Spreadex Review

Trust

Spreadex Regulation

In our reviews, we examine the regulatory status of each entity operated by a broker. This allows us to compare the different levels of client protection. We rank regulators using a three-tier system, where Tier-1 licensing reflects the highest level of regulation.

Spreadex has only one entity:

• Spreadex Ltd is authorized and regulated by the Financial Conduct Authority (FCA), reference number 190941. We rate FCA as a Tier-1 regulator.

Why is It Important to Know Where Your Broker Subsidiary (Entity) is Regulated?

Brokers operate multiple entities to serve clients globally, yet regulatory protections vary by jurisdiction. Some regulators enforce strict financial standards, while others are more lenient. Traders should understand the protection offered by the entity where they intend to open an account.

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. Spreadex Ltd ensures this.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. Spreadex Ltd provides negative balance protection.
• Compensation scheme. A compensation scheme protects retail traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. Clients of Spreadex Ltd benefit from account insurance of up to £85,000 via the Financial Services Compensation Scheme (FSCS).
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. Spreadex Ltd offers a maximum leverage of 1:30 for retail clients and up to 1:200 for professional clients.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on the broke’s longevity, the size of the company, and the transparency of readily available information.

Spreadex spans a 25-year operating history. It is headquartered in St. Albans, UK, and has 51-200 staff members, according to the broker’s LinkedIn page.

On the Get Started page, Spreadex covers its regulatory status and fees. The website also provides a detailed page covering Terms and Conditions. I rate Spreadex as having a high level of transparency

Is Spreadex Safe to Trade With?

To summarize, I rate Spreadex as trustworthy and stable due to the following:

• 25-year operating history
• Regulated by top-tier FCA
• Client funds are segregated
• Clients benefit from negative balance protection
• FSCS account insurance for up to £85,000
• Transparent in key areas like regulation and fees

Fees

Spreadex Trading Fees

Spreadex Spreads

I tested the spreads at Spreadex during the London open and just after the New York open on 12 September 2024. At these times, the market is typically highly liquid with the tightest spreads. I rate fees at Spreadex as better than average for the industry.

I found that spreads in EUR/USD, gold, and the Dax 40 were competitive, while some indices were closer to average, and Bitcoin had a wide spread.

Spreadex Swap Fees

In the table below, you can see the Swap Long (the cost/credit of holding a buy position overnight) and the Swap Short (the cost/credit of maintaining a sell position overnight) for one full-sized contract.

A full-sized contract is 100,000 units of the base currency (the first currency quoted in the pair). I recorded the data on 12 September 2024.

The values listed below are for one full contract (100,000 units) of the base currency.

I estimate swap fees at Spreadex are average for the industry.

Spreadex Non-Trading Fees

Spreadex does not charge any account maintenance or inactivity fees.

Are Spreadex Fees Competitive?

Overall, I rate the fees at Spreadex as somewhat competitive for the following reasons:

• Tight spreads in popular instruments
• Average overnight swap fees
• No deposit/withdrawal fees
• No inactivity fee

Platform and Tools

Spreadex Desktop Web Platform

The proprietary Spreadex web platform is user-friendly and intuitive, with a solid range of features and some innovative tools. Although the design felt a bit outdated, the platform is customizable, so you can easily resize panels to suit your preference.

The platform is well-suited to beginners and intermediate traders. However, some experienced traders might find the lack of advanced features, such as automated trading, limiting. Additionally, the platform is currently available only in English.

Key Features

Some of Spreadex platform’s standout features include:

• Watchlists: Traders can create a list of their favorite instruments and follow live quotes in a market watch panel.
• Alerts: This feature updates traders when an instrument reaches a specific price level.
• One-click Trading: This feature allows traders to execute orders with a single click and no secondary confirmation, enabling them to operate faster. This is especially useful for day traders.
• Trading from the Chart: The platform allows users the convenience of trading directly from the chart.

Spreadex Charts

Spreadex provides robust charting with a solid range of technical indicators, drawing tools, chart types, and time frames.

• 58 Technical Indicators: These include Bollinger Bands, VWAP, and the Darvas Box.
• 11 Drawing Tools: Traders can access tools like trend lines, Gann, and Fibonacci tools.
• 17 Time Frames: Time frames range from tick by tick to monthly charts.
• 10 Chart Types: A variety of popular chart types like Bar Charts, Japanese Candlestick Charts, Kagi, and Point and Figure are available.

Orders

The Spreadex web platform offers a strong range of order types including market orders, limit orders, stop-loss orders, trailing stop-loss orders, and guaranteed stop-loss orders. Time-in-force conditions like GTC (Good-Til-Canceled) can be applied to pending orders.

