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If you’re looking for a tax-free trading method that lets you open positions for stocks, commodities, forex, and other instruments, then look no further than spread betting. Inherently, profits from spread betting in Canada are recognized as winnings of the bet and are exempt from certain tax requirements.

This guide will help you find the best online spread betting platform for you through small spread betting platform reviews. If you’re also looking for a forex spread betting platform, we’ll look into key features and metrics.

Best Spread Betting Platforms Canada List 2022

If you’re already keen on finding your best spread betting platform, here’s a list of what we will review.

  1. Pepperstone – Most Integrated Spread Betting Platform Canada
  2. Capital.com – Overall Best Spread Betting Trading Platform Canada
  3. IG – Best Spread Betting Platform with Copy Trading Canada
  4. Markets.com– Best Low Commission Spread Betting Platform Canada
  5. CMC Markets – Well Established Spread Betting Platform Canada

Best Spread Betting Platforms Canada Reviewed

One of the most important things to look for is how compatible the broker is with your trading strategy and preferences. The best spread betting trading platform can be different per person.

Below is a best spread betting platform review where we’ll go through five different forex spread betting platforms.

1. Pepperstone – Most Integrated Spread Betting Platform Canada

spread betting platform

Pepperstone is an Australian-based broker and trading site that’s the first on our list of the best spread betting platforms. Aside from indices, stocks, and commodities, Pepperstone also offers forex trading, which makes it great forex spread betting platform. 

What sets Pepperstone apart from other brokers is how well integrated it is as a forex spread betting platform. Experienced traders familiar with the MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and TradingView will find much value in Pepperstone, especially with their 24/7 customer support. 

Pepperstone fees:

Fee Amount
Stock trading fee Variable spread
Forex trading fee EUR/USD spread of 0.13 pips average
Crypto trading fee Variable spread
Inactivity fee Free
Withdrawal fee Free

Pros:

  • Spreads without markups (average EUR/USD spread of 0.13 pips)
  • Integrations with powerful platforms such as MetaTrader 4, MetaTrader 5, and cTrader
  • Tools for advanced traders via Autochartist
  • Fast 25-millisecond average execution speed
  • ECN pricing model

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Cons:

  • No Pepperstone proprietary platform
  • ETFs are not available

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Cryptoassets are speculative and carry high volatility levels. Therefore, always consider the risks involved. 

2. Capital.com - Overall Best Spread Betting Trading Platform Canadabest spread betting platform

Our overall best spread betting trading platform is Capital.com due to its easy-to-use interface, zero commissions, and low spreads. The broker is also known for its forex CFD trading, so it can be considered the overall best forex spread betting platform.

Most users usually look for a seamless trading experience with simple but intuitive tools. Capital.com provides just that as a spread betting best platform and a great all-in-one trading platform in general. Stocks, forex, indices, commodities, and even cryptocurrencies are among the tradable instruments of the broker.

Capital.com also has a demo spread betting platform that lets users trade with virtual equity. You can also consider Capital.com as the best spread betting platform for beginners since it is usually recommended that newbies try demo trading first.

Capital.com fees

Fee Amount
Stock trading fee Spread. 1.83 pips for Amazon.
Forex trading fee Spread. 0.6 pips for EUR/USD.
Crypto trading fee Spread. 100 pips for Ethereum/USD.
Inactivity fee Free
Withdrawal fee Free

Pros:

  • Access to thousands of share CFDs with 0% tight spreads
  • Integration with MetaTrader 4 trading platform
  • Access to Investmate educational trading app
  • More than 75 technical indicators
  • Access to a demo account
  • Regulated by FCA and Cyprus Securities and Exchange Commission.
  • Broker with NASDAQ exchange as well as NYSE and other global markets
  • Wide range of payment options, including credit cards and debit cards, and bank transfers
  • 24/7 customer support

Cons:

  • Can’t set price alerts on the web platform
  • Only CFD and real stock available

Your money is at risk.

3. IG - Best Spread Betting Platform with Copy Trading Canada

spread betting platform reviews

The IG markets online broker is third on our list to find the best online spread betting platform. Not only is the broker the world's number one CFD provider, but the award-winning platform also has great spread betting features as well. Over 17,000 markets to trade from with IG, giving you plenty of options to diversify your spread betting portfolio.

