FxScouts follows a strict editorial standard in our review process. We may receive compensation when you click on links to products we review. Please read our advertising disclosure.

AuthorBy Chris Cammack
Updated: May 5, 2022

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 2022, according to our testing and our research.

  • Pepperstone - Best Overall 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
  • XTB - Best Proprietary CFD Trading Platform

Best CFD brokers for 2022

Scroll for more detailsPreviousNext
Broker
Overall Rating
Official Site
Min. Deposit
Max. Leverage
Total CFDs
Share CFDs
Commodity CFDs
Indices
Currency Pairs
Cost of Trading
Regulators
Trading Desk
Platforms
Support Hours
Website Language: English
Support Language: English
Compare
Pepperstone
4.61 /5
Read Review
Visit Broker >
Your capital is at risk
GBP 0
30:1
1129
900
24
23
60
USD 6.90
FCA Regulated Forex Brokers
ASIC Regulated Brokers
CySEC Regulated Brokers
DFSA Regulated Forex Brokers
ECN/DMA
24/7
FxPro
4.29 /5
Read Review
Visit Broker >
Your capital is at risk
GBP 100
30:1
2181
2030
0
19
70
USD 14
FCA Regulated Forex Brokers
CySEC Regulated Brokers
Financial Services Conduct Authority
DFSA Regulated Forex Brokers
Securities Commission of the Bahamas
Market Maker NDD
FxProEdge
24/7
IG Markets
4.69 /5
Read Review
Visit Broker >
Your capital is at risk
GBP 0
30:1
19295
13000
35
80
80
USD 6
FCA Regulated Forex Brokers
ASIC Regulated Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Finansinspektionen
Market Maker
L2 Dealer
ProRealTime
24/5
XM
4.25 /5
Read Review
Visit Broker >
Your capital is at risk
GBP 5
30:1
1510
1291
10
14
57
USD 16
CySEC Regulated Brokers
ASIC Regulated Brokers
FCA Regulated Forex Brokers
International Financial Services Commission
Market Maker
24/5
AvaTrade
4.48 /5
Read Review
Visit Broker >
Your capital is at risk
GBP 100
30:1
872
625
25
33
55
USD 9
ASIC Regulated Brokers
Financial Services Conduct Authority
British Virgin Islands Financial Services Commission
Financial Services Agency
CySEC Regulated Brokers
Central Bank of Ireland
Market Maker
Avatrade Social
AvaOptions
24/5
Axitrader
4.34 /5
Read Review
Visit Broker >
Your capital is at risk
GBP 5
30:1
188
50
14
32
70
USD 10
FCA Regulated Forex Brokers
ASIC Regulated Brokers
Financial Markets Authority of New Zealand
DFSA Regulated Forex Brokers
ECN/DMA
24/7
XTB
4.14 /5
Read Review
Visit Broker >
Your capital is at risk
GBP 5
30:1
4148
1891
23
37
48
USD 14
CySEC Regulated Brokers
FCA Regulated Forex Brokers
DFSA Regulated Forex Brokers
International Financial Services Commission
Market Maker NDD
xStation5
24/5

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 brokers: 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 platforms 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.


Pepperstone – Best Overall CFD Broker

Pepperstone is the leading CFD broker with trading on 1129 instruments 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 USD 6.90  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
  • Limited market analysis
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.

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. 71.58% 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. 66% 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
  • Free deposits and withdrawals
Cons
  • Dealing desk
  • Wide spreads on its entry-level accounts
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. 74.07% 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 0.90 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. 71% 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
  • Tight spreads
  • Innovative trading tools
Cons
  • MT4 only
  • Limited range of assets
AlertAccepts UK Clients. Average spread EUR/USD 1.00 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.

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 1.40 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.

Are CFD brokers regulated?

