67% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Spreadex Customer Reviews
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Good friendly staff who are open with what they can and can't do with their existing liquidity provision. Only positive experiences so far.
Sadly, the service offered by SpreadEX has deteriorated rapidly over the last year. I am now moving my existing positions over to another spread bet provider. I am only closing my SpreadEX positions and I am not opening any new positions. The markets offered have decreased and SpreadEX has made a recent business decision to not offer future quarterly markets until near the rollover date, whereas previously they offered these markets several weeks before rollover. They have also increased the minimum stake for some markets meaning some bets are now too risky and any losses may be too great. Finally, the SpreadEX platform is now old and I have noticed that during busy periods, it can take 30 seconds or more for a trade to be completed, allowing some trades to be cancelled. My advice is to avoid SpreadEX and choose another provider.
I am happy with SpreadEx so far. App works well too.
Year on year you get the best service and interaction with all at SpreadEx. Thank you
Good trading service and friendly staff are always available for any queries.
Great team providing a great service. Consistently amicable and helpful on the phone which sets them apart from other brokers I use.
Excellent service excellent people i enjoy trading with spreadex.
Excellent! No fuss-everything just works and they are always swift to answer the phone if there is any difficulty.
Not impressed. Won’t take orders or dealings with no explanation
By far the best financial institution that I have ever used. Very very helpful staff that really care about your investments and positions. Never had to wait for more than 2 or 3 rings to get through to the dealing desks, while other organisations I use like HL and IG think a 45 min wait is acceptable, not Spreadex. Charlie and Andrew are great guys to deal with.
Good reliable service.
My preferred SB platform. App works well on phone and tablet, online chat and customer service is good and responsive. A happy customer.
Great customer service. Price competitive. However some markets disappear without notice. So it’s difficult to plan ahead.
Service is good and website & mobile App are easy to use. The one problem is they are not competitive on the particular markets I trade (high daily funding charges and wide spreads).
always been good up to now , but i now find most small caps and aim stocks no longer available ,inc some ftse 250 stocks, but no one said anything about this. a lack of communication.
Spreadex have always been highly supportive and flexible when needed, over many years. Their support enabled me to get back on my feet after disasters in 2008-9. I put nearly all my business through them to this day. Great people.
Never had any complaints about Spreadex. They offer a highly efficient service and I've never felt ripped off. Can't say that about all spread betting companies!
What is Spreadex?
Spreadex is a financial sports spread betting business that has been in operation since 1999. It was founded by ex-city trader Jonathan Hufford and unlike many of its peers, it is not based in London, but instead is headquartered in St Albans Hertfordshire.
The company has some 60,000 account holders and offers access to more than 10,000 financial instruments, including UK small-cap shares, where it is something of a specialist.
Alongside its financial betting and trading operations, Spreadex also operates a successful sports Spread Betting platform.
Spreadex Trading Account
The Spreadex account is a one-stop shop in that you can both bet and trade from the same place. You can apply for an account online using their well laid out registration form, and taking a short suitability quiz.
Once your account is open you will simply need to deposit funds to get up and running.
The 10,000 plus markets, that Spreadex offers include equity indices, Forex, commodities, stocks and ETFs. As well as bonds and interest rates. Spreadex also offers a range of options over leading stock indices and commodities such as gold, silver and crude oil, plus UK and US shares. Spreadex may also make options prices on other markets on request. Options can be traded with the firm either online or over the phone.
Spreadex Mobile App
Spreadex offers financial trading apps for Android devices as well as separate apps for iPhones and iPads. The apps can be downloaded from the website or directly from the relevant app stores. The iOS apps require version 11.0 or later of Apple’s portable operating system.
The Android version of the app will work with version 5.10 of the operating system or later.
There have been more than 10,000 installations of the Android financial trading app; the platforms score 4.30 and 4.40 out of 5.0 respectively in Android and Apple user reviews.
The mobile platforms are designed to mirror the desktop trading platform as closely as possible and they contain charting, price alerts, advanced orders and tools to aid trading in volatile market conditions. Longer-term charts with multiple indicators applied will nearly always be better viewed on a desktop that has a larger display than mobile devices.
- Spread Bet or trade CFDs from a single account
- Trade or bet on a UK smaller companies with market caps from £ 5.0 million and up
- Benefit from award-winning customer service and a very responsive help desk /live chat facility
- Narrower market coverage than some of their bigger peers
- No physical share dealing or other investment products are available through Spreadex
- Options trades at Spreadex are conducted as Spread Bets or CFDs and not exchange-traded products
Spreadex Pricing, Charges & Fees
As the name of the firm implies Spreadex charges spreads. That is the difference between the bid and offer prices in the instruments it makes markets in.
