Trading Forex Using Spread Betting
Trading forex using spread betting – Forex trading is a huge market, operating almost around the clock. Spread betting offers access to these markets via familiar platforms. So how can someone start? This article will explain.
Breaking into the world of investing, whether through forex trading or stocks and shares trading, used to require a significant amount of capital, the right connections, and someone willing to show you the ropes.
Today, you can find everything you need to start investing online, and you can start trading with as much or as little money as you like.
Forex Spread Betting Brokers
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1
AvaTrade20% Welcome Bonus up to $10,000
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:30 (Retail) 1:400 (Pro)ASIC, CySEC, FSCA, ISA, CBI, FSA, FSRA, BVI, ADGM, CIRO, AFMCFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting, FuturesWebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingCentral, DupliTradeSkrill, Wire Transfer, FasaPay, Mastercard, Perfect Money, Swift, MoneyGram, Credit Card, WebMoney, JCB Card, Debit Card, Neteller, BoletoUSD, EUR, GBP, CAD, AUD -
2
PepperstoneCFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.8% of retail investor accounts lose money when trading CFDs.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:30 (Retail), 1:500 (Pro)FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCBCFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread BettingMT4, MT5, cTrader, TradingView, AutoChartist, DupliTradeVisa, Mastercard, Credit Card, Debit Card, PayPal, Wire Transfer, POLi, UnionPay, BPAY, Neteller, Skrill, PIX PaymentUSD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD -
3
Spreadex£300 cashback
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
£0£0.011:30FCAForex, CFDs, Indices, Commodities, Stocks, Crypto, Bonds, Interest Rates, ETFs, Options, Spread BettingSpreadex Platform, TradingViewCheque, Wire Transfer, Debit Card, Credit Card, Mastercard, VisaUSD, EUR, GBP, CAD, CHF -
4
Trade Nation200 Sign-Up Reward Points84% of retail investor accounts lose money when trading CFDs with this provider.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.1 Lots1:500 (entity dependent)FCA, ASIC, FSCA, SCB, FSAForex, CFDs, Indices, Shares, Commodities, Futures, Bonds, Cryptos (Bahamas Entity Only)MT4Credit Card, Visa, Mastercard, Wire Transfer, Skrill, PayPal, Debit CardUSD, EUR, GBP, AUD, ZAR, SEK, NOK, DKK -
5
Vantage50% Welcome Deposit Bonus, earn redeemable rewards in the Vantage Rewards scheme
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$500.01 Lots1:500FCA, ASIC, FSCA, VFSCCFDs, Forex, Stocks, Indices, Commodities, ETFs, BondsProTrader, MT4, MT5, TradingView, DupliTradeSkrill, BPAY, JCB Card, AstroPay, Visa, Swift, Neteller, Wire Transfer, Credit Card, Debit Card, UnionPay, FasaPay, Sticpay, Bitwallet, VoletUSD, EUR, GBP, CAD, AUD, NZD, JPY, HKD, SGD, PLN -
6
FxPro
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:30 (Retail), 1:500 (Pro), 1:1000 (Via Prime Ash Capital Limited)FCA, CySEC, FSCA, SCB, FSACFDs, Forex, Stocks, Indices, Commodities, FuturesFxPro Edge, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTradeWire Transfer, Credit Card, PayPal, Skrill, Neteller, Maestro, Mastercard, Visa, Google Wallet, Bitcoin Payments, Ethereum PaymentsUSD, EUR, GBP, AUD, JPY, ZAR, CHF, PLN -
7
CMC MarketsSpread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:30 (Retail), 1:500 (Pro)FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSACFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread BettingWeb, MT4Visa, Mastercard, Wire Transfer, Credit Card, Debit Card, PayPalUSD, EUR, GBP, CAD, AUD, NZD, SEK, NOK, SGD, PLN -
8
City Index
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction.FCA, ASIC, CySEC, MASCFDs, Forex, Stocks, Indices, Commodities, Crypto, Futures, Options, Bonds, Interest Rates,ETFs,Spread BettingWeb Trader, MT4, TradingView, TradingCentralWire Transfer, Mastercard, Credit Card, Debit Card, Visa, MaestroUSD, EUR, GBP, AUD, PLN, CZK -
9
FXCM
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$50Variable1:30FCA, CySEC, ASIC, FSCA, BaFin, CIROForex, Stock CFDs, Commodities CFDs, Crypto CFDsTrading Station, MT4, TradingViewCredit Card, Debit Card, PayPal, Apple Pay, Google Wallet, Wire TransferUSD, EUR, GBP, AUD -
