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Spread Betting Brokers

Last updated 19th Jan 2022

When researching how to invest in cryptocurrency, you’ll find several methods to get started with. One of the lesser-explored options is cryptocurrency spread betting, which is a little more complex than traditional cryptocurrency buying and trading.

If you’re thinking about trying spread betting on cryptocurrencies and altcoins as an investment strategy, you’re in the right place. In this guide, you’ll learn about what cryptocurrency spread betting is and how it works. You’ll also discover the best platforms to get you on your way.

Best cryptocurrency spread betting platforms in 2022

These days, plenty of online platforms make it easier for you to begin spread betting on crypto. But because of this, knowing which is the best crypto spread betting broker can become more difficult. Fear not, though, because we’ve listed the best cryptocurrency spread betting platforms below.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
2
Binance
Minimum Deposit
$50
Exclusive Promotion
User Score
7
Over 500 cryptocurrencies for trade
Low fees, comprehensive charting options
Wide selection of transaction types
3
Coinbase
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Trade and invest in over 25 cryptocurrencies
Extremely simple user interface
Over 68 million customers
4
Gemini
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Hot wallets include insurance to protect your assets from theft and hacking attempts
5
Paybis
Minimum Deposit
$50
Exclusive Promotion
User Score
5
First transaction fee free
24/7 customer service
Instant payouts

Please note that Etoro doesn’t support spread betting at this time.

What is cryptocurrency spread betting?

Cryptocurrency spread betting is speculating on how you think a cryptocurrency’s market value will change. Spread betting is speculating on market fluctuations where you place the bet on whether the pricy of cryptocurrency will rise or fall from the bid provided by the cryptocurrency broker.

Besides cryptocurrencies, you can also try spread betting for other assets and commodities such as oil and gas. Crypto spread betting is also possible as an alternative to traditional sports betting.

How does cryptocurrency spread betting work?

When you place your “bet”, you’ll pick a range within which you think the currency will fluctuate. The closest you are to getting your prediction right, the more you’ll get in return.

On the flip side, you’ll also lose more money if you’re further away from your prediction. An important thing to keep in mind is that with spread betting, you could lose more than you originally staked.

How to get started with cryptocurrency spread betting?

Getting started with crypto spread betting, all you need to do is:

  1. Find a broker that allows you to spread bet on cryptocurrencies

  2. Sign up with the provider

  3. Deposit funds

  4. Spread bet on crypto

In some cases you will need to deposit cryptocurrencies instead of fiat currencies such as USD and GBP. If you’re unsure on how buy cryptocurrencies, check out these guides we’ve prepared:

Cryptocurrency spread betting vs CFD trading

Spread betting has some striking similarities to contract-for-difference (CFD) trading. For starters, you don’t own the cryptocurrency you trade or bet on in both spread betting and CFD trading. Moreover, CFD platforms allow you to use leverage, which is also available in spread betting.

At the same time, cryptocurrencies spread betting does have some differences from CFD trading.

With CFD trading, you’ll first buy the asset you want to trade. You can set parameters to sell when the market hits a specific rate, but if you sell instantly, you’ll do so at the current price on your platform.

Another difference between spread betting and CFD trading is that they’re often subjected to different laws in some countries. For example, profits made on CFD trading in the UK would be eligible for capital gains tax; but since spread betting is considered gambling, it would not.

If you want to know more about CFD trading, we’ve prepared a guide on the best Bitcoin CFD platforms.

Cryptocurrency spread betting vs options

Although options trading involves some level of market speculation, it differs from spread betting in a tactical sense.

Options trading involves buying the right to sell an asset at a specific price within a designated period. However, with options trading, you do not need to sell at the strike price if the market is trading higher.

Of course, options trading still has risks. You can lose money if the market doesn’t go your way.

Cryptocurrency spread betting vs trading

With trading, you tend to purchase an asset to sell at an increased price. If you trade stocks, you’ll usually do so within different exchanges’ opening hours – but cryptocurrency is round-the-clock, so the rules are a little different in this respect.

In contrast to trading, you don’t necessarily need to rely on the asset rising in value to make a profit when spread betting.

What are the best cryptocurrency spread betting brokers in 2022?

Okay, so you’ve now got a better idea about what spread betting is and how it’s different from other forms of cryptocurrency trading.

Below, you’ll find four of the best cryptocurrency spread betting brokers. We’ve listed their key features, along with the pros and cons of using them:

FXPro Edge

FXPro Edge is a spread betting platform developed by FXPro. You can download the app on Android and iOS, along with using it on your desktop device.

Key Features

  • Several types of charts are available

  • Analytics features for your personal performance

  • Create watchlists

Pros

  • Available across several platforms

  • Comprehensive features

  • Trade several assets and commodities

Cons

  • Limited options for depositing into your account

  • Only available in the UK and Ireland

IG

IG is a broker headquartered in London. Over 300,000 people use the service in several countries, and you’ll find several features for spread betting regardless of whether you’re new to trading or have years of experience.

Key Features

  • Risk management tools

  • Real-time charts

  • Set up alerts

Pros

  • Award-winning platform with an excellent reputation in the UK

  • User-friendly platform

  • Set up a demo account to get your feet wet if you’re a beginner

Cons

  • You need to pay an inactivity fee if you don’t use your account for two consecutive years

  • Limited customer support options

Spreadex

Spreadex is a popular spread betting platform that is also headquartered in the UK. The service has mobile apps for Android and iOS users, while you can also use it if you have an iPad.

