CFD trading is one of the most talked-about ventures in the UK’s financial space. However, many still do not know how to dive into this venture. As professional researchers and traders, we aim to ensure you are supplied with the proper information to get started. That is why we have prepared this guide highlighting the best UK CFD brokers. Here, you will also learn about the crucial factors to consider when choosing a broker, tips for successful trading strategies, and how to navigate the dynamic landscape of CFDs with confidence.
Essence
- CFDs are derivative products that enable traders to speculate or make predictions on the price movements of various financial assets without taking full ownership.
- UK traders should opt for CFD brokers and platforms regulated by the FCA to ensure a trustworthy trading environment.
- Choose a CFD trading platform that aligns with your trading needs, considering factors such as available markets, usability, and more.
- Consider user reviews and expert opinions to evaluate a CFD platform’s reliability, which influences informed decision-making when selecting the best CFD brokers.
- Understand that CFD trading involves risks due to leverage. Managing risks effectively and having a solid risk management strategy is crucial.
- TradingGuide experts conduct multiple tests and review user testimonials to ensure you get the best recommendations.
List of the Best CFD Brokers in the UK 2024
- Pepperstone – CFD Trading on 4 Different Platforms
- IG Markets – Best for Advanced CFD Traders in the UK
- Spreadex – Best CFD Broker With No Minimum Deposit Requirement
- Plus500* – Easy And Fast Demo Account Opening in the UK
- XTB – Cheapest CFD Broker in the UK
- eToro – CFD Trading for Beginners in the UK
- AvaTrade – Best CFD Broker With a Highly Rated Mobile App
- FxPro – Best CFD Broker For Professional Traders in the UK
- OANDA Europe LTD – Best CFD Broker With a Reliable Trading App**
- XM – CFD Trading on Three Different Platforms
- City Index – Best CFD Broker for Research in the UK
*80% of CFD retail accounts lose money on Plus500
**76.6% of retail investor accounts lose money when trading CFDs with OANDA provider
How We Choose CFD Brokers
At TradingGuide, we are serious about selecting the best CFD brokers. Our process involves diving deep into research, spending hundreds of hours to ensure thoroughness. We test multiple CFD brokers, meticulously comparing their features.
Since we are also professional traders, we know real user experiences matter. That’s why we scour platforms like Google Play, the App Store, and Trustpilot for user testimonials. By blending these insights with our research findings, we offer recommendations that reflect both our tests and real user opinions.
This mix of thorough research and user feedback ensures our recommendations are unbiased and well-rounded. When you rely on TradingGuide, you are guaranteed top CFD trading platforms UK that have passed rigorous scrutiny, promising an exciting and reliable trading experience in the UK.
Compare The Best CFD Brokers in the UK
To streamline your decision-making process, we have compiled an impartial comparison table below highlighting the essential features of our top recommended CFD brokers in the UK. Our goal is to provide you with the necessary insights to customise your selection based on your specific trading needs. Take a look and find the perfect fit for your CFD trading journey.
