Spread betting brokers makes it possible for UK-based traders to spread bet without paying tax.
Spread betting is a tax-free derivative product which means that you don’t own the underlying product.
Best Spread Betting Brokers
There are tons of spread betting brokers out there, and it’s important to choose one that’s regulated by the Financial Conduct Authority (FCA).
Capital.com – Best Spread Betting Broker 2022
We consider Capital.com to be the best spread betting broker and it’s been awarded “Best Spread Betting Platform 2022” by ADVFN.
In addition to an AI-powered platform jam-packed with useful trading tools, Capital.com offers a commission-free trading environment with tight spreads.
🏆 Best CFD Platform 2022
✅ 6100+ instruments
✅ Web Platform, MT4 & TradingView
✅ 470+ cryptos
✅ Tight spreads with 0 fees
✅ Fast 24/7 customer support
You can, in combination with a normal spread betting account, have a normal CFD trading account as well.
Capital.com is authorized and regulated by the British Financial Conduct Authority (“FCA”), under reference number 793714.
All in all, you can spread bet on well over 1000 instruments including stocks, forex, and commodities.
How does spread betting work?
First, you need to find a financial instrument that you want to bet on the direction of, i.e. Tesla stock.
When you spread bet, you bet a fixed amount per point, i.e. £10 per point – either up or down.
If buy and your bet is £10 per point and the underlying instrument goes up by 50 points, your profit is £10 * 50 = £500
The major benefit of spread betting is that its tax-free in the United Kingdom as opposed to CFD trading.
Spread betting is often preferred by UK traders due to the major tax benefits.
We recommend Capital.com if you want to spread bet, due to FCA regulation, AI-powered platform, and tight spreads without commission.