IG is one of the best online spread betting platforms because of its key integrations with MT4, L2 dealer, and ProRealTime. These are well-known third-party trading software with different tools depending on what the trader is looking for. However, they are more advanced and offer more cutting-edge indicators and trading features.

As one of the best forex spread betting platforms too, IG spread also offers over 80 currency pairs for its spread betting trading accounts.

IG fees

Fee Amount
Stock trading fee Commission. 0.10% per slide
Forex trading fee Spread. 0.6 pips for EUR/USD.
Crypto trading fee Spread. 38 minimum spread for Bitcoin.
Inactivity fee US$18 a month after 24 months of inactivity
Withdrawal fee Free

Pros:

  • MetaTrader 4 and ProRealTime trading integrations available
  • Offers trading for over 17,000 markets
  • Regulated by FCA and CFTC, NFA (US.)
  • Award-winning mobile app available
  • Up-to-the-minute analysis of trading
  • Algorithmic trading offered
  • HAs fast execution on a huge range of markets

Cons:

  • High share-CFD fees
  • No copy trading or back testing strategies available

Your money is at risk.

4. Markets.com - Best Low Commission Spread Betting Platform Canada

forex spread betting platform

Markets.com is a low-commission spread betting platform that's also great for beginners. They feature over 8,000 financial instruments, and most of these assets are tradable with zero commissions. In addition, thanks to the Knowledge Center, which is a page on the platform, users can easily learn the key mechanics of spread betting.

There are also personalized financial live-stream services that can be accessed on the Markets.com platform. It's called XRay, and it provides some vital decision-making news, expert views, and commentary directly from the Markets.com platform.

Markets.com fees

Fee Amount
Stock trading fee Floating spread (varies throughout the day)
Forex trading fee Floating spread (varies throughout the day)
Crypto trading fee Floating spread (varies throughout the day)
Inactivity fee US$10 per month after 3 months
Withdrawal fee Free

 

Pros:

  • Over 8,000 tradable financial instruments
  • Spread betting and CFD trading available
  • 0% commission on most assets
  • Exceptionally low spreads offered at high liquidity
  • Available dedicated streaming channel, XRay
  • 24/5 live chat and available phone support
  • Compatible with MT4
  • FCA-regulated broker

Cons:

  • Commission of US$10 per slide on stocks
  • No support for e-wallets

Your money is at risk.

5. CMC Markets - Well Established Spread Betting Platform Canada

best forex spread betting platform

Last but not least, CMC Markets is a well-established broker and one of the best spread betting platforms, thanks to over three decades of operations with more than 11,500 trading instruments under its belt. Spread bet trading is available for stocks, commodities, cryptocurrencies, and even treasuries for CMC Markets.

As one of the leading next-generation platforms, CMC shines in its trading tools and software. Users have over 115 technical indicators and drawings coupled with 70 chart patterns with 12 built-in chart types. These features and more have contributed to CMC Markets' multiple awards in the industry.

CMC Markets fees

Fee Amount
Stock trading fee 1-4 cent spreads for US shares.
Forex trading fee Spread. 0.7 pips for EUR/USD
Crypto trading fee None
Inactivity fee Monthly inactivity charge of €10
Withdrawal fee Free

Pros:

  •  FCA-regulated broker that strictly adheres to regulatory requirements
  • Complies with Client Assets (CASS) rules to ensure all client funds are protected
  • Over three decades of experience - established in 1989
  • Lots of execution control in order execution options
  • Supports chart analysis, including multiple chart types, over 115 technical indicators and drawing tools, a pattern recognition feature, and their chat forum community
  • Mobile trading available for Android and iOS
  • Offers extensive range of risk-management features
  • Dedicated 24/7 support

Cons:

  • Hefty inactivity fee
  • Limited customer support available

72% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. 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.

Best Spread Betting Platforms Canada - Fees & Leverage Comparison

After seeing our short reviews on our spread betting Canada platforms, we've constructed a table to help compare and contrast the different spread betting brokers.

