Which spread betting broker is best for trading indices?
Verdict
- Pepperstone is our pick for spread betting on indices: 26 index markets, published spread bet minimums of 0.4 points on the US500 and 0.9 on the GER40, and no commission.
- UK retail clients can use up to 1:20 leverage on major indices at Pepperstone, so a bet needs margin of 5% of its value.
- Pepperstone does not publish a guaranteed stop-loss; if you hold index bets over weekends or news, Capital.com and IG offer guaranteed stops.
Index spread bets reward low spreads, because index traders tend to trade often and in size. Pepperstone publishes its minimum spread for each main index on the spread betting account, and those figures match or beat its own CFD accounts. Here is what an index bet costs there, how much margin it ties up, and when another firm suits you better.
Why we pick Pepperstone for index spread bets
Three things decide an index spread betting account: what each point of spread costs, how many indices you can reach, and the platform. Pepperstone covers 26 indices, quotes stakes in pounds per point with no commission, and lets spread bettors use MT4, MT5, TradingView, cTrader or its own web platform and app. Pepperstone Limited is authorised by the FCA (684312) and the account opens from £10.
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Pepperstone's published index minimums by account
On the main indices, the spread betting minimum equals Razor's and beats Standard's. These are published minimums; spreads widen outside the main sessions.
| Index | Spread bet | Razor CFD | Standard CFD |
|---|---|---|---|
| US500 | 0.4 | 0.4 | 0.6 |
| NAS100 | 1 | 1 | 1.2 |
| UK100 | 1 | 1 | 1.2 |
| GER40 | 0.9 | 0.9 | 1.2 |
| JPN225 | 7 | 7 | 9 |
What a £5-a-point index bet ties up
Take a hypothetical UK100 level of 8,000. A £5-a-point bet then controls £40,000 of exposure. At the 1:20 retail limit, Pepperstone needs 5% of that, £2,000, as margin. Entering at the 1-point minimum spread costs £5. Every 100-point move against you is £500, a quarter of the margin, which is why stop placement matters more than the spread on most days.
When Capital.com or IG fits better
Indices gap at the open, and Pepperstone's UK terms say it can't guarantee stop-loss orders will be executed at your level. If you hold index bets through weekends or big data releases, a guaranteed stop caps the loss at a set price. Capital.com, which also offers UK spread betting, publishes guaranteed stop-losses, and IG's are free to place with a premium only if triggered. Capital.com's UK retail leverage on major indices is the same 20:1.
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Before your first index bet
- Learn the symbol names: Pepperstone's UK markets page still mentions "GER30", but the instrument trades as GER40.
- Note that Pepperstone charges an overnight fee on spread bets held past 10 pm UK time.
- Check the spread at the hour you trade, not only the published minimum.
- Remember retail negative balance protection: Pepperstone returns a negative balance to zero, but you can still lose your whole deposit.
Sources
Index pricing and leverage as published by each firm.
How much leverage can I use on index spread bets in the UK?
Up to 1:20 on major indices as a retail client at Pepperstone, the same as Capital.com publishes for its UK company. Professional clients at Pepperstone can get up to 1:500.
Does Pepperstone charge commission on index spread bets?
No. The cost is the spread plus overnight fees on bets held past 10 pm UK time.
Which index has the tightest spread at Pepperstone?
Of the published spread bet minimums, the US500 is lowest at 0.4 points.
Index spread bets are leveraged and can move against you fast, so you may lose your deposit. Pepperstone reports that 73.6% of its retail investor accounts lose money on spread bets and CFDs. Not investment advice; confirm current spreads and terms with the firm.