Spread Betting

What is spread betting?

Spread Betting is a way of trading the financial markets that is particularly attractive to Irish and UK residents as profits are exempt from tax*. Instead of trading UK in amounts, or lot sizes, spread bettors choose a monetary amount to bet per pip or point move for a financial instrument.

Don’t miss your opportunity!
Enjoy competitive spreads & high leverage.

Here’s a practical example

David thinks the EURUSD exchange rate will rise in value.
He places a BUY bet of £1 GBP per pip (0.0001).

How to spread bet in UK with Avatrade?

This means for every pip the EURUSD rate rises David will profit £1 GBP.
Conversely, for every pip it falls he will lose £1 GBP.

Spread betting example: How much does David’s trade cost?

Bet size per pip X Spread = Spread charged.

Each financial instrument has its own spread, which is the cost of the trade.
When spread betting the total spread charged is the bet size multiplied by the spread for that instrument.

In David’s example he bets £1 GBP per pip times the EUR/USD spread which is 1.8 pips.
So the total spread charged for David’s position is £1 .80.

Spread betting is a tax free trading method available for UK and Ireland residents only. Learn more about Spread Betting and the Spread Betting trading platform

* Spread-Betting is exempt from stamp duty and Capital Gains Tax in the UK and Ireland. Please note that tax laws are liable to change and may differ based on your individual circumstances and jurisdiction.

Don’t miss your opportunity! 
Enjoy competitive spreads & high leverage.

Spread Betting Compared

  • Spread Betting vs. Regular Betting

    Usually when placing a bet, you are looking for a particular outcome. For example, if you expect your favorite team to win the match, then you will place a bet for it to win. There are only two possible outcomes for this event – win or loss- which are set in advance.
    In financial Spread Betting, the outcome is not fixed in advance. Instead you place a bet that the price of a certain instrument will be higher or lower in the future. The more you are right about the trend of movement, the more you will earn. The more you are wrong, the more you will lose. Whatever the outcome is, it is the trader who decides when to close the position.

  • Spread Betting vs. FX/CFD Trading

    Spread Betting is similar to traditional Forex and CFD trading. However, instead of buying an amount or lot size of the financial instrument, a spread bettor places a bet per pip movement or point movement of the given instrument.
    On a traditional CFD and FX trading platform, the amount you enter in the volume box therefore refers to the amount of units of the instrument you wish to buy or sell.
    For example, entering 0.10 into the volume box refers to 10,000 units of an FX pair, 100 barrels of crude oil or 10 ounces of gold.
    However, on the spread betting platform, entering 0.10 in the volume box refers to the size of the bet per pip move e.g. 10p per FX pip (0.0001), 10p per point move of crude oil (0.01) etc. For further explanation, take a look at a detailed example of spread betting
    Note: The value of 1 pip changes from one financial instrument to another.

Spread Betting vs. FX/CFD Trading
  FX & CFD Trading Spread Betting Trading
Range of Markets +200 (FX, commodities, indices, equities, bonds and ETFs) +200 (FX, commodities, indices, equities, bonds and ETFs)
Minimum Trade Size From 0.01 lot From 0.10 (10 per point on Forex trading and most other instruments.
Account Currency EUR, GBP, USD GBP
Maximum Leverage    
Platforms MetaTrader 4 & AvaTradeGo MetaTrader 4
Tax Free Profits No Yes

How to Calculate the Cost of a Spread Betting position?

The cost of placing a financial spread bet is known as the spread. Each financial instrument has its own spread. This spread is multiplied by the size of your bet size to give the overall cost of the trade.
For example the EURUSD has a typical spread of 1.8 pips. If a spread bettor is trading at £1 per pip then the total spread charged is £1.80*
*Spread betting accounts are available in GBP denominated currency

How to Spread Bet with AvaTrade?

  • Spread Betting Platform

    AvaTrade is committed to providing its traders with the best trading platform and trading tools available. The MT4-Spread Betting platform is the world’s most popular and customizable trading platform. With hundreds of financial instruments available, live price trading charts tailored to your needs and technical and fundamental analysis tools, the MT4 platform is the most innovative and flexible trading terminal available to retail traders. Learn more about the MT4 – Spread Betting Trading platform.

  • Spread Betting with Leverage

    When spread betting with AvaTrade you can enjoy up to leverage* on your spread betting account.
    Leveraged trading, also known as trading on margin, allows UK traders to open greater positions in the market than what their capital might otherwise allow.
    Leverage is a very powerful tool which enables traders to earn greater profits with smaller capital, thus magnifying profits. However, at the same time the losses might be larger due to the leveraged trading. This is an important factor each trader must take into account.
    *Applies to Forex pairs. Maximum available leverage varies between markets and financial instruments.

  • Spread Betting Markets

    AvaTrade offers its traders leveraged spread betting on a full range of markets, including more than 65 forex currency pairs, metals, energies & agricultural commodities, major indices and bonds from across the world, and a large variety of equities and ETFs. With such a large variety, you are sure to find the instruments that suit you.

Why should you Spread Betting with AvaTrade?

  • Tax-free trading UK – Profits are exempt from Capital Gains Tax & Stamp Duty**
  • Trade with a trusted forex broker – regulated in UK & Ireland (MiFiD)
  • Spread bet on more than 200 financial instruments – FX pairs, indices, equities & bonds
  • Segregated bank accounts – ensuring the safety of your funds
  • Personal Account Manager – alongside a 24/5 customer service team

Start trading with a regulated award-winning broker!

** Spread-Betting is exempt from stamp duty and Capital Gains Tax in the UK and Ireland. Please note that tax laws are liable to change and may differ based on your individual circumstances and jurisdiction.