Interactive Brokers is among the most established and technically capable brokers available, operating since 1978. It suits experienced traders while also offering simpler entry points for newcomers, with access to a wide range of assets across global markets.
If you are reading this, you are likely interested in spread betting, a leveraged derivative that magnifies both gains and losses. It is a high-risk product available in only a handful of jurisdictions, principally the UK and Ireland, and it is prohibited in the US.
So can you spread bet through Interactive Brokers? Below we explain what spread betting is, its advantages and drawbacks, whether IBKR supports it, and which alternatives do.
Risk warning: spread betting is a leveraged product carrying a high risk of rapid loss. The majority of retail investor accounts lose money trading these instruments.
Does Interactive Brokers offer spread betting?
No, Interactive Brokers does not offer spread betting. IBKR provides a broad derivatives range, including futures, options and CFDs, across 170 markets in 40 countries, but spread betting is not among them, and the company has announced no plans to add it. UK clients are served by Interactive Brokers (U.K.) Limited, regulated by the FCA (Financial Conduct Authority).
The closest equivalent available at IBKR is CFDs. Like spread bets, CFDs let you take a position on price movements without owning the underlying asset, settling the difference between the opening and closing price.
There are meaningful differences between the two, though:
- Position sizing: with a CFD you trade a number of units or contracts. With a spread bet you stake an amount per point of price movement, so your profit or loss is the price change multiplied by your stake.
- Costs: CFDs typically carry an explicit commission on share trades alongside the spread. Spread betting is usually commission-free, with the provider’s margin built entirely into a wider spread.
- UK tax treatment: this is the decisive difference for most users. Spread betting profits are generally free from capital gains tax (CGT) and stamp duty for UK residents, whereas CFD gains are subject to CGT. That said, losses on spread bets cannot be offset against gains elsewhere, and tax treatment depends on individual circumstances and can change.
If you are considering CFDs instead, bear in mind they are complex instruments unsuitable for many investors. Your capital is at risk and you should never trade money you cannot afford to lose entirely.
Futures are another IBKR instrument with some similarity, involving an agreement to buy or sell an asset at a set price on a future date. The key distinction is settlement: some futures contracts can require physical delivery of the underlying asset, whereas spread bets always settle in cash.
If you mainly want to invest for the long term, Interactive Brokers also offers UK clients a Stocks and Shares ISA, which shelters gains from tax without leverage.
Interactive Brokers alternatives for spread betting
Pepperstone
Founded in 2010 in Melbourne, Pepperstone now serves more than 900,000 traders with access to more than 1,350 CFDs. The platform covers forex, indices, commodities, shares, ETFs, and cryptocurrencies, with spread betting available to UK clients. It is regulated by the FCA in the UK, with FSCS protection up to £85,000, alongside ASIC, CySEC, BaFin, and DFSA elsewhere. US clients are not accepted. Pricing is competitive, with platform choice across MT4, MT5, cTrader, and TradingView. Read our full Pepperstone review for more detail.
CFDs and spread betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.6% of retail investor accounts lose money when spread betting and trading CFDs with Pepperstone UK.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
FxPro
An FX and derivatives broker founded in 2006, regulated by the FCA (UK), CySEC (Cyprus), FSCA (South Africa), and SCB (Bahamas). According to its help centre, FxPro offers spread betting accounts with no commission (you pay the spread, with a small mark-up, plus any swap) to UK-resident clients of FxPro UK Limited, which is regulated by the FCA. Its platforms include MT4, MT5, cTrader, TradingView and the FxPro app. UK clients are covered by FSCS protection up to £85,000.
IG
Founded in 1974, IG says it invented spread betting and remains one of the largest providers in the market. According to its spread betting page, you can spread bet on more than 17,000 markets, including forex, indices, shares and commodities.
Spread betting carries no commission, with costs built into the spread. IG is regulated by multiple top-tier authorities, including the FCA, FINMA, BaFin, ASIC and MAS, and is listed on the London Stock Exchange (FTSE 250), which means it publishes audited accounts. UK clients benefit from FSCS protection up to £85,000. IG states that 70% of retail investor accounts lose money when trading spread bets and CFDs with it.