| Best CFD Broker | Licence | Support Service | Software | Payment | Demo Account | Money Insurance (Negative money protection) |
|---|---|---|---|---|---|---|
| Pepperstone | FCA, ASIC, DFSA, CySEC, BaFin, SCB, CMA | 24/7 | MetaTrader 4, MetaTrader 5, cTrader, TradingView | Credit cards, Bank transfer, PayPal | Yes | Yes (up to £85,000) |
| IG Markets | FCA, ASIC, CySEC, FSA | 24/5 | MetaTrader 4, IG trading platform, ProRealTime, Web platform, Trading apps, L2 Dealer | Debit cards, Bank transfer, PayPal, HK FPS | Yes | Yes (up to £85,000) |
| Spreadex | FCA, SEBI | 24/5 | IPHONE App, IPAD App, ANDROID App, TradingView | Bank Wire Transfer, Credit cards | No | Yes (up to £85,000) |
| Plus500 | FCA, CySEC, ASIC, MAS, FSA | 24/7 | Plus500 Webtrader | Bank Wire Transfer, Credit/debit cards, Paypal, Skrill | Yes | Yes (up to £85,000) |
| XTB | FCA, KNF, CNMV | 24/5 | xStation 5, xStation Mobile | Credit/debit cards, Bank Transfers, Skrill | Yes | Yes (up to £85,000) |
| eToro | ASIC, CySEC, FCA, FSAS | 24/5 | eToro investing platform, Multi-asset platform, Copy Trader | Debit cards, Bank transfer, Neteller, Skrill, eToro Money, Online Banking | Yes | Yes (up to $250,000) |
| AvaTrade | CBI, CySEC, ASIC, BVIFSC, FSA, SAFCSA, ADGM, ISA | 24/5 | MT4, MT5, AvaTradeGO, AvaOptions, AvaSocial, DupliTrade, Capitalise.ai | Credit/debit cards, Wire transfer, Paypal, Skrill, NETELLER, WebMoney | Yes | Yes (up to $1,000,000) |
| FxPro | SEBI, FCA, CySEC, FSCA, SCB, FSCM | 24/5 | FXPro Trading Platform, MetaTrader 4, MetaTrader 5, cTrader | Wire transfers, Credit/Debit cards, PayPal, Neteller, Skrill | Yes | Yes (up to £85,000) |
| OANDA Europe LTD | FCA, CySEC, FSA | 24/5 | MT4, OANDA Trade | Credit/debit cards and Bank transfer | Yes | Yes (up to £85,000) |
| XM | CySEC, ASIC, FSC, DFSA | 24/5 | MetaTrader 4, MetaTrader 5 | Credit/debit cards, Neteller, Skrill, UnionPay, WebMoney, Bank Wire | Yes | Yes (up to €20,000) |
| City Index | FCA | 24/5 | MetaTrader 4, WebTrader, Mobile App, Trading View | Bank transfer, Credit/debit cards, PayPal | Yes | Yes (up to £85,000) |
Brief Overview of Our Recommended CFD Brokers’ Fees and Assets
CFD trading necessitates a broker aligned with your trading style and goals. Uncover critical insights on fees and assets across our recommended CFD brokers within the provided tables. Utilise this information to make informed decisions that match your CFD trading strategies and financial objectives.
Fees
| Best CFD Broker | Fees | Minimum Deposit Requirement | Transaction | Inactivity |
|---|---|---|---|---|
| Pepperstone | From 0.0 pips | £0 | Free | None |
| IG Markets | From 0.6 pips | £0 | Free | £12 monthly |
| Spreadex | 0.06 pips | £0 | Free | £0 |
| Plus500 | From 0.0 pips | £100 | Free | £10 monthly |
| XTB | From 0.1 pips | £0 | Free | £10 monthly |
| eToro | 2 pips | $100 | $5 withdrawal | $10 monthly |
| AvaTrade | 0.03 pips | £100 | Free | £50 quarterly |
| FxPro | 0.3 – 1.5 pips | $100 | Free | $15 once + $5 monthly |
| OANDA Europe LTD | From 0.8 pips | £0 | Free | £10 monthly |
| XM | From 0.6 pips | £5 | Free | $15 one-off maintenance fee |
| City Index | From 0.0 pips | £100 | 2% deposit fee | £15 monthly |
Assets
| Best CFD Broker | Forex | Stocks | Commodities | ETFs | Options |
|---|---|---|---|---|---|
| Pepperstone | Yes | Yes | Yes | Yes | No |
| IG Markets | Yes | Yes | Yes | Yes | Yes |
| Spreadex | Yes | Yes | Yes | Yes | Yes |
| Plus500 | Yes | Yes | Yes | Yes | Yes |
| XTB | Yes | Yes | Yes | Yes | Yes |
| eToro | Yes | Yes | Yes | Yes | No |
| AvaTrade | Yes | Yes | Yes | Yes | Yes |
| FxPro | Yes | Yes | Yes | Yes | Yes |
| OANDA Europe LTD | Yes | No | Yes | No | No |
| XM | Yes | Yes | Yes | No | No |
| City Index | Yes | Yes | Yes | Yes | Yes |
1. Pepperstone – CFD Trading on 4 Different Platforms
No list of the best CFD brokers in the UK is complete without mentioning Pepperstone. This broker is based in Australia but has been operating in the UK for many years. They offer a varied selection of CFDs on stocks, commodities, cryptocurrencies, ETFs, and even currency indices.