Unregulated, unlicensed brokers are very common while many will register in jurisdictions that impose low-regulatory environments. We recommend that traders should always use CFD brokers that are regulated by at least one national authority. These regulators set rules designed to protect citizens from financial scams and unethical businesses. Some CFD brokers are regulated by more than 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 traders’ 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). The European Securities and Markets Authority (ESMA), another excellent regulator, is responsible for regulation in the European Union. Like the FCA, ESMA’s rules include negative balance protection on a per-account basis; a restriction on the incentives offered to trade CFDs; and a standardised risk warning, including the percentage of losses on a CFD provider’s retail investor account.

Regulated or unregulated broker?

Brokers in territories in highly regarded regulators are required to adhere to t strict guidelines, which are designed to protect consumers. These can include keeping their client funds in segregated (or separate) accounts from their company accounts, and not using their traders’ money for any other purpose. They may also be required to have a minimum in operating capital, which increases according to the number of traders and the trading capital. Licensed brokers must have a compensation scheme in place to compensate clients if the company breaks the law.

However, you don’t have to use a regulated broker. You can open an account with an offshore broker, i.e. a company based outside your country of residence.

There are advantages and disadvantages to using an offshore broker. The main advantage is that you won’t be subject to the same restrictions as to when using a regulated broker. They may offer higher leverage. In Australia, for example, retail traders are limited to 30:1 leverage, whereas an unregulated broker could offer a 500:1 ratio. Offshore brokers also tend to have lower costs, which they can pass on to you in terms of lower commissions or better spreads.

The disadvantages include the fact that if you use a broker registered in another country, it will be subject to the regulations of that country and it may not be as well supervised. If things go wrong and your broker is registered in a country thousands of miles from your home country, it might be difficult to gain legal redress.

Checking whether a broker is regulated

You can check if a broker is regulated or not, by verifying this information through the official brokers’ website first, as regulated companies always provide details of their license. You should verify a license through the official regulatory website. 

CFD trading is not allowed in the USA.

Choosing a broker

There are many factors to consider when choosing a CFD broker. These include:

Trading fees

There are number of fees and costs associated with trading CFDs.  As explained earlier, when you open a CFD trade you must pay a portion of its full value up front. This deposit is called the margin, and the percentage you have to pay on the overall value of the trade will affect the affordability of your trading.

The costs of CFD trading include the commission charged by the broker and the spread, i.e. the difference between the bid and offer prices at the time you trade. 

Commission (normally around 0.10%) is charged when you buy and sell a CFD on shares. The commission charge varies depending on the country where the share product originates.

However, commissions are not charged on other products, such as foreign currency, indices, cryptocurrencies, commodities and treasury instruments. As an example, the broker CMC Markets, a UK-based financial services company, charges commissions that start at 0.10% or US$0.02 per share for US-listed shares, subject to a minimum charge of US$10.

So if you bought a 600 unit trade in Caterpillar at a price of 80.95, the commission would amount to $12.00 based on the following calculation:

600 (units) x $0.02 (commission charge per unit) = $12.00

But a 300-unit trade in Caterpillar at a price of 80.95 would incur a minimum commission charge of $10.00 based on the following calculation: 

300 (units) x $0.02 (commission charge per unit) = $6.00

The actual commission on this trade is less than the $10.00 minimum commission charge on US share CFDs, so instead the minimum commission charge of $10.00 is applied.

Spreads: The spread is the way the broker earns money on dealing in non- share CFDs. It is simply the difference between the price you can buy a CFD at, and what you can sell it at. The price at which you buy (bid price) is always higher than the price at which you sell (ask price), and the underlying market price will generally be in the middle of these two prices. Trading spreads add costs to a trade and will fluctuate along with an assets price and trading volume.

