Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading spread bets and 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.
Established 2009 | FCA Authorised | Client funds held with IG | Eligible FSCS protection up to £85,000
UK Spread Betting with Personal, Relationship Led Support
Guardian Stockbrokers offers FCA authorised UK spread betting with institutional-grade pricing, execution and liquidity, delivered via the IG Markets trading platform and supported by dedicated, relationship-led client service.
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Established in 2009, we work with retail and professional traders who value clear explanations, disciplined processes and ongoing personal support, without paying more for the same market access.
Call 020 7638 6996 or email newaccounts@guardianstockbrokers.com to discuss opening a trading account.
Spread betting is widely used by UK traders because it offers a simple way to trade financial markets, with pricing that includes the cost of the trade and profits that are generally exempt from Capital Gains Tax and Stamp Duty.¹
What is spread betting ?
Spread betting is a trading instrument that allows you to take advantage of opportunities in both rising and falling markets. You can open a position based on whether you think a market will rise or fall. If the position moves in your chosen direction, you will make a profit. If it moves in the opposite direction, you will make a loss.
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Your positions use leverage. This means that when you make a trade, you are only required to pay a small deposit rather than the full value of the trade. As a result, both profits and losses are magnified. Spread bets are available on instruments such as shares, indices, forex and commodities.
At Guardian Stockbrokers, we focus on helping clients understand how spread betting works in practice, including leverage, risk and position management, before they trade.
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Why spread bet with Guardian Stockbrokers
Guardian Stockbrokers provides spread betting for traders who want reliable market access combined with clear, accountable human support.
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Clients trade using the IG Markets platform for pricing, execution and liquidity, while working with Guardian for onboarding, guidance and ongoing support. This means you benefit from the scale and technology of a leading UK trading platform, with access to experienced professionals who understand your objectives and trading approach.
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Established in 2009, Guardian works with both retail and professional traders who value clarity, discipline and long-term relationships.
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What Guardian provides
Guardian is an FCA authorised UK stockbroker (FRN 492519) focused on helping clients trade with confidence. Support is delivered through a relationship led approach that includes structured onboarding, clear explanations of leverage and risk, guidance on order types and platform tools, and ongoing availability when markets are active or volatile.
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All support is provided alongside the trading platform.
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Trading platform delivery through IG Markets
To deliver spread betting efficiently and securely, Guardian uses the IG Markets trading platform. This gives clients access to a wide range of global markets, institutional grade pricing and execution, and robust trading technology across web and mobile devices, supported by established regulatory and custody infrastructure.
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Guardian clients trade on the same pricing and charges as trading directly through IG Markets. Guardian’s role is to add clarity, accountability and personal support alongside the platform, at no additional cost.
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Who Guardian is suited to
Guardian supports a wide range of traders, from those new to spread betting to experienced and professional clients.
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Many of our clients value having access to experienced professionals alongside trading technology, particularly when markets are active or conditions change. Others appreciate structured onboarding, clear explanations of risk and position management, and the ability to speak to someone who understands how they trade.
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Guardian is also well suited to traders who trade regularly, manage larger positions, or are considering, or already hold, professional client status and want a relationship-based service alongside the trading platform.
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Clients who prefer to trade independently can still use the full IG Markets platform through Guardian, with the option to access personal support whenever they choose.​
How does spread betting work ?
You are not actually buying the underlying instrument, such as shares in BP or an Index. You simply place a spread bet; on the direction you believe the future price of that instrument will move.
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Once you have decided which direction a market will move, long or short, you then place a bet based on the amount you want to make or lose per point movement. If the market moves in your chosen direction, you will make a profit and if it moves in the opposite direction, you will make a loss.
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​The profit or loss is calculated by multiplying the amount of points moved by the amount that you bet per point movement.
1 Choose a market
You need to choose what instruments you are going to trade; this could be based around your method of analysis whether fundamental or technical. A good place to start could be the level of risk, if you compare the risk of trading a single stock with low volatility against trading crude oil there is a stark difference. It is certainly best to take one market at a time, learn everything you can and feel comfortable trading, before you take on the next one.
