When you spread bet on the FTSE 100 you are predicting if its market price will rise or fall.

The FTSE 100 is the index of the top 100 companies in the UK. As the share value of the individual companies go up or down, so does the FTSE 100 index.

You have two options when you spread bet on the FTSE 100:

  • If you think the value will go up, you buy

  • If you think the value will go down, you sell

If the market moves in the direction you have bet on, you could make a profit.

However, there is a difference in price when you buy or sell; this is called the spread. The market price needs to move by more than the spread in your favour before you make a profit.

How to find the right account

When you compare spread betting accounts online you should check:

  • What the spread is: The smaller the spread the quicker you could make a profit

  • What the margin is: This is how much you need in your account to make a bet

  • Can you use a guaranteed stop loss: This closes your bet if the loss reaches a set amount

  • What platform you can use: Most offer a desktop platform but some also offer an app

You could also practice spread betting by opening a demo account. Our comparison shows which companies offer a demo account and what spreads they offer on the FTSE 100.

Spread betting on the FTSE 100 FAQs

Q

Do financial spread betting companies charge fees?

A

Some may charge for cash withdrawals or for leaving your account inactive for over a year. Check each company's terms before opening an account.

Q

Do I pay tax when financial spread betting?

A

No, any profits you make are not liable for Income Tax, Capital Gains Tax or Stamp Duty.

Q

Will I own the shares I bet on?

A

No, you only bet on the value of the entire FTSE 100 index going up or down in value, rather than buying individual shares.

Q

How much do I need to open a spread betting account?

A

Most accounts are free to open, but you need to deposit a minimum amount to begin spread betting, such as 100. Check the terms before you apply.

Q

Is financial spread betting regulated?

A

Yes, all UK based spread betting companies are regulated by the Financial Conduct Authority.

Q

Is spread betting gambling?

A

No, the FCA does not consider spread betting to be a form of gambling, instead it is seen as a type of investment trading.

About our FTSE 100 spread betting comparison

Q

Who do we include in this comparison?

A

We include spread betting accounts from our panel that let you trade the FTSE 100. They are either authorised and regulated by the Financial Conduct Authority (FCA), or a European regulator and listed on the FCA register as EEA authorised.

Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.