These are the internationally regulated Forex brokers with the lowest trading costs (spreads + commission) for clients:

Scroll for more detailsPreviousNext
Broker
Overall Rating
Cost of Trading
Regulators
Min. Deposit
Max. Leverage
EUR/USD
USD/JPY
GBP/USD
Account Types
Trading Commission
Compare
Hantec Markets
3.69 /5
Read Review
USD 2
ASIC Regulated Brokers
Financial Services Agency
FCA Regulated Forex Brokers
Financial Services Commission
USD 100
30:1
0.20 pips
0.50 pips
0.50 pips
STP
Fees Included in Spread
Tickmill
4.48 /5
Read Review
USD 4
CySEC Regulated Brokers
FCA Regulated Forex Brokers
Labuan Financial Services Authority
Financial Services Conduct Authority
GBP 100
30:1
0.10 pips
0.10 pips
0.30 pips
STP
4 USD / lot
IG Markets
4.69 /5
Read Review
USD 6
FCA Regulated Forex Brokers
ASIC Regulated Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Finansinspektionen
GBP 0
30:1
0.85 pips
0.94 pips
1.40 pips
Market Maker
Fees Included in Spread
Capital.com
4.68 /5
Read Review
USD 6
FCA Regulated Forex Brokers
CySEC Regulated Brokers
ASIC Regulated Brokers
GBP 20
30:1
0.60 pips
0.80 pips
1.30 pips
Market Maker
Fees Included in Spread
ETX Capital
4.07 /5
Read Review
USD 6
FCA Regulated Forex Brokers
Financial Services Conduct Authority
CySEC Regulated Brokers
GBP 100
30:1
1.01 pips
1.35 pips
1.85 pips
Market Maker
Fees Included in Spread

Financing charge

If you hold a long position, you will also be charged interest to hold that position overnight. This is referred to as a financing charge and is calculated as the current overnight interest rate charged by the major banks plus 2% to 3%. If you hold a short position overnight, you will receive a payment of the current overnight interest rate minus 2% to 3%. For example, the broker IG says that for long positions it charges 2.5% above the relevant interbank rate so if the relevant interbank 1-month rate is 0.5%, you would be charged 3.00%. For short positions, traders receive the relevant interbank rate, minus 2.5%. So if the interbank rate is greater than 2.5%, it will credit your account; if the interbank rate is less than 2.5%, your account will be debited.

As an example, if the relevant interbank 1-month rate is 0.5%, you would be charged 2.00% (annualised).

Weekend fees: You will be charged extra if you keep a position open over the weekend as opposed to overnight.

Withdrawal fee: Some brokers may charge a fee to withdraw money. eToro, for example, says it charges US$5 for withdrawals, “to cover some of the expenses involved in international money transfers”. The fee may vary on the type of currency involved. Some brokers may offer a set number of free withdrawals per month.

Conversion fees: Some brokers will charge a fee to convert the cost of converting a withdrawal in one currency into another. eToro gives an example of the costs as being around US$10 on converting a deposit of £2000 into US dollars.

Inactivity fee: These are charged on the balance in an account if it goes unused for a set period. One broker, for example, charges a $10 monthly inactivity fee on any remaining available balance if there has been no log inactivity for more than 12 months.

Regulation

Before choosing a broker, you should determine the regulatory environment in which they operate. There are multiple regulators around the world, each regulating to a different standard. The most trusted regulators actively create new regulations and enforce existing rules. They continually post warnings and prosecute companies that don’t comply with the rules. Enforcement sets these organisations apart from their counterparts. The best regulators are the FCA in the UK, ASIC in Australia, and MAS in Singapore. We recommend choosing brokers regulated by a number of the best regulators. Such brokers include CMC Markets, Forex.com, Pepperstone, MarketsX and IG Markets.

Trading conditions

Traders want to know the cost of trading at each broker. As our focus is on beginners starting their trading career, we look at the minimum deposit required for an entry-level account, and the cost of trading. We especially like Tickmill, Exness and AvaTrade for their trading conditions.

Minimum deposit

A trader should only deposit an amount they would be ready to lose. CFD trading is a high-risk activity, so brokers that require traders to deposit amounts they potentially cannot afford to lose are less favourable to the client. While it is almost impossible to start a trading career with as little as US$5, we do value brokers that have entry-level accounts that require less than US$100.

Trading platforms

Traders want CFD brokers to offer them a choice of software platforms. While every Forex broker will provide clients with at least one trading platform option, we appreciate brokers that offer multiple options, including MetaTrader4, MetaTrader5, cTrader, and fully mobile and web-browser-compatible experiences.

