Spread Betting with FXCM

Financial spread betting is the tax-free way for UK and Ireland residents to take advantage of rising and falling markets without having to buy an asset from the underlying market. Spread bets are also commission-free and can be traded with leverage.

Why Spread Bet?

Tax Free

No capital gains tax and no stamp duty when spread betting.1

Access to Leverage

Spread bet with up to 200:1 leverage on forex, indices and commodities.2

Multi-Asset Platform

Spread bet forex, indices and commodities on FXCM's award-winning trading platform.

SPREAD BET RISING OR FALLING MARKETS

Spread betting is flexible, allowing you to take advantage of both rising and falling markets.

Why Spread Bet with FXCM?

When you spread bet with FXCM, you enjoy:

  • Multiple platforms and mobile apps
  • Smaller bet sizes (from 7p a point)
  • No minimum stop or limit distances on FX and popular CFDs
  • Award-winning customer support

Open An Account

With spread betting, spreads include a mark-up, but there are no commissions to pay—all trading costs are built into the spread. CFD-trading accounts are charged commissions.

This, in addition to the tax advantage, is why many UK and Ireland residents choose to spread bet instead of trading CFDs.

Still undecided? Find out more about CFD trading.

Free Spread Bet Practice Account

We give you a £50,000 practice account to get you comfortable spread betting a variety of asset classes on our platform, along with a free trading guide.

Account Types:

  • The Mini account is ideal for new traders with all trading costs within the spread through FXCM's Dealing Desk execution model. Traders have access to 21 currency pairs and 18 CFDs. Experienced traders can trade Mini Accounts with up to 200:1 leverage. Traders that are new to FX and CFD trading will be defaulted to 50:1 leverage. In the event that equity surpasses 20,000 CCY, the Mini account may be switched to a Standard account.
  • The Standard account offers low commission pricing through FXCM's No Dealing Desk execution model. Traders have access to 39 currency pairs and 18 CFDs. Experienced traders can trade Standard Accounts with up to 100:1 leverage. Traders that are new to FX and CFD trading will be defaulted to 50:1 leverage. In the event that equity falls below 10,000 CCY, the Standard account may be switched to a Mini account.
  • Spread Bet accounts are available exclusively to UK and Ireland residents. Spread Betting is an option on both Mini and Standard account types. However please note that Spread Bet accounts will always be set to all-inclusive spreads pricing regardless of account type.
See Execution Risks
See Trading Costs Overview

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Concept Of Spread Betting

Spread betting is a form of derivatives trade centered on speculation pertaining to the future pricing volatilities facing a specific asset class. Simply put, it is a financial tool that enables traders and investors to capitalise upon a forthcoming move in a security’s price without having to own the security.

The concept of a “spread” has a great deal of relevance to a spread bet’s function. Essentially, a spread is the difference between the bid and ask price of an asset, or the prices in which a trader may buy or sell a security on the open market.

Current supply and demand forces determine the magnitude of the bid/ask spread, influenced by liquidity providers, independent retail traders and institutional investors. As buyers and sellers interact within the marketplace, the process of price discovery ensues. This interaction influences the spread, evolving price action to a state of equilibrium.

When spreadbetting, the direction of ever-changing price action is the ultimate focus of the trade.

Why Spread Bet?

Spread Betting Chart

Spread betting affords traders and investors several unique advantages over other methods of engaging the capital markets. As a provider of forex and CFD market access, FXCM offers its clientele the multifold benefits of spread betting:

  • Asset Class Diversity: Currencies, equities and commodities are all available for spread betting, providing a wealth of trading alternatives to individuals interested in pursuing opportunity within the marketplace.
  • Access To Leverage: Up to 200:1 leverage is available to spread bettors. This enables the trade of many underlying assets that have large initial capital requirements.
  • Engage Rising Or Falling Markets: Traders and investors are able to profit from periodic spikes or selloffs in the price action facing a spread betting product.
  • Tax Advantages: For residents of the U.K. and Ireland, proceeds realised from spread betting are tax free.
  • Low Fees: For residents of the U.K. and Ireland, proceeds realised from spread betting are tax free.

Spread Betting In Action

Assume that a new currency trader holds conviction that the EUR/USD is going to rise from a current level of 1.1200. In order to benefit from the perceived opportunity, the trader contacts a spread betting firm and is quoted a spread of 1.1200/1.1203. The transaction is then executed accordingly:

  • A long position is opened at 1.1203
  • Leverage is implemented at £1 per pip
  • The EUR/USD rallies to 1.1210
  • The proposition is exercised at 1.1210
  • Profits are calculated and realised, 7 pips * £1 per pip = approximately £7

Of course, in the event that the EUR/USD fell 7 pips from entry, then a loss of £7 is sustained. In much the same fashion as many other modes of trade, successful spread betting is the product of sound strategy, proper money management and consistency within the marketplace.

For those interested in spread betting, FXCM provides market access via multiple platforms and mobile apps along with award-winning customer support. In addition, a robust suite of educational materials and a free £50,000 practice account are available to individuals looking to take their trading to the next level.

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Information?

1 Tax Treatment: The UK tax treatment of your financial betting activities depends on your individual circumstances and may be subject to change in the future, or may differ in other jurisdictions.

2 Leverage: Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors.

Hypothetical Trading: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

You should not regard any transaction proposal or suggested automated or manual trading strategies as investment recommendations or advice. You must rely on your own judgement for any investment decision you make in relation to your account.

Simulated Performance Results: These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

Spread Betting: FXCM UK offers tax exempt spread betting accounts exclusively to UK and Ireland residents. Residents of other countries are NOT eligible. Spread betting is not intended for distribution to, or use by any person in any country and jurisdiction where such distribution or use would be contrary to local law or regulation.
 
Spread Betting is an option on both Mini and Standard account types. Spread Betting accounts offer spread plus mark-up pricing only, regardless of account type. Spreads are variable and are subject to delay.

You should not regard any transaction proposal or suggested automated or manual trading strategies as investment recommendations or advice. You must rely on your own judgment for any investment decision you make in relation to your Account.