, commodities, ETFs, bonds, individual stocks, silver, and gold. Notably, gold trading is unleveraged in the U.S., adding a layer of risk control for beginners. Traders can also explore futures and cryptocurrencies, offering a comprehensive array of opportunities. 

The broker’s parent company is listed on the stock exchange, further enhancing its credibility. With features like ESMA-mandated balance protection and guaranteed stop-loss orders, FOREX.com ensures a secure trading environment. This makes it an ideal platform for beginners seeking exposure to a wide range of asset classes and learning materials.

☞ How Does It Work?

FOREX.com offers a user-friendly platform, making it ideal for beginners in spread betting and forex trading. It provides access to over 80 currency pairs with competitive spreads across various account types for U.S. clients. The platform’s easy navigation, comprehensive fee and service disclosures, and extensive research and educational tools align with industry standards. Additionally, its regulatory oversight enhances its reliability and trustworthiness.

The availability of services on FOREX.com varies based on the user’s location and the account-holding entity. While trading cryptocurrencies via CFDs is an option, direct asset trading, like buying bitcoin, isn’t available. The web Trading Platform is particularly recommended for casual traders due to its simplicity in navigating markets, placing trades, and conducting searches. It features TradingView-powered charts, offering a range of chart types, indicators, and timeframes. 

Traders can also access economic calendars, positions, news, research reports, trade signals, and market analysis, making it a comprehensive tool for those keen on forex trading. FOREX.com’s emphasis on reliable and fast execution, along with a variety of platforms and security features, makes it a fitting choice for high-volume forex traders, especially in the United States.

☞ Who Is It Best For?

FOREX.com is best suited for beginners and high-volume traders. Its user-friendly interface makes it easy for newcomers to navigate the world of forex trading. The platform offers a wide variety of products, allowing traders to diversify their portfolios across different markets. This variety, combined with the advanced features of TradingView charts, provides an enriching trading experience.

Moreover, FOREX.com‘s reliability and user-friendly design make it an ideal choice for high-volume traders. These traders benefit from the platform’s robust functionality and comprehensive range of tools. However, it’s important to note some limitations. U.S. clients do not have access to guaranteed stop losses, and the platform has been noted for its lack of effective website maintenance. These factors may influence the suitability of FOREX.com for different types of traders.

#4. Best Spread Betting Broker for Crypto Trading: IG Markets

IG Markets, commonly known as IG, is distinguished as the best spread betting broker for crypto trading. Founded in 1974 in London, this award-winning online trading broker offers direct market access to a vast array of global financial markets through CFDs or Contracts for Difference. The company’s long-standing history and extensive market reach, extending to over 17 countries across five continents, highlight its reliability and global appeal.

IG Markets is licensed for investment conduct by the Bermuda Monetary Authority and is also regulated by top-tier European regulators, adding to its credibility. In addition to CFDs, IG Index specializes in spread betting on financial markets and binary options, operating under the strict supervision of the UK’s Financial Conduct Authority. 

This comprehensive regulatory framework ensures a secure and trustworthy environment for traders, particularly those interested in crypto trading. The combination of IG’s global presence, robust regulatory compliance, and a wide range of trading options makes it an ideal choice for traders looking to explore the dynamic world of cryptocurrency through spread betting.

☞ How Does It Work?

IG Markets offers a streamlined and interactive platform, making it highly accessible for those interested in spread betting on cryptocurrencies. The process of getting started with forex and CFD trading on IG is straightforward and involves a few key steps, ensuring a user-friendly experience even for beginners.

To begin, traders must open an account for forex and CFD trading on IG’s website. This initial step involves providing personal details, including the residential address. This information gathering is a standard procedure in the industry, designed to verify the identity of the trader and comply with regulatory requirements. Next, traders are required to submit their financial information. This step is crucial as it allows IG to assess whether the trader meets the minimum financial requirements necessary for forex and CFD trading. This assessment is part of IG’s commitment to responsible trading practices and regulatory compliance.

The platform’s simplicity, combined with these initial steps, ensures that traders can quickly and securely start trading. IG’s approach to spread betting, especially in the volatile crypto market, highlights why it is regarded as the best broker for crypto spread betting. Its user-friendly interface, coupled with a thorough assessment process, makes it an attractive choice for those looking to venture into the world of cryptocurrency trading through spread betting.

☞ Who Is It Best For?

IG Markets is an excellent choice for both experienced traders and beginners. Its status as a legitimate brokerage firm, regulated by top-tier authorities, makes it a secure option for those concerned about safety and regulatory compliance. This aspect is particularly important for traders dealing with the complexities and volatilities of financial markets, including cryptocurrencies.

