Let’s just be honest, the first quarter of this year has been a crazy, wild ride… If you’ve been anywhere near a forex chart lately, you’ll know what I mean. The first quarter alone was a whirlwind: Trump’s re-election and the return of tariffs, escalating tensions with the EU and China, and a global ripple effect that sent currencies—and traders (including me)—into a spin.
But it also brought something else: opportunity, especially for those in the spread betting game. If you’re thinking about jumping into forex spread betting in 2025, or you’re already dabbling and wondering whether to scale up (or scale back), this one’s for you.
What is spread betting on forex?
Spread betting forex is essentially a way to speculate on whether a currency pair like GBP/USD or EUR/CHF—will rise or fall. You don’t own the underlying asset; you’re just betting on the direction it moves.
Let’s say GBP/USD is trading at 1.2700. If you think the pound will strengthen, you go long – for example, I bet £10 per point that GBP/USD will rise – that means I am essentially taking a risk that the USD will fall and GBP will rise. If it rises to 1.2750, you’ve made £500. If it drops to 1.2650, you’ve lost £500.
In the UK, all your profits are tax-free. No capital gains. No income tax. Just clean, leveraged speculation.
However, like any kind of trading, you can lose just as quickly as you win—especially in a year like 2025 has turned out to be thus far…
Spread Betting Forex in 2025
OK, so I won’t sugarcoat it here – Q1 2025 has been full of macro landmines. Trump’s renewed tariffs on Chinese and European goods reignited trade war fears. The EUR took a beating early on, GBP looked surprisingly resilient (and in fact as of writing it is at it’s highest level for a long time), and commodity currencies like the AUD and NZD swung hard in both directions on shifting risk sentiment and China data.
As a trader, this meant huge moves—and huge opportunity. The Dow Jones saw a 300-point swing this month in a single day. AUD/USD dropped like a stone after poor CPI numbers and then rebounded on a surprise interest rate hold. If you were nimble and disciplined, these were money-making days.
But if you were overleveraged or holding onto bad positions hoping they’d turn around? It probably hurt. Badly. But hey that’s the name of the game right? Well kind of but it really isn’t the most stable start for traders or spread bettors, especially if you are just getting into it.
The pros of spread betting forex in 2025
✅ Tax-free profits
If you somehow make £10,000 trading this year? You keep £10,000. No CGT, no income tax, no paperwork. Just make sure HMRC doesn’t reclassify you as a “professional trader” – for most casual traders, you’re safe but if it’s seem as your only source of income and you are making quite a bit from it, then you might need to get in touch.
✅ Access to global currencies
Most UK spread betting brokers give you access to dozens of pairs – majors, minors, and exotics. You can trade EUR/USD, GBP/JPY, or even USD/ZAR if you’re into wild rides.
✅ High leverage (with great power…)
Depending on the broker and your classification (retail vs. professional), you might get up to 30:1 leverage on majors. That’s powerful but it can be dangerous….
✅ Tight spreads and fast execution
In 2025, execution is better than ever. Most platforms I’ve used this year feel snappy, with spreads often below 1 pip on majors like EUR/USD during peak hours.
And now, the downsides of forex spread betting
❌ Emotional damage is real
Trading currencies in this kind of environment can be a real head game. For example, I had a super bad week in February (I might have to post about that soon…) and started to question everything! My strategy, discipline, whether you should give up etc. It’s all difficult stuff. I’ve seen talented friends burn out completely because they didn’t respect the risk.
❌ It’s not investing
OK so this is a double-edged sword thing too as you will definitely gain less but you will also lose less – which in environments like this can actually be a good thing – there’s no dividend, no long-term appreciation, no “I’ll just hold it forever.” You’re in, you’re out. Every position you take is binary—you win or lose. That’s a lot of pressure if you’re hoping this will replace your income.
Should you be spread betting forex in 2025?
That depends. Here’s how I think about it in 2025 terms:
Given how volatile the market has been in the first quarter of this year, ask yourself these questions:
- Can you take a 30% drawdown without panicking?
- Do you actually follow economic news and central bank moves?
- Are you happy to spend 1–2 hours a day reading charts, setting alerts, and reviewing trades?
- Can you walk away when it’s not your day and not keep trading?
If you answered yes to most of these, spread betting forex in 2025 might suit yo. Especially if you’re systematic, cautious, patient, understand risk management, and have a proper handle on your strategy.
But if you’re in it for the thrill, hoping for fast money, or planning to “wing it” then frankly this market will eat you alive in 2025, just purely given how volatile the market is…
What I’d recommend if you’re new to forex spread betting in 2025
1. Start small
Even now, after years of trading, I still trade micro sizes during high-volatility weeks. It basically allows you to keep trading and strategy testing but with much smaller sizes – honestly I couldn’t recommend this strategy enough. Get comfortable with calculating your lot sizes and your strategy before sizing up.
2. Use a demo account – but not for too long
OK I’m a big fan of Pepperstone for this as they allow you to actually test your strategy on cTrader, MetaTrader, and their webtrader platform (before you actually start trading) which is pretty great for a beginner spread bettor to get used to all the different platform offerings. A demo helps you learn the platform. But real money changes your psychology. So once you’re confident mechanically, switch to small live trades. Even £1/point feels different than £10,000 in play money.
3. Keep a journal
Most guys don’t do this – there’s something very ‘Bridget Jones’ about keeping a journal that people guys just don’t vibe with… but if not then just use Notion. Note down why you took the trade. What was the setup? What happened next? The best traders I know – tope tier guys working at prop firms – journal relentlessly. It’s how they learn from past mistakes and what worked with a currecy pair. You have to consider this for a second, you will be across so many pairs a day – no one’s brain can keep track of everything, no matter how smart you are or how hard you try. Which brings me onto my next point nicely…
4. Trade fewer pairs
Pick 2 or 3 you really understand. Right now, I mainly watch EUR/CHF, AUD/USD, and GBP/USD. I know how they move, when they’re twitchy, and what news affects them.
So, can you still spread bet forex in 2025?
Yes, of course you can, and the markets might show some promising opportunities this year, but the Trump tariffs in Q1 made the forex market reactive and spiky. That was good for volatility traders, but awful for long-term macro trend followers. Algorithms are more aggressive than ever. Retail traders can still win—but you need speed, focus, and a risk plan.
I’ve had weeks where I made four figures in a single day and then basically gave it all back in a couple of weeks where I ignored my own rules.
If you’re smart, structured, and treat it like a business, spread betting forex can be a valuable tool in your financial playbook. The tax advantages alone make it worth considering for short-term strategies.
But don’t romanticise it.
This isn’t the lottery. It’s not investing. It’s calculated speculation in a brutally efficient market.
My advice? Learn slowly. Start small. Respect the risk. And if you ever feel yourself gambling instead of trading—pause. Walk away. Come back with a clear head.
Because the forex market will still be there tomorrow. The question is: will your capital be?
James is a former FTSE100 AI Director and trader with 10+ years trading his own capital. He is the Managing Director of SpreadBet.AI and currently trades his own capital through both CFD trading & spread betting as well as working with one of the leading prop firms in the world.
