Does eToro offer spread betting? Alternatives for 2026

eToro is a leading social investing platform offering a wide range of instruments for both retail and professional investors. One such instrument that some traders look for is spread betting – a leveraged, high-risk derivative available in countries like the UK and Ireland but banned in many jurisdictions (including the US, the EU, and Australia).

In the sections below, we’ll explain what spread betting is, its pros and cons, whether eToro offers it, and explore alternative platforms where UK and Irish residents can access spread betting accounts.

What is spread betting?

Spread betting is a leveraged derivative product that lets you bet on the direction of an asset’s price movement without owning the underlying asset. Instead of buying shares, indices, or commodities, you wager a stake per point of price movement – winning if the price moves in your predicted direction and losing if it moves against you.

Here’s a concrete example. Suppose the FTSE 100 is trading at 8,500 points and you believe it will rise. You place a spread bet at £10 per point on the FTSE 100 going up. Two possible outcomes:

• FTSE 100 rises to 8,520 (up 20 points): your profit is 20 points × £10 = £200;
• FTSE 100 falls to 8,480 (down 20 points): your loss is 20 points × £10 = £200.

The name “spread betting” comes from the fact that the broker quotes a bid-ask spread around the underlying market price – and that spread is the broker’s primary source of revenue (there’s typically no separate commission). For example, if the underlying FTSE 100 is at 8,500, the broker might quote a “sell” price of 8,499 and a “buy” price of 8,501 – so you’re effectively starting your bet at a small loss equal to the spread.

Spread betting originated in the UK in the 1970s (IG launched the first spread betting product in 1974) and remains a primarily British and Irish financial product, with most major spread betting brokers regulated by the FCA or the Central Bank of Ireland. It’s banned in the US, effectively unavailable to EU retail clients under MiFID II, and not offered in Australia or most other major jurisdictions.

Does eToro offer spread betting accounts?

No, eToro does not offer spread betting services. Among the many instruments available on the platform, spread betting is not one of the options – and the company has not announced plans to add this product to its offering.

The closest alternative on eToro is the Contract for Difference (CFD) – the main derivative product available on the platform. Like spread betting, CFDs allow investors to seek profit from the price variation of an underlying asset without owning it. The investor receives (or pays) the difference between the price when the contract is opened and when the position is closed.

There are several practical differences between CFDs and spread bets:

• Expiration: spread bets typically have a fixed expiration date set when the bet is placed; CFDs are open-ended (held until you choose to close them, with overnight funding costs accruing daily);
• Commissions and fees: CFDs typically involve broker commissions or spreads plus overnight funding; spread bets are usually commission-free but priced through wider spreads and have stamp duty exemption in the UK;
• P&L calculation: CFD P&L is calculated by multiplying the price change by the number of CFD units held; spread bet P&L is calculated by multiplying the price change (in points) by the stake size per point;
• Tax treatment (UK only): spread betting profits are generally exempt from Capital Gains Tax and Stamp Duty in the UK (as they are classified as gambling rather than investment); CFD profits are subject to Capital Gains Tax. Tax treatment depends on your individual circumstances and may change – consult a qualified tax adviser.

In summary, while spread betting profits depend on the stake size per point of price movement, CFD profits depend on the absolute price variation of the underlying asset multiplied by the number of units held.

Spread betting vs CFDs: key differences

Since CFDs are the closest alternative to spread betting (and the only derivative product available on eToro), it’s worth understanding how the two compare side-by-side:

In practical terms: UK and Irish residents who are short-term traders often prefer spread betting for its tax treatment and lack of FX conversion costs. Investors outside the UK/Ireland, or those who want to use spread bet losses to offset other capital gains, often prefer CFDs for broader availability and tax-deductibility.

eToro alternatives for spread betting

Pros and cons of Spread Betting

How is spread betting taxed in the UK?

