Tax-free Spread Betting.

Spread betting is a leveraged derivative product that lets you speculate on whether the price of a market, such as an index, share, forex pair or commodity, will rise or fall. You don’t own the underlying asset. Instead, you choose a stake per point of movement, and your profit or loss depends on how far the market moves in your favour or against you.

You choose a market, decide whether to “buy” (if you expect the price to rise) or “sell” (if you expect it to fall), and set a stake per point. The difference between the buy and sell prices is called the spread, and it is a cost of placing the trade. For example, with a £5 per point stake, a 20-point move in your favour would produce a £100 gain, while a 20-point move against you would produce a £100 loss.

Both products let you speculate on price movements using leverage without owning the asset. A CFD (Contract for Difference) is typically priced per unit and tied to contract size, whereas a spread bet is priced per point of movement. The main practical difference for UK clients is tax treatment (see question 5).

Spread betting is leveraged, so you only put up a small proportion of the trade’s full value as margin, but losses are calculated on the full position size. This means losses can exceed your initial margin and can be significant. Risk management tools such as stop-losses may help limit losses, but they don’t remove risk, and standard stops may not execute at your chosen level in fast-moving markets.

Spread betting profits are currently treated as betting winnings by HMRC, which means they are not subject to Capital Gains Tax or stamp duty for most UK clients. Tax treatment depends on individual circumstances and may be subject to change. Seek independent advice.

The main cost is the spread, which is the gap between the buy and sell price. Other costs may apply, such as overnight funding charges on positions held open past market close, and premiums for guaranteed stops.

Spread bets and CFDs are leveraged. You only need a fraction of the position to trade, but profits or losses can exceed your initial deposit. You can set automatic stop-loss orders to limit losses and take-profit orders to lock in gains when the market moves your way.

Yes, Positions may be closed automatically, leaving a negative balance.

How we help: FCA regulations protect you with negative balance protection. We reset negative accounts to zero at no cost, so you're never overexposed.

Why this happens: Small fees apply to keep positions open past 10pm UK time.

How we help: You can trade CFD futures to avoid overnight fees while keeping control of your positions, though spreads may be slightly higher.

Why this happens: Your account needs enough margin to maintain trades. Insufficient funds can trigger automatic closure.

How we help: Balances are always visible in our platform or app, with notifications if you're on a margin call, keeping you in control.

Why this happens: Markets move fast and unpredictably in response to events or trader behaviour.

How we help: Stop-loss orders, including guaranteed stops, can help limit losses. Price alerts keep you informed so you can act fast.

Why this happens: Leveraged trades don't give you ownership of the assets, so you have no dividends or voting rights.

How we help: Buy shares outright through our share dealing platform to access dividends, voting, and over 12,000 shares and ETFs