10
Axi72.4% of retail investor accounts lose money when trading CFDs with this provider
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:500FCA, ASIC, FMA, DFSA, SVGFSACFDs, Forex, Stocks, Indices, Commodities, CryptoAxi Copy Trading, MT4, AutoChartistNeteller, Skrill, Credit Card, Debit Card, Visa, Mastercard, JCB Card, Wire Transfer, FasaPay, PIX Payment, Maestro, Boleto, Giropay, Sofort, POLi, BPAY, iDeal, Alipay, AirtelUSD, EUR, GBP, CHF, PLN
This is why we think these brokers are the best in this category:
- AvaTrade - AvaTrade is a first-rate spread betting platform with opportunities on 1000+ stocks, indices, commodities and currencies, sporting leverage up to 1:400. The MetaTrader platforms cater to seasoned traders with advanced charting tools and alerts, while the extensive Academy is home to terrific education with 18 courses, 150 lessons, 50 quizzes and a video tutorial explaining how to spread bet at AvaTrade.
- Pepperstone - Pepperstone offers a competitive range of 1200+ spread betting instruments covering forex, indices, commodities, shares and ETFs. Spreads are some of the most competitive that we’ve seen during tests, starting from 0.6 pips for EUR/USD. Spread betting is also available on the MT4, MT5, cTrader and TradingView terminals, offering more platform flexibility than most alternatives.
- Spreadex - Spreadex stands out as one of the few brokers that specializes in spread betting, offering 10,000+ instruments (rivalling top contenders like IG with 17,000+). There’s also valuable spread betting education covering strategies, tips and analysis. With user-friendly TradingView charts and advanced order types, both beginners and experienced spread betters are well catered to.
- Trade Nation - Trade Nation offers hundreds of instruments via spread bets, though this notably trails top alternatives like CMC Markets (12,000+) and Spreadex (10,000+). We found the TN Trader platform to be a standout option for beginners during tests, thanks to its straightforward fixed-spread model. That said, offering just one platform for spread betting makes the broker more restrictive than most competitors.
- Vantage - Vantage continues to offer commission-free spread betting on forex, indices and precious metals. With 15 indices, including less commonly offered instruments like the VIX and Bovespa, Vantage is particularly suited to experienced equities traders. It’s also one of the few brokers that offers an unlimited demo account, allowing you to practice your strategies continuously.
- FxPro - Spread betters can access six asset classes through the FxPro's proprietary spread betting platform, Edge. Whilst it’s a shame that Edge is the only available terminal for spread betting, traders can access 50 technical indicators (more than MT4), plus an economic calendar and price alerts, providing a decent all-in-one spread betting environment. Customer support also performed well during tests, connecting us to an agent instantly and responding to our spread betting queries sufficiently.
- CMC Markets - CMC Markets’ range of 12,000+ spread betting instruments surpasses most competitors, allowing you to speculate on forex, indices, commodities, shares, ETFs and treasuries. You can trade on both CMC Web or MT4, though we recommend the award-winning CMC terminal for a top-notch mobile and web trading experience - perfect for spread betters who prefer to trade on the go.
- City Index - City Index offers 8,500+ spread betting instruments on its award-winning web platform, including bonds, ETFs and interest rates. Spreads start from 0.2 pips on EUR/USD, positioning the broker ahead of top competitors like Pepperstone. With 16 chart types, over 80 technical indicators, and a performance analytics tool, City Index is a top pick for both beginners and experienced spread bettors.
- FXCM - UK traders can enjoy competitive stakes at FXCM from £0.07 per point. Spread betting is available on all available platforms, making it a flexible option for beginners. That said, getting reliable help may be a challenge - when tested, customer support was unhelpful, and we were frustrated that the agent required clarification when asked a straightforward spread betting query.
