Costs of Spread Betting
The cost is the spread
Our only charge for spread betting is in the dealing spread, i.e. the difference between the price at which you buy a market and the price at which you sell. The spread is in effect your cost of trading that market.
There are no extra commissions or charges to use our dealing platform or other trading tools. It is all contained in the dealing spread.
Some popular spreads
|Top 100 UK||0.1%|
|(plus market spread)|
All the markets quoted above are Rolling Daily. In the case of individual shares our spread is added either side of the underlying market spread. For example, if the underlying market spread of a particular share is 400.9p-401.0p and our additional spread is 0.4 points, our price will be 400.5-401.4.
You can further reduce your spread betting costs with our TradeBack™ scheme, receiving a variable monthly rebate based on your volume of trading. More on TradeBack.
Another key element that can affect your spread betting costs is execution. In this respect we strive for absolute transparency. When you place your trade we will automatically mirror your position by trading in the underlying market. This makes us market-neutral in that we have no financial interest in the performance of the market – in other words, whether you win or lose. Market-neutral execution ensures that your spread betting provider is on your side.
Financing and dividend adjustments
If you keep a position on a Rolling Daily market open overnight we will also make adjustments to your account to reflect the interest cost of holding your position another day.
This is calculated as a debit for long positions and as a credit for short positions, using the Relevant Funding Rate (RFR) for overnight financing. The debit for long positions is based on the RFR +2.5% and the credit for short positions is based on the RFR -2.5%. (For this reason when interest rates are low you may actually be debited for a short position.)
We also make adjustments when a share goes ex-dividend to reflect the consequent change in value of positions on that share (or on indices that include the share). This adjustment will be a credit for long positions and a debit for short positions.
For full details of how we calculate financing and dividend adjustments please see our FAQs.