If you want to spread bet on Bitcoin or other cryptocurrencies here are a few things you need to know.
First thing first, you need a spread betting broker that offers Bitcoin. The major spread betting brokers currently offer cryptocurrency trading. You can compare FCA regulated brokers that offer cryptocurrency trading here, but if you only want to spread bet on Bitcoin here are the spread betting brokers currently offering cryptocurrencies:
- IG – offer Bitcoin, Ethereum, Ripple, Bitcoin Cash & Litecoin.
- ETX Capital – just Bitcoin
- Spreadex – just Bitcoin – Read our Spreadex Review…
- City Index – just Bitcoin
Advantages of spread betting on Bitcoin
- No tax on profits from Bitcoin spread betting
- Spread betting brokers are regulated by the FCA
- Trade on leverage
- With spread betting you bet a certain amount per point rather than invest an amount. So you can have more exposure than your risk capital allows.
- Limit risks with guaranteed stops
- When you spread bet on Bitcoin you can use a guaranteed stop to limit your risk even when the market is closed. So if the market crashes over the weekend you are still protected.
Disadvantages of spread betting on Bitcoin
- Leverage is very risky
- As well as being an advantage using leverage when you trade is risky because you can lose far more than your deposit. Especially with a very volatile and unprecedented market like cryptocurrencies.
- Spreads are wide
- Overnight financing is expensive
- Daily rolling spread bets will have an overly expensive financing rate for the same reason as the spreads being wider than usual. You can mitigate this by using a quarterly spread bet with a longer expiry date, but the cost of carry will mean that the price is higher than the market.
Good Broker Guide Featured Brokers
|Saxo Capital Markets||ETX Capital||Plus 500||IG Index||Spreadex|
| Read Expert & Client Saxo Reviews
|| Read Expert & 30+ In Depth Client ETX Reviews
|| Read Plus 500 Reviews
CFD Service. 80.6% lose money
| Read Expert & 3+ Client IG Reviews
|| Read Expert & 50+ Client Spreadex Reviews
|Visit Saxo||Visit ETX Capital||Visit Plus 500||Visit IG||Visit Spreadex|
Looking for institutional broker? Compare prime brokers here
Richard started the Good Broker Guide in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously acting as multi asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2000.