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CFD trading is a form of investment made popular by tales of generous profits from trading both sides of the market – all from the comfort of working from home. CFD Brokers provide the trading software needed to connect traders with the CFD market, so the first step for a new trader will be to choose from a long list of potential brokers.

To start our review process, we evaluated the broker’s financial regulation, trading platforms, educational material, minimum deposit requirements, and fee structure. To test these CFD brokers further, we created live trading accounts, depositing the minimum required amount, and started researching the trading conditions and functionality offered to emulate a beginner trader’s experience. These are the best CFD brokers in the UK for 2021, according to our testing and our research.

English

Best CFD Brokers 2021

Last updated on 22 Oct 2021
Updated 22 Oct 2021
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
Pepperstone
Min. Deposit
GBP 5
4.614.61
Regulators
Min. Spread
0 pips
Trading Cost
USD 6.90
Fx Pairs
60
Overall Rating
11110.54.61/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.69 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.
2
eToro
Min. Deposit
USD 50
3.693.69
Regulators
Min. Spread
1 pips
Trading Cost
USD 10
Fx Pairs
60
Overall Rating
1110.503.69/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC. 67% of traders lose money with this provider.
3
FxPro
Min. Deposit
GBP 100
4.244.24
Regulators
Min. Spread
0.60 pips
Trading Cost
USD 14
Fx Pairs
70
Overall Rating
11110.54.24/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB. 77% of traders lose money with this provider.
4
IG Markets
Min. Deposit
GBP 250
4.694.69
Regulators
Min. Spread
0.60 pips
Trading Cost
USD 6
Fx Pairs
80
Overall Rating
11110.54.69/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.
5
XM
Min. Deposit
GBP 5
4.254.25
Regulators
Min. Spread
0.60 pips
Trading Cost
USD 16
Fx Pairs
57
Overall Rating
11110.54.25/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.
6
AvaTrade
Min. Deposit
GBP 100
4.484.48
Regulators
Min. Spread
0.90 pips
Trading Cost
USD 9
Fx Pairs
55
Overall Rating
11110.54.48/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.9 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA. 72% of traders lose money with this provider.
7
Axi
Min. Deposit
GBP 5
4.344.34
Regulators
Min. Spread
0 pips
Trading Cost
USD 12
Fx Pairs
70
Overall Rating
11110.54.34/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA. 75.6% of traders lose money with this provider.
8
Plus500
Min. Deposit
GBP 100
4.094.09
Regulators
Min. Spread
0 pips
Trading Cost
USD 8
Fx Pairs
70
Overall Rating
11110.54.09/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 30:1. Cryptocurrency availability subject to regulation. Islamic account available. Plus500 proprietary trading platform supported. Plus500 is regulated by FCA, CySEC, ASIC, and MAS. 72% of traders lose money with this provider.
9
XTB
Min. Deposit
GBP 5
4.144.14
Regulators
Min. Spread
0.80 pips
Trading Cost
USD 5
Fx Pairs
48
Overall Rating
11110.54.14/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, DFSA, FCA and the IFSC. 82% of traders lose money with this provider.

How to choose the best CFD broker in the UK

Traders should consider many factors when comparing CFD platforms. While CFD brokers look similar from the outside because they perform the same basic function, how much the trade costs a client, what software a trader needs to use, and what regulatory protection clients deserve are just some aspects that will set these brokers apart. When we research and review CFD brokers, we consider:

Types of CFD broker: This will determine where and how the broker executes the trade.

CFD Trading Accounts: What trading accounts are offered by the broker.

Trading Instruments: Each broker will have a different quantity of CFDs a client can trade.

Fees and Commission: Broker fees, and the amount charged, will change depending on how a broker executes trades and their business model.

Regulation: Regulators are national authorities that protect clients from financial scams and unethical businesses. Your broker should be regulated.

CFD Trading Platforms: CFD brokers will offer clients one or more trading platform to access the markets. Each is different, and a trader may have a preference.

Deposits & Withdrawals: A some point, all clients will both deposit and withdraw funds from their broker. Each broker will have different time frames or processing withdrawals and administration fees for the service.

Education: The first step to being a profitable CFD trader is to be an educated CFD trader. Each broker will have a varying amount and quality of educational material.


