Spread EX Review 2024: Is the platform a scam?

Understanding Spreadex

Spreadex LTD is a UK-based leading financial platform founded in 1999. The company offers brokerage services across popular asset classes and sport betting services. There are currently over 10,000 assets across indices, shares, forex, commodities, bonds, options, ETFs, and interest rates.

Since launching over two decades ago, the platform has acquired over 60,000 active retail traders and is registered with Financial Conduct Authority (FCA).

It has a mobile and web trading platform allowing users access to an extensive range of advanced tools and technical indicators. Spreadex has several awards, including the Best Spread Betting Firm for Customer Service by Wealth Management Awards and the best spread betting firm by Good Money Guide Awards received in 2019.

They have excellent customer service, but its educational resources must be refined.

Regulations

Spreadex is a regulated financial broker; while I expected it to be regulated by a lot of recognized authorities, it’s only under the supervision of the UK Financial Conduct Authority (FCA), with registration number 190941.

Also, it follows the ruling of the European Securities and Markets Authority (ESMA) to improve investor protection.

While the FCA is a solid regulatory body, It would add an air of trust if more recognized institutions regulated Spreadex. But, with over two decades of successfully operating in the financial market, one can still trust them.

Signing Up on Spreadex

Signing up on Spreadex is a long process that involves 22 steps. This is an extended process compared to other financial market brokers, where signing up takes few actions. From a marketer’s point of view, this can reduce the rate at which people sign up on the platforms.

While the requested information during the signup process is simple, here are some things you’ll note:

• You’re asked which country you’re from.
• You’ll need to identify whether you’re a citizen of the United States; this is due to task purpose.
• Since Spreadex is a two-in-one platform, you can select which services you’ll like to register for. You either choose:

1. Spread Bets & CFD: this gives you more options and benefits from both the Spread Betting and CFD accounts.
2. Spread Bets: that allows you to trade thousands of global markets without paying capital gains tax on your profits.
3. Contracts for Difference (CFDs): where you can trade derivatives using CFDs, with a similarly huge range of markets for the spread bet accounts.

A disclaimer is placed on this selection page that says this is “Subject to client status, tax laws may change in the future.”

The signup process on AMarkets is fast and straightforward.

Trading Platform

I’m always concerned about the types of financial trading platforms and terminals a broker supports. I aim for brokers with a proprietary trading platform and an external online trading platform. Spreadex checks both, which is a solid indicator of a good broker. Let’s go over each trading terminal.

Spreadex Trading platform

This is a proprietary trading platform, meaning, Spreadex owns it. It’s an entirely customizable trading platform available on mobile devices; iPad, iPhone, Android; and desktop or web versions. What are the benefits of trading with this platform:

• Advanced charting features with sophisticated drawing and trading tools, a wide range of technical indicators like stochastic, trading alert, and easy access to macro data.
• Customizable price alert. You can decide how to receive it via email, text, or from the pool of available options.
• Complete access to trading both Bets and CFDs from one account.
• Advanced order option with guaranteed stop, force open that lets you go long or short on the same trade, and price tolerance threshold.

Trading View

This is one of the world’s leading social charting platforms with a lot of features. Spreadex support and integration for such a platform tell a lot about how significantly improved trading on Spreadex would be. Here is what to expect from using TradingView:

• A wide array of technical indicators.
• Advanced screeners.
• Financial reports and statements.
• Coverage of historical data and fundamental field ratio.
• Strategy performance report.
• A network to share and receive trading ideas etc.

As I have mentioned, supporting TradingView is an exemplary implementation from a broker with a proprietary trading platform. As a user, I’m left with a choice and can easily pick based on the nuances and my trading styles. Talking about the trading style, education resources from the broker are an excellent way to discover that.

Education and Training

While many might not pay attention to this, the first point of contact for training or education by Spreadex is the information displayed at the top of every page of its website, and it reads:

“Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investors 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.” essentially, it’s Spreadex warning you of the possibility of a loss according to data it has gathered.

Besides this, let’s go over the main training section of the website. This segment is tagged as “Learn to trade,” under which you’ll find three sub-segments: Education Hub, Our Platforms, and Spread Betting Glossary.

Education Hub

The education hub of Spreadex features a collection of informative articles that dive into the specifics of their operations. These include articles such as ‘What is spread betting’, ‘Advantages of spread betting’, ‘What is CFD trading’, ‘How to control your risk’, and ‘Spread Betting Vs. CFD.’

This section cleverly intertwines text and video, catering to users who prefer different content formats. You can also sign up for the company’s email updates to receive weekly analysis from Spreadex trading experts.

However, the layout of this segment could use some improvement. Information should be cleanly segmented for easier navigation. For example, all content relating to trading or technical analysis should be grouped together, blog-like pieces should have their own space, and so forth.

Moreover, the hub could benefit from more content – only twenty-three articles are currently listed on the page. During my exploration, I found no detailed guide on using the different features of the platform, pointing to a gap in the broker’s educational offerings that could be filled with further commitment and resources.