  Pepperstone Capital.com IG Markets.com CMC Markets
Spread Betting Fees Spread. Average at 0.00013 for EUR/USD Spread. 0.00006 for EUR/USD Spread. 0.00009 for EUR/USD Floating spread (varies throughout the day) Spread. 0.00007 for EUR/USD
Inactivity Fee Free Free US$18 a month after 24 months of inactivity US$10 per month after 3 months Monthly inactivity charge of €10
Withdrawal Fee Free Free Free Free Free, £15 for international bank transfers
Leverage 1:30 1:200 1:200 1:30 1:30

Spread Betting Explained

Once you've found your best online spread betting platform, you might want to brush up on some key spread betting fundamentals. Concepts like financial spread betting, looking into forex spread betting platforms, and derivatives trading will be discussed.

What is Spread Betting?

best online spread betting platform

Spread betting is a method of derivatives trading that lets a trader speculate on the price movement of a particular asset. Unlike traditional trading methods wherein the underlying asset is held and owned, spread betting allows traders to take positions without explicitly owning the instrument.

This ultimately leads to a trading option that lets traders take up margin positions and a way to circumvent certain tax requirements that otherwise would be required. What's great about spread betting is that, like CFD trading, users can earn from upwards and downwards price movements.

Some of the best forex spread betting platforms, and best online spread betting platforms give great leverage options for spread betting. For example, if a trader wants to open a spread bet position on Amazon worth $1,000 with a 1:10 leverage, the margin requirement is just $100 to open the position.

Regulation

Although more popularly performed in the UK, Canada has had a growing number of best spread betting trading platforms in the past few years. In addition, because spread betting is a legal practice in Canada, many platforms have included spread betting products for their users.

But why can't spread betting earnings be taxed? For traditional or even CFD trading positions, which have been around for decades, earnings are usually subject to Canada's Capital Gains Tax (CGT) which requires 50% of earnings to be subject to tax based on the trader's tax bracket.

Since earnings from spread bet positions are considered winnings of a bet instead of actual capital earnings, they are not subject to CGT. Spread betting on any instrument does not give ownership of the underlying asset. It is also not a form of investing in the markets as the profits from spread betting are considered incidental gambling profits.

Pros and Cons

what is the best spread betting platform

Before you start trading with your best online spread betting platform, you might want first to understand the pros and cons of spread betting. Below, we have addressed some key benefits and drawbacks of spread betting.

The benefits of spread betting trading are:

  • Tax benefits – Residents of Canada can enjoy spreading tax-free betting. 
  • Trade both price directions – Spread betting allows you to speculate on the falling or the rising of an asset's price.
  • Access to leverage – With margin, you can open large positions with just a fraction of their value.
  • Zero commission - No need to worry about commissions when spread betting. The main cost to worry about is the bid-ask spread.

Some risks and disadvantages of spread betting trading include:

  • Margin calls - All spread betting trading positions have a guaranteed stop loss, meaning if the price of the assets hits the stop loss, the position is automatically closed whether or not you are at profits or losses.
  • High risks - There is a chance of losing your initial capital more easily, especially when markets are extremely volatile and prices fluctuate greatly.
  • Spreads - Usually, the spreads are the costs that spread betters incur, and the broker determines them. These can be high depending on the market's liquidity and other factors.
  • Fixed expiration dates - As a form of derivatives trading, spread betting positions have fixed expiration dates that require their users to choose what to do with the positions when the time comes.

67% 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.

Options Assets

Options trading is another derivatives trading method that gives traders the right to buy or sell an instrument at an agreed-upon date and time. The key difference between options trading and spread betting is the date requirement. However, they are similar in being speculative, leveraged, and have expiration dates.

Platform & Usability

Earlier, we mentioned how important finding the best spread betting trading platform for you can be. Given the different fees, features, commissions, and tools, you'll need to weigh a platform's ease of use and available instruments.

Trading Tools & Features

Since spread betting still involves real instruments like stocks, forex, and commodities, the same trading tools and indicator strategies will apply when trading. For example, if you're using spread betting for a day-trade position, you can use strategies like scalping and range trading just like you would for traditional methods.