We especially like Pepperstone, OctaFX, IC Markets and FxPro for their commitment to offering their clients all the major trading platforms.

Assets available

Traders need to know what kind of CFD products can be traded with each broker. CFD products could include:

  • Forex CFDs
  • Commodity CFDs
  • Cryptocurrency CFDs
  • Metal CFDs
  • Equity CFDs
  • Energy CFDs
  • Exchange-Traded Fund (ETF) CFDs
  • Bond CFDs
  • Blend CFDs.

A wide variety of CFD products allows traders more opportunities for trades. These are the internationally regulated Forex brokers with the highest number of CFDs:

Scroll for more detailsPreviousNext
Broker
Overall Rating
Total # CFDs
# FX Pairs
Regulators
Min. Deposit
Max. Leverage
Cost of Trading
Trading Commission
Compare
MultiBank
3.93 /5
Read Review
20093
41
Financial Services Commission
ASIC Regulated Brokers
USD 50
500:1
USD 14
3 USD / lot
IG Markets
4.69 /5
Read Review
19295
80
FCA Regulated Forex Brokers
ASIC Regulated Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Finansinspektionen
GBP 0
30:1
USD 6
Fees Included in Spread
FP Markets
4.28 /5
Read Review
10099
60
ASIC Regulated Brokers
CySEC Regulated Brokers
GBP 100
30:1
USD 7
6 USD / lot - RAW Accounts
Fibo Group
3.50 /5
Read Review
8079
48
CySEC Regulated Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
British Virgin Islands Financial Services Commission
Financial Services Commission
GBP 0
30:1
USD 6
6 USD / lot
ETX Capital
4.07 /5
Read Review
5135
62
FCA Regulated Forex Brokers
Financial Services Conduct Authority
CySEC Regulated Brokers
GBP 100
30:1
USD 6
Fees Included in Spread

Deposits and withdrawals

Traders want to deposit and withdraw account funds quickly, by a variety of methods and without fees. Most brokers will allow traders multiple instant funding methods for deposits without administration fees, but some brokers make it harder or more expensive to withdraw account funds. The best brokers will process withdrawal requests within 24 hours, by multiple methods and without charging processing fees. We especially like FxPro, Go Markets and CMC Markets for their commitment to quickly returning clients’ funds.

Can CFD brokers help me get started?

CFD brokers are keen to attract new traders but many are deterred by their fear that they could lose money because they don’t understand the market or how to trade it. Consequently, many reputable CFD traders offer educational material, demo accounts – where beginners can learn how to trade with the fear of losing real money – as well no deposit bonuses, which again offer give you a free, first deposit that allows you to start trading without risking your own capital. You also need to be aware of factors such as customer service hours, the quality of customer service and response times. All of these factors, which will help determine whether you can trade forex successfully or not, are discussed below.

Education and analysis is vital for beginners

Beginner traders need a high-quality, structured beginners’ course to get started with CFD trading. Unfortunately, our research has found that all too often, education sections have been removed by brokers, or replaced with a set of cheaply produced blog posts. Beginner traders need a structured, well-presented course, written by the broker to get an effective start at trading. An unlimited demo account offers the beginner an indefinite period to learn hands-on, in a risk-free trading environment.

Traders of all levels also want to be able to access reliable trading ideas. Research and market analysis are always better when produced in-house by the broker, and benefit traders the most when they are produced frequently. Third-party blog posts do not show the same dedication and expertise, and thus a strong emphasis is placed on frequent and in-house updates.