Forex
Trade forex on a range of major, minor and exotic pairs. More 24 hour markets available than any other platform.
Other Markets
Trade on low spreads across more than 17,000 markets, with some available 24/7.
2 Find a trading opportunity
You never want to miss out on a trading opportunity, you can receive numerous daily reports including:
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Market daily report
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Upgrades and downgrades
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Week ahead
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Technical analysis reports twice a day
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There is also our breaking news service, crucial for taking advantage of event driven news, delivered by telephone, or emailed. Or utilise the platform with buy and sell signals, trade ideas and Reuters news these are just some of the platform's features that you will benefit from.
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3 What does it mean to trade long or short ?
One of the big differences, is the ability to still make a profit in a falling market. When trading, whether you trade long or short, will depend on which way you believe the market will move.
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Going long is when you believe the market price will increase over a certain period. If you felt that the electrical vehicle market was about to take off and Tesla would be at the forefront of this, you would take a long position.
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Going short is when you believe the market price will decrease over a certain period. If you believed that the rally in oil was over and it was about to decline, you would take a short position.
4 Spread
The spread is simply the difference between the buy price and the sell price.
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What is the spread?
Neither the buy price nor the sell price represents the exact value of the financial asset you are betting on (also known as the underlying asset). Instead, the buy price is slightly higher than this value, and the sell price is slightly lower.
In the above example, the real-world value of the FTSE would be halfway between the two prices, at 6500. The difference between the buy and sell prices is just 1.0 in this instance, which is a spread of one point.
How does the spread affect me?
The spread is essentially a fee that your provider charges to place your bet, and the narrower the spread, the better it is for you. Let us look at why.
To close a bet, you need to take the opposite action to when you opened it. So, if you open a bet by 'buying', you close by 'selling' and vice versa.
In our FTSE example above, if you 'buy' at 6500.5, you'll need to 'sell' at the same price or higher when you close the bet, or you'll make a loss. This means the underlying FTSE price will have to rise by one point before you break even.
5 Decide your bet size
You can set the amount you want to trade per point movement of the underlying instrument (there are minimum bet sizes). For example, you could be trading at £10 a point, this means for every point movement in the underlying instrument, you will either make or lose £10.
6 Leverage
You are using a leveraged product, which means when you trade you are only required to pay a small deposit and not the total value of the trade. Leverage means your profits or losses will be magnified. You should always be aware of your total trading exposure not just how much margin is required. So, with indices as an example, you could pay a small deposit of £100 (5%) and get £2000 total value of trading exposure (100%). This allows you to trade with 20x leverage (20:1 leverage ratio).
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7 Margin
To open a spread bet, you need to place a small initial deposit. It is also called the margin or deposit margin. In addition to your deposit margin, if your trade starts to incur losses that are higher than your deposit margin, you will be required to pay a maintenance margin. It is your responsibility to ensure you have adequate funds on account, however there will be a notification email sent to you, or an alert will be triggered on the platform, this is known as a “margin call” and the request will be to add funds to cover this amount on your account.
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8 Bet duration
The bet duration is the length of time before your position expires. All spread bets have a fixed timescale that can range from a day to several months away. You are free to close them at any point before the designated expiry time, assuming the spread bet is open for trading.
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Our spread bet durations include:
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Daily funded bets. These bets run for as long as you choose to keep them open, with a default expiry in the distant future. They offer our tightest spreads but are subject to overnight funding – so are generally used for short-term positions
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Quarterly bets. These are futures bets that expire at the end of a quarterly period – although they can be rolled into the next quarter if you let us know in advance. They have wider spreads, but lower funding costs that are built into the price, making them suitable for longer-term speculation
9 Risk management
Stop losses
Set a stop loss to close your position automatically if the market moves against you. Stop losses are free but your position may be closed out at a lower price than your order if the market gaps.
