Spread betting, which provides an opportunity to profit from an increase in share prices, has become increasingly popular in Ireland and is beginning to rival the contracts for difference offered by conventional stock brokers.

Worldspreads' main competitor in Ireland, Delta Index, is also forecasting strong growth in the market and is expected to file its first profit later this year.

According to Worldspreads' head of business development, Michael Foley, some customers now have between 500,000 and 1m on deposit for trading purposes with the firm.

He declined to disclose the firm's turnover but said that Worldspreads' largest customers usually won or lost between 45,000 and 50,000 a month.

"It is the cheapest way you can do it. There's no broker, no fees and no tax. The only thing you pay is the spread, " he said.

Foley said the firm aimed to invest heavily in promotion this year by attempting to attract more small and medium customers.

"To be honest, part of the reason we have had a low profile in the past is that we are a private company and we spent considerable resources on expanding into the UK. We now aim to get ourselves better known."

According to Worldspreads' group accounts, the firm's UK operations made a loss of 1.6m last year.

However, it remains confident that it will become profitable this year.