Spread betting might be an attractive option if you live in Australia and wish to trade tax-efficiently. Even though you can still trade stocks, forex, gold, and oil – you won’t pay tax on your profits. That is because Australia has included spread betting in gambling since 2010, tax-free.

This guide looks at the best spread betting platforms in Australia. We’ll walk you through how spread betting works and how to get started.

Best Spread Betting Platforms Australia List

1. Pepperstone – Best Spread Betting Platform Australia for Advanced Traders
2. IG – Australia Spread Betting Platform With 17,000 Markets
3. Markets.com – Best Spread Betting Platform Australia for Beginners
4. CMC Markets – Experienced Spread Betting Platform Australia

Best Spread Betting Platforms Australia Reviewed

Tax-free spread betting is available on all in Australia spread betting platforms – but when choosing a provider, you need to consider many factors.

The platform should specify what assets are supported, the minimum trade size, commissions, payments, and customer support.

Here are the best spread betting brokers in Australia to help you clear the fog.

1. Pepperstone – Best Spread Betting Platform Australia for Advanced Traders

For advanced traders in Australia, Pepperstone is the best spread betting platform. As well as CFDs, forex, and spread betting, this top-rated provider also offers spread betting.

In comparison to the other platforms, Pepperstone is better suited to more experienced investors. Spread betting platforms, for instance, are compatible with MT4-MT5 and CTrader. Pepperstone Trading accounts can also be connected to these platforms.

Each includes advanced trading tools, indicators, customized charts, and technical indicators. There are also thousands of financial instruments available on Pepperstone as well. All assets are covered, including shares, indices, forex, hard metals, US Treasury notes, and energy.

Pepperstone charges different spread betting fees based on the type of account you choose. With a ‘Standard’ account, there is no spread betting commission. Spreads take care of everything. You can trade most markets without any spreads if you choose the ‘Raw’ account.

However, a commission of £2.29 will be charged per slide. Pepperstone allows you to deposit funds via debit-credit cards, bank transfers, or PayPal. The company has nearly 90,000 clients worldwide and is authorized and licensed by the FCA.

Pepperstone fees:

Your Money Is At Risk.

3. IG – Australia Spread Betting Platform With 17,000 Markets

The online brokerage firm IG has several divisions in the investment industry and is a renowned and trusted company. This category includes CFDs, spread betting, forex, and traditional shares and funds. IG also offers more than 17,000 spread betting markets.

In addition to forex, indices, and shares. Spread betting markets offer long and short positions that can be leveraged. The maximum leverage for retail clients is 1:30.

The limits on IG accounts are much higher for professionals. For example, betting on currency pairs, indices, and commodities accounts for over 1:222. Furthermore, IG's Negative Balance Protection protects you from losing more than your account allows when entering leveraged positions.

Spread betting with IG is commission-free. IG's spreads, however, tend to be very competitive, so keep an eye out for them. Indexes and shares, for instance, can be traded for 0.1 points, commodities for 0.3 points, and forex for 0.6 points.

If you believe they can meet your spread betting needs, trading directly through IG's website is an option. There is also a mobile app available for Apple and Android devices. The minimum deposit for this top-rated spread betting site is $250. Deposits can be made via bank transfer or debit card.

IG fees

Your Money Is At Risk.

4. Markets.com - Best Spread Betting Platform Australia for Beginners

Markets.com offers an online trading platform for beginners. Invest online with our jargon-free and easy-to-use trading platform.

The company offers standard CFDs as well as spread betting. More than 2,000 stocks are covered, in addition to 67 currency pairs, 28 commodities, 40 indices, and 60 ETFs. All of these markets are allowed leverage according to regulations.

If you want to try spread betting, you can use Markets.com's free demo account. In this way, you won't have to risk your money. Guides and explainers are also available in the platform's 'Introduction to Trade' section.

You will be charged a spread betting fee based on your chosen market. However, you do not have to pay commissions when trading forex, commodities, or indices. For example, Markets.com reports spread on EUR/USD is 0.90 pips, gold is $0.50, and spot crude oil is $0.05.