Take profit with a limit order
Set your limit on an instrument and your position will be automatically closed if that limit hits your level.
Guaranteed stop loss
Like a standard stop loss but guarantees that your order will be closed at the level requested by you. There is no cost to set up a guaranteed stop loss, But you will pay a small premium if it is triggered.
Trailing stop losses
No need to adjust your stop. A trailing stop will move with your profits. This allows you to potentially increase your profits as the price goes up whilst still retaining a stop loss at a set distance away. As with standard stop losses, trailing stops can be subject to slippage.
Negative balance protection
Negative balance protection ensures that you will never have a negative balance as our platform provider IG will always bring your balance back to zero at no cost to you.
Alerts
Go about your business and let the system notify you of any price changes. When an instrument reaches your chosen price you will be notified by email or text.
Other protections
In order to protect you from large losses, your positions will sometimes be closed out by the dealers/system. If your account equity (cash balance +/- running profit/loss) doesn’t cover your margin requirement. This is a margin call. Positions that are on margin call may also not be closed so it is your responsibility to monitor your positions and maintain enough margin at all times.
9 Closing your position
You can monitor all your trades price movements on your computer via the online platform or the trading apps on your smartphone or tablet. When you feel it is time to close your trade, click the position tab, select the position you wish to close and click ‘close’.
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You can also take the opposite position, if you have selected the ‘net-off’ option on the platform, rather than ‘force open’.
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Net off
In a netted off trade, an existing position would be automatically closed if the new position would cancel it out.
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Force open
Force open is a function on the trading platform which enables you to open a position in the opposite direction to an existing bet on the same market. The result would be a long and short position on the same asset, which can be a useful tool for hedging.
How to get started with spread betting
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If you are new to spread betting, getting started can feel unfamiliar at first. Taking time to understand how the product works and the risks involved is an important part of the process.
At Guardian Stockbrokers, we support clients by explaining how spread betting works in practice and helping them become comfortable with the platform before trading.
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1. Learn the basics of spread betting
Before trading, it is important to understand the fundamentals of spread betting, including how spreads work, the use of leverage, margin requirements and order types. Many traders begin by using educational materials and demo accounts to familiarise themselves with the mechanics of trading.
Guardian provides guidance on how these features work so clients can make informed decisions.
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2. Choose a spread betting provider
When choosing a spread betting provider, it is important to ensure the firm is authorised and regulated in the UK and offers access to the markets you wish to trade.
Guardian Stockbrokers is an FCA authorised UK stockbroker, with spread betting delivered through the IG Markets platform.
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3. Open a spread betting account
To start trading, you will need to open a spread betting account. This involves completing an online application, identity verification and an assessment of your understanding of leveraged products, as required by regulation.
Guardian is available to assist during the application and onboarding process.
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4. Fund your account
Once your account is open, you will need to deposit funds before trading. Funding options and minimum deposit requirements will depend on the account type and payment method used.
It is important to only trade with funds you can afford to risk.
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5. Choose the markets you want to trade
Spread betting allows you to trade a wide range of markets, including indices, shares, forex and commodities. Before trading, many clients take time to understand how different markets behave and how volatility can affect positions.
Guardian clients access markets through the IG Markets platform.
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6. Understand risk and position management
Successful trading involves understanding risk, position sizing and how leverage affects both profits and losses. Many traders use tools such as stop losses and limits to manage risk.
Guardian focuses on helping clients understand these concepts so they can trade responsibly.
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7. Place your first trade
Once you are comfortable with the platform and understand the risks, you can place your first trade. Many traders start with smaller position sizes and increase exposure gradually as they gain experience.
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Support from Guardian remains available throughout your trading journey.
Spread betting strategies
Spread betting strategies are methods traders use to speculate on the direction of price movements in the markets. Here are some common strategies, along with their pros and cons, and examples of when they may be most effective:
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1 Trend following strategy:
This involves identifying the direction of the trend and betting on that direction. Traders using this strategy look for the direction of the trend by analysing charts and technical indicators. They then place bets on the direction of the trend, either buying or selling.
