We found 11 online brokers that are appropriate for Trading Spread Betting And Share Dealing.
For new traders, understanding Spread Betting vs. Share Dealing can be complex. The sheer number of options and complex terminology can be daunting. Two prominent avenues for market participation are share dealing and spread betting. While both involve taking positions on financial instruments, they differ fundamentally in their approach and underlying principles. This comprehensive guide aims to equip you with the knowledge to make informed decisions and choose the investment strategy that best aligns with your goals and risk tolerance. Its import to check regulations related to spread betting in your region.
Feature | Share Dealing | Spread Betting |
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What you buy | Part ownership of a company | A bet on the price movement of an asset |
Risk | Lower risk (you own a part of a company) | Higher risk (you're betting on price movement) |
Potential profit | Potential dividends + share price increase | Profit based on price movement |
Potential loss | Limited to the amount you invested | Can lose more than your initial investment |
Fees | Brokerage fees, stamp duty (in some places) | Spread (difference between buy and sell price), financing charges |
Timeframe | Often long-term | Can be short or long-term |
Access to markets | Primarily stocks and ETFs | Wider range of markets (stocks, indices, commodities, currencies) |
Suitable for | Investors looking for long-term growth and ownership | Traders looking for potential quick profits |
Share dealing, also known as stock trading, involves the direct purchase and ownership of shares in companies. When you buy a share, you become a partial owner of that company, with entitlement to a portion of its profits (dividends) if declared. Ownership comes with voting rights, allowing you to influence certain company decisions.
The process of share dealing is relatively straightforward. You'll need to open an account with a reputable stockbroker, who will act as an intermediary between you and the stock exchange. Once your account is funded, you can browse available shares and place buy or sell orders. The broker executes your orders at the prevailing market price, and the shares are credited to your account. Settlement typically takes a few business days, after which you become the legal owner.
There are associated fees with share dealing. Brokers charge commissions for executing your trades, and some may also have account maintenance fees. Additionally, depending on your location, you might incur stamp duty on share purchases and capital gains tax on any profits made when you sell.
Share dealing offers a compelling option for investors seeking long-term wealth creation. Here are some key benefits:
While share dealing offers attractive benefits, there are also some drawbacks to consider:
Spread betting offers a distinct alternative to share dealing, catering to investors with a different risk appetite and timeframe. Unlike share dealing, you don't directly own the underlying asset when spread betting. Instead, you speculate on the price movements of financial instruments like stocks, indices, commodities, or currencies.
Spread betting relies on the concept of leverage, allowing you to control a larger position size with a smaller initial investment, known as the margin. Brokers provide a spread, the difference between the buy and sell prices for a particular instrument. Your profit or loss is determined by the difference between the entry price and the closing price of your spread bet, multiplied by the position size.
For example, if you believe the price of a stock will rise, you can place a 'buy' bet. If your prediction is correct, and the price goes up, you profit from the difference. Conversely, if the price falls, you incur a loss. Spread betting platforms offer various order types like stop-loss orders to limit potential losses and limit orders to automate trade execution at specific price points.
Spread betting presents a unique set of advantages for investors seeking short-term gains or those comfortable with a higher risk profile. Here are some key benefits:
The potential for amplified profits in spread betting comes with a heightened risk profile. Here are some key drawbacks to consider:
Imagine you have $10,000 to invest in NVIDIA, which is currently priced at $111.59 per share. You decide to buy shares directly. With $10,000, you can purchase approximately 89.64 shares (we'll round this down to 89 shares for simplicity). Now, let's explore two scenarios: one where the trade goes in your favor and another where it goes against you.
If the trade goes in your favor:
Suppose NVIDIA's stock price rises to $130.00. The value of your 89 shares would now be 89 x $130.00 = $11,570. This results in a profit of $11,570 - $9,937.51 (89 shares x $111.59) = $1,632.49. Additionally, if NVIDIA declares dividends during your holding period, you'll receive a portion of the company's profits, further boosting your returns.
If the trade goes against you:
Now, let's say the stock price drops to $95.00. The value of your 89 shares would be 89 x $95.00 = $8,455. This means you would incur a loss of $9,937.51 - $8,455 = $1,482.51. In this scenario, your loss is limited to the initial investment, as you directly own the shares.
With spread betting, you don't own the shares but instead bet on the price movement of NVIDIA stock. Let's say you decide to bet $10 per point of movement on NVIDIA, which is priced at $111.59. Again, we'll consider both favorable and unfavorable scenarios.
If the trade goes in your favor:
If NVIDIA's price rises to $130.00, the difference is $130.00 - $111.59 = $18.41 per share. With a $10 per point bet, your profit would be $10 x 18.41 = $184.10. However, since spread betting is leveraged, your initial margin might have been much lower, say $1,000. This leverage amplifies your returns, resulting in a significantly higher percentage gain compared to direct stock trading.
If the trade goes against you:
If NVIDIA's price drops to $95.00, the difference is $111.59 - $95.00 = $16.59 per share. With a $10 per point bet, your loss would be $10 x 16.59 = $165.90. Given the leverage, this loss would also be magnified compared to direct stock trading. If the price drops significantly, your losses could exceed your initial margin, requiring additional funds to cover the bet.
In both trading methods, risk management strategies are crucial. While stock trading involves owning a tangible asset with a limited downside, spread betting offers the potential for higher returns but comes with the risk of significant losses due to leverage. It's essential to understand these dynamics and consider your risk tolerance before engaging in either form of trading.
