Direct Market (DMA) Spreadbetting Brokers

Broker of the month: ETX Capital, read our expert and client reviews here

If you want to get inside the bid offer you need to be trading with direct market access (DMA). However, this is a tricky thing to do if you want a spread betting broker to provide direct market access.

The reason is quite simple. The mechanics just don’t work.  Spread betting is OTC, in that it is conducted off exchange and structured as a bet.  There is no exchange to access and the quotes provided by the spread betting brokers are based on the prices in the underlying exchanges.

However, ProSpreads will offer a form of direct market access.  They will give you a trading platform and access to the markets, when you trade they hedge everything and convert it in to a spread bet post trade.

There are a few other spread betting brokers that provide Level-2 and Direct Market Access through CFDs, but then you lose the tax advantages.

You need a big account to trade with ProSpreads as your trade size needs to be the minimum one exchange lots size.  In the FTSE it’s £10 per point for example.

In reality though, spreads nowadays are so tight.  Especially with new brokers offering no frills trading like Core Spreads with FX spreads of 0.7 and FTSE spreads of 0.8.  The real market is only 0.5.

Featured Spread Betting Brokers

ETX Capital IG City Index

ETX Capital


IG

City Index

Best for traders with large accounts. A solid all rounder with institutional pedigree. 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.
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Read Expert & 30+ In Depth Client ETX Capital Reviews
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