What’s more, Pepperstone provides its customers with three of the most popular CFD trading platforms on the market. Namely, TradingView, Metatrader 4, Metatrader 5 and cTrader. Since MetaTrader 4 is mainly for forex trading, we suggest that you opt for either MT5 or cTrader when using this CFD broker.
Pepperstone also has an impressive educational platform where you can learn all the ins and outs of CFD trading. And if you ever grow tired of CFDs or want to start trading tax-free, you can open a spread betting account and access the same markets but with even more benefits.
In 2023, this CFD broker was ranked number 1 when it comes to satisfaction and value for money. So in case you don’t want to listen blindly to our recommendations, we suggest that you listen to other traders that are already using Pepperstone.
✔ No dealing desk intervention
- Ranked #1 in satisfaction and value for money
- Choose between MT5, cTrader for CFD trading, MT4 for forex trading or TradingView for CFD and spread betting
- Unique currency baskets on offer
- Has been involved in insider trading in Australia
| Type | Fee |
| Minimum Deposit | $0 |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
| Inactivity fee | No |
| Account fee | No |
2. IG Markets – Best for Advanced CFD Traders in the UK
IG Markets is the world’s largest CFD broker that was founded in 1974. It is licensed and regulated by the Financial Conduct Authority (FCA). The broker is also overseen by other foreign financial regulators, including the Australian Securities and Investments Commission (ASIC) and Germany’s Federal Financial Supervisory Authority (BaFin).
You will find more than 17,000 tradable instruments on the IG Markets trading platform. Most of these instruments are available 24 hours, giving you the flexibility to invest any time you see fit. Its spread charges are very competitive and start from 0.6 pips. When it comes to non-trading costs, there are deposit and withdrawal fees. Its inactivity fee is also favourable as it kicks off after two years of inactivity.
The trading platform of IG Markets is one of the most advanced we’ve seen. Backed with all the necessary functions, it is easy-to-use and customisable. The MetaTrader 4 platform is full of charting tools and technical indicators, giving you complete control of your trading activities. The best part about this broker’s MT4 platform is that you can also install the software on your desktop. Additionally, IG Markets has an L-2 Dealer that allows Direct Market Access (DMA) trading. With an expert order control feature, you can quickly execute your orders directly from the tradable markets.
✔ Leading broker with low fees
- A plethora of research and educational tools
- Fully digital trading platform with MetaTrader 4 and L-2 Dealer
- Backed up with more than 17,000 tradable instruments
- Regulated by tier-one jurisdictions
- High stock CFD charges
| Type | Fee |
| Minimum account | £0 |
| Opening an account | £0 |
| Overnight funding | yes (depends on market) |
| Withdrawal fee | £0 |
| Inactivity fee | £12 per month after 2 years of inactivity |
| Advanced graphs (ProRealTime) | £30 per months |
3. Spreadex – Best CFD Broker With No Minimum Deposit Requirement
Having thoroughly explored Spreadex for CFD trading, our experience was commendable. Spreadex stands out for its no minimum deposit requirement, making it accessible to traders of varying budgets. The intuitive TradingView platform offers vital tools for efficient market analysis and trade execution. With highly competitive spreads starting at 0.6 pips and no transaction or inactivity fees, Spreadex is an enticing choice for cost-conscious traders seeking to maximise returns. The broker’s FCA regulation ensures a secure trading environment, instilling confidence. Getting started with Spreadex is pretty straightforward, and you get to explore +10,000 securities, including forex, shares, commodities, indices, bonds, ETFs, and more.
✔Helpful customer service
- A beginner-friendly CFD broker with no minimum deposit requirement
- Low trading fee
- Lists +10,000 CFD assets to explore and diversify your portfolio with
- A user-friendly and customisable CFD trading platform
- Limited research and learning resources compared to its peers
- No negative balance protection
| Type | Fee |
| Minimum deposit | Free |
| Overnight fee | Yes |
| Deposit fee | Free |
| Withdrawal fee | Free |
| Inactivity fee | Free |
4. Plus500 – Easy And Fast Demo Account Opening in the UK
Plus500 is an Israeli-based CFD broker that was founded in 2008. It is regulated by the Financial Conduct Authority (FCA) in the UK. Opening an account on this broker is straightforward and quick. You will find various CFD tradable instruments, including forex, stocks, and commodities.
