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
Here is a short summary of why we think each broker belongs in this top list:
- 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.
- 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.
- 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.
- Markets.com - Spread betting at Markets.com is accessible with a low $200 minimum deposit and a wide choice of markets, from IPOs and commodities to curated stock “blends.” Traders can use both MT4 and the proprietary platform, gaining access to advanced charting, XRay live trading tips, and analysis tools that work well for both beginners and seasoned investors.
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, Quantower |
| 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 emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates up to 30% (index and commodities) and $3/lot (forex) through the Active Trader program.
- 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.
- Award-winning customer support is available via telephone, email or live chat with response times of <5 minutes during testing.
Cons
- 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.
- Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers who focus on this area, with no option to invest in real coins.
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, JFSA, FSRA, BVI, ADGM, CIRO, AFM |
| Platforms | WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingView, 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
- AvaTrade launched AvaFutures to offer low-margin access to global markets, then expanded in 2025 as one of the first brokers to add CME’s Micro Grain Futures, and then later in the year went further by integrating with TradingView.
- 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.
- The WebTrader excelled in our hands-on tests, sporting a user-friendly interface for beginners, complete with robust charting tools like 6 chart layouts and 60+ technical indicators.
Cons
- 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.
- 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.
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, AutoChartist |
| 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
- Spreadex has introduced trading signals to its desktop platform, powered by Autochartist, providing real-time, pattern-based insights to help traders identify potential opportunities.
- There are some attractive new account promotions, including double the odds and matched betting offers
Cons
- The proprietary terminal lacks comprehensive charting features of platforms like MT4 and MT5
- The limited customer service can make it time-consuming to troubleshoot problems
- There's no support for expert advisors or other trading bots
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, Spread Betting, 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
- 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
- Multiple account currencies are accepted for global traders
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
- The broker has recently made efforts to expand its suite of CFDs providing further trading opportunities
- Vantage maintains its high trust score thanks to its strong reputation and top-tier regulation from the FCA and ASIC
- Vantage has bolstered its algorithmic trading tools for advanced traders with AutoFibo EA identifying reversal opportunities
Cons
- Unfortunately, cryptos are only available for Australian clients
- It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection
- The average execution speeds of 100ms to 250ms are slower than alternatives based on tests
Markets.com
"Markets.com is best suited to retail investors who trade frequently but don’t want to calculate commissions, thanks to its spread-only pricing (EUR/USD around 1.3 pips). It especially appeals to short-term traders who value fast execution, flexible asset choice spanning 2,200+ instruments and proprietary tools like hedge fund confidence indices and insider trade alerts."
Markets.com Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Stocks, Commodities, Indices, Crypto, ETFs, Bonds |
| Regulator | CySEC, FSCA, SVGFSA |
| Platforms | Web Platform, MT4, MT5, TradingCentral |
| Minimum Deposit | $200 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:500 |
| Account Currencies | USD, EUR, GBP, AUD, ZAR, SEK, NOK, DKK, CHF, PLN, CZK |
Pros
- Markets.com provides commission-free trading on most assets with spreads starting from around 0.6 pips on major forex pairs, making it cost-effective for casual traders.
- Within the 2,200+ CFDs, Markets.com offers thematic baskets like the Warren Buffett Blend and Cannabis Blend, which behaved like ready-made mini-ETFs during testing, saving the work of balancing weights manually.
- Markets.com’s Hedge Fund Confidence and Insider Trading tools pulls SEC filings into the dashboard within 24 hours of disclosure, helping to spot fund moves and C-suite buys before most retail newsfeeds updated.
Cons
- While CySEC and FSCA oversight is solid, the SVGFSA entity offers 1:500 leverage under a light-touch framework, meaning protections like compensation schemes and strict conduct rules lag behind the strictest regulatory standards.
- Inactivity charges kick in after just 3 months, while variable spreads are wider than top ECN brokers during testing, which may deter day traders and high-frequency traders.
- During sign-up, we hit unclear account type explanations and got stuck in an email verification loop that locked us out for an hour - way less streamlined than other brokers we’ve tested.
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.