- Axi - Axi offers a compelling spread betting experience for residents in the UK and Ireland. Where it excels is its 24/5 support to help with any issues and smooth three-step process to spread betting trading on currencies, socks, indices and commodities.
AvaTrade
"AvaTrade offers active traders everything they need: an intuitive WebTrader, powerful AvaProtect risk management, a smooth 5-minute sign-up process, and dependable support you can rely on in fast-moving markets."
AvaTrade Quick Facts
| Bonus Offer | 20% Welcome Bonus up to $10,000 |
|---|---|
| Demo Account | Yes |
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting, Futures |
| Regulator | ASIC, CySEC, FSCA, ISA, CBI, FSA, FSRA, BVI, ADGM, CIRO, AFM |
| Platforms | WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade |
| Minimum Deposit | $100 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:30 (Retail) 1:400 (Pro) |
| Account Currencies | USD, EUR, GBP, CAD, AUD |
Pros
- Years on, AvaTrade remains one of the few brokers offering a bespoke risk management tool, AvaProtect, that insures losses up to $1M for a fee and is easy to activate on the platform.
- Support at AvaTrade performed excellently during testing, with response times of 3 minutes and localized support in major trading jurisdictions, including the UK, Europe and the Middle East.
- AvaTrade continues to enhance its suite of products, recently through AvaFutures, providing an alternative vehicle to speculate on over 35 markets with low day trading margins.
Cons
- While signing up is a breeze, AvaTrade lacks an ECN account like Pepperstone or IC Markets, which provides the raw spreads and ultra-fast execution many day traders are looking for.
- Although the deposit process itself is smooth, AvaTrade still doesn’t facilitate crypto payments, a feature increasingly offered by brokers like TopFX, which caters to crypto-focused traders.
- AvaTrade’s WebTrader has improved, but work is still needed in terms of customizability – frustratingly widgets like market watch and watchlists can’t be hidden, moved, or resized.
Pepperstone
"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."
Christian Harris, Reviewer
Pepperstone Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting |
| Regulator | FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB |
| Platforms | MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade |
| Minimum Deposit | $0 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:30 (Retail), 1:500 (Pro) |
| Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD |
Pros
- Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
- Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
- There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
Cons
- Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
- Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
- Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets, though it has introduced an intuitive copy trading app.
Spreadex
"Spreadex will appeal to UK day traders who are interested in both spread betting on financial markets and placing traditional bets on sports events. Fees are low on short trades and profits are tax-free on spread bets. There's also a powerful proprietary charting platform, plus £0 minimum deposit required to get started. "
Tobias Robinson, Reviewer
Spreadex Quick Facts
| Bonus Offer | £300 cashback |
|---|---|
| Demo Account | No |
| Instruments | Forex, CFDs, Indices, Commodities, Stocks, Crypto, Bonds, Interest Rates, ETFs, Options, Spread Betting |
| Regulator | FCA |
| Platforms | Spreadex Platform, TradingView |
| Minimum Deposit | £0 |
| Minimum Trade | £0.01 |
| Leverage | 1:30 |
| Account Currencies | USD, EUR, GBP, CAD, CHF |
Pros
- A rare broker that provides access to lower market cap stocks traded on the AIM
- There's an excellent range of instruments and trading vehicles for short-term traders
- Spreadex gives UK traders the opportunity to make tax-free profits through spread betting
Cons
- The limited customer service can make it time-consuming to troubleshoot problems
- No third-party e-wallets are accepted
- The lack of a demo account will frustrate prospective clients who want to test Spreadex's services
Trade Nation
"Trade Nation is a good choice for newer traders looking for a wide range of financial markets on a user-friendly platform. There is no minimum deposit, free funding options and strong education."
