Forex trading: spread betting and CFDs on 60+ currency pairs
Speculate on over 60 currency pairs — including EUR/USD from 0.6 points and GBP/USD from 0.9 — as a spread bet or a CFD, on the platform that clients rated first for reliability in the latest Investment Trends awards.
★ | KEY TAKEAWAY With Spreadex you can trade over 60 currency pairs in two ways: forex spread betting, where profits are currently free of UK capital gains tax*, and forex CFD trading. Both are leveraged products, which means gains and losses are magnified in equal measure. |
ON THIS PAGE Spreads & FAQs | What is forex betting? | What is forex CFD trading? | Worked examples | Spread betting vs CFDs | Currency pairs | Why Spreadex | FAQs
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See the market information for our available FX spread betting markets.
What is forex spread betting?
Forex spread betting is a way to back your view on currency prices without ever owning the currencies themselves. You bet an amount of money per point of movement in a currency pair — say £10 per point on GBP/USD. If the price moves in the direction you predicted, you make your stake for every point it moves; if it moves the other way, you lose your stake for every point instead. You can bet on a pair falling just as easily as rising, so you can trade currencies in both directions. For UK residents, spread betting profits are currently free of capital gains tax and stamp duty.*
What is forex CFD trading?
A forex CFD — contract for difference — is an agreement to exchange the difference between a currency pair's price when you open your position and when you close it. Instead of staking pounds per point, you buy or sell a number of contracts: one forex CFD contract is worth $1 per point of movement, so ten contracts make or lose $10 for every point the price moves. CFD profits may be liable to capital gains tax, but unlike spread betting, CFD losses can usually be offset against other capital gains.*
How does forex spread betting work? A worked example
First, how to read a currency pair. In GBP/USD, the pound is the base currency — the one you're backing — and the US dollar is the quote currency — the units the price is measured in. GBP/USD at 1.2500 means £1 buys $1.25. A point is a movement of 0.0001 in that price, so a rise from 1.2500 to 1.2550 is 50 points.
Suppose GBP/USD is at 1.2500 and you think the pound will strengthen against the dollar. You buy at £10 per point:
GBP/USD rises to 1.2550 | GBP/USD falls to 1.2450 | |
|---|---|---|
Movement | +50 points | −50 points |
Your stake | £10 per point | £10 per point |
Result | +£500 profit | −£500 loss |
You don't put down the position's full value to open it — you deposit a margin of 3.33%. A £10-per-point bet on GBP/USD at 1.2500 is £125,000 of exposure, so the margin is about £4,160. That is leverage: the £500 gain and the £500 loss are both calculated on the full exposure, not on your deposit. The price you deal at includes the spread — from 0.9 points on GBP/USD.
How does forex CFD trading work? A worked example
Now take the same view with CFDs. You buy 10 GBP/USD contracts at 1.2500 — at $1 per point per contract, that's $10 per point. Because the dollar is the quote currency, a forex CFD's profit or loss accrues in dollars and is then converted to pounds on your account:
GBP/USD rises to 1.2550 | GBP/USD falls to 1.2450 | |
|---|---|---|
Movement | +50 points | −50 points |
Your position | 10 contracts ($10 per point) | 10 contracts ($10 per point) |
Result | +$500 (≈ £398 at 1.2550) | −$500 (≈ £402 at 1.2450) |
Margin works the same way as the spread bet: 3.33% of the position's value. The two trades above are the same view, the same size and the same risk — the differences are how the position is denominated and how the result is taxed, covered next.
★ | QUICK FACT The foreign exchange market is the largest financial market in the world. It trades around the clock five days a week — from 10pm Sunday to 10pm Friday, UK time. |
Forex spread betting vs forex CFDs — what's the difference?
Both let you go long or short on the same pairs with the same margin, and at Spreadex you can trade both from a single account. The practical differences:
Forex spread betting | Forex CFD trading | |
|---|---|---|
Tax on profits | Currently free of UK capital gains tax and stamp duty* | Capital gains tax may apply* |
Losses | Cannot be offset for tax | Can usually be offset against other capital gains* |
How you trade | £ stake per point | Contracts worth $1 per point |
Profit/loss currency | Always in pounds | In the quote currency, converted to pounds |
Who tends to use it | UK residents trading their own money | Traders who want losses to be tax-deductible; non-UK residents |
Which currency pairs can you trade?
Spreadex offers more than 60 currency pairs, each as a spread bet or a CFD. Spreads are variable and start from:
Group | Pairs (examples) | What to know |
|---|---|---|
Majors | EUR/USD (spreads from 0.6) ·GBP/USD (0.9) · USD/JPY (0.7) · AUD/USD (0.6) · EUR/GBP (0.9) · EUR/JPY (1.5)· USD/CHF (1.5) | The most-traded pairs, with our tightest spreads |
Minors | GBP/JPY (2.5) · CHF/JPY ·CAD/JPY · GBP/CHF · EUR/CAD · USD/ZAR | Crosses and smaller pairs; spreads a little wider than the majors |
Exotics | USD/CNH (10) · EUR/HUF (25) ·EUR/PLN (30) · USD/CZK (30) · USD/MXN (50) | A major currency against an emerging-market one; bigger swings and wider spreads |
Larger trades may be subject to wider spreads — see the full list on our market information page.
Why trade forex with Spreadex?
Trade forex your way — as a spread bet or a CFD — from a single account (NEW)
Low spreads from 0.6 pts on EUR/USD and 0.9 pts on GBP/USD
Rated first by clients for platform reliability, ease of account funding and speed of fund withdrawals — Investment Trends awards 2026
Advanced technical analysis tools including Pattern Recognition, ProTrend Lines, custom indicators, and drawing tools
24-hour trading on most of our FX markets
★ | IMPORTANT TO KNOW Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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. Read more about risk management. |
FOREX FAQ
Q: Is forex spread betting tax-free in the UK?
For UK residents, profits from spread betting are currently free of capital gains tax and stamp duty.* Note that spread betting losses cannot be offset against other gains for tax purposes.
Q: What is the difference between spread betting forex and trading forex CFDs?
With a spread bet you stake pounds per point of price movement and any profit is currently free of UK capital gains tax.* With a CFD you trade contracts worth $1 per point, profits may be taxable, and losses can usually be offset against other capital gains.* Both are leveraged, so both magnify losses as well as gains.
Q: Do I pay tax on forex CFD profits?
Forex CFD profits may be subject to capital gains tax for UK residents, and CFD losses can usually be offset against other capital gains.*
Q: What forex pairs can I trade with Spreadex?
More than 60 pairs, from majors such as EUR/USD and GBP/USD through minors and crosses like EUR/GBP to exotic pairs such as USD/MXN — each available as a spread bet or a CFD.
Q: Can I trade forex on TradingView with Spreadex?
Yes. Spreadex connects to TradingView, so you can analyse charts there and trade forex through your Spreadex account.
Q: How are Spreadex FX markets priced, and what are the charges?
Our forex market information page carries the full detail: live spreads for every pair, margin rates, trading hours, and the trading FAQs explaining how markets are priced and how charges are calculated. (Link the words market information and trading FAQs.)
*Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