On leading equity indices they charge from one index point on the FTSE100, 0.40 points on the S&P 500 and 1.20 on the Dax 30.
On CFDs over single stocks, they charge a commission, in the case of Vodafone that charge is 0.10% with a maximum fee of 7 points, whilst on US-listed Tesla you would pay a commission of 0.15% to a maximum of 7.50 points, and in Germany’s Volkswagen the charge is also 0.15% with a maximum charge of 499.50 points. Similar fees are payable on Spread Bets on these instruments.
You can check the charges on individual equity CFDs or Spread Bets using Spreadex’s web-based search functionality just type in the name or ticker, hit return and select the item from the search results.
Spreadex is competitively priced when compared to rivals like IG, City Index and ETX you may be able to find specific instruments at individual providers which have lower charges or narrower spreads, but when choosing a provider it’s best to view both charges and the whole service holistically.
Spreadex CFD Trading
CFD or Contracts for Differences are financial contracts that provide an economic interest in the rise and fall of the value of an instrument, without conferring ownership of it.
CFDs are OTC traded and cash-settled, they have no fixed expiry dates or contract sizes and can be traded long or short with equal ease. As such they offer a greater degree of flexibility to traders than say on-exchange futures contracts or physical equities.
Spreadex offers CFDs on stocks and ETFs, equity indices, commodities, bonds and interest rates. They charge spreads on indices, commodities and bonds and commission on CFDs over single stocks and ETFs.
Spreadex has a good offering in CFDs particularly around UK equities and small caps stocks where it has wider coverage than many of its competitors.
Spreadex Forex Trading
Forex or foreign exchange trading is variable in two flavours at Spreadex you can trade Rolling Spot Forex, effectively this is trading CFDs on the FX markets, alternatively you can Spread Bet on FX rates be they pairs or crosses.
Spreadex offers 53 spot markets alongside a dozen currency futures including the US dollar index, these futures can be traded as CFDs or as Spread Bets
Spreads on EURUSD the most liquid forex pair start at 0.6, GBP USD or cable has a minimum spread of 0.90 and USDJPY or dollar-yen has spreads from 0.70. Whist the Aussie dollar against the greenback, AUDUSD, has a minimum spread of 0.60.
Spreadex makes markets in spot currencies from 22.00 on a Sunday evening through to 21.15 on the following Friday night. The currency futures hours vary by contract but they are largely available for 23 hours per day.
As with Spreadex’s other product offerings the FX proposition is competitive when viewed against their peers and the availability of contracts based on FX futures is a string to their bow that even many specialist FX brokers don’t offer.
Spreadex Spread Betting
Spread Betting is a form of financial speculation that allows users to bet on the rise and fall of instruments such as stock indices, commodities, stocks and shares. These contracts are structured as bets rather than trades and as such, they offer potential tax advantages to end-users.
Under current UK legislation, any profits made from spread betting, by individual UK taxpayers, are not subject to capital gains tax, though, against that, losses incurred through Spread Betting cannot be offset against capital gains made elsewhere.
Spread Bets differ from CFDs in several ways, most obviously Spread Betting contracts tend to have finite lifetimes and fixed expiry points. What’s more in monthly and quarterly contracts the cost of carry or funding for the contract is calculated within the price, rather than being charged separately, on a daily basis, as is the case in CFDs.
Spread Bettors pay a bid-offer spread when they trade. Charges vary by contract and product, for example, spreads in the S&P 500 start at 0.40 index points, in Brent crude the minimum spread is 3.0 points and in gold 0.40 points. As with their CFD offering, Spreadex has a competitive Spread Betting product and their specialism in Small-Cap UK equities is one of the key differentiators between them and their peers
Spreadex Trading Platform
As well as its mobile trading platform Spreadex has an award-winning desktop or pc based trading software. The platform can be used to trade CFDs or to place Spread Bets. It has a customisable interface and comes complete with its own charting package, that includes useful tools such as chart pattern recognition.
You can trade directly from charts on the platform and plot a range of indicators and macroeconomic data on to those charts. You can also save and edit chart templates allowing to you have a consistent view of the markets and the indicators that you like to use.
You can place hedge trades, which Spreadex refers to as force open orders. There are also guaranteed stop orders and one-click trading for the most active traders, and you can also set price alerts and receive notification in a method of your choice.