Experienced traders will appreciate IG’s fast trade executions, especially beneficial in the fast-paced world of CFD forex trading. The platform’s ability to allow leveraged positions helps maximize returns, even on small market movements, making it attractive for those looking to amplify their trading outcomes. For beginners, IG offers comprehensive training through the IG Academy, an invaluable resource for learning the intricacies of trading. Additionally, the platform’s excellent security features, like biometric sign-in and rigorous data validation, provide an extra layer of protection for user accounts.

However, it’s important to note that IG has relatively higher fees compared to other online brokers, which might be a consideration for cost-conscious traders. Also, the inherent risk of leveraged trading means there’s a high potential for loss, especially for those new to trading or unfamiliar with leveraging strategies. This risk factor is a critical consideration for anyone looking to trade with IG Markets, particularly in the high-stakes environment of cryptocurrency trading.

#5. Best Spread Betting Broker for Trading Conditions: CMC Markets

CMC Markets stands out as the best spread betting broker for trading conditions, with its roots going back to 1989 in the United Kingdom. As one of the world’s oldest brokers, CMC Markets gains credibility from its long track record, listing on the London Stock Exchange (LSE under the ticker CMCX), and regulation by top-tier authorities. These factors collectively underscore the broker’s safety and reliability in the trading world.

CMC is renowned for offering a diverse range of trading assets and services. Their online platform includes options for CFDs, spread betting, FX, commodities, and even cryptocurrencies. This variety caters to a broad spectrum of traders, from those interested in traditional markets to those keen on exploring newer areas like crypto trading. The broker’s Next Generation platform is a major highlight, featuring a rich, web-based service that complements the widely used MT4 platform and a comprehensive mobile application. This blend of technology ensures traders have robust, accessible trading tools at their disposal.

Furthermore, CMC Markets offers a wide range of products across several asset classes. This includes standard forex and commodities as well as government bonds and a significant offering in cryptocurrencies. The dynamic competitive spreads adapt to trade sizes, a feature particularly beneficial in volatile markets. Additionally, the safeguard against negative balance provides an added layer of security for traders’ accounts, making CMC Markets a top choice for those seeking favorable trading conditions in a secure and versatile trading environment.

☞ How Does It Work?

To start trading with CMC Markets, the first step is to open an account. CMC offers two main types of accounts: spread betting and CFD (Contract for Difference) trading. These accounts cater to a diverse range of clients, from individuals to businesses, and are designed to be similar in structure to simplify the choice for traders.

Once an account is set up, traders can access the direct share market through a CMC Markets Invest account. This account is known for its competitive online brokerage, rapid order processing (often in under a second), and the provision of unlimited free conditional orders for all clients. Such features are crucial for efficient and effective trading, especially for those involved in day trading strategies.

Selecting a reliable and qualified broker like CMC Markets is vital for online trading success. It’s important to ensure that the broker is neither fraudulent nor untrustworthy to safeguard your investments. Aligning your trading needs with the broker’s profile is key to establishing a profitable partnership. CMC Markets, as one of the industry’s most experienced online financial brokers, promises exceptional service. 

Known as one of the world’s top-ranked CFD brokers in customer care, they also offer the option to set up a demo account. This allows traders to test the platform’s suitability and familiarize themselves with its services before committing real funds, adding an extra layer of confidence for new traders.

☞ Who Is It Best For?

CMC Markets is an ideal choice for traders who prioritize education, customer service, and a wide range of trading options. The platform’s strong emphasis on educational resources and industry-leading research facilities makes it particularly suitable for both new and experienced traders who value continuous learning and informed decision-making. Their focus on customer service ensures that traders have the support they need to navigate the complexities of financial markets.

Additionally, CMC Markets acts as a protective shield for client accounts, offering a level of security that is appealing to traders concerned about the safety of their investments. The diversity of offerings available on the platform, from forex to commodities and cryptocurrencies, caters to a broad spectrum of trading interests and strategies. 

However, it’s important to note that CMC Markets does not accommodate U.S. clients, limiting its accessibility for traders in that region. Also, there are notable differences between the features and functionalities of their Next Generation platform and the traditional MT4 platform. This distinction may require some adaptation for traders who are accustomed to using MT4.

How To Choose the Best Spread Betting Broker?

Choosing the best spread betting broker requires careful consideration of several key factors. First and foremost, it’s crucial to assess the regulation and security of the broker. A well-regulated broker, overseen by reputable financial authorities, ensures that your investments are secure and that the broker operates under strict compliance standards. This aspect is essential for safeguarding your funds and maintaining trust in the trading process.

Another critical factor is the range of markets and instruments offered by the broker. A broker providing a wide array of options allows traders to diversify their portfolios and access various trading opportunities. Additionally, consider the trading costs, including spreads and any hidden fees. Competitive pricing can significantly impact your profitability. 