If you are considering stocks, consider a commission as well. It costs $10 per slide; you'll have to pay $10 to open and $10 to close a stock trade - plus the spread - regardless of how much you stake. Furthermore, Markets.com provides instant account opening, accepts Visa and MasterCard deposits, and is FCA-regulated.

Markets.com fees

Your Money Is At Risk.

5. CMC Markets - Experienced Spread Betting Platform Australia

The broker CMC Markets was established in 1989. CMCX is a regulated broker on the London Stock Exchange.

Trading bitcoins, cryptocurrencies, and forex are possible on the site. The broker may not be able to assist traders in other asset classes, such as bonds, real stocks, and futures.

Its spread betting platform allows you to profit from the financial markets without paying taxes. Forex, indices, cryptocurrencies, commodities, shares, and treasuries are some of the markets on which you can spread bet.

CMC Markets offers a wide range of stock CFDs and ETF CFDs. Stock CFD trades at CMC Markets are charged $0.002 per share. CMC Markets does not charge account or deposit fees, so comparable non-trading commissions.

CMC Markets fees

Your Money Is At Risk.

Best Spread Betting Platforms Australia - Fees & Leverage Comparison

Spread Betting Explained

What is Spread Betting?

In spread betting, you try to predict the direction of a financial market without owning the underlying security. Placing a bet instead allows you to predict the security's price movement. Companies that offer spread betting quote the bid and ask prices (also known as the spread), and investors decide whether to buy or sell the underlying security.

Rather than owning a security, spread betting involves speculation about its price movement.

Spread trading differs from that. By taking opposite positions in two (or more) different securities, you profit if the price difference between them decreases over time.

Regulation

The Victorian Supreme Court has ruled that contracts speculating on share indices and commodity prices are legal. However, when they were first marketed by Melbourne company IG Australia in 2002, spread betting contracts attracted the ire of the NSW Government.

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Pros and Cons

Spread Betting Benefits

Long/Short

A rising or falling price can be used as an investment tool. However, shorting traded stocks requires borrowing the stocks, which can be time-consuming and expensive. Short sales can be simplified with spread betting.

No Commissions

As a result of offering spreads, the brokers make money. Furthermore, a commission-free trading environment allows investors or traders to easily assess the size of their positions and monitor their trading costs.

Tax Benefits

Spread betting may be considered gambling in some tax jurisdictions, so realized gains may be taxed as winnings instead of capital gains depending on the jurisdiction. Therefore, investors should keep records of their spread betting investments and consult an accountant before making their tax returns.

Limitations of Spread Betting

Margin Calls

Investors unfamiliar with leverage may experience margin calls if they take positions too large for their accounts. As a result, traders should never risk more than 2% of their investment capital (deposit) on one trade, and they should always know exactly what their position is worth before they enter the trade.

Wide Spreads

During volatile times, spread betting firms may widen their spreads. To prevent stop-loss orders from being triggered in the future, higher trading costs are incurred. Therefore, it is very important to avoid placing orders before company earnings announcements and economic reports are released.

Options Assets

To find the right spread betting platform in Australia, you need to consider the markets the broker offers. Most brokers offer the following markets:

• Shares: UK and overseas stocks
• Hard Metals: Gold, silver, and platinum
• Energies: Oil, natural gas
• Forex: Major, minor, and exotic currencies
• Indices: FTSE 100, Nasdaq 100,Dow Jones 30, S&P 500.

Platform & Usability

Because spread betting is a new type of trading, you are looking for a suitable platform for newcomers. You should choose a platform that offers you the best user experience based on your experience level. For example, new entrants may not necessarily need advanced trading tools or jargon.

The mobile application and the main website should make it easy to purchase and sell. Moreover, with spread betting, one can enter or exit a position while they are on the move.

Trading Tools & Features

There are several trading tools and features that are available through spread betting platforms in Australia, some of which are as follows:

Leverage

Traditional stock trading platforms do not offer as much leverage as spread betting platforms. Using this method, as we briefly discussed earlier, you can increase the size of your position. There is, however, a limit imposed by the FCA.