Plus500 reserves the right to charge the trader if he exceeds the monthly limit of withdrawals or requests payment for less than the minimum withdrawal amount. Trading on its platform is also free which, despite being common among CFD online brokers, is a welcomed relief. When it comes to payment methods, do not agonise because Plus500 allows debit/credit cards, bank transfers, and e-wallet. Note that the broker earns its profits from the spread, which are also among the market’s tightest. Also, Plus500 charges a fee for overnight funding, a currency conversion fee, guaranteed stop order, and an inactivity fee. Additionally, you will need to make a deposit of £100 to start investing in Plus500.
This broker is supported on all devices. You can easily install its CFD trading app on your mobile device and monitor your trades anywhere, anytime. However, the research and educational materials on Plus500 are limited, thereby providing you with few options to improve your trading skills.
Before you start investing in Plus500, you need to know the risks involved in CFD trading. It will also suit your interests to test it using a demo account and see if it will work according to your investment needs.
✔ Regulated in many countries
- 0% commission on trades with tight spreads
- Easy-to-use trading platform
- Variety of tradable instruments
- Limited educational and research tools
| Type | Fee |
| Overnight Funding | yes |
| Currency Conversion Fee | 0.7% |
| Guaranteed Stop Order | spread applies |
| Inactivity Fee | $10 per month |
| Withdrawls/Deposits | $0 |
Note: 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
5. XTB – Cheapest CFD Broker in the UK
XTB is recognised for its cost-effective nature, offering traders exceptionally tight spreads starting from 0.1 pips on major currency pairs. The broker has no minimum deposit requirement and offers flexible margin rates starting from 5%. These financial advantages significantly diminish overall trading costs, making it an appealing choice for both new and seasoned investors.In addition, XTB hosts over 5,400 CFD assets encompassing forex, commodities, indices, cryptocurrencies, and more.
For beginners, you can rely on XTB’s user-friendly trading platform equipped with advanced charting and technical analysis tools, optimising the trading experience. Plus, the broker offers competitive interest rates on uninvested funds, potentially allowing traders to earn up to 5%, featuring rates of 3.8% for EUR and 5.0% for USD. These rates offer an additional avenue for potential passive income while engaging in CFD trading through XTB’s platform.
✔ Wide range of global markets
- XTB charges some of the lowest spreads in the UK CFD market
- No minimum deposit requirement
- User-friendly trading platform with advanced charting tools and technical analysis features
- Reliable customer support to assist traders with any queries or issues
- No buying and taking ownership of featured assets
- Transacting using e-wallets may attract an extra fee
| Type | Fee |
| Opening an account | $0 |
| Account type: Standard: spread | 0.5 |
| Account type: Swap Free: spread | 0.7 |
| Forex | From 0.1 pips |
| Stock CFDs commission | 0% |
| ETF CFDs | 0% |
| Crypto commission | From 0.22% |
| Monthly Fee for maintaining an Account | Free of charge or up to 10 EUR |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
6. eToro – CFD Trading for Beginners in the UK
eToro excels as the best CFD broker for newbies CFD traders in the UK because it has many CFD assets to trade with. These include stock, forex, ETFs, indices, commodities, and bonds. The best part is that stock trades are commission-free, and the spreads are one of the lowest in the industry.
Another factor that makes eToro stand out is the social and copy trading feature. The social feature allows you to interact with other CFD investors through a chat group. You can also use the copy feature to copy trades from the experts, giving you a better chance of making profits.
eToro is regulated by tier-one authorities, including the Financial Conduct Authority (FCA). The account opening procedure is straightforward and would take you a few minutes to complete. Note, that it may take 2-3 business days for an account to get verified. eToro has a minimum deposit requirement of $100, which you can pay using debit cards, bank transfers, or e–wallet. It also has a $5 withdrawal fee and inactivity charges that kick off after 12 months of inactivity.
