We found 11 online brokers that are appropriate for Trading CFD Spread Betting.
Leveraged products are popular in the United Kingdom. In this article titled, 'CFD vs Spread Betting', we will discuss these two financial tools in greater detail. Before we proceed though, it is important to understand that leverage offers significant market exposure for small investors who have little capital to start trading with.
Investors in CFDs hold a position on the future value of underlying assets. It is a contract with financial institutions. Spread is somewhat similar to this; but with CFDs, the investors place money on the future rise or fall of the market.
There is no delivery of products or securities in physical form, and the differences in the opening and closing prices are settled through cash. Whereas, the contract in spread betting has transferrable value.
CFDs have no expiry date and are traded like securities, equipped with buy and sell prices. It is traded over-the-counter and is not a future contract. A network of brokers releases the CFD price based on market demand and supply.
In the European Union, CFDs are tightly regulated under MiFID II, requiring firms to provide clear risk warnings and leverage limits to protect retail investors. Spread betting, while similar to CFDs in terms of speculative trading, is typically regulated differently, often falling under gambling laws rather than financial markets legislation. In the UK, for example, the Financial Conduct Authority (FCA regulation applies to the UK) oversees both CFDs and spread betting but applies distinct rules, recognizing spread betting as a form of gambling with specific tax implications. In contrast, regions like the United States prohibit CFD trading for retail investors due to its high-risk nature, enforcing stricter regulatory standards to ensure investor protection. These regulatory frameworks aim to mitigate risks, ensure transparency, and safeguard market integrity.
CFDs are not available for retail investors in the United States.
CFDs provide high leverage, enabling traders to manage a substantial position with just a small amount of capital, which can greatly boost potential gains. CFDs also allow traders to take positions both long and short, offering the ability to profit in both rising and falling markets.
Furthermore, the cost to enter CFD trading is typically lower than purchasing the actual underlying assets directly. CFDs also grant access to a diverse array of markets through a single trading platform.
The leverage that increases potential profits with CFDs can also magnify losses, potentially exceeding the initial capital invested. This high level of risk makes CFDs particularly unsuitable for novice traders. Also, since trading CFDs does not involve owning the actual underlying assets, traders miss out on benefits like dividends and voting rights that come with stock ownership.
Moreover, the costs of holding positions overnight can accumulate, adding to the trading expenses. Additionally, CFD pricing lacks transparency, requiring traders to depend on the brokerage's pricing integrity and mechanisms.
Let's consider you are trading the EUR/USD currency pair, currently priced at $1.0747, with an initial investment of $10,000. We will explore how this trade works using both CFD (Contract for Difference) trading, spread betting, and traditional Forex trading.
Both CFD and spread betting offer opportunities for profit but come with significant risks, primarily due to the use of leverage and market volatility. Traders must thoroughly understand these risks and employ risk management strategies to protect their investments.
CFD trading involves speculating on the price movement of the EUR/USD pair without actually owning the currency. In this case, you would enter into a contract with a broker to exchange the difference in the price of EUR/USD from the time the contract is opened to the time it is closed.
Assume you predict the EUR/USD will rise. You go long (buy) at $1.0747. If the price increases to $1.0847, your gain is the difference between the buying price and the selling price, multiplied by the amount of currency you control. Conversely, if the price falls to $1.0647, your loss is calculated in the same way.
If the EUR/USD rises to $1.0847:
If the EUR/USD falls to $1.0647:
Spread betting also involves speculating on the price movement of the EUR/USD pair. You place a bet per point movement in the currency pair, predicting whether it will rise or fall. This is done without owning the actual currency.
Assume you predict the EUR/USD will rise and place a bet of $10 per point movement at $1.0747. If the price increases to $1.0847, your gain is the difference in the points moved, multiplied by your bet per point. Conversely, if the price falls to $1.0647, your loss is calculated in the same way.
If the EUR/USD rises to $1.0847:
If the EUR/USD falls to $1.0647:
In traditional Forex trading, you are buying one currency while simultaneously selling another. When trading EUR/USD, you are buying euros and selling dollars.
With $10,000, you decide to buy euros at the rate of $1.0747. You purchase 9,306.22 euros ($10,000 / 1.0747).
If the EUR/USD rises to $1.0847:
If the EUR/USD falls to $1.0647:
Investors can speculate the price movement of instruments like commodities, Forex, stocks, and fixed income securities through spread betting. In fact, because it is based on guesswork as to whether the market will rise or fall, investors can voluntarily choose their level of risk. Spread betting is commission free, tax free and non-transferrable.
Buy and sell prices are offered by spread betting companies, and investors can choose to buy if they believe the market may go up. If the market is assumed to go down, a sell option can be chosen instead.