My Key Takeaways After Testing the Spreadex Web Platform

My first impression of the Spreadex platform was that the design could be better, but I appreciated its ease of use and relatively wide range of features. I was impressed by the built-in Pro Trading Tools like candlestick pattern recognition. The platform can cater to traders with a wide range of strategies and approaches but has some limitations, like the lack of algo trading tools.

Spreadex Mobile App

The Spreadex mobile app is available for Android and iOS and offers the same main features as the web-based platform. Clients can access the full range of order types, robust charting, trading from the chart, watchlists, and market news.

Charts

The mobile app’s charts feature 40 technical indicators, 15 drawing tools, 17 time frames, and 4 chart types.

Orders

Traders can access the standard order types, including market, limit, and stop loss orders.

My Key Takeaways After Testing Spreadex App

I found the Spreadex mobile app to be both beginner-friendly and feature-rich. Clients can easily manage their open positions, execute trades, perform market analysis, and stay on top of news while on the go.

TradingView Platform

Spreadex also offers access to the cutting-edge TradingView platform, which provides one-click trading, trading from the chart, watchlists, market news, and trading ideas. In my experience, the platform makes it easy to place trades and manage open positions and pending orders.

The market-leading TradingView charts feature 11 time frames, 11 chart types, and over 100 technical indicators. Various drawing tools, from trend lines to Fibonacci retracements, are also available.

The range of available order types is above average. Market orders, limit orders, stop-loss orders, and trailing stop-loss orders are available. Traders also have the option to apply time-in-force conditions such as Good-Til-Canceled (GTC).

The TradingView platform has the rare combination of being powerful in its functionality and intuitive with a well-designed interface.

The large, active community on TradingView is incredibly helpful for users seeking inspiration, especially through features like the ideas stream.

TradingView Mobile App

The TradingView app is one of the most intuitive and powerful I have yet to come across; the user experience is superb.

Spreadex Order Execution Model

Spreadex is the counterparty to all client trades and manages its risk by hedging all or part of the trades in the underlying market. Spreadex execution venues include Morgan Stanley, Cantor Fitzgerald, IG Index, ADM, Killik & Co, and Patronus Partners.

Tradable Instruments

Spreadex comfortably beats the industry average in every category, with the exception of crypto. The range of CFDs on currency pairs is especially strong.

What are CFDs?

A Contract for Difference (CFD) is an agreement specifying that the buyer must pay the seller the difference between an asset’s current value and its value at the time the contract was initiated. Like futures and other derivative financial instruments, CFDs allow traders to speculate on price movements without owning the underlying asset.

What Can You Trade with Spreadex?

My Key Takeaways After Exploring Spreadex Tradable Instruments

Spreadex excels in the area of tradable instruments, offering a wider-than-average selection of nearly all popular asset classes compared to industry standards. I was especially impressed by the range of CFDs on European shares, with 13 different countries represented. The number of available currency pairs is also outstanding. Spreadex goes beyond the typical CFD broker with its spot, futures and options contracts and assets like ETFs and bonds.

Customer Support

Spreadex Customer Support Test

Support is a key component of a broker’s offering – whether you are a new trader looking for guidance on how to use the platform or an experienced trader who needs help fast to exit their positions in the event of a technical glitch.

During my two-week testing period, I made dozens of inquiries ranging from basic account-related themes to more nuanced technical questions related to the Spreadex platform.

The agents responded promptly (often within minutes) and provided detailed and satisfactory answers. I rate the customer support at Spreadex as above average.

Customer Support Hours:

• 07:30–22:00, Monday–Saturday 
• 08:30–22:00, Sunday

Deposit and Withdrawal

Spreadex Deposit Methods

Deposit via BACS bank transfer takes longer as it requires a member of the back office team to credit.

Spreadex Withdrawal Methods

You can also withdraw via BACS transfer and request a same-day payment (£25 charge) or just a normal transfer which takes 3 days.

Account Types and Terms

Spreadex Account Opening Process

Spreadex Registration

To open an account with Spreadex, prospective clients must complete a simple application providing their name, email, date of birth, phone, address, trading experience, employment, and income details.

Account Types and Their Benefits

If the necessary conditions are met, the Financial Trading account can be designated as a Professional Account. In the table below, you can see the features and differences of retail and professional accounts:

Professional Account

Professional account holders at Spreadex enjoy benefits like increased leverage of up to 1:200, access to crypto trading, a wider array of small-cap stocks, and bespoke rebate schemes.

