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UK Spread Betting Brokers

  • #1
  • First Post: Aug 14, 2018 2:15pm Aug 14, 2018 2:15pm
Please list the best spread betting brokers in the UK, and your experience if possible. Many thanks
  • #2
  • Aug 15, 2018 3:05am Aug 15, 2018 3:05am
Quoting venividivici
Please list the best spread betting brokers in the UK, and your experience if possible. Many thanks
I have spread bet with IG for years and was very happy with them. But, since the ESMA leverage increases I have moved to IC Markets. CFDs rather than spread betting but it's the only way I can keep trading at the moment...
  • #3
  • Aug 15, 2018 11:47am Aug 15, 2018 11:47am
Quoting tradesimply
{quote} I have spread bet with IG for years and was very happy with them. But, since the ESMA leverage increases I have moved to IC Markets. CFDs rather than spread betting but it's the only way I can keep trading at the moment...
Thanks. Well the idea of using spread bet trading is to avoid taxing right? lol..

I recommend atom8 personally, but was curious to know of some more premium brokers out there.
  • #4
  • Aug 15, 2018 12:07pm Aug 15, 2018 12:07pm
you don't need to us a UK broker to benefit from this...
  • #5
  • Aug 15, 2018 12:12pm Aug 15, 2018 12:12pm
Quoting venividivici
{quote} Thanks. Well the idea of using spread bet trading is to avoid taxing right? lol.. I recommend atom8 personally, but was curious to know of some more premium brokers out there.
Yes, avoiding tax is obviously my preferred option too! But, if it's the choice between trading and paying tax and not trading at all (or at such small stakes that it's hardly worth it), then unfortunately I have to "choose" to pay tax! Hahaha
  • #6
  • Aug 15, 2018 12:31pm Aug 15, 2018 12:31pm
Quoting Don96
you don't need to us a UK broker to benefit from this...
Im listening , lol
  • #7
  • Aug 15, 2018 4:04pm Aug 15, 2018 4:04pm
Quoting venividivici
{quote} Im listening , lol
If you are uk based it shouldn't matter where the broker is based, it's not like you are owning something, what youmake is exempt from capital gains tax and stamp duty.

I'm with ic markers in Australia.
  • #8
  • Aug 15, 2018 4:10pm Aug 15, 2018 4:10pm
Quoting Don96
{quote} If you are uk based it shouldn't matter where the broker is based, it's not like you are owning something, what youmake is exempt from capital gains tax and stamp duty. I'm with ic markers in Australia.
Yes, but any profits from, say IC Markets, would be subject to income tax on withdrawing to a UK bank account, whereas any profits from spread betting are completely tax free (classed as gambling in the UK)
  • #9
  • Aug 15, 2018 4:51pm Aug 15, 2018 4:51pm
Yes its complicated in the UK, I would think that if you have a "main income" that isnt trading, then your trading is not taxed..but i thought this was only through spread bet trading and not normal broker forex trading?.
  • #10
  • Aug 16, 2018 2:51am Aug 16, 2018 2:51am
Quoting venividivici
Yes its complicated in the UK, I would think that if you have a "main income" that isnt trading, then your trading is not taxed..but i thought this was only through spread bet trading and not normal broker forex trading?.
This is correct.

Spread betting is classed as gambling by HMRC and so any profits are not taxable.
Any profits from other trading e.g. CFDs are classed as income and so normal income tax applies.
Any trading where you actually "own" the product e.g. share dealing, comes under capital gains tax.

So, spread betting is definitely the preferred option tax-wise!
  • #11
  • Aug 18, 2018 4:35am Aug 18, 2018 4:35am
Depends what you're looking to trade. For EURUSD I use ActivTrades for spread betting.
  • #12
  • Aug 20, 2018 5:41am Aug 20, 2018 5:41am
Just a heads up: IG are now offering something called "knock outs". I had a quick look and seems a little gimmicky to me.

Have you seen this venividivici?
  • #13
  • Aug 20, 2018 11:35am Aug 20, 2018 11:35am
Quoting tradesimply
Just a heads up: IG are now offering something called "knock outs". I had a quick look and seems a little gimmicky to me. Have you seen this venividivici?
Its news to me, better study it before getting involved.