Our Platforms

Unlike the Education Hub, this section is very well-detailed on what you’d expect. Our Platform covers everything from the available trading platform you use to trade with.

Here, you’ll find two platforms: the Spreadex proprietary platform and the TradingView. The features and benefits were well-explained to remove any objections you might have. There are supporting articles under this segment, which I find to be remarkable.

Financial Spread Betting Glossary

This segment is more like the Spreadex dictionary, where articles are arranged alphabetically based on their keywords. It’s arranged in the format: A – C, D – E, F – H, I – M, N – Q, R – S, T – Z. Some articles you’ll find here are bet size, Bid, Cable, closing, credit limit, etc. I wonder why this glossary section only covers spread betting.

Education section Extention

There is another segment tagged market analysis outside ‘Learn to Trade’, but I consider it part of the educational segments.

This segment market analysis has four parts, Spreadex market update, weekly trading update, financial trading blog, and economy diary. One thing to note is that the four parts mentioned are headers with different articles under their names.

The financial trading blog

This combines articles discussing and explaining financial-related terms or events; an example is an article titled ‘Shell beats BP, why?’

Weekly trading update

This covers weekly events in the global financial market. Each release is tagged based on the week of the month. And you’ll find segments like top events in review, biggest market movers, the week ahead, and all the events and earnings.

Economic dairy

This is a combination of daily events scheduled to happen in the market, the region, and the indicator or content of the event, e.g., CPI, PPI, RPI, etc.

Spreadex market update

This talks about market events and news and its classifieds. We find critical factors for today, the economic calendar, market movers, and the big news. Nothing much here.

My problem is that everything on this website is jam-packed and poorly classified. I can’t check for articles written on later dates except for what is displayed on the screen. The user experience is shabby and can be annoying to customers. However, there’s a search function here that doesn’t justify this error on the company’s end.

If I rate the entire education hub, I’d give it a 3/10. There should be a proper structure and elements in place. I need to be able to navigate through such a valuable section easily. If not, I could find the required information on another broker and eventually sign to their services.

Range of Market: Available Assets And Instruments

Now, if you’re the type that has an interest in trading multiple assets and instruments at the same time, then you need to stick around. Spreadex offers a wide selection of instruments across multiple assets to trade.

This platform offers indices, shares, forex, commodities, interest rates, bonds, EFTs, options, and Speed Markets. I didn’t expect anything less from an FCA-regulated broker.

Indices

If you’re the type that is interested in trading stock indices, you definitely will find over 30+ indices markets to choose from. Not just that, you’ll enjoy very tight spreads on each of these instruments, like 1pt on UK 100, 1pt on Germany 40 & 2.4pts on Wall Street. You’ll find competitive spreads as low as 0.6 points.

They also support 24-hour trading on some of these instruments, and there’s the option to trade contracts for difference (CFDs). You’re not left alone at this point; you’re provided with information to work with, like indices market information on spread and CFDs, Indices trading FAQ, and Key information document.

Trust me; this is a fully loaded section where you’ll get all you need.

Shares Market

If you are interested in trading the rise or fall of the global equity markets, Spreadex has something for you.

You can trade shares from more than 15 different countries, including UK, Europe, America, and Asia, trade aim share stock with low market capitalization from $1 million, and enjoy task-free profits, no capital gain, and stamp duty to pay.

There is also information to find out more regarding trading the shares markets and well-written articles that briefly explain what Shares are all about. In some pairs, you’ll get out-of-hours trading on some pairs.

Forex

Currently, 60 major pairs (instruments) are available on the forex assets on Spreadex. Some of the currency pairs you’ll find are GBP/USD, AUD/CAD, CAD/CHF, EUR/USD, EUR/GSUD, CAD/USC, NZD/USD, USD/CAD, and USD/MXN.

These instruments are available for both spot and futures trades. If you trade these on Spreadex, you’ll get a low spread of 0.6 points, as seen on EUR/USD, advanced technical analysis tools, and 24-hour trading.

There is extra information that teaches you how to trade the market and make the most from it.

Commodity

You can place spread bets, and CFD trades on an array of commodities here and for low spread, with each trade free of capital gains and stamp duties.

Some instruments you’ll find here are Gold, Silver, Natural Gas, and Light Crude Oil. And as you might have predicted, there are supporting articles and links that explain more about commodities to you.

Bonds and Interest Rate

Here you can trade over 19 markets like French OAT, German Bund, German Buxl, UK long Gilt, Euribor, etc. These markets are separated into spreads and CFDs.

Exchange Traded Funds

If you’re interested, you’ll find a plethora to trade on Spreadex. There are currently over 200 ETFs on the platform available to be traded as spread betting or CFD trades, and the best part is that all your profits aren’t subject to capital gain tax.

Some of the ETFs you’ll find on the platform includes Alternative harvest ETFs, ARK innovation, Boost Silver 3X, Currency share Canadian, BoostFTSE250 short daily, Barclays Bank Vix Short term, iShares MSCI Germany index, and iShares MSCI Global metal.