Ultimately, eToro is the best CFD broker for beginners because of its easy-to-use and customisable trading platform. Although the research and educational tools are limited, it offers a risk-free demo account where you can test it and see if it works for you.
✔Low minimum to fund an account and begin investing
- Fully digital trading platform supported on all devices
- Social and Copy feature
- Straightforward account opening procedure
- 0% commission on stocks with competitive spread
- Limited educational and research tools
- $5 withdrawal fees
| Types | Fee |
| Minimum Deposit | $100 |
| Conversion Fee | depends on your payment method, currency, and eToro Club level. |
| Overnight Fee | vary according to the value and direction (BUY or SELL) of your position |
| Withdrawal Fee | all withdrawal requests are subject to a $5 USD fee |
| Inactivity Fee | monthly inactivity fee of $10 USD (charged after 12 months) |
7. AvaTrade – Best CFD Broker With a Highly Rated Mobile App
AvaTrade has proven to be one of the best CFD brokers in the UK since it features excellent resources to maximise users’ experience. When it comes to mobile trading, the broker stands out among many thanks to its highly rated on Google Play and the App Store. Downloading and installing the AvaTradeGO app on your mobile device is a straightforward process. Plus, the app is easy to navigate, allowing you to access every command and notification for quick decisions. Like the desktop version, users must deposit at least £100 to get started.
Note that AvaTrade is an internationally regulated broker listing over 1,000 CFD instruments, including forex, shares, commodities, cryptocurrencies, ETFs, bonds, and more. Making deposits and withdrawals is free, and you get to incur low spreads for CFD trades starting from 0.9 pips. So, whether you are a beginner or expert in the CFD trading industry, AvaTradeGO supports your activities using numerous resources, including Expert Advisors, AvaProtect, MetaTrader platforms, and more.
✔ Quick deposits and withdrawals
- An award-winning AvaTradeGO app on Google Play and the App Store
- Low-cost broker perfect for newbies and low-budget CFD traders
- Quality trading tools for all users
- Quality learning materials on its Ava Academy platform
- Limited CFD asset offering
- Accessing the social and copy trading platforms require a high minimum deposit
| Type | Fee |
| Minimum Deposit | £100 |
| Inactivity Fee | USD Account: $50 EUR Account: €50 GBP Account: £50 |
| Administration Fee | USD Account: $100 EUR Account: €100 GBP Account: £100 |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
8. FxPro – Best CFD Broker For Professional Traders in the UK
Our extensive research on the best CFD brokers in the UK positions FxPro as the best for professional traders. The platform offers over 2,100 CFD instruments, including forex, shares, indices, commodities, and more, which enabled us to construct well-rounded portfolios aligned with our strategies. The integration of cryptocurrencies for professional traders provides a forward-thinking touch, aligning with the evolving market trends.
Professional traders will also enjoy leverage application of up to 1:500 on CFD trades. Its support for advanced platforms like cTrader, MT4, and MT5 caters to various user preferences for sophisticated tools and algorithmic trading capabilities. And when it comes to customer support, FxPro’s team is one of the best, offering prompt responses and relevant solutions to all arising challenges and concerns.
✔ Trustworthy broker
- Professional traders gain access to cryptocurrencies
- High leverage options up to 1:500
- Support for cTrader, MT4, and MT5 caters to the preferences of professional traders.
- Transparent fee structure
- Cryptocurrency trading is available to professional traders only, potentially excluding retail traders interested in this asset class
- Limited asset offerings compared to its peers
| Type | Fee |
| Minimum deposit | $100 |
| Withdrawal fee | $0 |
| Inactivity fee | $15 once + $5 monthly |
9. OANDA Europe LTD – Best CFD Broker With a Reliable Trading App
When looking for the best CFD broker that allows you to manage your investments on the go, OANDA Europe LTD should be worth considering. The broker’s trading app has excellent ratings on Google Play and the App Store as one of the most reliable and secure trading apps. It hosts thousands of CFD instruments across various classes, including forex, commodities, indices, and more. Keep in mind that trading CFDs with OANDA Europe LTD attracts low trading fees, with spreads starting from 0.8 pip.