Trade Nation Quick Facts
| Bonus Offer | 200 Sign-Up Reward Points |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, CFDs, Indices, Shares, Commodities, Futures, Bonds, Cryptos (Bahamas Entity Only) |
| Regulator | FCA, ASIC, FSCA, SCB, FSA |
| Platforms | MT4 |
| Minimum Deposit | $0 |
| Minimum Trade | 0.1 Lots |
| Leverage | 1:500 (entity dependent) |
| Account Currencies | USD, EUR, GBP, AUD, ZAR, SEK, NOK, DKK |
Pros
- Trade Nation is a multi-regulated and respected broker that previously operated as Core Spreads
- A choice of trading platforms and apps, including MT4, make the brand a good fit for savvy traders
- The trading firm offers tight spreads and a transparent pricing schedule
Cons
- Fewer legal protections with offshore entity
Vantage
"Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly."
Vantage Quick Facts
| Bonus Offer | 50% Welcome Deposit Bonus, earn redeemable rewards in the Vantage Rewards scheme |
|---|---|
| Demo Account | Yes |
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds |
| Regulator | FCA, ASIC, FSCA, VFSC |
| Platforms | ProTrader, MT4, MT5, TradingView, DupliTrade |
| Minimum Deposit | $50 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:500 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, JPY, HKD, SGD, PLN |
Pros
- Vantage caters to hands-off investors with beginner-friendly social trading via ZuluTrade & Myfxbook
- The ECN accounts are very competitive with spreads from 0.0 pips and a $1.50 commission per side
- It’s quick and easy to open a live account – taking less than 5 minutes
Cons
- The average execution speeds of 100ms to 250ms are slower than alternatives based on tests
- It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection
- A steep $10,000 deposit is needed for the best trading conditions, which include the $1.50 commission per side
FxPro
"FxPro is a stellar option for day traders, sporting exceptionally fast execution speeds under 12ms, competitive fees that were lowered in 2022, and terrific charting platforms in MT4, MT5, cTrader and FxPro Edge."
FxPro Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, Futures |
| Regulator | FCA, CySEC, FSCA, SCB, FSA |
| Platforms | FxPro Edge, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade |
| Minimum Deposit | $100 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:30 (Retail), 1:500 (Pro), 1:1000 (Via Prime Ash Capital Limited) |
| Account Currencies | USD, EUR, GBP, AUD, JPY, ZAR, CHF, PLN |
Pros
- FxPro offers four reliable charting platforms, notably the intuitive FxPro Edge, with over 50 indicators, 7 chart types and 15 chart timeframes.
- FxPro's Wallet is a standout feature that allows traders to manage funds securely. By segregating unused funds from active trading accounts, the Wallet provides additional protection and convenience.
- FxPro operates under a 'No Dealing Desk' (NDD) model, ensuring fast and transparent order execution, often under 12 milliseconds, ideal for short-term trading strategies.
Cons
- Despite a growing Knowledge Hub and a $10M funded demo account, FxPro is geared towards advanced traders, with beginners potentially finding the account and fee structure complex.
- While FxPro provides 24/5 customer support through multiple channels that performed well during testing, it lacks 24/7 availability, which can disadvantage traders needing assistance outside traditional market hours.
- There are no passive investment tools like copy trading or interest paid on cash. While active traders may not miss these, competitors like eToro catering to active and passive investors have more comprehensive offerings.
CMC Markets
"With advanced charting tools and an extensive range of tradable CFDs, including an almost unrivalled selection of currencies and custom indices, CMC Markets provides a fantastic online platform for traders of all levels. "
CMC Markets Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread Betting |
| Regulator | FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA |
| Platforms | Web, MT4 |
| Minimum Deposit | $0 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:30 (Retail), 1:500 (Pro) |
| Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, SEK, NOK, SGD, PLN |
Pros
- The brokerage continues to stand out with its wide range of value-add resources, including pattern recognition scanners, webinars, tutorials, news feeds, and research from respected sources like Morningstar.
- CMC offers excellent pricing, including tight spreads and low trading fees for all but stock CFDs. The Alpha and Price+ schemes also offer perks for active traders with up to 40% discounts on spreads.
- CMC Markets is heavily regulated by reputable financial authorities and maintains its stellar reputation, helping to ensure a secure and trustworthy trading environment.
Cons
- Trading stock CFDs incurs a relatively high commission, especially compared to the cheapest brokers like IC Markets.
