Tight Spreads and Low Margins

At Finspreads, we understand that keeping our spreads as tight as possible helps to keep dealing costs low, so you can maximise your profit potential.

We therefore offer consistently tight spreads on over 12,000 markets globally, including indices, shares, currencies, commodities and more.

We offer 1-point spreads on the four major indices, including the FTSE 100, Wall Street, Germany 30 and France 40 during market hours, whilst offering spreads from as low as 0.8 pips on EUR/USD and 1 pip on GBP/USD.

With Finspreads, you can enjoy tight spreads on the following markets:

• 1 point on UK 100, Wall Street, Germany 30 and France 40 during market hours
• EUR/USD from 0.8 points, EUR/GBP and GBP/USD from 1 point
• US and UK crude oil from 6 points
• Gold and silver from 0.4 points

Low Margins from 1%

Spread betting is a margined product, meaning that you only have to pay a small percentage of your total trade value (typically between 1% and 5%) in order to open a position with us.

By comparison, in conventional trading, say you wanted to buy £1,000 worth of HSBC shares, you’d need to pay the full value of your trade, ie £1,000 to open the position.

With spread betting on the other hand, you would only need to initially deposit a percentage of the total trade value (in this case 5%) in order to open a spread betting position, ie £50 to gain an exposure of £1,000 worth of HSBC shares.

Margined Trading Magnifies your Gains and Losses

This means that if the trade moved in your favour by 10% and you decided to take your profits, you would net a tax free* gain of £100, which is a return of 200% on your £50 deposit, even though the market only moved 10% in your favour. 

Margined trading helps to magnify your potential returns. At Finspreads, we offer low margins across all of our markets, enabling you to take a position with just a relatively small initial deposit.

Remember, however, that margined trading is a double-edged sword and whilst your profits can be magnified with spread betting, so can your losses. 

In the above example, if the trade had moved against you by 10%, you’d have ended up with a loss of £100, which would have meant that you would be required to deposit an additional £50 into your account to cover the loss, as you only initially deposited £50. 

So whilst we provide low margins, our clients must recognise that lower margins may also increase the risk that you could lose more than the funds you have in your account.

Powerful Risk Management Tools

At Finspreads we provide you with a range of powerful risk management tools to help you to manage your losses, such as guaranteed stop losses or Limited Risk accounts to help ensure that you do not need to deposit more funds than your initial deposit.

See our Risk Management section for more information.