In spread betting companies you place a bet on the price movement of an underlying financial instrument such as shares, indices, commodities and FX pairs. Investors can bet on the market rising or falling, making this form of trading a tax-efficient alternative to buying and selling physical assets.

Rather than spread betting companies  betting brokers make money through the mark-up they add to the bid-ask spread of the underlying asset. This is how they cover their fixed costs and ensure they offer competitive spreads. This can be helpful for investors as it means they have a clearer picture of the total trading costs of each trade.

Most spread betting firms have a range of risk management tools, including stop loss orders and guaranteed stops, to help reduce the impact of losses on your account balance. Some firms also provide real time news alerts and economic updates to give you the information you need to make informed decisions.

Top Spread Betting Platforms in the UK for 2024

Many of the top spread betting companies provide a choice of different markets to trade, from UK and international shares through to indices and FX pairs. Some brokers specialise in specific instruments like AIM and small cap shares, while others have a broad market offering.

IG for example offers the largest number of UK, US and international stocks to trade while CMC Markets has a good selection of commodity ETFs. Some brokers offer additional research and analysis services, like autochartist, PIAfirst and Tipranks which can be helpful for traders looking to spot trading opportunities.