Spreadex offers more than 10,000 markets that cover equities, ETFs, commodities FX, Bonds and interest rates.
The platform which is free to account holders compares well to the competition and the fact that you can trade and Spread Bet from one account and one interface, is a plus point for those traders who like to toggle between the two product types.
Spreadex Sports Spread Betting
Sports Spread Betting takes contracts that were developed in the financial markets and applies them to the sporting world. Allowing customers to place bets not just on the outcome of a particular match or event but its internal dynamics. That means that the client can bet on the total number of runs scored in a cricket match, the number of red and yellow cards shown in a game of football, or the number of lengths that horse wins a race by.
What’s more, the client can go long or short of these markets by, for example, selling the number of runs in a cricket match, if they think it will be a low scoring affair, or buying that market if they believe it will be a high scoring game. Clients bet on a pounds per point basis
The sports Spread Betting bookmaker makes a two-way bid-offer price in these markets hoping to see buyers and sellers. The final outcome of the event is known as the make-up.
P&Ls are calculated on pounds per point basis so for example if you were long runs in a cricket match at 450, with a bet size of £10.00 per point and the final tally was just 350 runs scored.
You would have a £1000.00 loss that’s calculated as follows:
A 100 run shortfall ( 450-350) * bet size of £10.00 per point= -£1000.00
Sports Spread Betting differs from fixed odds betting because your returns are variable and potential losses can exceed your initial stake. In some senses, it’s as though you had become the bookmaker when you make a sports Spread Bet.
Spreadex Demo Account
Spreadex doesn’t offer demo accounts so you will need to sign up and open an account if you want to try out the platforms for yourself.
Spreadex Education & Analysis
Spreadex doesn’t have a dedicated educational product as such, though they do offer a range of how-to videos on topics such as placing stops, using guaranteed stops, editing a pending order and so on.
They also offer regular market analysis and commentary including a trading blog from in house analysts, an economic calendar and daily and weekly market updates. These resources are available free and can be found on the website.
Spreadex is not really in the market for newbie traders and so it doesn’t feel the need to provide educational tools. Something which rivals such as IG and CMC do. If you are a newbie trader then Spreadex is probably not going to be for you, but if you are somewhat more experienced and looking to change provider then that’s a different story.
Spreadex Professional Account
Spreadex offers a professional trading account for qualifying clients. To qualify for the account you will need to demonstrate experience and knowledge of geared products and financial markets, have a sizeable portfolio of liquid investable instruments or cash and have been trading actively in the last year.
Professional clients are not bound by the FCA/ESMA leverage restrictions and can potentially trade on credit with Spreadex. They also get access to the firm’s dedicated execution desk.
However professional clients don’t qualify for the same protections that retail traders do, such as negative balance protection meaning they could lose more than their deposits or stake. And they can be treated as experts by their broker in terms of the language and documentation they use with them.
The main differentiators for Spreadex are not being based in London and offering financial as well as sports betting, something that the other major providers don’t do.
Spreadex has reputation for doing things its way, for example, it only offers its own in house trading platforms and not generic platforms such as MT4 and MT5. It has also carved out a niche in trading and betting on UK small-cap companies. IG of course reduced its small-cap coverage recently, in the wake of the Gamestop short squeeze.
Spreadex Versus CMC Markets
Spreadex competes head-on with CMC Markets in both Spread Betting and CFD trading but Spreadex has no institutional offering or overseas offices, as the much larger CMC Markets has.
As such Spreadex is very much a regional player, but then Spread Betting, its core product is regional in that it only has attractions and benefits for individual UK taxpayers, and not for corporates or overseas clients.
Spreadex is aimed at experienced clients who want to deal with a broker that offers a more personal service. Whereas CMC is technology-focused and addresses newbies, experienced traders and institutional customers.
Despite these different approaches in terms of coverage, the firms are very similar with each offering just over 10,000 markets. Though CMC Markets has a far broader FX coverage than Spreadex, with 330 separate instruments available for trading.
Spreadex Versus IG
Spreadex was effectively founded to offer an alternative to IG in the spread betting space and though IG remains the undisputed market leader, having invented the product in 1974, Spreadex has carved out a niche of its own, with a focus on Experienced and professional traders, leaving more inexperienced and novice traders to the likes of IG to acquire, train and educate. Spreadex would then hope to pick up those clients later on in their trading journey.
Spreadex is focused entirely on Spread Betting and CFDs, whilst IG has diversified into investment products such as share trading, ISAs and managed funds. IG also has a significant overseas footprint with offices in Europe, Australia and the USA.
