Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can result in losses larger than your initial stake or deposit.
Bottom Line Summary
Spreadex is a well-established UK-based financial brokerage. Founded in 1999, it wears two hats, offering financial spread betting and CFD trading on one side of the house and sports betting on the other. The Financial Conduct Authority (FCA) regulates its financial dealings, while its gambling operation falls under the auspices of the UK Gambling Commission. The firm is relatively small, with $23 million in annual revenue; however, it has a long track record of dependability and reliability. Over the past two decades, it has garnered several industry awards for its customer service and outstanding performance. If you prefer a responsive smaller firm to the giants in the industry, then Spreadex may be your best bet.
Overall Ratings
4
Spreadex Fees
4.5
Accounts/membership levels
4
Deposit and Withdrawal
4.2
Trading Platforms
4
Mobile trading app
4.5
Markets and products
3.5
Customer Service
4.5
Education
2.8
Spreadex Features
Feature
Spreadex
Minimum deposit:
None
Withdrawal fee amount:
None
Inactivity fee charged (Y/N):
N
Max leverage:
30:1
Spread from:
0.4 pips
Number of instruments:
10,000+
Year founded:
1999
Time to open account:
1 business day
Demo account provided (Y/N):
N
Countries of regulation:
United Kingdom
Products offered:
Forex trading, Options, and CFDs in Stocks, Indices, Commodities, Bonds, ETFs, and Cryptocurrencies (Pros only)
Spreadex Pros and Cons
Pros
Low fee/cost provider
Responsive customer service
A proprietary web-based platform is easy to use
Top-Tier regulation from the FCA
Cons
No MetaTrader platform products
No traditional trading in stocks, only CFDs
Only Professional clients can trade cryptocurrencies
In 1999, Jonathan Hufford, a former City dealer, founded Spreadex with the sole intent of making spread betting more accessible to the retail public. The company grew, and by May of 2006, it expanded its service offering to include online financial trading by way of its proprietary trading platform. More success followed, and by the end of 2010, it launched a mobile trading app for its sports betting clientele to appeal to those traders on the go, using the device of their choice.
Spreadex has spread globally from these humble beginnings, but it has always maintained its low profile of being a low-cost provider with an impeccable record of reliability. Spread betting does enjoy tax benefits within UK jurisdictions. The firm also supports traditional forex trading in major and minor currency pairs and Contracts for Difference (CFDs) for shares, indices, Exchange-Traded Funds (ETFs), bonds, commodities, and cryptocurrencies. Note that in the UK, the trading of cryptos is limited to professional traders only.
Spreadex has 112 employees as of this writing, and in 2014, it secured its present headquarters residency in St Albans, just outside Central London. Although small in stature, the broker has grown both by acquisition and by internal organic methods. The firm has also relied upon its proprietary trading platform software, choosing not to go with popular setups like MetaTrader4 or other downloadable desktop trading systems.
The variety of Spreadex financials offered is extensive. A trader can access over 50 forex pairs, CFDs for 3,000 shares, and CFDs for another 250+ financial assets, including indices, ETFs, bonds, and commodities, from one single account. If CFDs are not your preference, you may also spread bet from the same platform and enjoy the tax benefits that may apply in your personal situation. There is a warning to be careful with leverage as there is only one level, which may vary with the asset chosen, but there is no ability to adjust it to a different amount.
Is Spreadex the right broker for you? It falls within the low-cost genre of forex and CFD brokers, but this niche is very competitive. From a spread betting perspective, however, Spreadex claims to be one of the largest firms in the UK in this specific arena, sporting a client base of over 60,000 customers. It has the experience and track record to warrant your consideration, plus a regulatory compliance regimen that ranks it at the top of the scale.
Spreadex Fees
4.5
Spreadex does charge minimal trading fees for holding positions for more than a day on forex and CFDs. It also makes money from the spreads for its various assets. These spreads are generally tight, as the company does have a reputation for low costs in the industry. The popular “EUR/USD” forex pair has an average spread of 0.6 pips, which applies to all Spreadex trading transactions. CFD and Spread Betting brokers also make money on the net results for those trades. With a present loss rate in the 64% area, there is ample room for this broker to profit, as long as it hedges its risk exposures efficiently in its backroom.