Our favorite spread betting platform in Australia, Pepperstone, allows you to trade major forex markets with a leverage of 1:3.

By trading GBP/USD at £10 per point, the position would increase to £300 per point. Therefore, if you gained 20 points on this trade, your profit would increase from £200 to £6,000.

For traders looking for higher leverage, Pepperstone offers leverage up to 1:500 on major pairs. Before choosing a spread betting platform, verify that it offers Negative Balance Protection. If it does, you can avoid losing more than your trading balance.

Risk Management

Spread betting, which is riskier than conventional stock investing, should be managed using a platform that has risk management tools. Also, we discussed stop-loss orders, which are a common feature on most platforms.

If you lose a certain amount on a spread betting trade, the trade will automatically be closed. For example, if you stake £5 per point and limit your losses to £50, you can set a stop-loss order of 10 points. You will never lose more than you can afford with Negative Balance Protection.

Education, Research & Analysis

Pepperstone offers many educational tools to help you become a better trader, the best spread betting platform for beginners. Spread betting guides cover risk management strategies and potential spread betting strategies. There is also an app dedicated to investing, which provides mini-courses on everything related to trading.

Payments

You will likely have to use real money even if you start with a demo account. Therefore, make sure the spread betting broker you choose supports your preferred payment method.

Generally, spread betting platforms accept both debit and credit cards. Moreover, most online retailers today accept e-wallets, which are also instant and secure. As an alternative, if you deposit through a traditional method, it may take the bank a few days to process your deposit.

Moreover, you can find out if any fees are associated with your chosen payment method. Pepperstone, for instance, offers no withdrawal or deposit fees. However, for withdrawals of less than £100, ETX Capital, for example, charges a fee of £10.

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Spread Betting Strategy

Spread betting is a strategy used by traders around the world. When prices decline, long-term investors may exit the market quickly, while short-term investors move slowly. Others use technical expertise, dig into raw data, and trade based on instinct and economic trends. It doesn't matter what strategy works for you at the moment - there is no right or wrong answer.

You can learn more about trading strategies if you understand some of them. No matter what you choose to do, learning a few spread betting strategies can help you get started. By doing so, you will be able to increase your trading capital gradually.

You might want to expand your spread betting business to increase your earnings.

To increase their chances of success, spread traders from all walks of life utilize some of the most popular betting strategies. Please see the menu below for more information.

Scalping

Scaling has been one of the most popular trading strategies during the early stages. The purpose of scalpers is to take small profits quickly, so they are less vulnerable to price drops. They can accumulate substantial money by making a series of smaller trades over time.

By scalping individual profits during the trading day, the trader preserves capital, creates a steady income stream, and limits downside exposure.

One of the greatest strengths of scalping is its greatest weakness; traders become frustrated when they must close trades that generated hundreds of PIPs to their advantage at such an early stage of the trade. New traders can benefit from trading on multiple short-term bases to get started without risking their capital.

To be profitable with scaling, traders must constantly open and close their positions about the market while incorporating the high trading costs involved with this strategy. Because of this, spread bettors must be hands-on. As a result, trading long-term has the potential to be more stressful.

Market Trends

The following of market trends is another common strategy used by spread bettors. They take advantage of price movements after several factors trigger them. While preserving low transaction costs, this method offers tremendous potential for gains. Typically, scalping takes over several minutes, but this method occurs continuously throughout the day.

Trends are best traded when a news story breaks, an announcement is made, and the markets react to the announcement. At the beginning of a volatile period, traders can identify the start of a trend in either direction and determine which position to take to take advantage of its dynamism. By contrast with scalping, this strategy allows you to open a position slightly before the rest of the market and profit from the market's reactions as it moves on-trend.

Traders can choose from a variety of spread betting strategies and variations. Spread betting can be consistently profitable when you develop a solid trading strategy, but it's up to each trader to decide what works for them.

