Risk warning: Spread bets and CFDs are complex, leveraged products — most retail accounts lose money. Check any provider's published loss rate, and never risk money you can't afford to lose.
Independent · Updated 8 July 2026

Spread betting, explained properly.

Plain-English guides to how spread betting works, what it really costs and — because most traders lose — how to manage the risk. Then choose an FCA-regulated provider with your eyes open.

Education only — no adverts, no tips Risk explained before rewards No bonus bait — incentives are banned
FTSE 100Rolling daily · example quote
SELL (go short)10,650.0
BUY (go long)10,651.0

The 1-point gap is the spread — it's how the provider gets paid.

From learner to advanced trader

Start with the basics, choose an account with your eyes open, then work on discipline — the thing that actually separates the survivors from the majority who lose.

1

Learn the basics

What a spread is, how margin works, why you can lose more than your stake, and what "£5 per point" really commits you to.

What is spread betting? →
2

Choose with your eyes open

The six checks that matter before you deposit anywhere — and an A–Z directory of FCA-authorised firms to run them against.

How to choose a provider →
A–Z provider directory →
3

Improve your skills

The full skills library: risk rules first, then charts, fundamentals and strategy design.

Risk management →
Technical analysis →
Trading strategies →
All guides →

Our approach

Risk first, always

Most retail accounts lose money — so loss rates, margin calls and worst cases come before any talk of profits.

No bonus bait

The FCA banned sign-up incentives for these products in 2019. Anyone offering you one is your red flag.

Dated and reviewed

Every page shows when it was last reviewed. Facts are checked against primary sources — FCA rules, HMRC guidance, regulatory disclosures.

Quick answers

Is spread betting tax-free?
Profits are currently free of UK Capital Gains Tax and stamp duty for most retail traders. With the CGT allowance cut to £3,000 (2026/27) and gains taxed at 18–24%, that exemption matters more than it used to. Full tax guide →
Why do most people lose money?
Leverage magnifies losses, and most beginners over-stake, skip stop-losses and overtrade. Every FCA-regulated provider must publish the share of its retail accounts that lose money — read that number before you deposit anywhere. Risk management guides →
How much do I need to start?
Margin means small deposits control large exposure — which is exactly the danger. Start on a demo account, then use small stakes with money you can afford to lose.

All FAQs →