If you are interested in speculating on the price movements of financial markets such as forex, indices and commodities, then you have probably considered a spread betting broker. However, choosing a suitable broker can be a daunting task and many traders struggle to make an effective decision. Choosing a spread betting broker who offers a wide range of assets, is easy to use and follows the Financial Conduct Authority’s (FCA) strict rules is essential for a successful trading experience.
Which spread betting company is best?
The FCA regulates the UK’s top spread betting brokers, including City Index and CMC Markets. These brokers offer a huge selection of global markets that you can trade with their web Trader platform and mobile and tablet trading apps. Their spreads are low, with the average EURUSD spread being 0.7 pips. Unlike CFDs, profits from spread bets are tax-free in the UK, although they do attract interest charges and stamp duty if you hold positions overnight.
Traders can access more than 100,000 financial instruments with the best spread betting brokers uk. These include a wide variety of stocks, indices, shares and bonds. In addition, they can also trade CFDs, with the option to use a range of tradable instruments such as cryptocurrencies and energy commodities.
AvaTrade is a broker that offers a large variety of financial markets to choose from. Its website is easy to navigate and it offers a comprehensive set of educational resources that can help you improve your trading skills. It also provides a free demo account, which you can use to practice your strategies before making any real-money deposits.