Best CFD brokers for 2021

  • Pepperstone - Best ECN CFD Broker
  • eToro - Best Social Trading CFD Broker
  • FxPro - Best MT5 CFD Broker
  • IG Markets - Best CFD Broker for Weekend Trading
  • XM - Best CFD Education
  • AvaTrade - Best Mobile Trading Experience
  • Axi - Best ECN CFD Broker on the MT4 Platform
  • Plus500 - Feature-rich Mobile CFD Trading
  • XTB - Best Proprietary CFD Trading Platform

Pepperstone – Best ECN CFD Broker

Pepperstone is the leading ASIC regulated ECN/STP Forex and CFD broker with CFD trading on 180+ instrument including Forex, indices, shares, commodities, cryptocurrencies, and currency indices. Pepperstone’s two ECN accounts offer market execution with some of the tightest spreads in the industry – the Razor Account has spreads from 0 pips for the EUR/USD and 7 USD commission.

Pepperstone also offers fixed spreads on its indices CFDs, after-hours trading for US shares, and crypto basket trading – indices of the world most highly traded cryptocurrencies.

Pepperstone’s award-winning, 24-hour support provides the foundation for its excellent customer service, where personalised assistance is available via several methods. For beginners interested in CFD trading with an ECN broker, Pepperstone’s also has one of the better education sections offered by a market execution broker.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
    AlertAccepts UK Clients. Average spread EUR/USD 0.69 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.

    eToro – Best Social Trading CFD Broker

    eToro was the creator of the first social trading system and it remains the leading social trading broker in the world. Its intuitive and bespoke CFD trading platform gives traders access to 52 currency pairs alongside a wide range of stocks, commodities, cryptocurrencies, ETFs, and indices. Its cryptocurrency range is particularly diverse, with 96 crypto pairs and cross pairs to trade on. eToro offers a free unlimited demo account on its proprietary platform, and for traders who want to start trading with a live account, the minimum deposit is 50 USD. 

    eToro’s web-based platform, also available as a mobile app, is easy to use and features floating spreads down to 1.0 pip on the EUR/USD. While the trading platform does not offer the sophistication and customisability of either MT4/5 or cTrader, it does make both social trading and copy trading a simple business. eToro allows traders to copy individual traders or algorithmically managed investment portfolios following a selected strategy named CopyPortfolios.

    Pros
    • Well regulated
    • Good for beginners
    • Innovative trading tools
    Cons
    • Limited education
    • Wide spreads
    AlertAccepts UK Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC. 67% of traders lose money with this provider.

    FxPro – Best MT5 CFD Broker

    FxPro is a respected and well-regulated CFD broker, offering NDD execution on MT5, MT4, cTrader and its own browser-based trading platform. The MT5 account offers a 100 USD opening deposit combined with competitive spreads on 70+ Forex pairs, futures, indices, shares, metals, and energies. Most trades are executed in less than 10 milliseconds and only 9% of orders receive negative slippage. These execution statistics are ideal for traders who want to take advantage of MT5’s algorithmic trading capabilities across a range of assets.

    The MT5 account at FxPro offers market execution, variable spreads, no requotes and will allow for partial fills for orders that lack liquidity.  The MT5 account is commission-free with spreads sometimes down to 0.6 pips, though traders will find that the average spread on the EUR/USD is closer to 1.2 pips. FxPro offers a range of technical analysis indicators from Trading Central for MT5 as well as a free VPS service. 

    Pros
    • Well regulated
    • Great platform choice
    • Tight spreads
    Cons
    • Limited education
    AlertAccepts UK Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB. 77% of traders lose money with this provider.

    IG Markets – Best CFD Broker for Weekend Trading

    IG Markets is the world’s largest CFD broker by revenue and it offers a single commission-free CFD trading account. Forex trading is commission-free, and spreads start at 0.6 pips on the EUR/USD. IG Markets also offers over 17,000 other instruments to trade from its single account. These include commodities, indices, cryptocurrencies, ETFs, over 13,000 shares, options, interest rates and bonds. Unique to IG Markets is its weekend trading product line: 24/7 trading available on major Forex pairs, eight cryptocurrencies (including Bitcoin) and the main global indices such as FTSE 100 and HS50.