1. Knock-outs are spread bets on a bought option, which means you cannot go short on them. You can buy a bull knock-out if you expect the market to rise, and buy a bear knock-out if you expect the market to fall.
2. Knock-outs are not available for rollover, regardless of any instructions held on your account. All knock-outs settle basis a pre-determined expiry rule. To find out more, take a look at each market’s individual information in the platform.
3. Bets not already closed by you or knocked out expire automatically at the date/time indicated.

4. The knock-out is automatically closed off at 0 if the relevant bid/ask reaches the knock-out level before expiry. The knock-out level chosen by you is guaranteed and therefore protected from slippage.

5. The open price (options premium) of a knock-out is the difference between the underlying IG price and the knock-out level, plus the knock-out premium. The knock-out premium is included in our spread, so you pay it when you buy to open and receive it back if you sell to close before your knock-out level is triggered.
6. The knock-out premium is variable, based on anticipated risk in the underlying market. The premium may increase if market volatility increases, and decrease if market volatility decreases. It is possible the value of the knock-out premium will change while you have an open position. If the premium increases your knock-out will be worth more, and if the premium decreases your knock-out will be worth less.
7. Spreads are subject to variation, especially in volatile market conditions. The spreads are equivalent to underlying IG market spreads. Please see the individual IG underlying market pages (indices, forex and commodities) for further information on how their spread is determined.

8. The margin for 'buying' a knock-out is the opening price (options premium) multiplied by the size of the bet. This is the maximum amount that the bet can lose.

https://www.ig.com/uk/help-and-suppo...roduct-details
  • #14
  • Aug 23, 2018 10:46am Aug 23, 2018 10:46am
Thanks for the info venividivici.

I think I'll stay away from these and stick to where I've moved to. Happy with my new home

Shame because I've always like IG but nothing ever stays the same...
  • #15
  • Aug 29, 2018 3:54am Aug 29, 2018 3:54am
Quoting tradesimply
{quote} I have spread bet with IG for years and was very happy with them. But, since the ESMA leverage increases I have moved to IC Markets. CFDs rather than spread betting but it's the only way I can keep trading at the moment...
If you are successful at trading could you not, over a few months, make a certain amount of money to enable you to open an IG account under the new ESMA rules?
every Saint has a past. Every Sinner has a Future
  • #16
  • Aug 29, 2018 6:10am Aug 29, 2018 6:10am
Quoting turnip15
{quote} If you are successful at trading could you not, over a few months, make a certain amount of money to enable you to open an IG account under the new ESMA rules?
That's the plan! But it going to take a bit longer than a few months ... I need to raise enough for 7 x my previous bank.

The only advantage I can see to moving back once I have the required funds is the tax-free benefits. I've got plenty of time to think about it anyway!
  • #17
  • Sep 6, 2018 6:38am Sep 6, 2018 6:38am
Just checked out a possible trade with my old IG account on a stock not offered by my current broker and had such a shock! Margin required is 20 x risk, even with a guaranteed stop loss.

So, won't be heading back to UK spread-betting land anytime soon!
HMRC will be pleased...
  • #18
  • Oct 29, 2018 1:11pm Oct 29, 2018 1:11pm
Quoting tradesimply
{quote} This is correct. Spread betting is classed as gambling by HMRC and so any profits are not taxable. Any profits from other trading e.g. CFDs are classed as income and so normal income tax applies. Any trading where you actually "own" the product e.g. share dealing, comes under capital gains tax. So, spread betting is definitely the preferred option tax-wise!
That is the simplest explanation I have seen tradesimply, thank you. I think there is a lot of confusion about these definitions within the trading community.
  • #19
  • Nov 22, 2018 7:41am Nov 22, 2018 7:41am
Well what is really the difference between spread betting account and Cfd account?
Is the spread on spread betting account wider than on Cfd account?
  • #20
  • Mar 19, 2019 3:46am Mar 19, 2019 3:46am
Quoting patterncode
Well what is really the difference between spread betting account and Cfd account? Is the spread on spread betting account wider than on Cfd account?
I'm not sure that the spread would be any different except maybe during periods of high volatility?

Someone else might have a more informed answer than me?
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