Broker of the month: ETX Capital, read our expert and client reviews here
Spread betting is one of the riskiest and rewarding ways to bet on the financial markets. In a nutshell you can make money if a share goes up or down by betting a certain amount for every penny movement in a share price. So if Vodafone’s share price goes from 224 to 225 and you have bet £10 per point on the share price going up you make £10. If it goes all the way up to 274 (50p) you have made £500. Of course the rewards are big, but so are the risks. If the share price goes down 50p you will lose £500. A note here is that to put the bet on a spread betting broker will ask for margin based on the equivalent exposure to the stock price. In this case a £10 per point bet on Vodafone shares would be £10 x 224 = £2,240. The margin amount will usually be around 5% for the biggest shares in the UK. In this case £224. So you could lose £500 on a £224 bet – and end up owning your broker money.
There are a few key players in the spread betting market, City Index, Capital Spreads and IG Index. These three companies provide the back end for the majority of the spread betting services in the UK. Whilst you may feel short changed that your broker does not have their own technology it’s probably a good thing as it creates a central liquidity pool meaning better prices and ultimately better service.
To find our which provider is powering your platform it’s simple enough to find out. Either look in the footer of the website for a disclaimer it will usually be something like “xxx is a trading name of so and so”.
You can also look at the key spread betting brokers trading names on the FSA register here:
Which brokers are white labels?
To see which spread betting brokers are white labels of another firms platform see our comparison table and look at the column that shows which platform is provided. If the column states “Own” then the broker is not a white label.
Featured Spread Betting Brokers
|IG||ETX Capital||City Index|
|Best for experienced traders with large range of markets and tight spreads and cryptocurrencies||Best for traders with large accounts. A solid all rounder with institutional pedigree.||Best for traders with large accounts. A solid all rounder with institutional pedigree.|
| Visit IG
Read Expert & 3+ Client IG Reviews
| Visit ETX Capital
Read Expert & 30+ In Depth Client ETX Capital Reviews
| Visit City Index
Read Expert & Client City Index Reviews