Spread betting is not like traditional investing. It is a speculation, so it does not need a specific event to take place unlike fixed-odds betting. The bet can be closed at any time, resulting in either profit or loss.
It is a margined derivative and investors can make speculations on a plethora of financial products and markets, like: currencies, indices, bonds, and stocks. Investors can go long (buy) or short (sell), depending on the direction and predictions of market movement.
The profits from spread betting are often not subject to capital gains tax, depending on local laws, which can make it a tax-efficient way to trade. Tax laws can change and readers should consult a tax advisor for their specific situation. It offers high leverage, meaning a small amount of capital can control a large position, potentially increasing both gains and risks.
Spread betting allows traders to bet on both rising and falling markets, providing opportunities to profit in diverse market conditions. Typically, there are no direct commissions; costs are built into the spread, the difference between the buying and selling price.
The high leverage also increases the potential for substantial losses, sometimes exceeding the initial investment. The spreads may be wider than those in traditional trading, potentially making trading more costly.
Regulation and investor protection can vary significantly by jurisdiction, possibly exposing traders to greater risks and less stringent practices. The complexity and easy access to a wide range of markets can lead to overtrading, where the frequency of trades can erode profits through excessive costs.
Like all forms of trading, spread betting is subject to market risk, with rapid and unpredictable price movements especially in volatile markets. This form of trading requires a good understanding of the markets and controlled risk management.
Both are leveraged products, and value is derived from their underlying assets. Investors do not own the assets in either option.
CFDs have no expiration date, while spread betting is offered with a fixed expiration date. CFDs are traded within the market, while spread betting is done over-the-counter with the help of brokers.
In CFD trading, the investors must pay fees or commissions. There are no such charges in spread betting.
Considering CFDs or spread betting to start your trading journey? Both offer leveraged trading, but there are key differences. This table highlights the main ones:
Feature | CFD Trading | Spread Betting |
---|---|---|
Owning the underlying asset | No, you trade on the price movement | No, you trade on the price movement |
Leverage | Yes, magnify your gains (and losses) | Yes, magnify your gains (and losses) |
Costs | Commissions and spreads | Spreads only (no commissions) |
Taxes (may vary by region) | Profits taxed as capital gains | Profits generally tax-free |
Expiry | Contracts have no expiry (except futures) | Bets have fixed expiry dates |
Trading platform | Traded on exchanges or through brokers | Traded over-the-counter (OTC) with brokers |
Remember, both CFDs and spread betting are complex instruments. Always do your research, understand the risks, and practice on a demo account before trading with real money.
A preliminary deposit is needed for both financial instruments. This usually falls somewhere between 0.5 to 10% of the total value of the open position. If the asset is highly volatile, investors can opt for a greater margin, like 25 to 50%, to reduce the risk level.
In both products, the profit may reach 100% equivalent to the assets. The same is true with the loss, which can be far beyond the initial deposit. However, with the use of stop loss that help manage risks, investors can minimize the risk level. You can set a stop loss at a certain price to trigger an action to limit trading loss.
Stop loss tools ensure that a position is closed automatically at a predefined price level.
In this article titled, 'CFD vs Spread Betting', we discussed some of the pros and cons of both of these financial instruments. Both CFDs and spread betting have gained popularity in the United Kingdom due to their leverage feature, which allows lower capital to gain greater exposure on the market.
As both are leveraged derivative products, beginners are advised to avoid them, or at least, trade at risk levels with a greater margin. These are basically perfect for experienced traders who have enough capital to take risks.
There is one more significant advantage for trading in CFD and spread betting. Investors don’t need to own the underlying assets for trade to either make a profit or suffer loss. Both are excellent in diversifying portfolios and maintaining balance with other products, like mutual funds and ETFs. Alternative investment options to CFDs and spread betting have lower risk profiles for beginners.
We have conducted extensive research and analysis on over multiple data points on CFD vs Spread Betting to present you with a comprehensive guide that can help you find the most suitable CFD vs Spread Betting. Below we shortlist what we think are the best CFD Spread Betting after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching CFD vs Spread Betting.
Selecting a reliable and reputable online CFD Spread Betting trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade CFD Spread Betting more confidently.
Selecting the right online CFD Spread Betting trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for CFD Spread Betting trading, it's essential to compare the different options available to you. Our CFD Spread Betting brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a CFD Spread Betting broker that best suits your needs and preferences for CFD Spread Betting. Our CFD Spread Betting broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top CFD Spread Betting.
Compare CFD Spread Betting brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a CFD Spread Betting broker, it's crucial to compare several factors to choose the right one for your CFD Spread Betting needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are CFD Spread Betting. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more CFD Spread Betting that accept CFD Spread Betting clients.
