Which broker is best for spread betting on shares?
Verdict
- Pepperstone is our first choice for spread betting on shares: its UK spread-betting account covers 1,162 shares with no commission, and it runs on every Pepperstone platform, including MT4, MT5, TradingView and cTrader.
- Pepperstone says spread betting profits are exempt from capital gains tax in the UK, with no stamp duty, though your circumstances decide the final treatment.
- Capital.com, IG, CMC Markets, Spreadex and StoneX also offer share spread betting under FCA regulation, and all of them publish guaranteed stops, which Pepperstone does not.
- Retail leverage on shares is 1:5, so a £10-per-point bet on a 500p share needs £1,000 of margin.
Spread betting on shares is a UK speciality, and the providers differ mostly on range, platforms and stop protection. Pepperstone wins our pick on the first two; on the third, it trails several rivals. Here is how a share spread bet works at Pepperstone, what it costs, and who to use if you need guaranteed stops.
Why Pepperstone is our spread-betting pick
Pepperstone Limited (FCA 684312) runs a dedicated spread-betting account for UK residents. You stake in pounds per point, pay no commission, and can trade the same 1,162 shares listed for its CFD accounts. Unusually, the account is open to every Pepperstone platform: its own web platform and app, MT4, MT5, TradingView and cTrader. That suits traders who want to chart in TradingView or run an expert advisor while keeping the spread-betting tax position.
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A share spread bet, step by step
Say a share is quoted at 500p and you think it will rise. Assume one point equals one penny on that share:
- You buy at £10 per point. Your exposure is £10 × 500 = £5,000.
- Margin at the 1:5 retail cap is 20%: £1,000.
- The price rises to 530p. Profit: 30 points × £10 = £300, with no commission to deduct.
- If it falls to 470p instead, you lose £300. Pepperstone's overnight fee applies if you hold past 10 pm UK time.
FCA-regulated share spread-betting providers
Platform lists are each firm's general list; confirm which ones support spread betting before opening.
| Provider | FCA ref. | Guaranteed stops | Platforms named |
|---|---|---|---|
| Pepperstone | 684312 | Not offered | Web/app, MT4, MT5, TradingView, cTrader |
| Capital.com | 793714 | Yes | Web, app, MT4, MT5, TradingView |
| IG (IG Index Ltd) | 114059 | Yes, premium if triggered | Web, app, MT4, MT5, ProRealTime, TradingView |
| CMC Markets | 173730 | Yes, fee refunded if not triggered | Next Generation, app, MT4 |
| Spreadex | 190941 | Yes | Own platform, apps, TradingView |
| StoneX Trading | 446717 | Yes, charged if triggered | Web Trader, apps, MT4, TradingView |
Where Pepperstone falls short
The gap is stop protection. Pepperstone's UK terms state that it can't guarantee stop-loss orders will fill at your level, so a share that gaps on results can blow through your stop. Every rival in the table publishes a guaranteed stop. If you hold share bets over earnings dates, Capital.com is the natural second account: FCA-authorised, spread betting available, guaranteed stops, and a 20 GBP minimum deposit.
Sources
Terms from each provider's UK pages.
Is spread betting on shares tax-free?
Pepperstone says UK spread betting profits are exempt from capital gains tax and carry no stamp duty, but tax treatment depends on your individual circumstances and can change.
Does Pepperstone charge commission on share spread bets?
No. Pepperstone's spread bets carry no commission; the cost is in the spread, plus overnight fees on positions held past 10 pm UK time.
Can I spread bet on shares through MetaTrader?
At Pepperstone, yes. Its UK spread-betting account runs on MT4 and MT5 as well as TradingView, cTrader and its own platform.
Trading CFDs or spread bets on margin can lose you money fast, and most retail accounts do: Pepperstone reports that 73.6% of its retail investor accounts lose money on these products. Tax treatment depends on your circumstances. This is not investment or tax advice.