Financial Spread Betting
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The CleanFinancial guide to financial spread betting.
Financial Spread Betting Comparison
Each of the companies in the table below offers a wide range of spread betting markets. Here we have listed a comparison table highlighting of some key differences between the accounts offered.
For a more in-depth comparison, including a comparison of the ‘spreads’ and minimum stakes see spread betting companies.
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| Online Application |
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| Credit Account |
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| Deposit Account |
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| Stop Loss Available |
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| Automatic Stop Loss |
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| 24 Hour Trading |
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| FSA Authorised and Regulated |
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| Candlestick Charts |
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Comparison Notes
Financial Spread Betting Account
The above companies tend to offer a wide range of stock market indices, shares, forex and commodities markets.
It’s important to note that each of the companies is also authorised and regulated by the Financial Services Authority.
If you’re looking to open a financial spread betting account then note that we have added a quick review of each company. To read the review simply click on the relevant company logo.
Please be aware that financial spread betting accounts are subject to status, terms and conditions.
Financial Trading News
Please find below a list of articles on Clean Financial that are updated daily. We add fresh market commentary throughout the day as well as daily share tips and technical analysis.
Financial Spread Betting Guides
CleanFinancial offers more than 500 individual trading guides covering specific indices, equities, FX and commodities markets.
For detailed guides to the major asset classes please see:
For an in-depth guide to some of the most popular markets see:
Financial Spread Betting Charts
Below we have listed the financial spread betting companies that, with the occasional expectation, provide trading charts.
Comparison Notes
Most firms provide account holders with free charts and, like the FinancialSpreads example below, normally you can choose candlestick charts.
In most cases you can change the time settings so that you can view market movements in 1, 2, 3, 5, 10, 30 and 60 minute intervals. If you prefer a medium-long term view then you can also set the charts to daily and weekly intervals.
Financial Spread Betting Platforms, Software and Live Prices
Some financial spread betting firms offer investors software and trading platforms that you can download. Nevertheless most providers, such as the ones listed below, offer more user-friendly web-based platforms.
With a web-based trading platform you don’t need to install any trading software. A web-based platform will also normally let you access your account from home, the office and most other places with web access.
Each of the following firms also provides their account holders live spread betting prices.
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Live Prices? |
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Financial Spread Betting - Free Demo Account
If you’re less familiar with certain markets or if you would like to test out some new trading theories and strategies then it might be a good idea to test them on a spread betting Test Account / Demo Account.
These are free accounts where you can practice trading on numerous spread betting markets without risking your capital.
Comparison Notes
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
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Financial Spread Betting Risk Management
If you’re spread betting it is important to understand that you can lose.
All forms of investment, from trading stocks to CFDs and ETFs, have a negative side. If you spread bet you can lose more than you initially staked.
Spread betting does carry a high level of risk so before you trade, please ensure that it matches your investment objectives. Familiarise yourself with the risks involved and seek independent advice where necessary.
Having said that there are a couple of steps you can take to reduce your risks. These include:
Risk Management - Small Stakes
A simple way of reducing your risk is trading with smaller stakes. You can trade with smaller stake sizes such as £1 per point or $1 per point on the vast majority of markets with companies like Capital Spreads and Financial Spreads.
Risk Management – Financial Spread Betting Orders
Financial spread betting firms normally offer you the option of using a variety of different trading orders as a way to help you manage your risk. The more common trading orders tend to be:
- Stop Loss Orders
- Guaranteed Stops
- Limit Orders
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Stop Loss Orders
A Stop Loss is a trading order intended to help an investor if they're making a loss.
Stop Loss orders will close your trade if and when the underlying instrument goes against you and past the Stop Loss level. You can normally specify the level that the Stop Loss is set at.
Note that Stop Losses are not guaranteed, if the market were to gap (jump) over the level of your Stop Loss, then your trade will be closed and settled at the next price that's traded.
A bonus with a Stop Loss is that it does not limit your upside.
Guaranteed Stops
These orders work in a similar manner to a normal Stop Loss however the closing price level of your spread bet is guaranteed. So even if the underlying market you are trading gaps over the level of your Guaranteed Stop, your trade will still be closed at the level that you originally specified.
Be aware that if you choose to add a Guaranteed Stop to your spread bet, then there is generally a modest premium to pay for the extra protection. The premium normally comes in the form of a wider spread.
Also, like a Stop Loss, a Guaranteed Stop does not limit your upside.
Limit Orders
Limits Orders are intended to help you when you’re in the black and making a profit.
A Limit Order will close your position if the underlying market you are trading moves, in the direction that you correctly forecast, by a specific amount. Again, you can normally select the level that the order is set.
