We’ve compiled a list of spread betting accounts that, we feel, are appropriate for beginners. They offer various ways of limiting the significant risk of losses that a standard spread betting account may expose traders to.
Below, we’ve put together a short guide on each of the types of account available, and what they mean.
Low Stake Spread Betting Platforms for Beginners
The new Pepperstone spread betting account enables novice traders to spread bet from 20p per point on a range of Indices, Commodities and Currencies. There’s flexibility to increase stake sizes as you gain in confidence. See our full Pepperstone review
IG offers reduced minimum deal or trade sizes for all new spread betting clients for the first 31 days – enabling novice traders to trade at 25% of the normal trading position across all 17,000 markets available.
Spreadex offer a pretty unique proposition for UK and Ireland residents, combining sports betting and financial betting on one trading platform. Spreadex offers a 50p per stake option on a range of indexes including France 40,Spain 35, Netherlands 25, Swiss Index, Hong Kong 50 and Japan 225. See our full SpreadEx review
Founded in 2001 and regulated by the FCA, ActivTrades platform is simple to use with an emphasis on risk management tools and competitive spreads. Clients can spread bet from as little as 10p per point making it a good option for beginners.
Markets.com enable new clients to trade on their platform from 50p per stake across a range of indexes, currencies and commodities. See our Markets.com review
The Armchair Trader is paid for by our partners through clicks, views and advertorials. So if you open an account through a link on the site, we may receive a fee for providing the introduction. This fee will in no way be passed on to you from our partners.
You can see our complete list of Spread betting companies which features a detailed review of each broker and our independent opinion of them. Please note that some of the brokers mentioned above are affiliates – while there would be no cost to you, for transparency, we may receive a fee should you open an account.
Choosing the right spread betting platform for beginners
If you are new to spread betting and haven’t placed any kind of trade before now, then it’s worth taking a minute or two to read our short guide. Get into some good habits at the outset.
Now, you might have been on a bulletin board and received heady advice from a group of seasoned traders or read everything you can through books, independent websites like this one and visited some of the many Broker websites for their advice.
There is so much information available, it can become a bit overwhelming. You may still be no nearer to making a decision on what products to trade or who you are going to trade with.
That’s why we put together the selection of spread betting platforms for beginners above. These spread betting accounts provide a way for you to earn your stripes – trading without the risk of losing all of your hard earned money.
The most important part of this process is to find out if spread betting is right for you. To do that, you need to make the most of the tools that are available to you as a spread betting novice.
Start with the basics
I’m making an assumption here.
You’ve read up on spread betting and understand the principles behind it. The risks you face and the tools you have at your disposal in order to minimise that risk.
I’m also going to assume that you are familiar with the variety of financial markets that are available to trade through a spread betting account and you have identified the ones you are going to trade.
Take a look at our short guides to some of the most popular markets if you need some inspiration or insight into the key factors that determine pricing in those markets.
You’ve probably considered opening a demo account and indeed, may have already taken the plunge.
If you haven’t, it’s worth investing some time.
Take a look at our spread betting demo account guide to find out how you can use them to enhance your trading education. The article covers some of the things you should look for in your broker, even before you commit to opening a demo account.
Right, so now we’ve covered off what’s needed before you begin to trade with real money, you can start looking at live spread betting platforms for beginners.
The spread betting accounts we have introduced you to above will offer you access to the financial markets with a lower degree of risk. With real money at stake, it’s not a good idea to jump straight in and risk it all.
Low Stake Spread Betting Platforms for Beginners
Generally, spread betting brokers will offer their clients a minimum stake of £1 per point.
That means you could lose a minimum of £100 on the FTSE100 should the market go against you by 100 points over the course of your trade.
A low stake account reduces the minimum stake you can place, meaning that a similar trade with 10p per point would result in a maximum loss of £10.
Even with that kind of extreme movement, that trade is going to dent your pride much more than your wallet.
There is, however, a downside to Low Stake Accounts.
That is, when you get your trades right, you won’t stand to gain any sizeable profits either. However, once you have your trading strategy in place and you are comfortable with the results, you’ll be ready to start increasing your stakes.
I’ll add to this list as and where the brokers develop new spread betting platforms for beginners. If you find a broker that you think would fit nicely in our spread betting platforms for beginners list, feel free to let us know through the comments section below.
Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between [74-89]% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please note that % may be changing every quarter depending how this number looked in the previous period.