Broker | IC Markets | Roboforex | eToro | XTB | XM | Pepperstone | AvaTrade | FP Markets | EasyMarkets | SpreadEx | FXPro |
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Regulation | Seychelles Financial Services Authority (FSA) (SD018) | RoboForex Lid is regulated by Belize FSC, License No. 000138/7, reg. number 000001272. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC) (000261/4) XM ZA (Pty) Ltd, Cyprus Securities and Exchange Commission (CySEC) (license 120/10) Trading Point of Financial Instruments Ltd, Australian Securities and Investments Commission (ASIC) (number 443670) Trading Point of Financial Instruments Pty Ltd | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC) Ava Capital Markets Australia Pty Ltd (406684), South African Financial Sector Conduct Authority (FSCA) Ava Capital Markets Pty Ltd (45984), Financial Services Agency (Japan FSA) Ava Trade Japan K.K. (1662), Financial Futures Association of Japan (FFAJ),, FFAJ, Abu Dhabi Global Markets (ADGM)(190018) Ava Trade Middle East Ltd (190018), Polish Financial Supervision Authority (KNF) AVA Trade EU Ltd, Central Bank of Ireland (C53877) AVA Trade EU Ltd, British Virgin Islands Financial Services Commission (BVI) BVI (SIBA/L/13/1049), Israel Securities Association (ISA) (514666577) ATrade Ltd, Financial Regulatory Services Authority (FRSA) | CySEC (Cyprus Securities and Exchange Commission) (371/18), ASIC AFS (Australian Securities and Investments Commission) (286354), FSP (Financial Sector Conduct Authority in South Africa) (50926), Financial Services Authority Seychelles (FSA) (130) | Cyprus Securities and Exchange Commission (CySEC) (079/07) Easy Forex Trading Ltd, Australian Securities and Investments Commission (ASIC) (Easy Markets Pty Ltd 246566), British Virgin Islands Financial Services Commission (BVI) EF Worldwide Ltd (SIBA/L/20/1135), Financial Sector Conduct Authority South Africa (FSA) EF Worldwide (PTY) Ltd (54018), FSC (Financial Services Commission) (SIBA/L/20/1135), FSCA (Financial Sector Conduct Authority) (54018) | FCA (Financial Conduct Authority) (190941), Gambling Commission (Great Britain) (8835) | FCA (Financial Conduct Authority) (509956), CySEC (Cyprus Securities and Exchange Commission) (078/07), FSCA (Financial Sector Conduct Authority) (45052), SCB (Securities Commission of The Bahamas) (SIA-F184), FSA (Financial Services Authority of Seychelles) (SD120) |
Min Deposit | 200 | 10 | 50 | No minimum deposit | 5 | No minimum deposit | 100 | 100 | 25 | No minimum deposit | 100 |
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Used By | 200,000+ | 730,000+ | 35,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 400,000+ | 200,000+ | 250,000+ | 60,000+ | 7,800,000+ |
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Platforms | MT5, MT4, MetaTrader WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), MetaTrader iPhone/iPad, MetaTrader Android Google Play, MetaTrader Mac, cTrader, cTrader Web, cTrader iPhone/iPad, cTrader iMac, cTrader Android Google Play, cTrader Automate, cTrader Copy Trading, TradingView, Virtual Private Server, Trading Servers, MT4 Advanced Trading Tools, IC Insights, Trading Central | MT4, MT5, R Mobile Trader, R StocksTrader, WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), Windows | eToro Trading App, Mobile Apps, iOS (App Store), Android (Google Play), CopyTrading, Web | MT4, Mirror Trader, Web Trader, Tablet, Mobile Apps, iOS (App Store), Android (Google Play) | MT5, MT5 WebTrader, XM Apple App for iPhone, XM App for Android Google Play, Tablet: MT5 for iPad, MT5 for Android Google Play, XM App for iPad, XM App for iOS (App Store), Android (Google Play), Mobile Apps | MT4, MT5, cTrader,WebTrader, TradingView, Windows, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, Web Trading, AvaTrade App, AvaOptions, Mac Trading, AvaSocial, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, TradingView, cTrader, WebTrader, Mobile Trader, Mobile Apps, iOS (App Store), Android (Google Play) | easyMarkets App, Mobile Apps, iOS (App Store), Android (Google Play), Web Platform, TradingView, MT4, MT5 | Web, Mobile Apps, iOS (App Store), Android (Google Play), iPad App, iPhone App, TradingView | MT4, MT5, cTrader, FxPro WebTrader, FxPro Mobile Apps, iOS (App Store), Android (Google Play) |
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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 51% of retail investor accounts lose money when trading CFDs with this provider. | 74-83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.12% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 75-95 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, AO, BR, HR, GL, IS, IM, JM, FM, MC, NG, SI, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR |
You can compare CFD Spread Betting ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top CFD Spread Betting for 2025 article further below. You can see it now by clicking here
We have listed top CFD Spread Betting below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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