It’s also beneficial to look at the broker’s trading platforms and tools, ensuring they are user-friendly and equipped with the necessary features to support effective trading strategies. The right spread betting broker should align with your individual trading needs and goals, offering a balanced mix of security, market access, cost-effectiveness, and user-friendly trading tools.

Choose Asia Forex Mentor for Your Forex Trading Success

If you have a keen interest in establishing a successful career in forex trading and aspire to achieve substantial financial gains, Asia Forex Mentor stands as the optimal choice for the best forex, stock, and crypto trading course. Ezekiel Chew, renowned as the visionary behind trading institutions and banks, is the driving force behind Asia Forex Mentor. On a personal note, Ezekiel consistently achieves seven-figure trades, a distinction that truly sets him apart from other educators in the field. Here are the compelling reasons that underpin our recommendation:

Comprehensive Curriculum: Asia Forex Mentor offers an all-encompassing educational program that covers stock, crypto, and forex trading. This well-structured curriculum equips aspiring traders with the knowledge and skills necessary to excel in these diverse markets.

Proven Track Record: The credibility of Asia Forex Mentor is firmly established through its impressive track record of producing consistently profitable traders across various market sectors. This achievement serves as a testament to the effectiveness of their training methodologies and mentorship.

Expert Mentor: At Asia Forex Mentor, students benefit from the guidance and insights of an experienced mentor who has demonstrated remarkable success in stock, crypto, and forex trading. Ezekiel provides personalized support, enabling students to navigate the intricacies of each market with confidence.

Supportive Community: Joining Asia Forex Mentor brings access to a supportive community of like-minded traders pursuing success in the stock, crypto, and forex markets. This community fosters collaboration, idea-sharing, and peer learning, enhancing the overall learning experience.

Emphasis on Discipline and Psychology: Success in trading necessitates a strong mindset and disciplined approach. Asia Forex Mentor provides crucial psychological training to help traders manage emotions, handle stress, and make rational decisions during trading.

Constant Updates and Resources: The financial markets are dynamic, and Asia Forex Mentor ensures that students remain up-to-date with the latest trends, strategies, and market insights. Continuous access to valuable resources keeps traders ahead of the curve.

Success Stories: Asia Forex Mentor takes pride in a multitude of success stories where students have transformed their trading careers and achieved financial independence through their comprehensive forex, stock, and crypto trading education.

Asia Forex Mentor emerges as the premier choice for those seeking the best forex, stock, and crypto trading course to carve a rewarding career and achieve financial prosperity. Through its comprehensive curriculum, experienced mentors, practical approach, and supportive community, Asia Forex Mentor provides the necessary tools and guidance to mold aspiring traders into accomplished professionals across diverse financial markets.

Conclusion

In conclusion, the team of trading experts at Dumb Little Man has identified the top five spread betting brokers, each excelling in different aspects of trading. Pepperstone stands out as the best overall for its low commissions and advanced technology. InterTrader is recommended for advanced traders due to its market-neutral trading model, ensuring no conflict of interest. 

For beginners, FOREX.com is the go-to choice, offering a user-friendly platform and comprehensive training resources. IG Markets is ideal for those interested in crypto trading, providing a secure and diverse trading environment. Lastly, CMC Markets excels in trading conditions with its dynamic spreads and wide range of offerings.

However, it’s important for traders to be aware of the cons associated with each broker. For instance, Pepperstone lacks micro or cent account options, and InterTrader’s terms can vary by jurisdiction. FOREX.com may have higher fees compared to others, and IG Markets does not accommodate U.S. clients. 

CMC Markets, while offering a vast range of products, may also have differences in platform functionalities. It’s essential for traders to consider both the pros and cons in light of their individual trading needs and goals. The right broker should balance these factors with the trader’s specific requirements, ensuring a successful and satisfying trading experience.

Best Spread Betting Brokers FAQs

What is Spread Betting?

Spread betting is a form of derivatives trading where traders speculate on the price movements of various financial instruments. It allows traders to bet on whether the price of an asset will rise or fall, without owning the asset. Profits and losses are determined by the accuracy of the bet and the degree of market movement.

How Do I Choose a Spread Betting Broker?

When choosing a spread betting broker, consider factors like regulatory compliance, the range of markets and instruments offered, trading costs, and the user-friendliness of their trading platforms. It’s important to select a broker that aligns with your trading goals and experience level, and offers a secure and efficient trading environment.

Are Spread Betting Profits Tax-Free?

In some jurisdictions, profits from spread betting are tax-free as it’s considered gambling. However, tax laws vary by country and can change, so it’s crucial to consult with a financial expert or check the local tax regulations in your area to understand the tax implications of spread betting.