Key Features

  • In-app customization

  • Advanced order options

  • Price alerts

Pros

  • Available on smartphone devices

  • Secure sockets layer (SSL) encryption

  • A broad range of trading tools is available

Cons

  • Not available on desktop

  • Trading conditions vary depending on where you live

ETX Capital

ETX Capital is one of the financial services industry’s most established brokers, having existed since 1965. It offers a feature where users can try cryptocurrency spread betting on its award-winning platform.

ETX capital supports spread betting on Bitcoin, Bitcoin Cash, Ethereum, Ripple and Litecoin.

Key Features

  • Real-time pricing transparency

  • Social trading options

  • Options to set limits and stops

Pros

  • Several payment methods accepted

  • Available in several languages

  • Available to use on computers, smartphones and tablets

Cons

  • Only five cryptocurrencies are available for spread betting at the moment

  • You can’t sign up if you live in Canada or the U.S.

What are the advantages of cryptocurrency spread betting?

Now that you have discovered the best cryptocurrency spread betting platforms, it’s a good time to look at the benefits and drawbacks of this kind of trading. First, let’s start with the positives:

You Could Increase Your Profits

Spread betting involves using leverage. If you’re well-versed in cryptocurrency trading, this can be a powerful tool to increase your profits beyond what you’d make when buying and selling coins.

However, the key here is to use it effectively as it’s not short of risks, which we’ll talk about later.

Tax-Free*

*Depending on where you live.

You don’t need to pay capital gains tax on profits you make from spread betting in the UK. Moreover, the money you make is exempt from stamp duty. In contrast, other forms of cryptocurrency investing may be liable for taxes, so it’s best to check your jurisdiction’s regulations to ensure you’re following the right process.

With that being said, tax-free spread betting isn’t universal. If you live outside of the UK, check your local regulations to avoid breaking the law and landing yourself in hot water.

Potentially Fewer Fees Involved

Cryptocurrency investing is not only risky, it can also get expensive. Besides using your money to buy and sell coins or assets, you also need to pay commission in several cases.

However, while you still need to pay some fees when spread betting, you can waive many of the additional expenses that other forms of investing could bring.

What are the disadvantages of cryptocurrency spread betting?

While cryptocurrency has various advantages compared to other forms of investing, it also has disadvantages you must consider. Below, you’ll find some important details to keep in mind about the potential downsides of spread betting:

You Could Increase Your Losses Significantly

While leverage can do wonders for your profits when used properly, you could also drastically increase your losses if you don’t have experience using it. Before getting started, make sure you do enough research beforehand and test with small amounts before going bigger.

Requires Skill and Market Knowledge

All forms of cryptocurrency investing require at least a basic understanding of the market you’re buying coins or assets in. But with spread betting, you need to pay even closer attention.

Since crypto spread betting involves speculating on price rises and falls, you can’t just guess things and expect the profits to come your way.

Alternative ways to invest in cryptocurrencies?

Spread betting requires a lot of skill and market knowledge, and it isn’t for everyone. Fortunately, it’s also not the only way to invest in cryptocurrencies.

If you’ve decided that spread betting isn’t for you – or you want to test other forms of trading too – consider the three alternatives below. These are in addition to the ones we mentioned earlier (e.g. CFD trading):

Buying Coins

While CFD brokers are the easiest place for beginner cryptocurrency traders to start investing, buying coins from exchanges is also popular. Compared to spread betting, you’ll own the coin outright rather than buying an asset.

Pros

  • Owning coins could work better for a long-term strategy

  • Secure, centralized platforms

  • Available in several countries

Cons

  • Some beginners might find cryptocurrency exchanges challenging to use

  • Buying coins is often more expensive than trading

  • Security threats exist (you should always create a wallet to store your money in)

Grayscale Funds

If you’re not interested in cryptocurrency spread betting, Grayscale funds might be a better choice for you. Rather than investing directly in a currency, you buy shares in the fund – and this share increases or decreases depending on the money’s market value.

Pros

  • You don’t need to invest directly if you have no knowledge of cryptocurrency investing

  • Less of a time investment is required in comparison to other forms of cryptocurrency investing

  • Fees are different compared to those associated with buying cryptocurrencies directly

Cons

  • Not available for all cryptocurrencies

  • You need to pay an annual fee (2% for Bitcoin and 2.5% for Ethereum)

Final thoughts on cryptocurrency spread betting

Spread betting is an exciting and unique way to approach invest in cryptocurrencies. while also offering you the chance to try trading various other assets and commodities. You need to dig a little deeper than with CFD brokers and crypto exchanges to pick the right platform, but we’ve made it easier for you with this guide.

Having covered everything, we recommend using ETX Capital for spread betting with cryptocurrencies. You can add money to your account using several payment methods while accessing the largest markets and trading across multiple devices.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
2
Binance
Minimum Deposit
$50
Exclusive Promotion
User Score
7
Over 500 cryptocurrencies for trade
Low fees, comprehensive charting options
Wide selection of transaction types
3
Coinbase
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Trade and invest in over 25 cryptocurrencies
Extremely simple user interface
Over 68 million customers

FAQs

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