    The IG Academy has structured courses for beginner, intermediate and advanced traders and daily classroom-style lessons. Market analysis across all CFD assets is updated regularly by the IG Markets research team of finance professionals. 

    Pros
    • Well regulated
    • Tight spreads
    • Great platform choice
    • Excellent education
    • Excellent market analysis
    Cons
    • High minimum deposit
    AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.

    XM – Best CFD Education

    An FCA regulated CFD broker with tight spreads over three simple account types, XM offers trading on Forex, shares, commodities, indices, precious metals, and energies. XM stands out for its educational support and market research. XM’s research team provide frequent market updates across all CFD classes in an easy-to-understand manner, highlighting trading opportunities and technical insight. Webinars are available 7 days a week in 19 languages and educational videos cover basic, intermediate, and advanced trading concepts.

    All XM accounts have a max leverage 1:30, negative balance protection, and minimum deposits start from 5 GBP. XM also has a strict no-requotes/rejection policy, which means that all trades are always filled at the price expected. Platform support is offered for MT4 and MT5 but MT4 users will only be able to trade Forex, stock indices, precious metals, and energies.

    Pros
    • Well regulated
    • Excellent education
    • Wide range of assets
    • Fast and free withdrawals
    Cons
    • Dealing desk
    AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.

    AvaTrade – Best Mobile Trading Experience

    AvaTrade is an internationally regulated beginner-friendly CFD broker offering trading on Forex, cryptocurrencies, commodities, indices, stocks, bonds, vanilla options, and ETFs. The AvaTradeGO app provides one of the best mobile trading experiences: All 1000+ CFDs instruments offered by AvaTrade are available in the app, as is the AvaProtect tool, which protects traders from losses for a limited time. Other highlights of the app include a market trends monitor, zoom function and seamless synchronisation with AvaTrade’s webtrader.

    Avatrade single account features some of the tightest spreads for a commission-free account with a 100 USD minimum deposit – as low as 0.7 pips on the EUR/USD. Maximum leverage is set at 1:400 on MT4 and MT5, which include EA’s, indicators, scalping, hedging, and provides free access to the integrated Trading Central dashboard for both platforms. 

    Pros
    • Good for beginners
    • Well regulated
    • Low minimum deposit
    Cons
    • Dealing desk
    • Limited market analysis
    AlertAccepts UK Clients. Average spread EUR/USD 0.9 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA. 72% of traders lose money with this provider.

    Axi – Best ECN CFD Broker on the MT4 Platform

    Axi is an Australian ASIC and FCA regulated ECN broker offering CFD trading on 140 Forex pairs, precious metals, commodities, indices, and cryptocurrencies. As an ECN broker, Axi offers tight spreads – down to 0 pips at times – and a commission of 7 USD is charged. No minimum deposit is required to open an account, but Axi does recommend starting with a minimum of 100 USD.

    By exclusively supporting the MT4 platform, Axi offers a thoughtful and heavily customisable MT4 experience. Axi offers a range of tools as part of its MT4 NexGen package. These include a sentiment indicator, a correlation trader, a more intuitive terminal window, and an automated trade journal. Other tools include AutoChartist, a powerful automated technical analysis tool, and PsyQuation, an AI diagnostic that tracks your trading style and coaches you into more profitable trades. VPS hosting is also available, along with various trading algorithms to install on your MT4.

    Pros
    • Low minimum deposit
    • Wide range of assets
    • Well regulated
    • Tight spreads
    Cons
    • Poor customer service
    • Limited demo account
    AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA. 75.6% of traders lose money with this provider.

    Plus500 – Feature-rich Mobile CFD Trading Account

    Plus500 is a leading CFD provider mainly due to the intuitive nature of its mobile platform, appealing trading conditions and range of 2000+ non-Forex CFDs, including Shares, Indices, Cryptocurrencies, Commodities, ETFs, and Options. Spreads are fixed at Plus500 but are reasonably tight with a 0.8 pip* spread on the EUR/USD (April 16th, 2021) and no commission. Deposits and withdrawals are free, and there are no fees for rolling over your position. Plus500’s customer service team is available 24/7 via WhatsApp and Live Chat for traders who need customer service on weekends and evenings.