The favourable UK tax treatment is one of the biggest reasons retail traders choose spread betting over CFDs or direct share dealing. Here’s how it works:

• Capital Gains Tax (CGT) exemption: spread betting profits are not subject to CGT in the UK because HMRC classifies spread betting as a form of gambling rather than investment activity. This means even substantial profits from spread betting are generally tax-free for UK residents;
• Stamp Duty exemption: because you never own the underlying asset, no Stamp Duty Reserve Tax (SDRT) applies – unlike direct share purchases on the LSE, which incur 0.5% SDRT;
• No tax on dividends: spread betting positions on dividend-paying stocks receive a dividend adjustment instead of an actual dividend payment – and these adjustments aren’t taxed as dividend income;
• Income Tax doesn’t apply: spread betting income isn’t subject to Income Tax either, as long as it isn’t classified as your trade or primary livelihood.

However, several important caveats apply:

• Losses are not tax-deductible: the flip side of tax-free profits is that you can’t offset spread betting losses against other capital gains or income for tax purposes;
• Professional traders may be taxed: if HMRC determines that spread betting is your “trade” or primary source of income – based on factors like frequency, organisation, profit-motive, and reliance on the income – the tax-free status can be lost and your profits may become subject to Income Tax;
• Treatment may change: UK tax policy is subject to change, and the spread betting exemption has been periodically reviewed (though never removed) by successive governments.

The HMRC “badges of trade” test looks at factors including: the frequency of transactions, the length of ownership of positions, the way transactions were carried out, and the source of finance. Most retail spread bettors won’t meet this threshold, but high-volume or professional-level traders should seek tax advice.

Risk management when spread betting

Spread betting’s leverage cuts both ways – the same mechanic that allows outsized gains can wipe out your account quickly if you’re not careful. Sensible risk management is essential, not optional. Here are the key tools and principles:

Stop-loss orders

Stop-loss orders automatically close your position if the price moves against you by a set amount. Two main types exist:

• Standard stop-loss: free, but doesn’t guarantee execution at your specified price – in fast-moving markets (gap moves, news events), your position can be closed at a worse price than expected (known as slippage);
• Guaranteed stop-loss order (GSLO): guarantees execution at your specified price regardless of market movement – charged via a wider spread or a small premium fee. Worth using for volatile assets or positions held overnight.

Position sizing

The general guidance for retail traders is to risk no more than 1-2% of your account balance on any single trade. For a £5,000 account, that means risking £50-£100 per position. This sounds conservative but protects you from blowing up your account on a single bad trade – and gives you the staying power to learn the market without forced liquidation.

Negative balance protection

Under FCA rules, UK retail clients have negative balance protection – meaning your losses cannot exceed your account balance. This is mandatory for FCA-regulated brokers serving retail clients (since 2018), but doesn’t apply to professional accounts. Verify negative balance protection is in place before opening an account, particularly with offshore brokers.

Demo accounts

All three brokers covered above (Pepperstone, FxPro, IG) offer free demo accounts with simulated funds. Spend meaningful time in a demo account before committing real capital – ideally at least 1-2 months of practice across different market conditions. This is genuinely the cheapest way to learn what works and what doesn’t.

Other risk principles

• Never trade with money you can’t afford to lose: this is the most repeated advice in trading for a reason;
• Avoid revenge trading: after a losing trade, the urge to immediately “win it back” with a larger position is the most common path to account blow-ups;
• Trade what you understand: stick to assets and markets you genuinely understand rather than chasing news on instruments you don’t know;
• Keep a trading journal: track your trades, your reasoning, and your outcomes – reviewing them is one of the most underrated ways to improve.

Key points to consider when choosing a spread betting broker

If you’re looking for spread betting services, here are the key factors to weigh when choosing the right broker:

• Costs: spread betting accounts are typically free to open and the broker profits from the spread (the difference between the bid and offer prices). To maximise your potential returns, look for tight spreads on the instruments you trade most often. Spreads can widen during low-liquidity periods, but some brokers also widen them deliberately to capture more revenue;
• Regulation: confirm that your broker is regulated by a tier-1 authority such as the FCA (Financial Conduct Authority) in the UK or the Central Bank of Ireland – this is one of the most important safety checks for any spread betting account;
• Deposit protection: check whether the broker provides investor compensation if it becomes insolvent. UK-regulated brokers typically offer FSCS protection up to £85,000, providing meaningful peace of mind;
• Range of markets: since the underlying asset determines your P&L, choose a broker offering a diverse set of instruments – across forex, indices, commodities, stocks, and other asset classes relevant to your strategy;
• Platform quality: a fast, intuitive trading platform with reliable execution matters a great deal for short-term leveraged trading – check whether the broker supports MetaTrader, cTrader, TradingView, or a proprietary platform that fits your workflow;
• Customer support: when issues arise (and they will), responsive customer support can make a meaningful difference – look for brokers with multiple support channels and reasonable response times.