IG is now branching out into the exchange-traded futures and options business through its recent acquisition of US broker and educator Tastytrade, for a cool $1.0 billion. That sum emphasis the difference in scale between Spreadex and IG Group.
Darren is a veteran of the financial markets with almost 36 years of experience under his belt. He has worked in trading, sales, analytical, and research roles, he has been a regular guest & commentator on financial television channels and publications. During his career, Darren has been fortunate to act for and advise major hedge funds and investment banks as well as HNWI. Darren analyses the markets using a blend of technical and fundamental analysis
Jonathan Hufford, Spreadex MD, tells us how putting the client first leads to longer-term broker relationships
Spreadex has always been regarded as a more gentlemanly broker within the spread betting community.
Based just outside London in St Albans, offering one of the largest market coverages for financial trading and still with a trackside presence for traders looking for a punt on the weekends. We wanted to find out exactly how Spreadex wins business from the larger City based brokers so spoke to founder and MD Jonathan Hufford (note no grandiose CEO titles here) to find out...
First and foremost, why should a client trade with Spreadex as opposed to any other broker?
Spreadex positions itself as "a one stop shop" for various gaming products. We are the only company to offer sports and financial spread betting from one account. You can also bet on sporting fixed odds markets along with a casino - these can all be done from the same wallet. Read our Spreadex Review...
Credit facilities are provided and we are constantly striving to update our web site and introduce more markets and functionality. Auto cash out and variable FX spreads are examples of technology released recently.
How much of a focus do you put on customer service versus pricing?
Everything we do and every decision we make is based around anticipating what the client wants. We are totally customer focussed - an ethos that has been developed across various business owned by the shareholders of Spreadex. If we can get the customer service right, we know it will generate revenue.
The in-depth industry report by Investment Trends has repeatedly shown that Spreadex offers the best customer service in the industry out of a myriad of firms, for several years now.
What do you think is the most important element in winning and retaining new business?
Winning clients in this niche industry is notoriously hard. We have noticed recently the cost to acquire financial clients has been steadily increasing. There are some powerful brands out there and to "shout louder" takes a huge marketing spend!
However, once clients have signed up I believe they are pleasantly surprised by the range of our offering and also the levels of personal interaction with our team.
The client experience will start with a welcome call to ensure new clients know that they understand how spread betting works. We do not want clients to over leverage and so on. It is in our interests to keep the client happy to drive a long term relationship. I think the welcome call creates a great first impression.
Spreadex is one of the few brokers that allows trading on credit. How do you customers use this facility?
Yes we do offer credit subject to the client requesting it and having the appropriate status. In spread betting (particularly financials) collateral has to be lodged with the company before a trade can be accepted. A credit limit minimises the amount required which we obviously hope generates business as it is more convenient for the client.
What's your average customer like? Would you say they are more experienced or beginner traders?
I am always reluctant to use the word average! They are all different but generally we try and recruit more experienced clients who have traded or are trading elsewhere and are familiar with the concept of leverage. In particular we like investors who trade on AIM - where we offer one of the few companies to offer spread bets and leverage on AIM stocks and offer one of the most comprehensive services in the industry.
How popular are your AIM markets?
AIM is very popular as we have a reputation for offering these stocks whereas many of our peers do not offer AIM. We can offer stocks down to £5m market capitalisation. We can also offer competitive levels of leverage on these stocks - whilst the rules still allow!
You've recently launched CFD trading in addition to spread betting? Given the tax advantages of spread betting what was the motivation for that?
There are some clients who want all of their investments to be within the taxed regime. This is because if they make a loss - the loss is allowable for capital gains tax purposes. It is widely offered by our peers and we thought it appropriate to offer the full suite of leveraged services.
It's well reported that many new clients find it hard to make a profit short-term trading in the long-term. What would be your best bit of advice to new traders getting started in the leveraged markets?
Knowing when to take losses is a cliché but is also key to any investment success. It is hard to analyse a stock or even be tipped one and see it fall in value. The market is telling you that you are wrong!
However, stop losses or at least a price where you cut is fundamental to success.
Are there any new products, update or acquisitions on the horizon for Spreadex?
We have recently launched variable spreads on our FX spreads that allow much tighter pricing when volumes and market depth allow. EUR/USD is now available from 0.6 points and GBP/USD from 0.9 points.
We have also upgraded all our charting facilities. Our new charts feature many more features for technical analysts and includes advanced features such as Pro Trend Lines and pattern recognition.