    The Plus500 app has the same functionality as the web platform, and traders will find it intuitive to grasp and feature-rich. Traders can use the app’s advanced order types, sentiment indicators and price alerts to stay on top of the market, even when on the move. 
    *spreads correct as of 17:40 GMT on 02/09/21

    Pros
    • Well regulated
    • Wide range of assets
    Cons
    • Limited education
    • Limited account options
    AlertAccepts UK Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 30:1. Cryptocurrency availability subject to regulation. Islamic account available. Plus500 proprietary trading platform supported. Plus500 is regulated by FCA, CySEC, ASIC, and MAS. 72% of traders lose money with this provider.

    XTB – Best Proprietary CFD Trading Platform

    A well-regulated STP broker, XTB offers trading on multiple assets, including Forex, indices, commodities, stock CFDs, ETFs, and cryptocurrencies.  XTB offers trading on two live accounts with competitive trading conditions, including tight spreads, high leverage, and no minimum deposit requirements. The main draw at XTB is the award-winning xStation 5 trading platform. Intuitive, powerful, and fast, xStation 5 shows XTB sentiment data in the platform and offers powerful charting tools, one-click trading, and real-time performance statistics so traders can identify areas for improvement.

    While xStation 5 is a multiple award-winning platform, some traders may be disappointed that XTB recently removed its support for MT4 – severely limiting platform choice. It’s important to note that as xStation 5 is a proprietary platform it can not be used at other brokers, so traders may feel tied to XTB. For beginners, XTB has some of the best Forex education available. Its Trading Academy is structured into topics and experience levels; it is clear and concise and structured like a course. Market analysis is less detailed but will assist new traders looking for trading opportunities.

    Pros
    • Well regulated
    • Tight spreads
    • Low minimum deposit
    • Good for beginners
    Cons
    • Limited platform choice
    AlertAccepts UK Clients. Average spread EUR/USD 0.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, DFSA, FCA and the IFSC. 82% of traders lose money with this provider.

    What are CFDs?

    A CFD is a Contract For Difference. 

    What is CFD Trading?

    It is an agreement between you and a CFD broker to pay the difference in the price of an asset (like gold, or oil, or Tesla stock) after it increases or decreases. CFDs are usually traded with leverage and neither the trader nor the broker ever owns the underlying asset. Trading CFDs is speculating on the price movement of an asset without ever owning it.

    What is a CFD Broker?

    CFD brokers are the companies that provide access to a CFD market and a trading platform to open and close positions. To trade CFDs, you will need to open an account with a CFD broker and fund it with the minimum deposit required by the CFD broker. 

    All CFD brokers offer the same basic services – like a trading platform and access to a market – but they can be quite different in other ways.

    What Are the Different Types of CFD Brokers?

    CFD brokers come in two main forms: Market Makers or Direct Market Access (DMA)

    Market Makers

    Market makers are CFD brokers who create an artificial market for traders. When you trade with a market maker, you are not trading with real market prices. Instead, you are trading with prices that a market maker thinks are fair. 

    Because a market maker is the market, it will always take the other side of your trade. This is called being the counter-party. So, when you lose money the market maker will profit – and when you profit the market maker will lose money.

    Market makers will often require low minimum deposits to open an account and offer instant execution of trades.

    These are the best FCA-regulated market maker CFD brokers in 2021:

    Scroll for more detailsPreviousNext
    Broker
    Overall Rating
    FCA License
    Min. Deposit
    Max. Leverage (Forex)
    Regulators
    Cost of Trading
    EURUSD (Best)
    GBPUSD (Best)
    USDJPY (Best)
    Total # CFDs
    No. of FX Pairs
    Trading Commission
    Platforms
    Compare
    4.69 /5
    Read Review
    195355
    GBP 250
    30:1
    USD 6
    0.6 pips
    0.9 pips
    0.7 pips
    19295
    80
    Fees Included in Spread
    L2 Dealer
    ProRealTime
    4.68 /5
    Read Review
    793714
    GBP 20
    30:1
    USD 6
    0.6 pips
    0.8 pips
    0.7 pips
    4012
    137
    Fees Included in Spread
    Capital.com
    4.33 /5
    Read Review
    600475
    GBP 10
    30:1
    USD 15
    0.1 pips
    0.3 pips
    0.1 pips
    795
    62
    4 USD / ECN Accounts
    4.25 /5
    Read Review
    705428
    GBP 5
    30:1
    USD 16
    0.6 pips
    0.6 pips
    0.0 pips
    1477
    57
    7 USD / lot - XM Zero Account
    4.18 /5
    Read Review
    186171
    GBP 100
    500:1
    USD 12
    0.2 pips
    0.8 pips
    0.6 pips
    287
    70
    8 USD / lot - Raw Account