There may have previously been an inactivity fee, but the firm’s website states explicitly that no inactivity fees now apply to an account. Leverage conforms to FCA standards, maxing out at “1:30”, but it varies by asset and cannot be adjusted. There are no fees on deposits or withdrawals, as long as you choose the free options available.
For example, a wire transfer will have an origination fee charged by the bank. As with all payment methods today, banking intermediaries tend to collect a fee independent of the broker. Stop losses are free, but these are not guaranteed. To prevent overdrawing your account, a “Guaranteed” stop-loss comes at a cost.
Spreadex is committed to being a low-cost provider, and its fees and spreads are highly competitive.
Accounts/membership levels
4
Spreadex keeps it simple on the account side of things. There is only one Spreadex account offering. Fees, features, spreads, and nearly everything else are available to all traders. There is no discrimination due to account deposit amounts or the size of the account balance. Spreadex spread betting, however, may not be available in your country since it is primarily a UK phenomenon. Several countries may also be excluded. For example, regulators in the United States do not permit the trading of CFDs by any of its citizens. US customers are not accepted.
Opening an account is straightforward. There is an online form, which requires your name, login selections for name and password, and verification of your residency and country of citizenship. Once completed, you may submit it and then fund your account. The broker will ask for more personal identification documentation in line with international statutes. There is no Spreadex minimum deposit, and a credit line of 2000 GBP is also available.
Current FCA rules also block CFD trading by retail clients in the UK. Professional traders are the exception, and these traders may also, according to prevailing regulations, trade cryptocurrencies, whereas retail clients may not.
Spreadex has eliminated account confusion by having a single account offering; however, at present, it does not offer a demo account.
Deposit and Withdrawal
4.2
Deposits and withdrawals are easy with Spreadex and are free of charge in most cases. There are no hidden fees on the deposit side, but if you withdraw an amount below 50 GBP or elect a wire transfer option, additional costs may apply to cover banking charges. Credit and debit card deposits are posted instantly. International transfers may also incur a conversion fee. Check with your bank before choosing your funding option. Spreadex withdrawal time is swift and will follow the deposit path selected.
Spreadex offers a sufficient number of payment options, but as yet, the broker does not support electronic wallets.
Trading Platforms
4
Spreadex has chosen to offer a proprietary trading platform, a legacy of its early evolution. The platform receives high marks from those acquainted with it, but it will take some time to learn its capabilities, which could be enhanced if a Spreadex demo system were available. The web platform version is essentially the same as the mobile platform. Execution speeds are excellent, and charting and related features are what you have come to expect with MetaTrader4.
MT4 and MT5 products are not offered as the broker provides its efficient proprietary trading platform. The system language is English, and a Spreadex desktop version is not yet available. Spreadex does not offer a copy trading facility.
Mobile trading app
4.5
As with its web version, the Spreadex app is user-friendly, and screens can be easily customised to meet your needs. The firm introduced its mobile access app in 2010 and has delivered a product that has been well received. Several order types are supported – market, limit, stop loss, trailing stop loss, and guaranteed stop loss. Search functions are easy to use, and reports, setting alerts and notifications, and advanced charting tools are built into the platform.
Spreadex offered a mobile app during the infancy of mobile trading, and its functionality continues to impress users.
Markets and products
3.5
Spreadex is a traditional forex trading and CFD provider with the added twist of spread betting. The latter comes in handy in the UK, where the FCA has instituted a ban on CFD trading for UK retail clients since January of 2021. The firm’s broad portfolio includes access to more than 50 currency pairs and CFDs for 3,000 stocks, plus another 250+ financial assets, including indices, ETFs, bonds, and commodities.
The overall offering is impressive, but at the moment, Spreadex offers trading in cryptocurrencies only for professional traders.
