Financial spread betting is the tax-free* way to take advantage of rising or falling markets.
All trading involves risk. Losses can exceed deposits.
Spread betting
All trading involves risk. Losses can exceed deposits.
Why spread bet with IG?
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No capital gains tax or stamp duty*
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No commission to pay – just the dealing spreads
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Gain full exposure by putting down a small initial deposit
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Advanced technology, with our best ever web platform
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Manage your risk with a range of stops
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Deal on forex, indices, shares, commodities and more
Start spread betting in three quick steps:
1. Open your account |
2. Find an opportunity |
3. Trade on every device |
What is spread betting?
Spread betting is a form of derivatives trading that allows you to take a position on whether you think a market will rise or fall, without having to buy the underlying asset.
- Importantly, spread betting is a leveraged product. This means you only have to put down a small deposit for a much larger market exposure
- Betting using leverage means there are significant benefits and risks: your investment capital can go further, but you can also lose more than your initial deposit
Spread betting is flexible as it's possible to take short positions and deal on over 15,000 markets. However, it is important to understand the risks involved and have suitable risk management strategies in place.
More about spread betting
How does spread betting work?
When you open a spread betting position on a market, you are given a 'buy' and 'sell' price either side of the underlying market price – this is known as the spread. If you think the market will rise, you open your spread bet at the ‘buy’ price. If you think it will fall, you open at the ‘sell’ price.
The more the market moves in your favour, the greater your profit. The more the market moves against you, the greater your loss.
Examples
What are the costs?
We are committed to being transparent about our costs and charges.
- You pay a dealing spread on all markets
- Small charge to fund positions overnight
- Small premium for guaranteed stops if triggered
- A borrowing charge if you are shorting shares
Is spread betting for me?
Spread betting is suitable for:
- Active traders looking for tax-free profits*
- Shares traders looking to diversify their portfolios
- People who are interested in the markets and what affects them
- Those looking to add flexibility to their investment capital, through leverage
Our dealing technology
The new web-based IG Trading platform has been built using the latest in HTML5 technology, giving you an altogether clearer, smarter and faster spread betting experience. Try our new platform for yourself.
Plus, you can spread bet on the move via the IG Trading app, available from your device’s app store.
Benefit from better pricing
Improved prices and no requotes
Deal directly from charts
Take a position in a couple of clicks
Spread bet with confidence
Less than 0.05% platform downtime2
Integrate your technology
Use your own front-ends via APIs and terminals
Discover our range of platforms
More reasons to try our spread betting technology
Spread bet with the UK’s most popular provider
We’re proud to offer the UK's leading spread betting service: 41% of all spread bettors in the UK are betting with us.3
With over 40 years' experience and 185,800 clients around the world, we are a trusted, global provider of spread bets and CFDs. Advanced dealers benefit from our premium services, specialised charting packages and more. We’re regulated by the FCA and segregate individual client funds from our own accounts. Discover more about IG.
Awards
ADVFN Awards
Best Multi Platform Provider
2016, 2017
Online Personal Wealth Awards
Best Spread Betting Provider
2016, 2017
Online Personal Wealth Awards
Overall Personal Wealth Provider
2014, 2015, 2016, 2017
Please note DFBs opened after 29 August 2015 will have an expiry date of 6 April 2029. Those opened before will have an expiry date of 1 April 2016.
Open an account now
It's free to open an account, takes less than five minutes, and there's no obligation to fund or trade.
You might be interested in...
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CFDs vs Spread betting
Compare the benefits and advantages of spread betting and CFD trading
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Risks and charges
All the risks and charges associated with spread betting
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Spread betting guide
Sign up for our free guide to spread betting, created especially for share traders
* Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
2 100.00% core platform uptime: average per month, IG globally (12 months to August 2016).
3 Number of active accounts (Investment Trends UK Leveraged Trading Report October 2016).
Buying Barclays plc detailed
Buying Barclays: detailed
| Spread bet DFB | CFD | |
| Underlying market/value | Barclays Plc 281/281.1 |
|
| Our price | 280.72/281.38 | 281/281.1 |
| Deal | Buy at 281.38 |
Buy at 281 |
| Deal size | £20 per point | 2000 shares |
| Initial margin required | Notional value x margin factor = £5627.60 x 5% = £281.38 |
Notional value x margin factor = £5622 x 5% = £281.10 |
| What happens next? | The market rallies and the closing price of Barclays is 292. This level is used to calculate overnight funding. The following day, the market continues to rally. |
The market rallies and the closing price of Barclays is 292. This level is used to calculate overnight funding. The following day, the market continues to rally. |
| Funding | One day funding = ((One-month LIBOR + admin charge) x Notional value) / 365 = ((0.51% + 2.5%) x £5.840) / 365 = £0.48 |
One day funding = ((One-month LIBOR + admin charges) x Notional value) / 365 = ((0.51% + 2.5%) x £5.840 / 365 = £0.48 |
| Underlying market | 295/295.1 | |
| Close | Sell at 294.71 |
Sell at 295 |
| Gross profit | £266.60 294.71 – 281.38 = 13.33 points Value per point = £20 13.33 x £20 = £266.60 |
£278 295 – 281.1 = 13.9p Number of shares = 2000 £0.139 x 2000 = £278 |
| Costs | 0.1% spread wrapped around underlying share price (included) Funding: £0.48 |
Commission: £10 to open + £10 to close = £20 This is charged to open and to close. It is calculated ar 0.1% of the notional value of the position, with a minimum charge of £10 To open: Notional value x 0.1% = £5800 x 0.1% = £5.880. The minimum commission is therefore charged. Funding: £0.48 |
| Net profit | £266.12 profit tax-free* |
£257.52 profit subject to tax |
| What if... | If the underlying market fell to 266.74/267.36 instead: 266.74 – 281.38 = -14.64 points -(14.64 x £20) + £0.48 = £293.28 net loss |
If the underlying market fell to 267/267.1 instead: 267 – 281.1 = -14.1 pence (-£0.141 x 2000) + £20 + £0.48 =£302.48 net loss |
Daily funded bets (DFBs) are long-term bets on the cash price of an underlying instrument. DFBs have no expiry date, so we make a cash adjustment to your account to reflect funding charges.
*Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
If you’d like to learn more about spread betting, sign up for our three-part guide created especially for share traders.
Buying Barclays plc light
Buying Barclays
| Spread bet DFB | CFD | |
| Underlying market/value | Barclays Plc 281/281.1 |
|
| Our price | 280.72/281.38 | 281/281.1 |
| Deal | Buy at 281.38 |
Buy at 281.1 |
| Deal size | £20 per point | 2000 shares |
| Initial margin required | Notional value x margin factor = £5627.60 x 5% = £281.38 |
Notional value x margin factor = £5622 x 5% = £281.10 |
| What happens next? | Our price rises steadily to 294.71/295.39 | The market rises steadily to 295/295.1 |
| Underlying market | 295/295.1 | |
| Close | Sell at 294.71 |
Sell at 295 |
| Gross profit | Gross tax-free* profit = £266.60 294.71 – 281.38 = 13.33 points Value per point = £20 13.33 x £20 = £266.60 |
Gross profit = £278 295 - 281.1 = 13.9 pence Number of shares = 2000 £0.139 x 2000 = £278 |
| What if... | If the underlying market fell to 266.74/267.36 instead: (266.74 - 281.38) x £20 shares Gross loss = £292.80 |
If the underlying market fell to 267/267.1 instead: (267 - 281.1) x 2000 shares Gross loss = £282 |
To calculate your net profit or loss, you would need to factor in any spread, commission or funding charges. See our detailed example for more information.
Daily funded bets (DFBs) are long-term bets on the cash price of an underlying instrument. DFBs have no expiry date, so we make a cash adjustment to your account to reflect funding charges.
* Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
If you’d like to learn more about spread betting, sign up for our three-part guide created especially for share traders.
Selling the FTSE 100 Cash CFD and FSB Light
Selling the FTSE 100
| Spread bet DFB | Cash CFD | |
| Underlying market/value | FTSE 100 JUN13 Future 6400 |
|
| Our market and price | FTSE 100 DFB 6441.05/6442.5 |
FTSE 100 Cash 6441.05/6442.5 |
| Deal | Sell at 6441.05 |
Sell at 6441.05 |
| Deal size | £10 per point |
1 contract £10 per contract |
| Margin required | £250 Margin factor x deal size 25 x £10 |
£250 Margin requirement per contract x number of contracts £250 x 1 |
| What happens next? | The market drops falls to 6310 | |
| Close | Buy at 6310.5 |
|
| Gross profit | Gross tax-free* profit = £1305.50 6441.05 – 6310.5 = 130.55 £10 per point |
Gross profit subject to tax = £1305.50 6441.05 – 6310.5 = 130.55 One contract is worth £10 per point |
| What if... | If the market rose 130.5 points instead: 130.5 x £10 £1305 gross loss
|
|
To calculate your net profit or loss, you would need to factor in any spread or funding charges. See our detailed example for more information.
Daily funded bets (DFBs) and Cash CFDs are no-expiry deals on futures markets. We make a cash adjustment to your account to reflect funding charges for any DFB or Cash CFD held open overnight.
* Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
Selling the FTSE 100 Cash CFD and FSB Detailed
Selling the FTSE 100: detailed
| Spread bet DFB | Cash CFD | |
| Underlying market/value | FTSE 100 JUN13 Future 6400 |
|
| Our market and price | FTSE 100 DFB 6441.05/6442.5 |
FTSE 100 Cash 6441.05/6442.5 |
| Deal | Sell at 6441.05 |
Sell at 6441.05 |
| Deal size | £10 per point |
1 contract £10 per contract |
| Margin required | £250 Margin factor x deal size 25 x £10 |
£250 Margin requirement per contract x number of contracts £250 x 1 |
| What happens next? | The market drops dramatically, reaching 6300 at 10pm, when funding is calculated. It rises a little overnight, to 6310 | |
| Funding | Funding = £3.47 (One-month LIBOR eg 0.49% minus 2.5% x £10 x 6300)/365 |
|
| Close | Buy at 6310.5 |
Buy at 6310.5 |
| Overall market movement & profit/loss | Gross profit = £1305.50 6441.05 – 6310.5 = 130.55 £10 per point |
Gross profit = £1305.50 6441.05 – 6310.5 = 130.55 Each contract is worth £10 per point |
| Costs | 1-point IG spread (included) Funding cost: £3.47 |
|
| Net profit | £1302.03 tax-free* net profit |
£1302.03 net profit subject to tax |
| What if... | If the market rose 130.5 points instead: 130.5 x £10 + £3.40 £1308.40 net loss
|
|
Daily funded bets (DFBs) and Cash CFDs are no-expiry deals on futures markets. We make a cash adjustment to your account to reflect funding charges for any DFB or Cash CFD held open overnight.
* Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
Example: buying cable (GBP/USD) detailed
Buying GBP/USD: detailed
| Spread bet DFB | CFD | |
| Market | Spot GBP/USD | |
| Price | 15,579.7/15,580.5 |
1.55797/1.55805 |
| Deal | Buy $10 a point at 15,580.5 |
Buy 1 contract at 1.55805 (1 contract = £100,000) |
| Initial margin required | Notional value is $15,805 (or £100,000) and margin factor is 0.5%, so margin = £779 (or £500) | |
| What happens next? | GBP/USD rallies overnight, and the position is held through 22:00 (London time) | |
| Funding | Funding = amount per point x funding adjustment factor= $10 x 0.27 = $2.70
Where funding adjustment includes underlying tom.next rate and admin charge of 0.8% oer annum |
Funding = amount per point x funding adjustment factor = $10 x 0.05 = $0.50
Where funding adjustment includes underlying tom/next rate and admin charge of 0.3% per annum |
| Price | 15,695 - 15,695.8 | 1.5695 - 1.56958 |
| Close | You sell at 15,695 |
You sell at 1.5695 |
| Gross profit | $1145 15,695 – 15,580.5 = 114.5 Value per point = $10 114.5 x £10 = $1145 |
$1145 1.5695 – 1.55805 = 0.01145 Number of points = 0.01145 x 100000 = 114.5 114.5 x 10 = $1145 |
| Costs | 0.8 point IG spread (included) Funding cost = $2.70 |
0.8 point IG spread (included) Funding cost = $0.50 |
| Net profit | £1142.30 tax free* |
£1144.50 |
| What if... | If the market dropped 114.5 points instead: $1145 + $2.70 Net loss = $1147.70 |
If the market dropped 114.5 points instead: $1145 + $0.50 Net loss = $1145.50 |
What are DFBs?
Daily funded bets (DFBs) are long-term bets on the cash price of an underlying instrument. DFBs have no expiry date, so we make a cash adjustment to your account to reflect funding charges.
Why do CFD and spread betting FX prices look different?
- You trade forex via CFD in contracts or lots. We therefore display CFD forex prices in the same way you would expect to see them on an FX exchange: e.g. 1.31425
- Because you spread bet on forex in currency per point, we display prices differently e.g. 13142.5. This makes it easier to see per point movements.
This makes no difference to the price you deal at or your potential profit or loss: it simply makes it easier to track per point movements.
*Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
Example: buying cable (GBP/USD) light
Buying GBP/USD
| Spread bet DFB | CFD | |
| Market | Spot GBP/USD | |
| Price | 15,579.7 / 15,580.5 |
1.55797 / 1.55805 |
| Deal | Buy $10 a point at 15,580.5 |
Buy 1 contract at 1.55805 (1 contract = $10 / point) |
| Initial margin required | Notional value is $155,805 (or £100,000) and margin factor is 0.5%, so margin = $779 (or £500) | |
| What happens next? | GBP/USD climbs over one hundred points. | |
| Price | 15,695 / 15,695.8 | 1.56950 / 1.56958 |
| Close | You sell at 15,695 |
You sell at 1.56950 |
| Gross profit |
Gross tax-free* profit = $1145 15,695.0 - 15,580.5 = 114.5 Value per point = $10 114.5 x $10 = $1145 |
Gross profit = $1145
(1.56950 x £100,000) x 100,000 = $1145 where one contract is £100,000 denominated in $ |
| What if... | If the market dropped 114.5 points instead: Gross loss = $1145 |
|
To calculate your net profit or loss, you would need to factor in any funding charges. See our detailed example for more information.
What are DFBs?
Daily funded bets (DFBs) are long-term bets on the cash price of an underlying instrument. DFBs have no expiry date, so we make a cash adjustment to your account to reflect funding charges.
Why do CFD and spread betting FX prices look different?
- You trade forex via CFD in contracts or lots. We therefore display CFD forex prices in the same way you would expect to see them on an FX exchange: e.g. 1.31425
- Because you spread bet on forex in currency per point, we display prices differently e.g. 13142.5. This makes it easier to see per point movements.
This makes no difference to the price you deal at or your potential profit or loss: it simply makes it easier to track per point movements.
*Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
Contact us
We're here 24hrs a day from 8am Sunday to 10pm Friday,
and 9am to 5pm Saturday.
You can also email us at newaccounts.uk@ig.com
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