    Direct Market Access (DMA)

    Unlike market makers, DMA brokers provide access to the CFD market. The most common form of DMA broker is called an ECN (Electronic Communication Network) broker. When you trade with an ECN broker, it will pass your trade to a member of its network to take the other side of your trade.

    ECN brokers and other DMA brokers usually require higher minimum deposits to open an account and trade execution is never instant as time is needed to find a counter-party each time a position is opened.

    These are the best FCA-regulated ECN CFD brokers in 2021:

    Scroll for more detailsPreviousNext
    Broker
    Overall Rating
    FCA License
    Min. Deposit
    Max. Leverage (Forex)
    Regulators
    Cost of Trading
    EURUSD (Best)
    GBPUSD (Best)
    USDJPY (Best)
    Total # CFDs
    No. of FX Pairs
    Trading Commission
    Platforms
    Compare
    4.61 /5
    Read Review
    684312
    GBP 5
    30:1
    USD 6.90
    0.1 pips
    0.6 pips
    0.3 pips
    1016
    60
    From 7 USD / lot - Razor Account
    4.34 /5
    Read Review
    509746
    GBP 5
    30:1
    USD 12
    0.0 pips
    0.1 pips
    0.1 pips
    183
    70
    7 USD / lot - PRO account
    4.33 /5
    Read Review
    600475
    GBP 10
    30:1
    USD 15
    0.1 pips
    0.3 pips
    0.1 pips
    795
    62
    4 USD / ECN Accounts
    4.25 /5
    Read Review
    586541
    GBP 5
    30:1
    USD 7
    0.1 pips
    0.4 pips
    0.1 pips
    138
    74
    6 USD / Lot
    4.18 /5
    Read Review
    629628
    GBP 5
    30:1
    USD 12
    0.0 pips
    0.0 pips
    0.0 pips
    1647
    46
    7 USD / lot - ThinkZero Account
    ThinkTrader

    Different CFD Trading Accounts

    CFD brokers will offer different trading accounts with different costs and benefits.  Accounts with CFD brokers can be split into two main groups: Demo Accounts and Live (or Real) Accounts. Unless it is a CFD demo account, traders have to transfer money into the trading account to start trading.

    Demo Accounts

    All CFD brokers will offer a free demo account for beginners to practice trading and get used to the broker’s trading platform. They are easy to open, and the broker will load them with virtual money. Demo accounts are the best way to practice CFD trading with zero risk. 

    Even though there is no real money involved, demo accounts have real market conditions; traders with a demo account are seeing exactly the same thing as traders with a real account. Demo accounts are indispensable for new traders who want to understand how it feels to trade CFDs.

    Some CFD brokers will put a time limit on their demo accounts, usually 2 or 3 weeks, forcing new traders to switch to a real account. The best CFD brokers have demo accounts that never expire, so traders can continue to practice as long as they want.

    These are the FCA-regulated CFD brokers with the best demo accounts in 2021:

    Scroll for more detailsPreviousNext
    Broker
    Overall Rating
    Regulators
    Beginner Friendly
    Unlimited Demo
    Beginner Videos
    Advanced Videos
    Webinars
    Compare
    4.48 /5
    Read Review
    Excellent
    4.24 /5
    Read Review
    Excellent
    4.14 /5
    Read Review
    Excellent
    4.68 /5
    Read Review
    Excellent
    4.69 /5
    Read Review
    Excellent

    Live Accounts

    Live accounts come in many different forms depending on the CFD broker. Most CFD brokers have several live accounts, with different required minimum deposits. Generally, live accounts with lower minimum deposits have worse trading conditions (i.e. making trades is more expensive).

    As well as lower trading costs, CFD brokers will also offer more perks on accounts with higher minimum deposits. Perks can include one-on-one training and advanced trading tools.