These are the best FCA-regulated market maker CFD brokers in 2022:

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
IG Markets
4.69 /5
Read Review
195355
GBP 0
30:1
FCA Regulated Forex Brokers
ASIC Regulated Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Finansinspektionen
USD 6
0.85 pips
1.40 pips
0.94 pips
19295
80
Fees Included in Spread
L2 Dealer
ProRealTime
Capital.com
4.68 /5
Read Review
793714
GBP 20
30:1
FCA Regulated Forex Brokers
CySEC Regulated Brokers
ASIC Regulated Brokers
USD 6
0.60 pips
1.30 pips
0.80 pips
4284
137
Fees Included in Spread
Capital.com
Markets.com
4.49 /5
Read Review
607305
GBP 100
30:1
FCA Regulated Forex Brokers
CySEC Regulated Brokers
ASIC Regulated Brokers
British Virgin Islands Financial Services Commission
USD 7
0.60 pips
1.20 pips
0.70 pips
2206
67
Fees Included in Spread
FXTM
4.33 /5
Read Review
600475
GBP 10
30:1
CySEC Regulated Brokers
FCA Regulated Forex Brokers
Financial Services Commission
USD 15
0.00 pips
0.20 pips
0.00 pips
791
62
From 4 USD / ECN Accounts
XM
4.25 /5
Read Review
705428
GBP 5
30:1
CySEC Regulated Brokers
ASIC Regulated Brokers
FCA Regulated Forex Brokers
International Financial Services Commission
USD 16
0.10 pips
0.20 pips
0.10 pips
1510
57
7 USD / lot - XM Zero Account

Demo accounts

The best place to learn is with a demo account where the trader does not risk their account funds. We favour brokers that offer unlimited demo accounts. 

These are the FCA-regulated CFD brokers with the best demo accounts in 2022:

Scroll for more detailsPreviousNext
Broker
Overall Rating
Regulators
Beginner Friendly
Unlimited Demo
Beginner Videos
Advanced Videos
Webinars
Compare
Tickmill
4.48 /5
Read Review
CySEC Regulated Brokers
FCA Regulated Forex Brokers
Labuan Financial Services Authority
Financial Services Conduct Authority
The Seychelles Financial Services Authority
Excellent
Capital.com
4.68 /5
Read Review
FCA Regulated Forex Brokers
CySEC Regulated Brokers
ASIC Regulated Brokers
Excellent
IG Markets
4.69 /5
Read Review
FCA Regulated Forex Brokers
ASIC Regulated Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Finansinspektionen
Excellent
Admiral Markets
4.34 /5
Read Review
ASIC Regulated Brokers
CySEC Regulated Brokers
FCA Regulated Forex Brokers
Excellent
XTB
4.14 /5
Read Review
CySEC Regulated Brokers
FCA Regulated Forex Brokers
DFSA Regulated Forex Brokers
International Financial Services Commission
Excellent

Customer support: Traders want their broker to be available around the clock, via many different channels and in their own language. We favour brokers that offer phone, email and live chat support 24/7. As most of the best CFD brokers are international, we believe that the more languages the support team speaks, the better. Broad language support gives our global audience a way to get their problems solved in the easiest possible way.

We especially like FXTM, Plus500, FP Markets and easyMarkets for their commitment to supporting customers.

CFD Brokers to avoid

Our CFD brokers to avoid directory includes brokers that we have not reviewed, but which remain an option for traders. These brokers are not recommended for traders, and the directory is intended as a research tool for anyone seeking a professional opinion; if your current broker has not been evaluated by us, we hope that our selection of reviewed brokers will offer you a better-regulated and superior alternative.

FAQs

What makes a bad CFD broker?

  • Poor regulation: Make sure you choose a broker that is regulated by multiple highly-rated regulatory agencies.
  • Poor support: Choose a broker that provides 24-hour support and that responds quickly to requests for help.
  • Unclear costs: Ensure you understand the charging structure. Check that the broker provides competitive spreads and/or commissions.
  • A narrow range of instruments: Once established as a trader, you might want to expand into other financial instruments than those you initially focused on.
  • Counterparty risk: When you buy or sell a CFD, you are entering into a contract with your broker. Make sure you are dealing with a reputable company. If they go bust or simply refuse to honour the contract, there is little you can do if you have dealt with an unregulated or poorly regulated broker.
  • Unsubstantiated claims: Beware of brokers that downplay the risk of trading CFDs or make wild claims about the profits that can be made.
  • Poor educational materials: If you are a beginner, it is extremely helpful to use a broker that can help you learn how to trade.
  • No demo accounts: Before you start trading with your own money, you should spend as much time as possible trading virtually on demo accounts with no money involved.

