Compared to traditional assets, spread betting profits are tax free in the UK because they are structured as bets. This means you won’t have to pay capital gains tax on your trading profits, whereas with traditional shares you may be subject to taxes like stamp duty (up to 0.5% of the value of the share).This link :theinvestorscentre.co.uk

The top spread betting platforms will offer low and transparent trading fees. You’ll also want to choose a broker that offers a wide range of assets, a free account, and a variety of educational materials. IG Markets, for instance, offers a variety of account types, a free spread bet demo, and personalised feedback on trades for beginner traders.

How to Choose the Right UK Spread Betting Platform for Your Needs

When choosing a spread betting platform, make sure it’s FCA-regulated. This ensures that the broker follows strict rules to protect your investment. These include client-fund segregation, KYC processes, and FSCS protection (up to £85,000) if the broker goes bust.

Another important consideration is whether the spread betting provider offers a low stake account. This account limits your maximum loss to a percentage of your stake. For example, a trade on the FTSE 100 with a spread of 1 point will reduce your maximum loss to 10p per point. This is a good option for those who are new to the markets and want to limit their risk. It’s also an effective way to test out a spread betting strategy without risking too much money.