Pros and cons of spread betting
Pros
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You can bet on prices falling as well as rising
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Full market exposure for a fraction of the asset's price, thanks to leverage
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UK profits are generally free from capital gains tax and stamp duty
- Usually no commission, with costs built into the spread
Cons
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Highly speculative: leverage magnifies losses, and most retail accounts lose money
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Losses can't be offset against capital gains for tax purposes
- You don't own the underlying asset, so you get no voting rights or similar benefits
Key points to consider when choosing a spread betting broker
Having covered the alternatives, here are the factors worth weighing when selecting a provider:
- Spreads: spread betting accounts are typically commission-free, with the provider profiting from the gap between bid and offer. That makes the spread your primary cost, so compare it across the instruments you actually intend to trade. Note that spreads widen during volatile conditions and outside main market hours.
- Regulation: verify the provider is authorised by the FCA and check whether FSCS protection up to £85,000 applies to your account. This covers provider failure, not trading losses.
- Risk management tools: check whether guaranteed stop losses are offered. Standard stops can slip in fast-moving markets, whereas guaranteed stops hold your exit price, usually for a premium. Also confirm negative balance protection is in place, which prevents you owing more than your account balance.
- Instrument range: since the underlying asset drives your outcome, a broader range gives you more scope, though it is worth being disciplined about trading only what you understand.
- Platform and execution: reliability matters more than features. A platform that fails during a volatile session can be materially costly on a leveraged position.
- Customer support: responsiveness and availability during the hours you trade.
Bottom line
Interactive Brokers is one of the most established brokers available, with an exceptional range of instruments, but it does not offer spread betting and has signalled no plans to add it. If spread betting specifically is what you need, the alternatives above, Pepperstone, FxPro and IG, all provide it to UK clients under FCA regulation.
A word of caution before you proceed. Spread betting is among the highest-risk products available to retail investors. Leverage magnifies losses exactly as it magnifies gains, and the published figures are stark: the majority of retail accounts lose money trading these instruments, 70% at IG and 73.6% at Pepperstone UK, for example. The tax advantage in the UK is real, but it only matters if you are profitable, and most people are not.
If your objective is building wealth over time rather than short-term trading, spread betting is the wrong tool. A diversified portfolio of low-cost index funds held within a Stocks and Shares ISA delivers the same tax-free treatment on gains, without the leverage that makes spread betting so unforgiving.
This article is for informational purposes and does not constitute financial advice. Do your own research and due diligence, particularly with an instrument carrying this level of risk, and never trade money you cannot afford to lose.
FAQs
What is Interactive Brokers?
Interactive Brokers is a well-established broker founded in 1978, listed on Nasdaq and part of the S&P 500 since August 2025, with more than 5.5 million client accounts. You can trade stocks, bonds, ETFs, forex, funds, commodities, futures, options and, in some countries, cryptocurrencies. New clients can also get free IBKR stock through its referral programme: $1 of IBKR stock for every $300 of net deposits, up to $1,000.
Interactive Brokers operates worldwide and gives you access to 170 markets in 40 countries. Although you can find CFDs or futures among the long list of tradable financial instruments, you cannot find spread betting on the Interactive Brokers platform.
What is spread betting?
Spread betting is a derivative: a contract whose value comes from an underlying asset, like currencies or stocks. Derivatives are frequently used to hedge positions or gain leverage and speculate about the price of the underlying asset.
In a nutshell, spread betting lets you bet on the price movement, up or down, of an underlying asset. When you close the bet, your profit or loss is the change in price, in points, multiplied by your stake per point.
When spread betting, you do not acquire the ownership of the underlying asset, and leverage your position. This makes this type of investment risky, since you will gain full market exposure to the underlying asset, while investing only a fraction of the price, magnifying your profit and loss.
For example, say a share trades at 100 points and you think it is overvalued. You sell (go short) at £10 per point. If the price falls to 95, you close with a profit of £50 (5 points × £10). If it rises to 105 instead, you close with a loss of £50. Spreads and overnight funding costs reduce your result in both cases.