- An inactivity fee of $10 per month is applied after 12 months of inactivity, which may deter casual investors.
- Despite improvements, the web platform still requires enhancements to make it as intuitive to trade on as software from rivals like IG.
City Index
"City Index is a great match for active traders, with ultra-fast execution speeds averaging 20ms, a highly customizable web platform featuring 90+ technical indicators, and some of the best education we’ve seen."
City Index Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, Crypto, Futures, Options, Bonds, Interest Rates,ETFs,Spread Betting |
| Regulator | FCA, ASIC, CySEC, MAS |
| Platforms | Web Trader, MT4, TradingView, TradingCentral |
| Minimum Deposit | $0 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction. |
| Account Currencies | USD, EUR, GBP, AUD, PLN, CZK |
Pros
- City Index is regulated by top-tier authorities like the FCA (UK), ASIC (Australia), and MAS (Singapore), while its ownership by StoneX Group Inc., a listed company, further reinforces its credibility.
- City Index boasts 13,500+ markets spanning forex, indices, shares, commodities, bonds, ETFs, and interest rates, with the platform's inclusion of niche markets like interest rates offering unique trading avenues not always found elsewhere.
- City Index provides versatile trading platforms for all skill levels. The intuitive Web Trader platform is ideal for beginners, while support for MetaTrader 4 (MT4) and TradingView adds robust analysis and automation features, ensuring a flexible experience for traders of all levels.
Cons
- While many brokers like eToro have expanded their crypto offerings, City Index only provides crypto CFDs, and the limited range may not satisfy traders looking for a broader selection of altcoins.
- City Index lacks an Islamic account with swap-free trading conditions, making the broker less appealing to Muslim traders compared to providers like Eightcap and Pepperstone.
- Unlike brokers such as AvaTrade and BlackBull, City Index does not provide passive investment opportunities like social copy trading, or real stock or ETF ownership, making it less appealing for hands-off trading.
FXCM
"FXCM maintains its position as a top pick for traders deploying automated trading strategies, with four powerful platforms, strategy backtesting and algo trading through APIs. The broker is also great for active traders, with discounted spreads and low to zero commissions on popular assets."
FXCM Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Forex, Stock CFDs, Commodities CFDs, Crypto CFDs |
| Regulator | FCA, CySEC, ASIC, FSCA, BaFin, CIRO |
| Platforms | Trading Station, MT4, TradingView |
| Minimum Deposit | $50 |
| Minimum Trade | Variable |
| Leverage | 1:30 |
| Account Currencies | USD, EUR, GBP, AUD |
Pros
- The proprietary Trading Station terminal is a good choice for day traders looking for an all-in-one solution for their short-term and automated trading strategies
- FXCM has expanded its range of trading opportunities with 24-hour stock CFDs through MetaTrader 4
- FXCM’s global reputation is impressive, with licenses from the FCA, ASIC, CySEC and FSCA and a 20-year business history
Cons
- Although FXCM continues to gear their services towards experienced traders, it’s a shame that there are no managed accounts on offer
- There is no choice of retail accounts for traders, nor any Cent/Micro account options
- The live chat support can be slow and unreliable compared to the top competitors
Axi
"Axi is a stand-out option if you want to day trade forex on the MetaTrader 4 platform thanks to the broker’s growing selection of 70+ currency pairs, the MT4 NextGen upgrade, and tight spreads from just 0.2 pips if you opt for the Pro account."
Axi Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, Crypto |
| Regulator | FCA, ASIC, FMA, DFSA, SVGFSA |
| Platforms | Axi Copy Trading, MT4, AutoChartist |
| Minimum Deposit | $0 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:500 |
| Account Currencies | USD, EUR, GBP, CHF, PLN |
Pros
- Advanced traders can now sign up for the Axi Select funded trader program through the broker’s offshore entity, providing funding up to $1 million with a 90% profit share.
- Axi offers a terrific MT4 experience, enhanced with the NextGen plug-in for advanced order management and analytics, and complete with low execution latency of approximately 30ms.
- Axi's latest copy trading app is really intuitive based on our tests with useful filtering options to match strategies with individual risk preferences.
