|Spread Betting Company||Main Pairs||Spreads from (Pips)||Trading Platforms||Min. Trade Size||Margin||Highlights||Start Trading|
Spread Betting & CFDs carry risk. 64-72% of traders lose with this provider.
Spread Betting & CFDs carry risk
Spread Betting & CFDs carry risk. 75% of traders lose with this provider.
Spread Betting & CFDs carry risk. 70% of traders lose with this provider.
Spread Betting & CFDs carry risk. 79.6% of traders lose with this provider.
80.6% of retail CFD accounts lose money
* Plus500 is a CFD service.
Spread betting on Forex is one of the most popular ways to dabble in the currency markets today. You can enjoy around-the-clock trading on popular currency pairs like GBP/USD (the cable), the USD/JPY, the USD/CAD, the AUD/USD, the EUR/USD, and the EUR/GBP. A mix of major pairs (the most commonly traded pairs) minor pairs, and exotic currency pairs (high volatility pairs) is available to spread bettors.
Spread betting has multiple advantages over other forms of trading. For starters, the currency markets are the most highly traded markets in the world with almost $4 trillion traded every day. Additionally, there is no stamp duty or capital gains tax on spread betting activity. UK traders can enjoy uncapped profits when they finish in the money with spread betting on Forex. Plus, you don’t need to worry about having all the money up front for your trade – margin requirements state that only a percentage of the total trade volume is needed for spread betting.
Spread betting on Forex comes with multiple other advantages, such as trading in bullish and bearish markets. If you believe that a currency pair will trade higher in the future, you can buy long (take a bullish position), and if you believe that the currency pair will perform poorly, you can short sell (take a bearish position). Plus, there are variable spreads with different currency pairs, depending on volatility and liquidity. You can generate substantially larger profits than your initial investment, thanks to leverage with the top spread betting brokerages.
Spread betting also confers multiple additional benefits such as mobile trading, access to technical and fundamental analysis, news updates, and powerful trading platforms. The biggest profits on Forex spread betting can come from the smallest spreads (the difference between the bid and the asking price) when markets move in your favour.
This classic example will help traders understand spread betting on Forex: Let us assume that the world’s most heavily traded currency pair – the EUR/USD – is currently trading at an ask price of 1.0015 and a bid price of 1.0010. If you believe that the EUR will appreciate relative to the USD, you could speculate €0.50 for every pip that the EUR increases above the price point of 1.0015. If the currency pair appreciates to 1.0025 after a certain time, your profit would be €5.00. However, if the EUR depreciated to 1.0005, your loss would be €5.00.
There are several factors to consider when selecting one spread betting company in the UK over another. These include the following points: