After evaluating all 16 UK spread betting providers, Pepperstone stood out. Pepperstone excels compared to other brokers in critical criteria for spread betting like competitive fees, fast executions and diverse platforms like MetaTrader 4 and TradingView.
Pepperstone Summary
Pepperstone topped our evaluation of FCA-regulated UK spread betting brokers with a score of 98/100. The spread betting broker has the lowest average spreads across nine currency pairs , with EUR/USD at 0.80 in the industry. Other reasons we gave Pepperstone a near-perfect score stems from their award-winning customer service and diverse range of instruments including FTSE 100, gold, and shares.
Overall, we think Pepperstone’s technology stack stands out. Our expert, Ross Collins, found them to be the fastest broker for UK spread betting. They pioneered TradingView for spread betting but also offer MT4, MT5, and cTrader platforms. This combination of competitive pricing, excellent service, and cutting-edge technology sets Pepperstone apart in the UK spread betting market.
75.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
The primary fee for any spread betting account is the ‘spread’, which is the difference between the buy (offer) price and the sell (bid) price. After comparing the nine most traded currency pairs amongst UK spread bettors, I found that Pepperstone offers the lowest average spreads of any broker. The data supporting this conclusion is presented below.
|
Spread Bet Spreads
|
|||||
|---|---|---|---|---|---|
|
0.80 | 1.10 | 1.40 | 1.00 | 1.40 |
|
0.90 | 1.20 | 1.40 | 1.10 | 1.80 |
|
1.00 | 1.10 | 1.50 | 1.20 | 1.50 |
|
0.85 | 1.40 | 1.40 | 0.82 | 1.77 |
|
1.10 | 1.30 | 1.60 | 1.20 | 1.60 |
|
1.20 | 1.30 | 1.30 | 1.20 | 1.70 |
|
1.00 | 1.50 | 1.50 | 1.00 | 1.80 |
|
1.00 | 1.30 | 1.60 | 1.30 | 1.50 |
|
1.30 | 1.50 | 1.50 | 1.50 | 1.50 |
|
0.90 | 1.40 | 1.40 | 1.30 | 2.20 |
|
0.90 | 1.20 | 1.60 | 1.50 | 1.80 |
|
1.10 | 1.50 | 1.40 | 1.40 | 1.70 |
|
1.20 | 1.50 | 1.50 | 1.40 | 1.80 |
|
1.90 | 1.20 | 2.00 | 1.00 | 1.70 |
|
1.40 | 1.70 | 1.60 | 1.40 | 1.80 |
|
1.40 | 1.40 | 1.70 | 1.90 | 1.70 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 20/09/2024
For eight of the nine currency pairs, Pepperstone’s average spread is lower than the industry average. In fact, Pepperstone has the lowest average spread of any UK spread betting account for the EUR/USD, EUR/GBP and USD/CAD.
| Pepperstone's Spread | Average Industry Spread | |
|---|---|---|
| EUR/USD | 0.8 | 1.12 |
| AUD/USD | 1.0 | 1.26 |
| EUR/GBP | 1.1 | 1.35 |
| GBP/USD | 1.4 | 1.53 |
| USD/JPY | 1.2 | 1.26 |
| AUD/JPY | 1.7 | 1.86 |
| EUR/JPY | 2.0 | 1.85 |
| USD/CAD | 1.4 | 1.69 |
| USD/SGD | 2.9 | 2.81 |
To help calculate how spreads impact trading fees, use the fee calculator I created to compare Pepperstone with their main competitors.
Calculate Your Cost To Spread Bet
Total Cost of Spread Bet
Total Cost of Spread Bet
Total Cost of Spread Bet
Total Cost of Spread Bet
Pepperstone offers more than just forex spread betting markets, and their fees remain competitive across the board. Their spread for Gold vs US Dollar, for example, starts from 0.05, while the S&P 500 Index minimum spread is 0.40. Their fees for trading shares are the lowest I compared, with the charges applied to shares shown below.
| Share Category | Pepperstone Spread | Industry Average |
|---|---|---|
| UK Shares | 4pt | 5.19pt |
| US Shares | 0.10% | 0.16% |
| Geman Shares | 0.10% | 0.15% |
| Hong Kong Shares | 0.10% | 0.20% |
| Australian Shares | 0.10% | 0.17% |
In the funding section, I provide more detail about other fees, but in summary, Pepperstone doesn’t charge any deposit or withdrawal fees. Their overnight fees are industry standard, and they don’t charge any account keeping or inactivity fees.
Verdict on Pepperstone’s Spreads
The data clearly shows that Pepperstone has the lowest fees of any UK spread betting broker, with average spreads from 0.80 pips. If you’re looking for the lowest-fee spread bet account, Pepperstone is difficult to surpass.
75.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
In my tests, Pepperstone offered the most comprehensive range of spread betting platforms, providing a choice of four top third-party platforms: MetaTrader 4, MT5, cTrader, and TradingView.
This selection is impressive compared to other spread betting brokers I’ve evaluated. Many competitors provide only a basic proprietary web platform that can’t compete with Pepperstone’s offerings, especially for automating trades and conducting technical analysis.
MetaTrader 4
I was pleased to find Pepperstone offering MetaTrader 4, as I consider it one of the most versatile platforms on the market. The platform comes with an excellent selection of charting tools, including 30 technical indicators, over 20 drawing tools, and nine timeframes, providing ample resources for technical analysis.
You can expand on the default range by accessing the MetaQuote Marketplace, which has thousands of custom-made indicators coded by other MT4 users. If you want to automate your spread bets, MT4 is one of the few platforms that allows you to do so through its Expert Advisors (EAs).
MetaTrader 5
MetaTrader 5 is an excellent option if you want to spread bet on stocks, which are unavailable on MT4 due to the platform’s design.
MT5 builds upon the features of MT4, offering advanced charting tools, 44 drawing tools, 38 technical indicators, and 21 timeframes, almost doubling the amount offered with MT4.
One advantage of MT5 is its access to real volume data, whereas MT4 is limited to tick volumes. This data can be seen through the new Depth of Markets tool, which shows you all the open orders from the liquidity provider’s order book. With this data, experienced traders can identify supply and demand zones, helping them time their bets more accurately, a feature unavailable on MT4.
As a day trader, I appreciate that MT5 also features a built-in economic calendar with real-time updates and filters so that you can stay informed about high-impact news releases.
Having this data on your charts is an excellent way to avoid entering trades during news announcements while staying updated on current data releases.
cTrader
Pepperstone is one of the few brokers I’ve tested that allows spread betting on the cTrader platform. I find cTrader to be a blend of TradingView and MetaTrader 5, offering excellent charting tools and the ability to automate your bets with cBots (similar to EAs).
I found the platform is geared towards experienced traders, as you can access advanced tools like depth of markets and one-click trading that scalpers will benefit from. The platform also has more indicators than the other desktop platforms, with 65 indicators, eight chart drawing tools, and four chart types, such as candlestick, bar, and OHLC bars.
TradingView
I was impressed by Pepperstone’s integration with TradingView, as not many brokers make this available for spread betting. Personally, I consider TradingView to offer one of the best charting packages with over 110 indicators and drawing tools. It provides the most comprehensive resources for technical analysis, and I find they are consistently updating the platform with new features and indicators at no additional cost.
One feature I appreciated was the ability to synchronise charts across devices, ensuring that your analysis is always accessible and allowing you to react while on the go. TradingView also provides customisable market scanners to find markets based on technical analysis indicators, Japanese candlestick patterns, or price action, which can automate the process of identifying new spread bet opportunities.
Pepperstone offers mobile app versions of all its platforms, available on both iOS and Android. These apps allow you to bet on the go, ensuring you never miss an opportunity as you can receive notifications to the mobile app to act on a signal.
The mobile apps maintain most of the functionality of their desktop counterparts, making it easy to manage or execute your trades from anywhere. I believe having access to your platform’s mobile app is vital for reacting to market changes, so it’s excellent to see Pepperstone integrating with them.
Smart Trader Tools for MT4/MT5
Pepperstone offers a suite of 28 indicators and Expert Advisors (EAs) called Smart Trader Tools to enhance the functionality of MT4 and MT5, making these platforms top contenders for spread betting.
I particularly liked the Mini Terminal EA, which improves the one-click feature to automatically add stop loss and take profit orders, ensuring your risk management is always applied. This feature is lacking in the standard MT4 platform, and I think it’s a great upgrade. It’s especially useful if you forget to set these orders.
The High-Low indicator also stood out to me as a valuable tool for breakout traders. This indicator helps identify potential support and resistance levels based on the previous day’s high and low, two key areas to monitor.
Capitalise.ai
Pepperstone is one of the few brokers that offer Capitalise.ai, a no-code platform for automating trading strategies. If you’ve ever wanted to automate your trades but lack programming knowledge, this is the best tool I’ve encountered.
During my testing, I appreciated that the no-code method of developing an automated strategy was user-friendly, with the platform guiding you with popular suggestions that made the process even faster.
All I had to do was type in my rules using plain English, and the AI would transform these rules into an automated strategy that integrates with your MT4 platform. Impressively, I could create, backtest, and launch my automated strategy within 10 minutes using Capitalise.ai, which is significantly faster than programming and testing an expert advisor for MT4’s automation.
Autochartist
Autochartist is another valuable tool provided by Pepperstone that scans markets like indices, gold, and forex to find new trading ideas. I find this helpful because the tool uses price action, such as chart patterns, to detect opportunities, similar to my trading style.
However, I can see it being particularly useful if you are new to spread betting, as you can analyse the signal in real time using an expert’s analysis and commentary. While Autochartist is available as a web version, I preferred using the MT4 plugin, as it allowed me to receive alerts directly within the platform, making it easier to act on signals.
Not only do you get the signals, but you can also click on them to view the analysis, which automatically overlays your charts with the chart patterns found. I liked this as I could quickly review the signal based on the price action and decide whether the trade idea is worth pursuing.
Verdict On Pepperstone Trading Platforms
I appreciate Pepperstone providing access to the most popular trading platforms for spread betting, especially when other brokers neglect this. It’s important to use a platform you are familiar with, and with Pepperstone, you have access to TradingView, MT4, MT5, and cTrader, catering for every spread betting strategy. While the broker offers social trading, I found these features disabled on the spread betting account.
75.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Yes, Pepperstone is a safe broker. The Financial Conduct Authority has authorised and licensed it to provide spread betting services to UK retail clients.
Financial Regulation
Pepperstone is regulated by the Financial Conduct Authority (FCA) in the UK, which is regarded as the gold standard in the industry for its strict framework and policies to protect clients.
Being regulated by the FCA provides you with the best protection, ensuring your funds are safeguarded and guaranteeing the business is fit and proper to provide spread betting services. Without FCA regulation, Pepperstone would not be permitted to offer spread betting.
One key feature I found with FCA regulation is that all brokers must offer negative balance protection for retail traders. This protection means you will never lose more than the money you deposit with the broker in the worst-case scenario, which can help beginners if they make costly mistakes.
I only review and recommend FCA-regulated spread betting brokers, but Pepperstone further validates its trustworthiness by being regulated in multiple jurisdictions. It’s regulated by other tier-1 authorities like the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and Germany’s BaFin.
| Pepperstone Safety | Regulators |
|---|---|
| Tier-1 | ASIC, FCA, BaFin, CySEC |
| Tier-2 | DFSA |
| Tier-3 | SCB, CMA |
Being multi-regulated across these jurisdictions enhances Pepperstone’s trust signals, as it must adhere to strict regulatory standards globally.
Reputation
Reputation is another key factor I consider when evaluating a broker’s safety. Pepperstone is one of the largest forex brokers in the world, with over 400,000 clients and an impressive average daily trading volume of £12 billion. These numbers highlight the trust that many spread bettors have placed in Pepperstone.
I always like to read customer reviews to get a sense of how a brokerage treats its clients and what good (or bad) experiences spread bettors have had with the broker. Using a third-party website, TrustPilot, I found over 2,500+ reviews on Pepperstone with an average rating of 4.4 out of 5.
With this rating, it’s clear that the vast majority of Pepperstone’s clients are satisfied with the service they receive. While no broker is perfect, I’m encouraged by the consistently positive feedback I see.
Verdict on Pepperstone’s Trustworthiness
With Pepperstone being regulated by the FCA, it already presents a strong signal that I look for in a spread betting broker. Coupled with the positive reputation it has gained from its customers while processing £12 billion in trading volume on behalf of its large client base, this demonstrates that Pepperstone is trustworthy.
Pepperstone offers an impressive 1,200+ financial markets for spread betting, which I found to be a solid range compared to other brokers I’ve tested.
Forex
When it comes to forex, Pepperstone provides access to 62 currency pairs, covering majors, minors, and exotics. I think this selection is quite comprehensive, allowing you to bet on popular pairs like EUR/USD and GBP/JPY and less common options like USD/MXN or EUR/TRY. Having such a wide choice of currency pairs allows you to profit from global economic events, something day traders can take advantage of.
Commodities
I was impressed with Pepperstone’s commodity range, which offers 33 markets for spread betting overall. The broker also offers four energy markets, including gas and oil, which are perfect if you enjoy the volatility of day trading.
Additionally, the broker offers a solid selection of metal markets, including traditional metals like gold, silver, and platinum. Interestingly, I found Pepperstone to be one of the few brokers to offer gold and silver markets in different currency crosses, such as XAU/CNH (Gold vs. Chinese Yuan).
For example, having access to these crosses can be useful for hedging against currency fluctuations or taking advantage of gold movements relative to the yuan.
Pepperstone also lets you capitalise on other sectors of the economy through its 16 soft commodities, covering everything from coffee to cattle. This is a great way to benefit from seasonal trends or supply-demand imbalances in these markets.
Stock Indices
The stock indices selection at Pepperstone is solid, with 23 options, including the FTSE 100 and S&P 500. What stood out to me was the inclusion of the VIX index, which measures market volatility and isn’t typically available with most brokers, from my experience.
You can use the VIX as an indicator to gauge overall market sentiment or even spread bet on it directly, potentially profiting from periods of high market uncertainty.
Currency Indices
I found the currency indices offering particularly interesting. Three index baskets cover the Euro, Japanese Yen, and US Dollar.
These indices give you a broader view of currency strength, allowing you to spread bet on overall currency performance rather than individual pairs. It’s a great tool for betting on the market’s general direction with a major currency or hedging existing currency positions.
Exchange Traded Funds (ETFs)
I was impressed to find that Pepperstone offers spread betting on over 100 ETFs. This financial instrument lets you bet on popular ETFs like the SPDR S&P 500 ETF Trust (SPY). Using ETFs gives you exposure to the performance of the S&P 500 index without buying each share or the indices, making it cheaper to bet on.
ETFs can be an excellent way to gain diversified exposure to specific sectors, regions, or investment themes without picking individual stocks.
Stocks
With over 1,000 shares available for spread betting, Pepperstone provides access to a wide choice of equities from popular exchanges in the EU, AU, UK, DE, and US. I think this is a fantastic offering for traders who want to capitalise on the price movements of individual companies. Plus, with spread betting, you don’t pay commissions or stamp duty on your stock purchases, offering a low trading cost solution if you have a short-term view of a company.
Verdict On Pepperstone Trading Products
I think the range of 1,200 financial instruments is more than sufficient for most spread bettors as you still get access to the most popular markets like EUR/USD and gold. Including unique offerings like metal crosses, the VIX index, and currency indices sets Pepperstone apart from many other brokers I’ve used.
Pepperstone is one of a few brokers that offer no minimum deposit to open a spread betting account. I think this is an excellent feature, as it allows you to control how much you want to fund your account with, whether it’s £100 or £100,000.
In my opinion, having this flexibility is important, but you’ll want to ensure you deposit enough to cover the margin requirements on the positions you plan to open. From my experience, £500 or more is typically plenty when trading with Pepperstone.
Whilst opening my Pepperstone account, I found there were no deposit fees, which is common practice in the United Kingdom. You can choose to deposit through a variety of payment methods, such as:
These payment methods are instant, so you can activate your account and start trading as soon as you deposit. Some popular methods not currently available in the UK include electronic wallets like Skrill or Neteller.
The broker doesn’t charge an inactivity fee, so you can keep your funds in your trading account without worrying about placing a trade.
| Payment Method by Location | Australia (ASIC Regulated) | UK (FCA Regulated) | Europe (CySEC & BaFin Regulated) | Kenya (CMA Regulated) | Dubai (DFSA Regulated) |
|---|---|---|---|---|---|
| Visa Debit/Credit Card | ✓ | ✓ | ✓ | ✓ | ✓ |
| Mastercard Debit/Credit Card | ✓ | ✓ | ✓ | ✓ | ✓ |
| Bank Transfer | ✓ | ✓ | ✓ | ✓ | ✓ |
| Online Bill Payment | ☓ | ☓ | ☓ | ☓ | ☓ |
| Union Pay | ✓ | ☓ | ☓ | ☓ | ☓ |
| PayNow | ☓ | ☓ | ☓ | ☓ | ☓ |
| PayPal | ✓ | ✓ | ✓ | ✓ | ☓ |
| Neteller | ✓ | ☓ | ☓ | ☓ | ☓ |
| Skrill | ✓ | ☓ | ☓ | ☓ | ☓ |
| Rapid Pay | ☓ | ☓ | ☓ | ☓ | ☓ |
| POLi / BPay | ✓ | ☓ | ☓ | ☓ | ☓ |
| Klarna | ☓ | ☓ | ☓ | ☓ | ☓ |
| MPESA | ☓ | ☓ | ☓ | ✓ | ☓ |
| Cryptocurrency / Digital Wallet | ☓ | ☓ | ☓ | ☓ | ☓ |
Pepperstone doesn’t charge withdrawal fees, either. This is another big plus in my book, as it helps keep your overall trading costs down and ensures you keep more of your hard-earned profits.
To test Pepperstone, I opened a spread betting account, which was straightforward by completing the step-by-step application required by the company and its regulator (FCA). I liked that the application process was well-instructed and clarified what I needed to do, ensuring I had the smoothest account opening experience, which is why I rated them 15/15 for this category.
Verdict On Pepperstone Funding
I found the whole process, from account opening and depositing to withdrawing on Pepperstone, to be professional, fast, and easy. This speed is exactly what you want when dealing with a service that handles your funds.
Pepperstone ReviewVisit Pepperstone
75.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
In my book, fast execution speeds and low trading costs are non-negotiable when it comes to spread betting. Pepperstone’s trading conditions are some of the best I’ve tested, with fast execution speeds and tight spreads.
Execution Speeds
In my tests, I found that Pepperstone recorded an average of 77ms for its limit order execution speed, which is the fastest among the other brokers. This speed ensures that your limit, stop loss, and take profit orders are filled almost instantly, which can help protect your funds or close a profitable bet quickly. Having a slow limit order speed will lower the chances of executing your orders and, therefore, can cost you money in missed take profits and stop losses.
| Execution Speed Tested Results | ||
|---|---|---|
| Broker | Limit Order Speed | Market Order Speed |
| Pepperstone | 77 | 100 |
| City Index | 95 | 131 |
| FxPro | 151 | 138 |
| CMC Markets | 138 | 180 |
| IG | 174 | 141 |
The broker also recorded an average execution speed of 100ms on its market orders, which is amongst the fastest for spread betting. If you’re scalping the markets, trading with 100ms or lower is your best chance of securing quick bets; anything higher may miss the entry.
My tests were conducted during the London trading session, so you’d expect to experience similar speeds when spread betting with Pepperstone. Having fast execution means you lower your chances of slippage, which is a stealth cost when trading with slow brokers, which can be a costly mistake.
Execution Type
The low spreads and fast execution speeds are due to Pepperstone’s no-dealing desk model, which ensures your trades are instantly matched with those of other traders. I find brokers implementing this model offer the best trading conditions and promote transparency, eliminating conflicts of interest and guaranteeing that you’re getting the best possible prices.
Verdict on Pepperstone’s Trading Conditions
Pepperstone leads the pack when it comes to trading conditions, with the quickest execution speeds recorded. This speed is thanks to its no-dealing desk intervention, which is something I look for in a broker. Equally, fast execution is crucial for all spread betting strategies to help you avoid slippage, and Pepperstone has proved itself to be the fastest spread betting broker in my tests.
Pepperstone offers multiple methods of getting help, below I’ve broken down its customer service into key sections.
24/5 Customer Service
Pepperstone offers around-the-clock support during the trading week, allowing you to get your answers fast, which is important in spread betting. With offices across multiple time zones, including Melbourne, Shanghai, Dallas, Bangkok, and London, you can always reach out for help whenever the forex markets are open.
Plus, you’ll be dealing with the London office when it comes to support that is knowledgeable on spread betting products, helping you get a solution faster.
This level of accessibility is crucial if you bet outside of London trading hours (e.g., in Asia or during the late New York session), which is why I rated Pepperstone highly.
Customer Support Channels
Pepperstone offers multiple methods of receiving support, depending on the severity of your request. I like that the broker has an extensive FAQ covering basic to technical questions that can be resolved quickly before having to call or connect with customer support.
Alternatively, you can use the broker’s live chat through its website to ask general questions or technical issues that are not so vital, like installing MT4 or making a deposit.
For more urgent requests, the broker provides a client support phone number, which connects you with an expert who can help resolve your issue quickly.
Verdict On Pepperstone Customer Service
With 24/5 support and multiple channels to resolve issues, I think it’s fair to say that Pepperstone provides a solid foundation for customer support. Even though the broker is Australian, I found they have a London office to provide spread betting support during London trading hours.
When I explored Pepperstone’s research and education offerings, I was impressed by the depth of resources available.
Weekly Webinars
One of the standout educational resources I like is Pepperstone’s weekly webinar series, where Pepperstone’s expert analysts share their insights on various market topics and trading strategies.
I found these webinars to be engaging, informative, and an excellent tool for expanding your market knowledge and skills. The interactive format allows you to ask questions and receive real-time guidance, creating a dynamic learning environment.
The Trade Off
In addition to the webinars, Pepperstone offers a comprehensive suite of market analysis tools. The Trade Off is a weekly web show that discusses and analyses the latest trends and developments in the financial markets, helping you stay on top of the data and plan your trading week.
Navigating Markets
If you prefer reading, the analysts at Pepperstone write information about major data releases like non-farm payrolls in the US or UK GDP called “Navigating Markets”. I found the information provided in-depth and packed with charts to help demonstrate the analysis whilst suggesting what to expect. Reading this weekly will certainly keep you in the loop in the markets.
Forex Trading Guides
The broker has over 100 trading guides, which are helpful if you’re just starting out. They contain educational material on various topics, from technical analysis to risk management. Pepperstone allows you to access these guides at any time for free.
Verdict On Pepperstone Research and Education
In my opinion, Pepperstone has done a great job providing educational resources through online trading guides and weekly webinars for its clients. If you are more experienced, I enjoyed reading Pepperstone’s analysts’ top-class analysis through its “Navigating Markets” coverage.
I think Pepperstone is the best spread betting broker I’ve tested. It ticks all the boxes for a top broker: low spreads, fast execution speeds, a decent range of markets, and a choice of trading platforms.
Not only does it tick the boxes, but I found Pepperstone to be the best in these categories during my review. Tight spreads from 0.80 pips and sub-100ms execution speeds are the key areas where Pepperstone outperforms the rest of the industry tested.
With a solid trading experience and a choice of trading platforms and tools, this versatility is why I think Pepperstone is an easy broker to recommend for spread betting.
75.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Pepperstone offers a spread betting demo account with £50,000 in virtual funds and a duration of 60 days. This is perfect for practising trading or experiencing the broker’s services before committing to a live account. The demo account mirrors real market conditions, allowing you to test strategies and get familiar with the broker without any financial risk.
To find out more, you can read our Spread Betting Guide created for beginner traders.
Pepperstone has no minimum deposit requirement for opening a spread betting account, making it one of the most accessible brokers I’ve tested. This means you can start with any amount you see fit, but to effectively spread bet, I recommend starting with at least £200. Ensuring you have enough capital to cover margin requirements and manage your trades effectively.
Spread betting is considered better than CFD trading as it is exempt from capital gains tax and stamp duty, allowing you to keep 100% of your profits. Additionally, spread bets are only in GBP, allowing you to bet on international markets without paying currency conversion fees, saving you more money. However, CFDs can offer a broader range of markets and be more flexible for certain trading strategies.
Pepperstone has low average spreads from 0.80 pips on EUR/USD, one of the lowest I’ve tested for spread betting. Low spreads are important for maximising your profit potential, and I’ve found Pepperstone consistently delivers low spreads across its range of spread betting markets. Of course, spreads can vary depending on market conditions, but overall, Pepperstone is a top choice for cost-effective spread betting.
As a UK retail trader, the maximum leverage you can access for spread betting with Pepperstone is 1:30 for forex majors, 1:20 for indices and commodities, and 1:20 for individual shares. While regulators set these limits, I think they still provide sufficient leverage for most trading strategies. If you are a professional trader and meet the requirements, you can exempt yourself from the FCA’s protection and get access to higher leverage up to 1:200.
Spread betting is more tax-efficient for UK traders as you are exempt from capital gains tax and stamp duty, while CFDs offer a broader range of markets. Both financial products provide leveraged exposure to financial markets without owning the underlying asset.
| Feature | Spread Betting | CFDs |
|---|---|---|
| Tax | Profits are tax-free in the UK, exempt from stamp duty | Subject to capital gains tax; exempt from stamp duty |
| Market Range | Limited compared to CFDs | Wider market selection, including international markets like Australia, China, Europe, and the US |
| Account Types | Spread betting (Standard) account | Standard account, Razor account (with commissions) |
| Commission | No commission just spreads | Commission on assets like ETFs and Stock CFDs |
| Trading Units | Pound per point | Lots or contracts (same bet value) |
| Leverage | Up to 1:30 | Up to 1:30 |
| Ownership | No ownership of the underlying asset | No ownership of the underlying asset |
| Islamic Account | No | Yes |
Pepperstone’s spread betting accounts do not charge extra fees like commissions on top of the spread you pay to open the bet. Instead, all the fees are included in Pepperstone’s low spreads (0.80 pips on EUR/USD), making it easier to calculate your trading costs without adding commissions to the spread. There may be other fees, such as overnight financing for longer-term positions; you do not get charged this if you close your bet before the end of the trading day.
In the United Kingdom, the FCA has banned retail investors from trading cryptocurrencies like Bitcoin due to its inherent high risk and lack of regulatory markets. This makes spread betting on cryptocurrencies only available to elected professional traders or to trade CFDs through top-tier European or off-shore brokers regulated by the Securities Commission of The Bahamas (SCB).
This review focuses exclusively on UK spread betting brokers. We compared trading accounts from FCA-regulated brokers offering spread betting services. For consistency, we primarily evaluated accounts using the MetaTrader 4 platform.
Our Methodology:
Our goal is to provide UK traders with well-informed recommendations for the best spread betting brokers in the market.
You can learn more about how we perform our spread bet broker reviews on our methodology page.
Ask an Expert
Is Pepperstone the best broker for MetaTrader?
Pepperstone is one of many brokers that offer MetaTrader 4 and one of the few that offers MetaTrader 5.
Pepperstone is a great choice for MetaTrader since they allow expert advisors (EAs) and allow you to integrate 3rd party apps such as MyFxBook for copy trading with the platform
As a bonus Pepperstone also include Smart Trader tools for 28 additional apps to give you even more trading features and their own exclusive Figaro Advanced Traders tools for yet more trading features.
I’m looking to open a Pepperstone account but I’m not sure if the standard or Razor account is better. I’m based in the UK. What account is more popular in my region?