Education, Research & Analysis

The research and analysis of particular trading instruments will play a role in the success of your spread betting experience. Depending on your trading strategy, you'll want to do different types of research per instrument. For example, if you want to day-trade tech stocks, you'll want to do both fundamental and technical research.

Particularly, spread betting may require precautions since derivatives trading differs from traditional positions. Mainly because spread betting positions will require a certain stop-loss price, you'll want to make sure that your trades have a low chance of diving to your stop loss to make a decent spread bet trade.

Mobile App and Device Compatibility

spread betting best platform

Most trading platforms already have mobile applications integrated with their systems, so consider your best spread betting trading platform that you can easily use on your mobile device. Since many markets like forex and cryptocurrencies operate 24/7, you'll want to find a good mobile app that is reliable and easy to use.

Payments

Your best online spread betting platform will need to have the payment methods that are most available to you. Generally, many forex spread betting platforms offer common payment methods like bank transfers or bank cards. In any case, what matters is that you can securely make your payments and that they are convenient to you.

67% 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

Formulating a great spread betting strategy may take trial and error and a lot of your research. A good spread betting strategy involves proper risk management and goal setting. 

Experience with trading CFDs or other derivatives trading methods can give you an edge in creating great spread bettings strategies. On the other hand, if you're new to trading and investing, you might want to look for educational material and look into some of the best online spread betting platforms with demo accounts to help you get started.

How to Get Started with A Spread Betting Platform

Once you've gotten the basics of spread betting, it's time to start and open an account. A step-by-step tutorial uses our recommended best overall spread betting platform, Capital.com.

Step 1: Open a Trading Account and Verify Your Identity

best spread betting platform review

67% 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.

First, head to the Capital.com website and press the Trade Now button. Next, fill in your email and password or register with an existing Facebook, Google, or Apple account. Afterward, you'll need to upload a valid ID such as a passport or driver's license, then wait for your account to be verified.

Step 2: Deposit Funds

With your account now fully verified, you can now fund your account. First, you'll need to identify what payment option to use for the deposit. Choose from methods such as bank cards, Apple Pay, PayPal, and more to be able to fund your account.

Step 3: Practice Options Trading on a Demo Account

demo spread betting platform

Before you start with a live account, it's important to test your spread betting trading strategies with the Captial.com demo account. Here, you can try different strategies to see which one you are most comfortable trading with.

Step 4: Start Trading with Spread Betting

best spread betting platform for beginners

Now that you have funded your account and tested your strategies, you can proceed to start spread betting trading on Capital.com. First, identify which asset you want to trade, how much leverage you want to use, and what type of position you want to open.

Conclusion

The best spread betting platforms usually offer easy-to-use interfaces, great payment options, low fees, and excellent customer support. 

If you want to start spread betting with zero commissions, try the Capital.com spread betting platform. Click on the link below to sign up and start trading our best and overall recommendation for spread betting trading!

Capital.com - Best Spread Betting Platform in Canada With Competitive Fees

best spread betting trading platform

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?

Spread betting is a leveraged derivatives product that derives value from an underlying asset. Derivatives trading is known to be risky, especially with the involvement of leverage, as investors can easily lose most if not all of their capital from large price fluctuations.

Is spread betting legal in Canada?

Yes, although most popular in the UK, spread betting is legal in Canada. It is an emerging option to trade shares, commodities, forex, and more.

How do spread betting platforms make money?

Spread betting platforms make money based on the discrepancy of the bid and ask prices. This discrepancy is known as the spread and is usually quoted by the broker.

What is the best spread betting platform in Canada?

The overall best spread betting platform in Canada based on our reviews is Capital.com as it offers a great user interface and value for most use-cases.

Is spread betting taxable in Canada?

Spread betting is tax-free in Canada. Unlike CFD trading, all spread trading profits in Canada are recognised as the winnings of a bet and are exempt from Canada's Capital Gains Tax (CGT).

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About Jose Rafael Aquino
About Jose Rafael Aquino

Jose Rafael Aquino is a Filipino writer and entrepreneur that specializes in finance, technology, cryptocurrency, and sports. Versed in the startup tech space, he has written for websites such as The GUIDON, StockApps, and BuyShares.

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