Reversals

Reverse traders use graphical performance data to determine when a market or index is likely to reverse based on perceived overpricing or underpricing. Over a recent period, upper and lower limits of an index should be evident from the performance of the market. In order to profit from the price corrections, you should monitor the index movement in a reversals trading strategy as the market moves towards either of the price limits.

The popularity of market reversals is due to the fact that they are a low-risk, reactive strategy that does not try to predict the market but rather reacts to it. Spread betting, for instance, allows you to profit from price corrections without entering the market too early, minimizing potential losses and reaching a happy medium in terms of profits.

Break-outs

It is possible to determine where a price is about to break through prior boundaries with spread bets on breakouts. By doing so, you can take advantage of strong price movements. The strategy allows an index to consecutively breach its previous upper limits twice or more. Thus, the market is extremely bullish, indicating future gains. It can also be done if an index (or other assets) breaches its previous lower limits.

A stop loss should be placed at the previously defined upper limit when trading stocks in such a strategy to avoid the negative impact of a failed price breakout. Consider, however, a reactive strategy (the index has already trended positively when the bet is placed). The limited downside risk is involved in this case. In this case, the trader is likely to have locked in his profit and moved on to the next one.

Spread betting strategies can help you improve your trading consistency and structure. However, no single strategy or combination of strategies can guarantee success. Rather than using a scattergun approach, develop a systematic approach that makes generating more frequent, profitable spread trades easier.

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

How To Get Started With A Spread Betting Platform

After reading this Pepperstone review, you should now be aware of all of the platform's key features and key characteristics. So now, let's take a look at how it works.

Step 1: Open a Trading Account and Verify Your Identity

Click "Create Account" and enter your email address. It only takes a couple of seconds to sign up. If you already have a Google, Facebook, or Apple account, you can sign up for Pepperstone.

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Step 2: Verify ID

Pepperstone, which the FCA regulates, must verify the identity of each customer. If you do not have a passport or a driver's license, you can upload a copy of your bank statement, utility bill, or other proof of residency (e.g., a utility bill or bank statement).

Step 3: Deposit Funds

A minimum deposit of twenty pounds is required when you open an account with Pepperstone. You can deposit funds with debit and credit cards and wire transfers. Simply click 'Fund my account' to do so.

Step 4: Start Trading with Spread Betting

Once you fund your Pepperstone account, your account will become active. Next, discover new investment opportunities in the Discover tab by searching for instruments you wish to trade or new investment ideas. Then, to execute your trade, click on the Buy button and fill in the parameters and amount.

Conclusion

The best spread betting brokers provide traders with an alternative to the more conventional trading platforms available. For example, when you use CFD or forex trading platforms, you will have to pay taxes on your profits. Instead, you can keep 100% of the profits if you trade through a spread betting facility.

Pepperstone offers thousands of spread betting markets. It is possible to leverage these spread betting markets.

Pepperstone - Overall Best Spread Betting Broker In Australia

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs

Is spread betting risky?

With spread betting, you can lose as much as 200%, 300%, or 100% within minutes; thus, spread betting is riskier than most other trading methods, causing more problems than a trading capital loss.

Is spread betting legal in Australia?

The Victorian Supreme Court has ruled that contracts speculating on share indices and commodity prices are legal. However, when they were first marketed by Melbourne company IG Australia in 2002, spread betting contracts attracted the ire of the NSW Government.

How do spread betting platforms make money?

The majority of spread-betting companies' revenues come from charges on executed trades. Spread bets typically include the margin and the usual market spread, so a stock quoted at $100 to buy and $101 to sell will be quoted to sell at $99 and to buy at $102 in a spread bet.

Which is the best spread betting platform in Australia?

Pepperstone emerged as the top spread betting broker after we reviewed dozens. This spread betting platform offers thousands of spread betting instruments, commission-free trading, and a minimum deposit of only £20.

Is spread betting taxable in Australia?

In contrast to traditional share trading, spread betting does not involve purchasing the underlying product, so there is no stamp duty to pay. Rather than betting on whether the price of a product will rise or fall, you bet on whether it will rise.