The LSE Directory / CFD and forex brokers
City Index is a UK-founded retail trading broker offering spread betting, contracts for difference (CFDs) and foreign exchange trading. Clients access more than 13,500 global markets spanning forex, indices, shares, commodities, bonds, ETFs and interest rates through the company's proprietary Web Trader platform, MetaTrader 4, and TradingView-integrated charting. Web Trader, introduced in 2018, targets traders who want a simpler browser-based interface, while MT4 and TradingView serve traders who prefer established third-party terminals and automation. The firm's main differentiator within the UK CFD and spread betting category is tax treatment: spread betting is exempt from UK capital gains tax and stamp duty for UK and Ireland residents, an option not offered by CFD-only brokers domiciled outside the UK. City Index targets retail and elective-professional self-directed traders rather than institutional flow. Retail clients get negative balance protection and leverage capped under ESMA and ASIC style limits (for example 30:1 on major forex pairs), while clients who qualify as professional, by trade volume, portfolio size or sector experience, can access leverage up to 400:1 but waive negative balance protection and other retail safeguards in exchange. City Index was founded in September 1983 by Chris Hales and Jonathan Sparke with about $4 million in backing, beginning operations in March 1984 as one of the UK's earliest retail spread betting firms. Entrepreneur Michael Spencer bought a stake in 1994 and held a controlling interest by 1997. The company added CFDs in 2001, acquired the IFX Group (FX Markets and Finspreads) in 2005, and opened offices in Sydney, Singapore and Shanghai by 2006. After a 70 million pound capital injection from Spencer during the 2008 financial crisis, GAIN Capital acquired City Index in November 2014 for roughly $118 million; GAIN Capital was itself acquired by StoneX Group Inc. (NASDAQ: SNEX) in 2020 for $236 million, making City Index one of StoneX's retail trading brands. In the UK the business operates under StoneX Financial Ltd, authorised and regulated by the Financial Conduct Authority (FRN 446717) and a member of the Financial Services Compensation Scheme, covering eligible UK retail client claims up to 120,000 pounds. The company has also drawn regulatory penalties over the years, including a 490,000 pound FSA fine in 2011 for transaction reporting failures and ASIC fines in Australia in 2012 and 2013 over misleading statements about client funds. StoneX has been consolidating its overlapping retail CFD brands: City Index's Singapore business transitioned to the Forex.com brand in April 2025, and its Australian business followed in August 2025, both moving existing clients across to Forex.com under the same StoneX licences. This leaves City Index focused on the UK and Middle East, with Forex.com serving as StoneX's retail brand in the other markets.
