Spread betting is the tax-free* alternative to conventional dealing in shares, forex, commodities and other markets. It enables you to profit from rising as well as falling prices 24 hours a day.
When you spread bet, you never physically buy or sell an instrument (i.e. a share in Barclays or gold bullion), you simply bet on the direction in which you think the instrument will move. This means that you 'buy' if you think the price of, say gold, is set to rise and 'sell' if you think the price will drop. The degree to which you are correct dictates how much you win or lose.
What is the 'spread'?
The ‘spread’, also known as the ‘dealing spread’, is simply the difference between the price at which you can ‘buy’ and the price at which you can ‘sell’ a particular market. When opening or closing a bet, you buy at the upper end of the spread and sell at the lower end.
For example, say we are offering the FTSE 100 Daily at 4025 / 4027. The spread is two points: if you want to ‘buy’ you do so at 4027 and if you want to ‘sell’ you do so at 4025.
Tax-free profits
Spread betting with IG Index means that all your profits are absolutely free from UK capital gains tax*. You do not have to pay a broker’s fee or commission charge and there is no stamp duty to worry about when you open or close your bet. The only charge is our dealing spread.
*Tax law can be changed or may differ depending on your personal circumstances.
Why spread bet?
Ability to go long or short:
When you open a spread betting position with us, you simply speculate on whether you think the markets will move up or down. This means that the more a price moves in your favour, the more money you make; the more the price moves against you, the more money you lose.
Leverage
Leverage (or gearing) enables you to open positions against relatively low deposits so you don't have to put down the full transaction value. You should, however, note that this magnified exposure also means you can lose more than your initial outlay.
Limited risk betting
To avoid open-ended liabilities we offer a full limited risk service. You can pay a Controlled Risk premium to guarantee your bet is closed out at a specified level if the market moves against you. This doesn't place a cap on your profits, which are potentially limitless.
Wide range of markets
IG Index offers competitive spreads on an exceptional choice of shares, plus indices, forex, commodities and more. You can trade a number of different financial products on one account and our deal sizes are flexible so you can bet in amounts which feel comfortable to you.
Competitive spreads
At IG Index we are committed to providing narrow spreads on all our products: from just 2 points on major indices and 0.1% per side on major shares. For example, our forex spreads start from 1 pip on EUR/USD and USD/JPY. And remember, our dealing spread is the only charge you pay.
Immediate dealing at a fair price
Our PureDeal trading platform provides full account management and one-click dealing, so you can make the most of your know-how. To spread bet most effectively, our 'Price Improvement' facility gives you our best available price when your deal is executed. This is especially valuable in volatile markets. Our round-the-clock dealing facility enables you to place financial bets online or by phone right around the clock.
Find out how to spread bet in practice with our easy-to-use examples. Or, if you're ready to start spread betting now, you can open an account online in minutes.