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Pros: Trend following is a simple and easy-to-understand strategy. It is also suitable for both short-term and long-term trading.
Cons: Trend following can be risky as trends can reverse suddenly. It can also be challenging to identify the direction of the trend accurately.
Example: A trader might use this strategy to bet on the trend of a stock that has been consistently rising for the past few months.
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2 Breakout strategy:
This involves identifying a key level of support or resistance and betting on the direction of the breakout. Traders using this strategy wait for the price to break above or below the key level before placing their bets.
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Pros: Breakout trading can be very profitable if the price continues to move in the direction of the breakout. It can also be a low-risk strategy as traders can set stop-loss orders to limit their losses.
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Cons: False breakouts can occur, leading to losses. It can also be challenging to identify key levels accurately.
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Example: A trader might use this strategy to bet on the breakout of a stock that has been trading within a tight range for an extended period.
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3 Range trading strategy:
This involves betting on the price staying within a particular range. Traders using this strategy identify a range of prices within which the asset has been trading and place bets on the price staying within that range.
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Pros: Range trading can be a low-risk strategy as traders can set stop-loss orders to limit their losses. It can also be effective in markets with low volatility.
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Cons: Range trading can be unprofitable in markets with high volatility as prices can break out of the range suddenly. It can also be challenging to identify the range accurately.
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Example: A trader might use this strategy to bet on the price of a currency pair that has been trading within a narrow range for an extended period.
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4 News trading strategy:
This involves betting on the price movement of an asset in response to significant news events. Traders using this strategy monitor news sources and place bets on the expected market reaction to the news.
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Pros: News trading can be very profitable if the trader correctly predicts the market's reaction to the news. It can also be a low-risk strategy as traders can set stop-loss order
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Cons:
The market reaction to news can be unpredictable, and traders can suffer significant losses if they get it wrong. The spreads can widen significantly during news events, making it harder to make profits.
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Example: If there is a positive earnings report for a company, traders can take a long position by betting that the stock price will rise. If the market reacts positively to the news, the trader will make a profit.
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What are the costs?
Margin
Its a margined product, this means that you are only required to pay a deposit to control a much larger amount.
This will magnify profits and losses.
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Minimum spreads
Spreads
This is the cost to trade. The spread is the difference between the buy and sell price. The spread is effectively a commission charged for executing the trade. The spreads we can offer are among the lowest in the industry. You may also be charged overnight funding on some positions.
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Minimum Spreads
What are the benefits of Spread betting ?
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Dedicated relationship manager
Highly experienced and qualified, and on hand to assist you as much or as little as you need.
No stamp duty to pay
Unlike most UK shares there is no stamp duty to pay.
Small initial deposit
Only pay a small percentage of the trade value.
No commission
Only a dealing spread.
No capital gains tax to pay (1)
All profits are tax free.
Negative balance protection (2)
You can never lose more than is in your account.
Award-winning
Guardian Stockbrokers reviews
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​Positive: Professionalism, Quality, Responsiveness, Value
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I could not more highly recommend Guardian Stockbrokers, everyone has been brilliant. The attentiveness, training and technical detail provided, has enabled a fast track learning and an ability to manage the portfolio in a way that would far exceed my own capabilities. It is almost as though they own the positions themselves; via their due-diligence and proactive manner of continuous monitoring. Above and Beyond.
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​Positive: Professionalism, Responsiveness
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Professional and proactive I’m really happy that they were recommended to me.
I would recommend Guardian Stockbrokers.
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​I've known Guardian Stockbrokers since their inception.
When dealing with trading, you want to work with people that are professional, personable and trustworthy.
Guardian Stockbrokers are all of the above.
I'd recommend them any day!
Further information
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You will find further information use the links below.
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Tax laws are subject to change and depend on individual circumstances.
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Negative balance protection applies to trade related debt only and is not available to professional traders.