Customer service
Spreadex obviously has a significant interest in providing market research. The blog is helpful, and there are daily/weekly trading updates, plus the calendar highlights special events.
Customer Service
4.5
Spreadex takes great pride in its Customer Service Department. It has won many awards for its quick response to queries and the quality of information delivered. It has the standard telephone and email support options, but its Live Chat service is the hallmark in this area. The firm also provides an avenue for talking directly to a financial spread trading team member.
If you contact customer support, the response time is impressive. Support is provided seven days of the week, during the office hours of 8 am through 5:30 pm.
Compared with some brokers, Spreadex does not have a broad-based learning academy; however, it does have a variety of instructive videos, tutorials, and a helpful FAQ section. There is also a YouTube channel with mainly sports betting information.
Any shortcomings in this area are offset by the emphasis on responsive customer service and access to a member of the financial trading room. In these cases, the beginner does need to have a specific question, not a general one. The lack of a demo system is unfortunate, especially as newcomers need virtual practice time to learn how the trading platform operates and develop an effective trading strategy.
Safety
Is Spreadex safe? This broker is safe, in fact, they excel in this area. Client funds are segregated in Tier 1 banks. All data is encrypted. FCA compliance is a significant plus, and lastly, Spreadex clients have further protection from the UK Compensation Fund of up to 85,000 GBP.
Verdict – Is Spreadex right for you?
Spreadex competes in the low-cost arena for forex and CFD providers with a twist – It also offers spread betting, a plus until the FCA lifts its retail ban on CFD trading. The firm has been on the London scene for more than two decades and has established a satisfactory track record. Is Spreadex a good choice? If you want low cost and do not need your hand to be held, this broker would undoubtedly be suitable.
Alternatives to Spreadex
Spreadex is a unique mix of traditional forex and CFD trading coupled with spread betting. Its competitors, however, are many, especially in the London locale. It has its advantages and a good reputation, but so do several alternative choices. The following five alternative brokers have built fine reputations based on low costs and responsive support. Any one of these could go toe-to-toe with Spreadex, but choose a broker that fits your style:
IG Group: A major powerhouse and consistent leader in the forex industry
City Index: A global CFD and forex provider in London since 1983
XTB: Another leader in the forex and CFD trading arena with 447,000 clients
OvalX: London CFD and Spread Betting provider, FCA regulated since 1965
eToro: An international broker with an impeccable performance record with copy-trading
FAQs
Is Spreadex regulated?
Yes, Spreadex is regulated by the FCA for its financial instrument trading offering. For its Sports Betting arm, it also complies with the edicts of the UK Gambling Commission.
How to sign up to Spreadex?
Spreadex provides a simple online signup form, which requires your name, an email, login name, password, and citizenship country verification. Your account will be opened instantly. After funding your account and providing personal ID information, as required by international law, you can be up and trading in minutes.
Does Spreadex offer any bonuses?
Since the financial asset trading arm of the Spreadex enterprise falls within the compliance rules of the FCA, bonuses are not permitted to be used to attract and retain customers who might trade CFDs. If you also happen to choose to participate in the Sports Betting side of Spreadex, different rules apply. Sign up bonuses, competitions, and promotions are offered from time to time.
Is Spreadex suitable for beginners?
As a low-cost provider, Spreadex has to cut back somewhere, even though its customer support area gets high ratings. For beginners, there are tutorials on how to use the platform and information about spread betting in FAQs and other sources, but the overall effort in this area seems lacking. A major shortcoming is that no demo account is provided for practice trading.
How does Spreadex work?
Spreadex works like any other forex and CFD trading broker except when and if you choose to do spread betting. In that case, you are betting against the “spread” between the “Bid” and “Ask” price. For example, if you expect prices to rise, you will buy at the Ask price. As with CFDs, you are speculating on how prices will change in the market for your financial instrument without ever having to buy the underlying asset, but with spread betting, you also earn tax benefits.
Risk Disclaimer
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can result in losses larger than your initial stake or deposit.
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