    Some CFD brokers will offer both market maker accounts (so you will be trading against the broker) and direct market access accounts (so you will be trading on the market).

    Which CFDs assets can I trade?

    Tradeable CFDs include: Forex (currency pairs), commodities (oil, gold, coffee, grain, etc.), stocks (Tesla, Apple, etc.), indices (like the NASDAQ or FTSE 100) and cryptocurrency pairs (such as BTC/USD). There are other CFDs, but these are the most common.

    The most popular form of CFD trading is Forex trading, or the trading of currency pairs such as EUR/USD (Euro/US Dollar) or GBP/JPY (British Pound/Japanese Yen).

    Fees and Commissions

    CFD brokers make money from traders with:

    • Spreads and commission
    • Overnight interest
    • Hedging
    • Deposit and withdrawal fees
    • Optional services.

    Once you understand how these fees work, you will be able to compare CFD brokers by cost.

    Spreads and Commission

    Market makers charge a spread fee for their services. It is the difference between the buy and sell price a CFD broker gives traders and the real market price. In cases where no additional commission is charged, the tighter the spread, the cheaper a broker is to trade with.

    Market makers brokers have wider spreads than direct market access brokers. Direct market access brokers have tight spreads but usually charge a commission. This commission is paid when you open a trade and when you close a trade and is usually a fixed amount, charged in USD.

    Overnight Interest

    CFD brokers also make money from interest. CFD trading is leveraged, which means that you borrow money from the broker to increase the size of your position. Brokers will charge you interest for borrowing money from them, this is charged on all trading positions that are held overnight.

    Hedging

    Market maker CFD brokers will also hedge their counter-party trades. If a CFD broker is the counter-party to a trader buying gold, it will also sell gold to protect itself from the trader winning.

    Other Fees

    CFD brokers also charge other fees. The most common is an inactivity fee for trading accounts that have not been used for many months. But brokers may also charge for optional services such as advanced trading tools, in-depth education, and VPS services.

    Deposit and Withdrawal Fees

    Some CFD brokers also charge deposit and withdrawal fees. These can be either a fixed fee or a percentage of the deposit or withdrawal. Always check with the CFD broker first before you make a deposit or withdrawal to avoid being surprised.

    Regulation of CFD Brokers

    Regulators are national authorities that protect citizens from financial scams and unethical businesses. Traders should always use CFD brokers that regulated by at least one national authority. In the UK, the national regulator is the Financial Conduct Authority (FCA).

    To protect traders, FCA-regulated CFD brokers are required to comply with the following rules:

    • Segregated Accounts: CFD brokers are required to keep trader’s money in a separate bank account from their own. This means that traders can get their money back if a CFD broker goes bankrupt.
    • Negative Balance Protection: Traders with FCA-regulated CFD brokers can never lose more money than they have in their trading account. This means that any negative balance cannot be claimed by the brokers.
    • Leverage Limits: CFD brokers regulated by the FCA can only offer leverage of 30:1. This means that traders can only borrow from the broker 30 times more than they have in their trading account.
    • Regular Audits and Inspections: FCA-regulated CFD brokers are subject to audits of their finances and surprise inspections of their trading setup. This prevents brokers from cheating their traders.

    There are many other regulators around the world. Apart from the FCA, the best regulators are CySEC (Cyprus Securities and Exchange Commission) and ASIC (Australian Securities and Investments Commission). Some CFD brokers are regulated by more than one national authority.

    CFD Trading Platforms

    All CFD brokers will offer a trading platform to access the markets. Some brokers have their own platforms, while others use popular independent trading platforms that you can download to your computer.

    The most popular trading platform in the world is MetaTrader 4 (MT4). Other popular CFD trading platforms are MetaTrader 5 (MT5) and cTrader. All three platforms provide access to the CFD markets and allow users to make trades.

