Best UK Spread Betting Platforms with Low Stakes

Financial Spread Betting in the United Kingdom requires a good platform (Metatrader 4 ) and the UK spread betting broker. Below is a carefully compiled list of the top 5 spread betting brokers that accept UK beginner traders.

Best Spread Betting Platforms in the UK

 

Spread Betting BrokerMore informationTrust ScoreFCA reference nbr.Minimum depositDescriptionOur Review

Pepperstone

76.5% of CFD retail accounts lose.

99%684312 £100cTrader, MT4. MT5, WebtraderReview of Pepperstone

CityIndex

74% of CFD retail accounts lose.

85%113942£100MT4, MT5, Webtrader

Markets.com

72% of CFD retail accounts lose.

85%186171£250MT4, MT5, Webtrader

IG

76% of CFD retail accounts lose.

70% 195355£0MT4, Webtrader

Pepperstone: Top Spread Betting Platform for UK Beginners

 

Pepperstone allows UK beginner traders to start financial spread betting with low stakes from just 20p.

Pepperstone is one of the leading brokerage platforms in the world. It is regulated in two tier-1 jurisdictions, which makes it one of the safest brokers to work with. The platform also offers a variety of trading tools and features that make spread betting easier and more enjoyable. Here are the factors that make Pepperstone a top trading platform for those looking to engage in spread betting.

Broker Regulation & Licenses

This is a requirement for all forex brokers but some brokerage platforms are well regulated than others. In the United Kingdom, Pepperstone is registered and regulated by the Financial Conduct Authority (FCA), the biggest financial regulatory body in the UK. The broker is also regulated in Australia by the Australian Securities and Investments Commission (ASIC) and the Dubai Financial Services Authority (DFSA) in the UAE, among other countries across the world.

Available Trading Platforms

The broker also offers traders an opportunity to choose from a variety of trading platforms including the MetaTrader 4 and 5, the cTrader platforms as well as, their associated web trader versions.  

The Metatrader MT4 platform is very useful when building an automated trading system, but its web-based version comes short. This can be remedied by using the cTrader web platform, which works in a similar way to its desktop version.

Pepperstone also offers its traders a variety of research materials to improve their trading activity. It is one of the best trading platforms when it comes to education and research and beginner traders would find this information useful to kickstarting their trading career.

In general, traders can choose from up to 11 available trading platforms when using Pepperstone as their broker. Some of these have very exciting tools that can help improve their profit potential in spread betting.

Leverage and Spread

Pepperstone provides leverage of up to 500:1 for professional traders while those who qualify as retail clients can access a leverage of up to 30:1. The low leverage limit for retail traders helps to protect them against unnecessary risk, which shows that the broker is conscious on client risk.

The broker also offers some of the tightest spreads in the market with the GBP/USD spread of 0.59 pips and the WTI Crude oil spread of 0.7 pips, among others.

On the go trading via mobile devices

Pepperstone has mobile versions of all of top trading platforms including the MT4 and 5 and cTrader. This enables spread betting traders to trade from anywhere in the world where there is internet connection regardless of whether they are seated next to their computers. This can be useful for those who engage in intra-day trading.


What is Financial Spread Betting ?

Spread betting is an online trading strategy where investors try to predict the direction a given derivatives asset could move within a specified time. They then stake a fixed amount to be gained or lost per every pip the asset adds or loses during an open session. By definition, a spread in the global financial markets represents the difference between the bid and ask prices for a listed asset.

In spread betting, the spread is the difference between the price of the asset at the time of opening a trading position and the time the position expires. Spread betting is only legal in the United Kingdom and various parts of continental Europe.

However, taxation differs from country to country, with the UK being one of the most tax attractive markets for spread betting traders with literally zero capital gains tax in most cases!

How to Choose the Right Spread Betting Broker 

So assuming that now you have some idea of what spread betting is, the next step would be to identify a trading platform that will help you learn more about the practice. Some novice traders will normally commit to learnings more about a new trading method before committing to trade.

This can be done by interacting with expert traders on popular online trading communities, independent websites like this one, or by hiring a professional coach.

Spread betting is often offered as an additional form of trading by brokers. Very few brokers offer spread betting as the only service on their platforms. 

Therefore, when looking for a broker, it is important to look beyond those that specialize in spread betting.

In fact, traditional forex brokerage platforms like Pepperstone can provide additional features to spread betting clients. This is because they have been in business for several years and have created a wealth of resources that can help spread betting clients be more profitable.

1. Try getting a demo account to learn the trade

Demo account have historically proven to be an important tool for beginners in the world of forex trading. The same applies to spread betting.

Opening a spread betting demo account can help you gain experience in the market without risking your finances. You will be able to notice the key differences and similarities with traditional forex trading. This can also help you decide whether to stik with traditional fx trading or add spread betting to your portfolio.

2. Start with low stake spread betting platforms

Unlike general forex trading, spread betting applies a fixed rate  on every point lost or gained in a trade. The trader chooses the fixed amount they are prepared to lose and want gain per pip. It can be £1 per point or £10 per point.

For a beginner, it is important to start with the lowest stake per point level you can get. So, in the case of £1 per point, a trader would gain or lose £50.00 is the trade swings by 50 points.

The benefit of a low stake account is that a trader limits the potential risk of loss. On the downside, it also limits the potential gains made on a winning stake.

It all depends on the risk appetite of the trader.

Risk disclaimer: Spread betting and CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. Between [74-89]% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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