Which spread betting brokers charge no commission?
Verdict
- Pepperstone charges no commission on UK spread bets; the cost is in the spread, plus an overnight fee on positions held past 10 pm UK time.
- Commission does appear at Pepperstone on its Razor CFD account (from £2.25 per lot per side in a GBP account) and on share CFDs, so the account type matters.
- IG and Spreadex also price standard spread bets through the spread, with published EUR/USD minimums of 0.6 points; Pepperstone's published spread bet minimum is 0.5.
- Zero commission isn't automatically cheaper: compare the spread you will actually pay on your markets.
Spread betting is normally priced through the spread rather than a separate commission, and Pepperstone follows that model. The useful question is what else you pay, and whether a commission-based CFD account would cost you less. Below we set out Pepperstone's UK pricing, which rivals publish the same structure, and the charges that remain.
Pepperstone: spread bets priced in the spread
Pepperstone's UK spread betting page lists the account as commission-free, with stakes in pounds per point. Its published minimum spreads on spread bets include 0.5 on EUR/USD, 0.8 on GBP/USD, 0.4 on the US500 and 1 on the UK100. The account starts at £10, and Pepperstone Limited is authorised by the FCA (684312).
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Where commission does show up at Pepperstone
So the same trader can pay commission on one Pepperstone account and none on another. Someone trading UK shares, for example, avoids the 0.10% share commission by placing a spread bet instead of a CFD.
- Razor CFD account: raw FX spreads from 0.0 plus commission from £2.25 per lot per side in a GBP account.
- Standard CFD account: no commission, except on shares.
- Share CFDs: 0.10% per side on UK and German shares, and $0.02 per share on US shares and ETFs.
- Spread bets: no commission on any market, shares included.
UK spread betting firms that price without commission
The EUR/USD figures below are published "from" or minimum spreads, not averages, so they show the floor rather than what you will usually pay.
| Firm (FCA no.) | Spread betting | EUR/USD figure published | Commission on standard bets |
|---|---|---|---|
| Pepperstone (684312) | Yes | Spread bet minimum 0.5 | None |
| IG Index (114059) | Yes | From 0.6 points | None on standard spread bets |
| Spreadex (190941) | Yes | From 0.6 points | None stated |
| CMC Markets (173730) | Yes | Standard account from 0.5 pips | Not stated for spread bets |
| Capital.com (793714) | Yes | No static figure published | Not verified |
Costs that remain when commission is zero
- The spread itself: on a £10-a-point EUR/USD bet, a 0.5-point spread costs £5 to enter; 0.8 on GBP/USD costs £8.
- Overnight fees: Pepperstone charges them on spread bets held past 10 pm UK time.
- Withdrawals: Pepperstone's UK withdrawals table lists every method as free, but its costs FAQ mentions £15 for an international bank wire. Ask which applies before you wire money abroad.
- No inactivity fee at Pepperstone, though accounts under 10 currency units left unused for three months or more may be archived.
When a commission account works out cheaper
If you trade forex in size and close positions the same day, a raw-spread account can beat a commission-free spread. At Pepperstone, Razor's published EUR/USD average is 0.1 pips plus commission, against a Standard average of 1.1 pips with none. The spread betting route keeps its tax edge: Pepperstone says spread betting profits are exempt from capital gains tax in the UK, while CFD profits are liable to CGT, and adds that tax treatment depends on your circumstances and can change.
Sources
Pricing as published by each firm on its UK site.
Is spread betting tax-free in the UK?
Pepperstone says UK spread betting profits are exempt from capital gains tax and carry no stamp duty, but that tax treatment depends on your circumstances and the law can change.
Does Pepperstone charge commission on share spread bets?
No. Commission applies to share CFDs, not to spread bets.
Is a commission-free account always the cheapest?
No. A wider spread can cost more than a tight spread plus commission. Work out the cost for your usual stake on your usual markets.
Spread betting and CFD trading use leverage, so losses can build fast and exceed what you expected to risk. 73.6% of retail investor accounts lose money when trading spread bets and CFDs with Pepperstone, according to the firm. This page is information, not investment advice.