    These are the FCA regulated CFD brokers with the best platform choice:

    Scroll for more detailsPreviousNext
    Broker
    Overall Rating
    Platforms
    Regulators
    Min. Deposit
    Max. Leverage (Forex)
    Cost of Trading
    EUR/USD
    Total # CFDs
    No. of FX Pairs
    Crypto Pairs
    Trading Commission
    Scalping
    Hedging
    Compare
    4.24 /5
    Read Review
    FxProEdge
    GBP 100
    30:1
    USD 14
    1.9 pips
    255
    70
    5
    9 USD / lot
    4.61 /5
    Read Review
    GBP 5
    30:1
    USD 6.90
    0.1 pips
    1016
    60
    5
    From 7 USD / lot - Razor Account
    4.24 /5
    Read Review
    MT Supreme
    GBP 100
    30:1
    USD 5
    0.7 pips
    3818
    50
    32
    1.8 - 3 USD per lot
    4.68 /5
    Read Review
    Capital.com
    GBP 20
    30:1
    USD 6
    0.6 pips
    4012
    137
    128
    Fees Included in Spread
    4.07 /5
    Read Review
    ETX
    GBP 100
    30:1
    USD 6
    0.6 pips
    5135
    62
    5
    Fees Included in Spread

    All three platforms also allow CFD traders to install small software programs called robots and indicators. Robots trade automatically, based on pre-determined signals, and indicators help traders find opportunities in the markets.

    All trading platforms are also available on Android and iOS mobile devices. CFD brokers with their own platforms will often have their own mobile apps too. MT4, MT5 and cTrader are also available as mobile apps.

    Deposits and Withdrawals

    The best CFD brokers offer a range of methods to make deposits and withdrawals. Almost all CFD brokers will accept credit/debit cards, bank wires and ewallets such as Skrill or Neteller. Deposits can usually be made instantly with credit/debit cards and ewallets, but bank transfers usually take a few days – or longer if you are making an international bank transfer. Withdrawals tend to take a little longer, but the best CFD brokers will allow you to withdraw to your credit/debit card or ewallet within 24 hours. Again, bank transfers will take a few days and international bank transfers even longer.

    The best CFD brokers will not charge for deposits or withdrawals, but unfortunately, this is quite rare. Many CFD brokers will allow free deposits but will charge a fee for withdrawals. Some CFD brokers will even charge for both. International bank transfers will always incur a fee from the banks involved in the transfer and CFD brokers will usually not cover this cost.

    Education – Learn How to Trade CFDs

    Trading CFDs with a CFD broker is risky, and most traders lose money. The first step to being a profitable CFD trader is to be an educated CFD trader.

    Most CFD brokers will offer some form of education, but the best CFD brokers excel when it comes to teaching new traders. CFD education should be comprehensive and well-structured. It should be a mix of video and written content, featuring input from market experts and trading professionals. The best CFD brokers will also have an in-house team of market analysts to provide technical insight and detailed coverage of events that affect the CFD markets.

    These are the FCA regulated CFD brokers with the best education packages for clients.

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    Overall Rating
    Official Site
    Regulators
    Beginner Friendly
    Beginner Videos
    Advanced Videos
    Webinars
    Economic Calendar
    Daily Commentary
    Forex News
    Research Team
    Update Frequency
    Compare
    Official Site
    4.24 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    Excellent
    In House
    Frequent
    Visit Broker >
    Your capital is at risk
    4.68 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    Excellent
    In House
    Frequent
    Visit Broker >
    Your capital is at risk
    4.33 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    Excellent
    In House
    Frequent
    Visit Broker >
    Your capital is at risk
    4.15 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    Excellent
    In House
    Frequent
    Visit Broker >
    Your capital is at risk
    4.69 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    Excellent
    In House
    Frequent
    Visit Broker >
    Your capital is at risk

    CFD Broker Ratings and Reviews

    It is important to read reviews and check the ratings for CFD brokers when comparing them. CFD brokers tend to be strong in some areas and weaker in others, only a very few are excellent overall.

    The best CFD broker for you will depend on your trading experience, educational background, and financial situation. The best CFD broker for beginners will have excellent education and trading accounts with low minimum deposits. But the best CFD broker for experienced traders will have advanced trading tools and trading accounts with high minimum deposits and exceptional trading conditions.

    Final Word

    The best CFD brokers will be well-regulated, have low trading costs and will provide excellent education and powerful but easy-to-manage trading platforms. Because there are quite a few brokers who will fit those criteria, it is important to think about what you want from a CFD broker when making your comparison.

    Forex Risk Disclaimer

    Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

    Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

    Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

    Our Methodology

    Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

    With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

    In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

    All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers.

    References

    Featured Brokers

    Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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