Can I make money trading CFDs?

Yes, you can but as one broker puts it “you first need to hone your trading skills and have a lot of discipline, practice, and patience to do well in the market. Successful CFD trading is possible, you just have to do it right”. (FP Markets) Remember this is not a get rich quick scheme and there are considerable risks involved. Most successful traders aim for a consistent and modest but reliable return on their investment. A strategy that works consistently and is constantly being updated and improved is usually the best way to gain financial independence through CFDs.

How do you successfully trade CFDs?

The short answer is hard work. Spend as much time as possible researching the market and how it works. Then choose a broker and learn how to trade on their platform using a demo account. Try a variety of simple strategies and the financial instruments you wish to trade. Focus on a few strategies and a small number of positions when you start trading. Learn to keep your emotions in check and never trade larger amounts than you can afford to lose.

How much money do I need to trade CFDs?

You can open a CFD no deposit bonus account without any money or deposit account with as little as US$100. Clearly, the more money you put up the bigger your potential profits – and losses – are likely to be. It is a good idea to start small and increase the amounts you are trading slowly as your knowledge and experience also builds.

Is CFD trading legal?

Yes, it is legal in most jurisdictions. The USA is an exception.

Is CFD trading taxable?

Yes, the profits on CFD trading are taxable, although rules will vary from one jurisdiction to another. Since you don’t own the underlying asset when trading CFDs, there is no stamp duty to pay in the UK, for example. However, you will be subject to capital gains tax on any profits.

What are the risks?

CFDs are complex instruments and entail a high risk of losing money. Between 61%-79.8% of retail investor accounts lose money when trading CFDs, according to some estimates. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money very carefully.

The main risks are:

  • Leverage maximises gains but it also magnifies losses, which means you could lose more than your initial outlay.
  • Counterparty risk. You are entering into a contract with the broker and there is also always the risk that the other party to the contract could go bust or, in the case of an unregulated broker, simply renege on the deal.
  • Contractural risk. The contract between you and the broker outlines your speculations about the value of the financial product or underlying asset and is a legally binding agreement. Unless you have some trading knowledge and the time and patience to digest the provisions of the contract, you could be adversely affected by a clause in that contract.
  • Volatile markets. Even though you may be speculating on the price movements of an individual financial asset, such as shares in a bank, the price of the underlying asset can be affected by movements in the wider market that have nothing to do with that underlying asset. So negative and unexpected economic news could cause the price of all shares in the market to fall sharply. Furthermore, because CFDs are highly leveraged, even a tiny dip in the market can result in large losses.
  • CFDs can move quickly. Known as ‘gapping’ a CFD can move in price between, for example, US5.50 and US$6.00 without stopping at any of the price points in between. Therefore, even if you’d planned to close a trade at £5.55, you might not get that choice. Gapping can even negate stop-loss mechanisms. Because the prices move so quickly, this opens up traders to increased risk.

How to decide if CFDs are right for you?

By now you should have a good understanding of how CFDs work, their pros and cons and know how to proceed. But remember before you decide whether CFDs are for you, you should go through the following checkpoints before reaching your conclusion because CFDs are only likely to be for you if you:

  • Possess a high tolerance to risk, and are not at all risk-averse.
  • Understand that while you can make money, you can also lose a lot.
  • Acknowledge CFDs are highly complex products and that you should undertake a great deal of research and spend a lot of time trading on demo accounts before considering going live.
  • Understand that while leverage can magnify your profits, it also has a hugely exaggerated impact on losses.
  • Recognise the prudence of using reputable brokers in well-regulated environments.
  • Be prepared to only risk money you can afford to lose.

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 results 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 sifting through the fine print. Learn more about how we rank brokers.

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.

Close
>