Several years ago we were one of the first firms to offer Bitcoin. We are now looking at offering Bitcoin again when are comfortable with the hedging arrangements.
Spreadex also offers sports spread betting, do you find that most clients dabble in both or do they generally stick to one or the other?
Most stick to one or the other but there is a group who play both. We also offer sports fixed odds markets from the same account and that can be popular with our financial clients at times like the Cheltenham festival or the Six nations rugby . It is convenient to have all your speculative instruments at one home
What would you say to punters looking to try sports spread betting for the first time?
Please visit our web site and particularly the Get Started pages which include a 2 minute video. It is the same concept as for financials, buy if you think the result will be higher than our price and sell if you think it will be lower.
The important part for new punters is to manage your staking and appreciate market risk. For example runs in a cricket match is far more volatile than goals in a football match. It is vital to adjust your staking accordingly....
How do you see the industry developing under MIFD 2 would you say there is going to be more consolidation or expansion, especially overseas?
MIFID 2 will have a big impact on the financial services industry generally - particularly those who advise or introduce business to third parties. The IT implications of complying are immense and it is hard to see how small companies will be able to cope.
I have been saying our industry has to consolidate for 10 years plus now, so I am rather reluctant to make further predictions....in fact the market is bigger and more fragmented than it has ever been.
I do think it is apparent that the Europeans do not like the concept of leverage being available to private retail clients and I would anticipate some push back from them once they receive the powers of product intervention under MIFID 2.
Any plans to go public?
No! We enjoy the flexibility that being a private company brings.
And finally what are your top three resources to help traders. For example, books, websites, apps, services or strategies?
Of course, the first port of call should be our website! It offers a lot of information and tools for traders. We have everything from worked examples, video explanations, market commentary, share analysis and an economic diary. Our platform now features new charting tools with pattern recognition and Pro Trend lines, a must for any technical analyst.
For other sources of information, Robbie Burns has penned really informative books about spread betting and trading psychology. His books include “The Naked Trader” and “Trade Like a Shark”. I would thoroughly recommend reading these to avoid common mistakes.
Finally, for those new to spread betting the best way to trade is to do it on paper. Forget demo platforms with flashing prices. It might be seen as old hat but writing down what you are doing is the best way to learn!
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.
Spreadex Frequently Asked Questions
Is Spreadex safe?
Spreadex has been in business for around 20 years and is an FCA regulated business. The client money it controls must be held in a segregated bank account at a leading financial institution. Those funds are also covered against fraud or failure by the UK’s Financial Services Compensation Scheme or FSCS to the tune of £85,000 per client.
How does Spreadex make money?
Spreadex makes money by charging bid-offer spreads on the contracts it offers to its customers. The more volume they trade, the more money Spreadex stands to make. Additional sources of revenue come from funding charges on CFD trades held open for more than a single business day, and through the level of hedging that Spreadex undertakes on its overall risk book.
Who owns Spreadex?
Spreadex is a privately held company
Can you sell short stocks on Spreadex?
You can short stocks using CFDs and Spread Bets with Spreadex, however, they don’t offer physical stock dealing.
Does Spreadex allow scalping?
Scalping is not explicitly banned on Spreadex, the ability to make money using an active short term trading strategy, such as scalping will largely depend on their spreads in the products that you wish to trade. However, it’s unlikely that you would be able to scalp effectively using Spread Bets at Spreadex.
Latest Spreadex News
- 6th December 2018 Richard BerryIf you want to know what your broker does all day. Here’s what a day in the life of a Spreadex financial trader looks like… What does a typical day look like as a financial [...]
- 19th February 2018 Richard BerryIf you haven’t read our Spreadex review yet, here are a few new features you may not know you were able to do with the alternative spread betting broker: Get tighter spreads – Spreadex have [...]
Jonathan Hufford, Spreadex MD, tells us how putting the client first leads to longer term broker relationships18th December 2017 Richard BerrySpreadex has always been regarded as a more gentlemanly broker within the spread betting community. Based just outside London in St Albans, offering one of the largest market coverages for financial trading and still with [...]
- 31st October 2017 Richard BerrySpreadex, one of the oldest spread betting brokers in the business has won spread betting operator of the year at the EGR Awards 2017. Spreadex fit nicely into EGR’s (who mainly cover gambling companies) coverage [...]
- 3rd July 2017 Richard BerryLeading spread betting broker Spreadex has a little treat for customers this week. If you are an existing customer you may well have received an email offering a 50% rebate on UK 100 Daily trades [...]