Spread betting is a popular speculative investment in the UK due to its tax advantages and flexibility. As a result, a lot of investors in this region would be looking to add it to their portfolio. If you’re one of these individuals and you’re exhausted from sorting through the endless supply of spread betting platforms, this article is for you. We’ve ranked the best list of UK spread betting platforms, and delivered an in-depth research on their major advantages.
OANDA
OANDA is a global multi-asset brokerage service that stands above the rest, and its spread betting platform has been popular among investors since 2015. It’s fully regulated by the UK’s Financial Conduct Authority (FCA), and past reviews have found the platform to be the best option for beginners and veteran traders alike.
Because OANDA offers a dedicated spread betting sub-account for UK clients, users can spread bet on over 100 instruments, including major and minor pairs for foreign currencies, indices, commodities, and many more. This makes for an ideal diversification opportunity that can greatly boost profitability while also managing risks. At the same time, it has some of the lowest spreads of any broker, with 0.6–0.8 pips on average for popularly traded pairs like the EUR/USD. Reviews have also shown that beginners appreciate the platform because it allows very small minimum spreads from as low as 0.01 per pip in many instruments.
Spread betting is already a flexible investment alternative, and features like these could further simplify the process and increase your chances of success. Some of the other major perks of this platform include:
- OANDA supports the best third-party platforms for spread betting, such as MT4 and TradingView
- Has a wide range of risk management features
- Easy to navigate
Trade Nation
Trade Nation is most popular for offering a clean, simple, and transparent spread betting experience. Some of the platform’s major strengths are its interface, fixed spreads that help users avoid surprises, zero minimum deposits, and decent execution speeds on its platforms. It’s an appropriate spread betting platform for most beginners, due to its easy interface and simple designs, but it might not be enough for most veterans. Its trading costs can be a little higher compared to other platforms.
For the EUR/USD, the broker averages 1.10 pips, which is slightly higher than the industry average of 1.0 pips on variable spreads. It’s also important to note that, compared to bigger brokers, the product range is smaller for certain forex pairs and shares.
FXCM
FXCM is a long-standing name in the forex and spread betting market, with a solid toolkit and the best range of available markets. One thing that makes it truly stand out is its Active Trader platform, which was introduced to reduce costs for investors and offer competitive spreads in many major currency pairs. Its EUR/USD spread averages 0.9 pips, fluctuating between 0.9 and 1.2 on most trading days. However, it doesn’t always outperform niche brokers on cost in less liquid times, or for more exotic markets. At the same time, its minimum deposit and some spreads may be less favourable for very small traders.
ActivTrades
ActivTrades is another long-standing brokerage platform with years of experience in the industry. It has been operating for over twenty years in business. ActivTrades offers a strong range of markets, along with multiple platform options like MT4/MT5. Some of the platform’s major advantages are its great range of trading instruments and multiple trading platforms. In terms of spread, the range is a little far apart. On its EUR/USD pair, the spread averages 1.20 pips. However, on others, its minimum spread can be as low as 0.60 pips to the highest point at 1.40. One major downside here is that fees for deposits or withdrawals can add up fast.
SpreadEX
SpreadEX focuses on niche markets with a wide range of share CFDs and spread betting for UK clients. Because this is a major focus for the platform, it’s quite popular among UK investors. On the financial side, some of their pricing is competitive, especially for forex, indices, and certain spot positions. They offer a fairly large range of instruments, including options in commodities and stocks, but their spread costs aren’t always as tight during off-peak hours relative to niche brokers. However, you can still get spread costs as low as 0.6 pips for some major pairs like the EUR/USD. Withdrawals, deposits, and overnight financing costs are generally transparent.
Choosing The Right Platform
The options are limitless when it comes to spread betting platform options, given that it’s a highly traded asset in the UK. However, what differentiates them are these major features: spread cost, usability, access to third-party platforms, and trading fees. You’ll need to gauge which platform offers you the best of the features you prioritise most.