Spread Betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.8% of retail investor accounts lose money when trading Spread Betting and CFDs with this provider. You should consider whether you understand how Spread Betting and CFDs work and whether you can afford to take the high risk of losing your money
Spread betting mini markets
Mini markets
- In Mini Markets, the minimum stake size is significantly lower compared to standard markets. For example, while the standard stake size may be £1 per point movement, Mini Markets allow for stake sizes as low as 10p per point movement. This lower stake size enables traders to participate in the markets with a smaller financial commitment.
- Mini Markets offer traders the flexibility to trade with smaller stake sizes, making it accessible to a broader range of individuals. Whether you are a beginner looking to gain experience or a trader who prefers to take smaller positions, Mini Markets provide an opportunity to engage in trading with reduced financial commitments.
- Stakes Sizes from 10p a point on EURUSD, GBPUSD, US30, UK100, GER30 & SPOT GOLD.
Low Stakes
Minimum Stake from 10p Per Point
Index Mini Markets
US30, UK100 & GER 30
FX Mini Markets
EURUSD & GBPUSD
Commodity Mini's
SPOT GOLD
What are mini markets?
Mini Markets are a popular option in financial trading, particularly for those new to spread betting. These markets offer the opportunity to trade with smaller stake sizes, starting as low as 10p per point movement. They are known for their liquidity and high level of activity, making them appealing to traders who prefer smaller stakes or have limited trading experience.
The introduction of new ESMA regulations has led to increased minimum margin rates on some markets, making trading less affordable for many clients. However, Spread Co’s Mini Markets address this concern by enabling clients to trade with lower stakes and smaller deposits, allowing for more accessible participation in the markets.
To illustrate, let’s consider the UK100 market as an example. In the standard market, a stake of 1 on the UK100 at a price of 7150 with a 5% margin rate would require a margin of £357.50. For every one point movement, the profit or loss would be £1.00. Thus, if a trader buys a stake of 1 on the UK100 at 7150 and sells at 7160, the profit would be £10.00.
In comparison, a Mini UK100 trade with a stake of 1 would have a reduced margin of £35.75. However, due to the different point movement pricing, the profit or loss for every one point movement would be £0.10. Therefore, if a trader buys a stake of 1 on the Mini UK100 at 7150 and sells at 7160, the profit would be £1.00.
It’s important to note that a stake of 1 in Mini Markets corresponds to a value of 10p, as opposed to the usual £1 in standard markets. Additionally, the point movement pricing in Mini Markets is different from the original market. For instance, the UK100 is typically priced on a 1 point movement, while the Mini UK100 is priced on a 10 point movement.
By offering Mini Markets with lower stake sizes and adjusted point movement pricing, Spread Co provides traders with increased flexibility and accessibility, particularly for those looking to start with smaller stakes or learn trading strategies.
Trading platforms
| MARKET | Stake | Spread – In Hours | Spread – Out of hours | Margin (Retail Clients) | Price | Approx Margin | Mini Market Pip Size | Memo : Standard Market Pip Size |
|---|---|---|---|---|---|---|---|---|
| MINI UK100 | 1 | 1 | 2 | 5% | 7150 | 35.75 | 10 | 1 |
| MINI GERMANY 30 | 1 | 1.2 | 2.2 | 5% | 11850 | 59.25 | 10 | 1 |
| MINI US30 | 1 | 1.2 | 3.2 | 5% | 25750 | 128.75 | 10 | 1 |
| MINI SPOT GOLD | 1 | 3 | 4 | 5% | 1225.5 | 61.28 | 1 | 0.1 |
| MINI GBPUSD | 1 | 1.2 | 1.2 | 3.33% | 1.31502 | 43.79 | 0.001 | 0.0001 |
| MINI EURUSD | 1 | 3 | 1 | 3.33% | 1.15385 | 38.42 | 0.001 | 0.0001 |
Mini markets examples and comparison
Want to understand the differences between mini markets and our classic markets?
What are stake sizes and what does it mean for you
In Spread Betting, the Stake Size refers to the amount of money you are willing to risk on the movement of a single trade. It represents the monetary value you assign to each point movement in the underlying market.
For example, if your Stake Size is set at 10p per point, every 1 point movement in the market will result in a profit or loss of 10p. The actual change in the price of the underlying market determines the corresponding increase or decrease in your account valuation.
By offering small stake sizes, Spread Co allows traders to start with lower risk exposure, helping them build confidence and develop their trading skills. This approach enables better risk management and the opportunity to formulate effective trading strategies.
With the flexibility to choose smaller Stake Sizes, traders can control their level of risk and gradually increase their stake as they gain experience and confidence in their trading abilities.
Having small stake sizes for Spread Betting allows traders to build there trading confidence by starting with lower stake sizes. This assists clients to better manage their trading risk and formulate strategies.
Low cost Spread Betting with Spread Co
When engaging in Spread Betting, it’s important to be aware of the charges involved. By trading with a company that offers competitive spread betting charges, you can optimise your trading costs. Here are the four key charges you should consider:
- Spreads: Spreads refer to the difference between the bid and offer prices of a trade. At Spread Co, our spreads start as low as 0.8 for spread bets on the UK100 and US30 Index (in hours, max stake £50) on a standard account.
- Margins: Margins represent the minimum cost required for a spread bet. At Spread Co, we have competitive margin rates, starting from 5% for Indices and 3.33% for major Forex Markets. These margins allow you to leverage your trades while managing your risk effectively.
- Overnight Financing: If you hold a spread bet trade overnight, you may be subject to overnight financing charges. However, at Spread Co, we don't charge any financing fees for short index positions, and the charges for long positions are based SONIA +/- 2% for GBP accounts. This ensures transparency and helps you manage your trading costs.
- Additional Spreads on Equities: When trading equities, an additional spread is often applied on top of the market spread. These additional spreads can vary among providers. At Spread Co, our additional spread, or wrap, for FTSE 100 equities is as low as 0.10%, which translates to only 0.05% per trade. This represents one of the lowest commission rates in the industry, enabling cost-effective trading.
- By considering these charges and trading with a company like Spread Co that offers competitive rates, you can make informed decisions and manage your trading costs efficiently.
Trading the mini markets offers several advantages. Here are some key benefits:
Low Stakes
Mini Markets allow you to trade with low stakes starting at just 10p per point. This makes it accessible for traders with smaller budgets or those who prefer to start with smaller investments.
Risk Management
Spread Co provides risk management tools such as stop-loss and limit order features. These tools help you manage and control your risk by automatically closing trades at predetermined levels. Additionally, Contingent OCOs (One Cancels the Other) on resting orders allow you to set up multiple orders with different exit points, further enhancing risk management capabilities.
Tax Advantages
Trading mini markets with Spread Co offers the benefit of no Stamp Duty or Capital Gains Tax. This means you can potentially retain a larger portion of your profits without incurring these taxes.
No Commission
Unlike traditional brokerage services, there are no separate commissions to pay when trading mini markets with Spread Co. Trading costs are included in the spreads, which are among the lowest you'll find in the industry. This ensures transparent pricing and helps you keep your trading costs under control.
Manage your risk
By trading the mini markets, you can enjoy the flexibility of low-stake trading, effective risk management tools, tax advantages, and cost-efficient trading with competitive spreads.
For further information on charges
Easy To Open An Account
Reliable Platform
With our platforms you can trade wherever you are – at home, in the office, or when you’re out and about.
0% financing on short index positions
Some companies will charge you to hold a short index position. At Spread Co we won’t.
Powerful Charting
Spread Co charts are powered by TradingView Inc.
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