Spread betting lets you bet on whether a market price will go up or down.

There are two types of spread bet you can make:

  • Buy: This is when you bet on a market price going up in value

  • Sell: This is when you bet on a market price going down in value

There is always a price difference when you buy or sell, this is known as the spread.

This means your trade always starts off at a loss. The market needs to move in your favour by the same amount as the spread before you break even.

To help increase your chances of making a profit quicker, look for the smallest spread offered for the market you want to spread bet on.

Which account is the best to use?

You could open a spread betting account designed for beginners through the companies in this comparison. Some of the benefits of a beginner account are:

  • Small stakes: This is the amount you spread bet with, and represents the amount you could make or lose for every point movement.

  • Limit your losses: You usually get a guaranteed stop loss order which cancels your bet if its losses reach a set amount.

  • Tight spread: Beginner accounts often have a small spread to give you a better chance of making a profit quicker.

Spread betting puts your money at risk, so only use what you can afford to lose.

If you are starting off and want to try spread betting without risking any of your own money, try using a demo platform first.

Spread betting for beginners FAQs

Q

Can I spread bet if I am a beginner?

A

Yes, but research the market you want to spread bet on to give yourself the best chance of making a profit.

Q

Will I be able to use a spread betting app as a beginner?

A

Yes, most spread betting companies offer an app. Once you open an account with a company and deposit money you can download and use the app.

Q

Do I pay tax when financial spread betting?

A

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

Q

Is financial spread betting regulated?

A

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

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

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 spread betting for beginners comparison

Q

Who do we include in this comparison?

A

We include spread betting accounts from our panel. 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.