Who should consider spread betting?

Spread betting isn’t suitable for every investor profile. Based on the product’s structural characteristics, here’s a practical guide to who it suits – and who should avoid it.

Spread betting may suit you if you are

• A UK or Irish resident: the product is primarily available in these two jurisdictions, and the UK tax treatment is a meaningful advantage for retail traders;
• An active short-term trader: spread betting is designed for short-term directional trades (intraday to a few weeks) – the fixed expiration and overnight financing costs make it unsuitable for long-term holding;
• Looking for tax-efficient short-term speculation: the CGT exemption is genuinely valuable for UK retail traders who would otherwise pay tax on CFD or share trading profits;
• Hedging an existing portfolio: spread betting can be used to short specific exposures (e.g., to hedge a long stock position) without selling the underlying holdings;
• Trading on margin in your home currency: spread bets are always quoted in your account base currency, avoiding FX conversion costs that apply with CFDs;
• An experienced trader who understands leverage: spread betting’s leverage requires a solid understanding of margin, position sizing, and risk management.

Spread betting probably isn’t right for you if you are

• A long-term investor: overnight financing costs and the leveraged decay make spread betting structurally unsuitable for buy-and-hold strategies – stick to direct share dealing, ETFs, or tax-efficient wrappers like ISAs or SIPPs;
• A complete beginner: spread betting’s leverage and complexity are genuinely dangerous for inexperienced traders – start with unleveraged investing (ETFs, fractional shares) and build experience before considering leveraged products;
• Wanting underlying ownership: spread betting confers no shareholder rights, no voting rights, and no dividends (only dividend adjustments) – if you actually want to own the underlying asset, buy the shares directly;
• Located outside the UK or Ireland: spread betting is effectively unavailable to most non-UK/Irish residents, and even where accessible offshore, the tax advantages don’t transfer to your home country;
• Risk-averse or saving for important life goals: spread betting can lose money very quickly – it’s not appropriate capital for retirement savings, emergency funds, or money you’ll need within the next few years;
• Looking to use losses to offset other taxes: since spread betting losses aren’t tax-deductible, CFDs may be a better choice if you anticipate needing tax loss harvesting.

If you’re uncertain whether spread betting is right for you, consider speaking with a qualified financial adviser before opening an account – particularly if you’re considering allocating a meaningful portion of your savings to leveraged trading.

Bottom line

eToro offers a broad range of investment products, but spread betting is not currently part of its offering – and the company has not announced any plans to add it. The only derivative product available on eToro is the CFD. If you’re specifically looking for spread betting, there are several solid alternatives – particularly in the UK and Ireland, where the instrument is most accessible.

Spread betting can be profitable due to its leverage effect, but the same leverage that amplifies gains also amplifies losses just as quickly. Without proper risk management – and despite negative balance protection requirements at most UK-regulated brokers – significant losses can occur very rapidly. This is genuinely one of the riskier retail-accessible products in financial markets, and should be approached with caution and only with capital you can afford to lose.

For a recap of the main alternatives we covered:

• Pepperstone: competitive pricing and broad regulatory coverage, particularly strong for active forex traders;
• FxPro: 430+ instruments via the FxPro EDGE account (UK residents only);
• IG: the original spread betting firm (since 1974), broad product range, no minimum deposit.

If you’re considering spread betting, we hope this article has helped clarify the basics. Please note that this is for informational purposes only and should not be construed as financial advice. Always conduct your own research and due diligence – especially with leveraged products of this nature.

Good luck with your investments.

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