Cons
- Despite bolstering its stock CFDs in US, UK and EU markets, it’s still nowhere near as extensive as firms like BlackBull which offer thousands of equities for diverse opportunities.
- Axi is falling behind by only offering MT4 when many rivals now support MT5, cTrader, TradingView and proprietary software for a slicker experience with more advanced tools.
- Despite performing well whenever we use it, Axi's support is unavailable 24/7, which can be inconvenient for traders in different time zones or those needing assistance outside standard trading hours.
One of the first and most important lessons that any new trader learns is that assets and financial instruments can go up or down in value; you can never guarantee what will happen.
Because every investment an investor makes comes with a degree of inherent risk, a successful trading strategy will seek to mitigate this risk in several ways.
Risk mitigation strategies vary depending on the type of trade you are making.
In this guide, we look at what forex spread betting is, some of the best forex spread betting companies to place trades with, and some tips to help you mitigate the risk when using spread betting to trade forex.
What Is Spread Betting?
Spread betting is a form of market speculation, whereby traders speculate (bet) on the direction a financial market will take (increasing or decreasing in value) without ever owning the underlying security.
Instead of buying a security at an advantageous time and selling it when it is worth more, the trader is betting on whether that security will increase or decrease in value.
There are two important numbers traders need to know when spread betting; the bid and the ask price, sometimes known as the spread. When investors place a spread bet, they bet whether the price of a security will end up lower than the bid or higher than the ask.
Benefits
- Spread betting makes short selling much simpler. If an investor wants to short physical shares, they will have to borrow the stock they want to short sell. This can be time-consuming and costly, whereas placing a spread bet is as easy as buying any security.
- In most cases, there are no commissions to pay on spread bets. Spread betting companies make their money through the spread they offer, rather than charging traders a commission fee. This makes it easier to stay on top of your trading costs.
- Some jurisdictions, including the UK, class spread betting as gambling. This means that any gains you make will be tax-free.
Using Spread Betting To Trade Forex
Forex spread betting uses the principles of spread betting and applies them to the forex market.
Investors bet on the price movement of currency pairs rather than securities. As with regular spread betting, traders will be quoted a bid and ask price by the company offering currency spread betting.
They then have to decide whether they think the currency pair’s price will end up lower than the bid or higher than the ask.
The difference between the bid and the ask is the spread. The narrower this difference is, the more attractive the currency pair is. A narrower spread means lower transaction costs and greater profits.
Leverage
One of the key advantages of forex spread betting is that it enables traders to harness the concept of leverage when they place a trade.
Leverage means that the brokerage firm or platform processing the trade lends the investor the funds they need.
Instead of covering the full costs of the spread bet, investors only need to meet the margin requirements. The margin will be a percentage of the overall value of the bet.
As long as the investor can afford this, they can leverage the rest of what they need from the broker.
As with regular spread betting, forex traders using spread betting do not ever own the currencies they bet on. They are speculating on price movements.
Forex Spread Betting Tips
- Before you even think about placing a spread bet on the forex market, make sure that you fully understand what spread betting means and what you are doing. As with any investment or trading opportunity; the more you know beforehand, the better prepared you will be.
- Forex spread betting is regarded as gambling in the UK, like other forms of spread betting. But that doesn’t mean there’s no strategy to it or that it all comes down to random chance. Before you start spread betting, it is worth taking the time to learn about the factors that impact currency valuations and can affect the relative values of currency pairs.
- Consider putting together a formal trading plan that sets out how you will approach the forex market and how you will evaluate potential spread bets before you place them.
- Take sensible risk management precautions. You should never invest or bet money that you can’t afford to lose. Before you start trading, you need to know exactly how much capital you have available and how much you can afford to spend and lose.
Set yourself firm limits and make sure you don’t exceed them. You should also read up on stop-loss orders; these are one of the most important risk management tools available for when the markets aren’t going your way.
Spread betting provides straightforward method for trading on the forex market.
By cutting commissions out of the equation, taking advantage of leverage, and generating tax-exempt gains, spread betting enables you to maximize the returns you make on your investment.