Having explored the distinct features of share dealing and spread betting, the critical question remains: which approach is right for you? The answer depends on several factors, including your investment goals, risk tolerance, experience level, and financial resources.
Choosing between share dealing and spread betting requires careful consideration of your individual circumstances. Here are some key factors to ponder:
Your investment goals and risk tolerance are fundamental factors influencing the choice between share dealing and spread betting.
For individuals aiming to build wealth gradually and benefit from long-term company growth, share dealing presents a more suitable option. The core focus on stock ownership and long-term holding aligns perfectly with this objective.
On the other hand, if you seek to capitalize on short-term market fluctuations and potentially generate quicker returns, spread betting's flexibility might be more appealing. This approach allows you to profit from price movements in both upward and downward directions.
However, it's crucial to remember that the leverage used in spread betting magnifies both potential profits and losses. Investors comfortable with a higher risk profile might find spread betting attractive, while those prioritizing capital preservation might be better suited to the lower risk profile of share dealing.
The investment horizon, or the timeframe for which you plan to hold your investments, is another critical factor to consider. Share dealing is generally geared towards long-term strategies. While the stock market experiences short-term volatility, it has historically shown an upward trend over extended periods. Investors who can hold onto their shares for the long term are more likely to weather these fluctuations and benefit from this overall growth.
Conversely, spread betting caters well to short-term trading strategies. Its flexibility allows you to capitalize on market movements within a shorter timeframe, making it suitable for day trading or other tactics focused on quicker returns.
The level of market knowledge and experience you possess can significantly influence your decision between share dealing and spread betting. Share dealing is generally considered a simpler approach. Since you directly own the underlying asset (like a stock), your returns are directly tied to its performance. This transparency makes it easier to understand and manage your portfolio.
On the other hand, spread betting involves a steeper learning curve. To navigate the complexities of leverage and short-term trading, you'll need a solid grasp of market dynamics, technical analysis tools, and robust risk management strategies.
The financial resources at your disposal will also play a role in your decision. Share dealing typically requires a larger upfront investment because you need to purchase the entire quantity of shares you desire. This can be a barrier to entry for some investors.
On the other hand, spread betting allows you to control a larger position size with a smaller initial investment (margin). This can be appealing as it offers the potential for amplified returns. However, it's crucial to remember that the leverage used in spread betting is a double-edged sword. It can magnify not only your profits but also your losses. Therefore, prudent risk management is essential if you choose spread betting.
Beyond the core differences between share dealing and spread betting, here are some additional factors to consider:
Choosing a reputable and regulated broker is crucial for both share dealing and spread betting. Consider factors like fees, platform features, customer support, and research resources offered by the broker.
Regardless of your chosen approach, implementing sound risk management strategies is paramount. This includes setting stop-loss orders to limit potential losses, diversifying your portfolio across different assets, and managing your overall exposure to the market.
The financial markets are ever-evolving. Continuous learning and staying updated on market trends, economic indicators, and investment strategies can significantly benefit your investment journey. Consider utilizing educational resources offered by brokers or reputable financial institutions.
The world of investments offers a multitude of paths to achieving your financial goals. Understanding the distinct characteristics of share dealing and spread betting empowers you to make informed decisions and choose the approach that best aligns with your unique circumstances. Remember, there's no one-size-fits-all solution. Carefully assess your investment goals, risk tolerance, and financial resources before venturing into either market. Utilize this guide as a stepping stone, and don't hesitate to seek professional financial advice tailored to your specific needs. With dedication, continuous learning, and a well-defined strategy, you can navigate the financial markets with confidence and pave the way for a successful investment journey.
Start researching brokers or investment platforms today to find the one that best suits your needs. Consider setting up a demo account to practice and refine your strategies before committing real capital.
We have conducted extensive research and analysis on over multiple data points on Spread Betting Vs Share Dealing to present you with a comprehensive guide that can help you find the most suitable Spread Betting Vs Share Dealing. Below we shortlist what we think are the best Spread betting and Share Dealing brokers after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Spread Betting Vs Share Dealing.
Selecting a reliable and reputable online Spread Betting And Share Dealing 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 Spread Betting And Share Dealing more confidently.
Selecting the right online Spread Betting And Share Dealing 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 Spread betting and Share Dealing trading, it's essential to compare the different options available to you. Our Spread betting and Share Dealing 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 Spread betting and Share Dealing broker that best suits your needs and preferences for Spread betting and Share Dealing. Our Spread betting and Share Dealing broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Spread Betting And Share Dealing Brokers.
Compare Spread betting and Share Dealing brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Spread betting and Share Dealing broker, it's crucial to compare several factors to choose the right one for your Spread betting and Share Dealing needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are Spread betting and Share Dealing brokers. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Spread betting and Share Dealing brokers that accept Spread betting and Share Dealing clients.
Broker |
IC Markets
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Roboforex
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eToro
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XTB
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XM
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Pepperstone
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AvaTrade
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FP Markets
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EasyMarkets
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SpreadEx
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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 | 61% of retail investor accounts lose money when trading CFDs with this provider. | 69% - 80% 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 | 65% of retail CFD accounts lose money | 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 Spread Betting And Share Dealing Brokers 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 Spread Betting And Share Dealing Brokers for 2025 article further below. You can see it now by clicking here
We have listed top Spread betting and Share Dealing brokers 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. 61% 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.
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