Cryptocurrencies

Some cryptocurrencies can be traded on Spreadex; however, it’s only available for users with professional client accounts. One reason is that cryptocurrencies are highly volatile assets; hence Spreadex believes it should be for experienced traders only.

There are educational articles and references that teach you more about cryptocurrencies. This part is more fundamental; if you’re searching for an advanced level of teaching, you’ll need external resources.

Options

As with cryptocurrency, Spreadex focuses more on educating users about the options markets; you’ll find sections that discuss the benefits and risks involved. A section discusses options pricing; there, you’ll find different instruments and the cost for each.

Account Types

Although not identified, when you use Spreadex, you’ll agree that the platform provides just two account types: regular and professional accounts.

Regular Account

This is the regular account you get after registering to Spreadex; you’ll get all the benefits of the broker, like protection provided by the European Securities and Markets Authority (ESMA), multiple tradable assets except cryptocurrency, and negative balance protection, among other things.

Professional Account

This account type deviates from the norm. It comes with a range of benefits including access to cryptocurrencies, credit limit availability based on your status, increased leverage, lower margins, and interaction with the European Securities and Markets Authority (ESMA).

However, it also carries certain risks. For instance, there’s no negative balance protection and it employs complex jargon which might confuse novice traders. Therefore, acquiring a solid understanding before opting for this account is crucial.

Keep in mind that irrespective of your account type, an inactivity fee will be incurred if a certain period of non-use is exceeded.

Funding and Withdrawal

I’m a big fan of making withdrawals and funding any account with an online broker to be seamless and easy with no form of restriction. Spreadex has gotten a good way around this.

How to Fund a Spreadex Account

There are different deposit methods on your Spreadex accounts; it depends on your choice:

• Via Credit card deposit (for Visa and Master cards)
• Through direct bank transfers to the provided account. Ps: some other rules are attached.
• By Cheque. Note the check must be issued from an account with the user’s name.
• Via Uk Debit Card deposit (Visa, Mastercard, and Switch/Maestro)
• Direct Debit. Only done under users’ consent.

What to Note:

• Third-party payments like Moneybookers, Paypal, Neteller, Ukash, etc., are not supported.
• While these methods are generally free, any deposit under £50 attracts a fee of £1.
• There is no minimum deposit required from you.

How to Withdraw from a Spreadex Account

There are several Withdrawal methods on Spreadex, and they’re highlighted below.

• Debit card
• Credit card
• Cheque
• Bank Transfer
• International bank transfer
• And Direct debit

What to note

• The minimum withdrawal is £50, and it must not be on an open position.
• Maximum card withdrawal is £25,000, but for Mastercard, it’s £2,500
• Depending on card issuers, withdrawals can be instant, between 2-3 hours, or delayed between 2-5 days.
• International bank transfers will attract a fee
• Transfer into other currencies other than point sterling £ attracts a fee.

Customer Service

The customer service segment is well-packed with needed information. If you go through the help and support route on the website, you’ll likely find the information you need. Here’s a breakdown of what you’ll get:

• Video training Centre: where you’ll find videos that explain how financial spread bets on Spreadex work.
• Account Information: where you get all the needed details, from registering an account with Spreadex and operating it to closing the said account.
• European Securities and Markets Authority (ESMA) Ruling FAQs: where you’ll get frequent updates on the EMSA rules, changes, and how it affects trading on Spreadex.
• Trading information: for important communication on how trading on Spreadex works.
• Charting information: for information about how to use the different charting features offered by Spreadex.
• Spread Betting Glossary: a Spreadex dictionary containing the necessary information arranged alphabetically.
• Technical Information: This covers the nitty-gritty of the technical aspects of using Spreadex.
• Financial Times Offer: a segment that shares how to get a free Financial Times subscription for six months.
• Payment Information: covering all you need to know about making deposits and withdrawals in and out of your Spreadex account.

If you want to contact the team, you’re provided with three options depending on your need:

• For inquiries about financial spread betting, you’re given a page with details like free phone, landline, and email address to chat with.
• For inquiries about sports betting, a dedicated page with similar information like contact details as the above is provided. Spreadex has a dedicated sports betting site too.
• And the customer service page for general requests about the underlying services.
• You also have an in-chat box to start a conversation with a customer representative of the platform itself.

Overall the customer service segment looks very solid without any doubt. Even online customer reviews suggest the same.

Pros And Cons

Pros

• A wide selection of assets for traders to choose from.
• Spreadex has an excellent customer support system in place.
• Regulated by FCA and provides negative balance protection.

Cons

• The education library needs to be better structured and easy to navigate.
• Lack of multiple regulatory bodies overseeing the platform’s activity recognized authorities.
• Spreadex doesn’t support payments from an e-wallet for account funding.

Conclusion

Spreadex is certainly a platform worth exploring. Despite a slightly disorganized educational section, the platform shines in numerous other areas. It offers a wide range of assets, advanced trading interfaces, and exceptional customer service.

With over two decades of reliable operation under its belt, Spreadex clearly stands as a platform deserving of your attention.

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