This basically means that Limit Orders will automatically close a position in order to lock-in your profit. Limit Orders can be useful because they stop you from getting carried away and keeping your trade open for too long.
All three trading orders can help you carry out your strategy simply by helping you close spread bets at the price levels you wanted.
The trading orders also tend to be invaluable given that you can't keep an eye on the financial markets throughout the day. This is particularly true when you consider that a number of the more widely traded markets are open overnight.
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Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
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Guaranteed Stop – Trading Example
As mentioned above, you can trade with £1 per point stakes. If you speculate on the FTSE 100 to go up with a £1 per point stake and it goes up by 85 points then you would make 85 points x £1 per point = £85.
Conversely, if the market went against you and the FTSE 100 dropped by 70 points, then with a £1 stake you would lose 70 points x £1 per point = £70.
Of course this would not be a great way to start. However, you could set a Guaranteed Stop at let's say, 45 points.
If you were betting on the FTSE 100 then your bet would be closed if the FTSE 100 moved against you by 45 points. Therefore, instead of losing £70, you'd only lose 45 points x £1 per point = £45.
However, assuming you correctly predicted the direction of the market, your profit would still be £95 if it moved 95 points or £55 if the FTSE 100 moved 55 points.
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
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How to Spread Bet
At this stage you might be thinking to yourself, this all seems very positive but what’s the catch? Well, as we have said, there are risks. So, maybe we should go into more depth about how a trade works.
The FTSE 100 is normally the most popular spread betting market. Looking at the Financial Spreads website, they are pricing the FTSE 100 Rolling Daily market at 5930.0 - 5931.0.
This means you can spread bet on the FTSE 100 to:
- Rise above 5931.0, or
- Fall below 5930.0
When financial spread betting on the FTSE 100 index you trade in £x per point. As a result, if you invest £4 per point and the FTSE 100 moves 20 points then that would change your bottom line by £4 per point x 20 points = £80.
Rolling Daily Indices Markets
This is a ‘Rolling Daily Market’ and that means it doesn’t have a set closing date. Therefore, if you decide not to close your trade by the end of the day, it just rolls over into the next day.
If you do roll over a position and you are spread betting that the market will:
- Go higher - then you normally pay a small overnight financing fee, or
- Go lower - then a small payment is normally credited to your account
For more information see Rolling Daily Spread Betting.
FTSE 100 Rolling Daily Index Spread Betting Example
Coming back to the above spread of 5930.0 - 5931.0, let’s make the assumption that you have done your analysis of the stock market index, and you:
- think that the FTSE 100 will go up and move higher than 5931.0
- decide to ‘buy’ the market at 5931.0 for a stake of £2 per point.
If so, you gain £2 for every point that the FTSE moves above 5931.0. On the other hand, it also means you will make a loss of £2 for every point that the index drops below 5931.0.
Put another way, when you buy a spread bet then your profit / loss is found by taking the difference between the closing price of the market and the price you bought the spread at. You then multiply that price difference by your stake.
If after a few sessions the FTSE started to move upwards then you could choose to close your trade in order to lock in a profit. Therefore, if the market moved up then the spread could change to 6002.2 - 6003.2. You would close your trade by selling at 6002.2. So with your £2 stake you would make a profit of:
- Profit / loss = (Settlement Level - Initial Level) x stake
- Profit / loss = (6002.2 - 5931.0) x £2 per point stake
- Profit / loss = 71.2 points x £2 per point stake
- Profit / loss = £142.40 profit
Financial spread betting on index markets won't always go to plan. With the above, you had bet that the index would go up. Nevertheless, the FTSE could have fallen. If the FTSE 100 index fell then you could choose to close your spread bet in order to limit your losses.
If the spread fell to 5868.7 - 5869.7 then you would settle your spread bet by selling at 5868.7. Therefore, you would make a loss of:
- Profit / loss = (Settlement Level - Initial Level) x stake
- Profit / loss = (5868.7 - 5931.0) x £2 per point stake
- Profit / loss = -62.3 x £2 per point stake
- Profit / loss = -£124.60 loss
Note - FTSE 100 Rolling Daily spread accurate as of 18-May-11.
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
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Risk Warning: Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
'Financial Spread Betting' by DB, updated 17-May-12
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Financial Spread Bet May 2008, updated 23-May-08
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Financial Trading May 2008, updated 09-May-08
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Financial Trading April 2008, updated 25-Apr-08
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Markets February Spread Trading, updated 29-Feb-08
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Real-time Spread Betting Prices and Charts, updated 15-Feb-08
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Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more!
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