In order to be eligible for a professional account, clients must satisfy at least two of the following three criteria set by FCA:

• Averaged 10 relevant trades of significant size in each of the last four quarters.
• Financial instrument portfolio exceeding €500,000.
• Worked in the financial sector, in a position requiring knowledge of derivatives trading, for at least a year.

Demo Account

Spreadex does not offer a demo account.

Islamic Account

Spreadex does not offer a swap-free Islamic account.

What is CFD Leverage?

One of the reasons that traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage is the use of borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account.

At Spreadex, the maximum leverage for a standard account is 1:30. This means that with an account of $1,000, you can control up to $30,000 worth of positions in the market. This is a high level of leverage and is risky to use.

Leverage is often described as a ‘double-edged sword’ as it can hurt you as much as it helps you. Traders should keep in mind that it can amplify both their profits and their losses.

Spreadex Restricted Countries

Spreadex does not accept residents of the following countries:

Afghanistan, Albania, American, Samoa, Argentina, Australia, Azerbaijan, Bahamas, Bangladesh, Barbados, Belarus, Belize, Botswana, Bouvet Island, Brazil, Burkina Faso, Burundi, Cambodia, Cayman Islands, China, Côte d`Ivoire, Cuba, Democratic Republic of Congo, Egypt, El Salvador, Eritrea, Ethiopia, Fiji, Ghana, Guadeloupe, Guam, Guatemala, Haiti, Honduras, Iran, Iraq, Jamaica, Japan, Jordan, Lebanon, Libya, Mali, Malta, Marshall Islands, Martinique, Mauritius, Morocco, Mozambique, Myanmar, Nicaragua, Nigeria, North Korea, Pakistan, Palestine, Panama, Philippines, Puerto Rico, Russia, Samoa, Saudi Arabia, Senegal, Solomon Islands, Somalia, South Sudan, Sri Lanka, Sudan, Syria, Tanzania, Trinidad and Tobago, Tunisia, Uganda, Ukraine, Vatican City, Virgin Islands, United States, Yemen, Zimbabwe.

Research

The Daily Market updates break down fundamental themes like central bank policy and its impact on the forex market. Earnings reports and news related to the equities market provide traders with potential stock opportunities. Commodities like gold and oil are also in the spotlight, with insights into analyst forecasts and the geopolitical factors influencing supply and demand.

The economic calendar allows traders to stay up to date on the major economic releases including the actual/previous figures and analyst expectations.

The Weekly Trading Update is a useful report that recaps the major news of the prior week, highlights the assets that experienced the most volatility, and explains the key events for the upcoming week.

My Takeaways from Exploring Spreadex Research Content

The Spreadex in-house team does a great job of covering major news and highlighting the instruments in play. I rate Spreadex research as better than average for the industry. The offering could be improved by adding more news stories from leading outlets like Reuters and Dow Jones.

Education

The Education Hub is made up of 4 main sections:

• Introduction to Financial Markets: This area covers the basics of how financial markets work and provides explanations of shares, commodities, indices, and forex.
• Spread Betting and CFD Trading: This section explains what spread betting and CFD trading are and highlights their differences.
• Trading With Spreadex: These articles cover topics like depositing funds, placing trades, and using charts.
• Trading Strategies: Here, clients can learn the basics of trading strategies like support and resistance, chart patterns, and risk management.

I liked that the articles are supported by graphics and illustrations covering key themes for beginners. There is a short quiz at the end of each article to aid the learning process.

The Spreadex YouTube channel features some useful platform tutorials explaining aspects of TradingView, for example, how to use alerts and indicators.

The available educational articles provide a good foundation for beginners, but Spreadex could improve by adding content for more experienced traders. Incorporating courses and live webinars would also help to broaden the education section.

The Bottom Line

Spreadex is a unique and versatile broker that combines sports betting, spread betting, and CFD trading in one package. Based in the UK, the company is regulated by the FCA and boasts an impressive 25-year track record.

The broker generally keeps fees to a minimum. While I found the spreads to be mixed during my tests, I appreciated that popular instruments like EUR/USD and gold offer tighter-than-average spreads.

The flagship Spreadex web platform is robust and feature-rich, and clients can also opt for the state-of-the-art TradingView platform. However, Spreadex could improve by offering automated trading tools, more third-party integrations, and additional educational resources geared toward experienced traders.

The website was a bit hard to navigate and could benefit from a design refresh. However, thanks to the helpful customer support, I had a positive overall experience.

I would rate Spreadex as a solid choice for beginners and intermediate traders, whether for casual trading or active day trading. With an excellent range of instruments and benefits for professional traders, Spreadex can also serve the needs of experienced, full-time traders.

FAQ