Can you spread bet on ETFs in the UK?
Verdict
- Yes — you can spread bet on ETFs in the UK, and Pepperstone is our pick to do it: its FCA-regulated spread-betting account lists 95 ETFs (data sourced 12 March 2025), staked in pounds per point with no commission.
- Pepperstone says UK spread betting profits are exempt from capital gains tax and stamp duty, though the treatment depends on your circumstances.
- An ETF spread bet is a leveraged bet on the fund's price: you never own units, you can go short, and you pay overnight fees on positions held past 10 pm UK time.
- Capital.com also offers spread betting in the UK, with guaranteed stops that Pepperstone lacks.
Spread betting is not limited to indices and currencies. Several FCA-regulated firms let you bet on exchange-traded funds too, and Pepperstone, our pick, includes its whole ETF list in its spread-betting account. This page explains how an ETF bet works, what it costs compared with buying the fund, and the points to check first.
Spread betting on ETFs with Pepperstone
Pepperstone Limited, authorised by the FCA (684312), offers a spread-betting account to UK residents alongside its CFD accounts. Its account comparison table counts 95 ETFs available for spread betting — the same number it lists for CFDs — and its ETF page describes the range as more than 80 funds. Stakes are in pounds per point, there is no commission, and you can place the bets through Pepperstone's own platform, MT4, MT5, TradingView or cTrader.
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How an ETF spread bet works
- Pick the ETF and decide direction: buy if you expect the price to rise, sell if you expect it to fall.
- Choose a stake per point. At £4 per point, each one-point move in the quoted price changes your result by £4.
- Post margin. With shares capped at 1:5 for retail clients, budget for around 20% of the exposure; the ticket shows the exact amount.
- Close the bet. A 25-point move in your favour at £4 per point is £100 profit; the same move against you is a £100 loss.
- Keep it short-term or budget for overnight fees, charged on positions held past 10 pm UK time.
Spread bet, CFD or owning the fund?
A spread bet suits a view lasting days or weeks. For long-term holding, financing charges and leverage make it a poor substitute for owning the fund.
| ETF spread bet | ETF CFD | Buying the ETF | |
|---|---|---|---|
| Ownership | No | No | Yes |
| Commission at Pepperstone | None | $0.02 per share per side on US ETFs | Not offered by Pepperstone |
| Tax per Pepperstone | No CGT or stamp duty, depending on circumstances | CGT payable; losses can be offset; no stamp duty | Depends on the account, e.g. an ISA |
| Short selling | Yes | Yes | No |
| Leverage | Yes | Yes | No |
Who else offers ETF spread bets
Capital.com's UK company (FCA 793714) lists spread betting among its account types and offers guaranteed stop-loss orders, useful if you bet on a volatile sector fund. IG runs spread betting through IG Index Ltd (FCA 114059), and CMC Markets, Spreadex and StoneX Trading also offer spread betting. Our verified data does not include their ETF lists, so search for your fund on each platform before opening an account.
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Sources
Taken from the brokers' published pages.
Are ETF spread bets tax-free in the UK?
Pepperstone says spread betting profits are exempt from capital gains tax in the UK and carry no stamp duty, but your own circumstances decide the treatment and tax law can change.
How many ETFs can I spread bet on with Pepperstone?
95, according to its UK account table (data sourced 12 March 2025). Its ETF page refers to more than 80.
Can I hold an ETF spread bet in an ISA?
No. A spread bet is a leveraged derivative, not an investment you own, so it cannot sit in an ISA.
Spread bets and CFDs are leveraged and complex, and you can lose money quickly. 73.6% of retail investor accounts lose money when trading spread bets and CFDs with Pepperstone, according to its UK site. This page is general information, not investment advice; check each broker's current terms.