OANDA Europe LTD has been in operation for over two decades and has established itself as a trustworthy and dependable broker in the industry. With a variety of trading tools, educational resources, and a user-friendly interface, OANDA Europe LTD is an excellent choice for both novice and experienced CFD traders. You can download its app from Google Play or the App Store to enjoy your CFD activities on the go.
✔ Fast and user-friendly account opening
- No minimum deposit requirement
- Thousands of CFD instruments across various classes to explore
- One of the most trusted trading apps for mobile users
- Highly secured and regulated by the FCA
- OANDA is a CFD broker, meaning you cannot use it to buy and take ownership of the featured assets
- Leverage limit for professional traders is low
| Type | Fee |
| Minimum deposit | $0 |
| Overnight fee | Yes |
| Deposit fee | $0 |
| Withdrawal fee | $0 to your PayPal account* |
| Inactivity fee | Yes |
*We do not charge a fee for withdrawals made to your PayPal account. If your PayPal account is denominated in a currency other than GBP, EUR or USD, you may incur an exchange fee levied by PayPal.
10. XM – CFD Trading on Three Different Platforms
XM is a world-class CFD broker in many ways. With three really good platforms for both desktop and mobile – Metatrader 4, Metatrader 5 and the XM Trade – as well as 1,000+ tradable assets across 6 asset classes, this broker has something for everyone.
Based in the UK, XM is fully regulated by the FCA to offer forex and CFD trading to UK traders. However, XM is also regulated by the CySEC and several other countries in Europe including Germany, Sweden, and Finland.
With tight spread and great pricing, XM is a cheap and easy broker for those looking for a new CFD broker to trade with.
✔ A truly global company
- Three different brokers that suit everyone
- Trade 1,000+ assets on desktop and mobile
- Fully regulated for the UK market
- Better for forex trading than CFDs
| Type | Fee |
| Minimum deposit | 5$ |
| Overnight fee | 0$ |
| Deposit fee | 0$ |
| Withdrawal fee | 0$ |
| Inactivity fee | $15 one-off maintenance fee |
11. City Index – Best CFD Broker for Research in the UK
City Index is one of the global CFD brokers offering more than 12,000 trading instruments with over 150,000 investors globally. Rest assured this CFD broker safe because it is highly regulated by world-class authorities, including the Financial Conduct Authority (FCA) and the Australian Securities and Exchange Commission (ASIC).
City Index excels in its fast and reliable trading platform on all devices. It is also customisable to suit all investors. Its variety of charting tools, technical indicators, and Reuters news feed helps you quickly analyse the markets hence improving your trading experience.
The broker earns its profits from commissions and spreads. Its fixed and variable spreads are very competitive, starting from as low as 0.5 pips and the commission on CFD trading also varies depending on the market instruments. In a case where your leveraged position is held overnight, City Index will charge you financing costs. Additionally, there is an inactivity fee that kicks off after 12 months of inactivity.
City Index research tools are adequate, including charting tools, an excellent news feed, and trading ideas. If you take advantage of these tools, you will quickly analyse the market and access other research providers to help you make informed decisions. Ultimately, there is a risk-free demo account to test this CFD broker before you decide to invest.
✔ Large product catalogue
- Excellent research tools
- Competitive spreads that are fixed and variable
- Fully-digital trading platform that is customisable
- Highly regulated by tier-one authorities
- Stock CFD charges are high
| Type | Fee |
| Minimum deposit | £100 |
| Overnight fee | +2.5% on long positions |
| Deposit fee | 2% |
| Withdrawal fee | 0$ |
| Inactivity fee | $15 |
| EUR/USD spreads from | 0.5 pts |
| Trade major indices with spreads from | 0.4 pt |
| Commission on shares | 0.08% |
| Trade US Crude with spreads from | 1.5 pts |
| Spot gold spreads from | 0.5 pts |
Read about ETF brokers UK in our other guide.
What Do Other Traders Say?
Gaining insights from fellow traders is essential in selecting the right CFD broker. Below, we present unfiltered user feedback for some of the top CFD brokers in the UK. These diverse experiences aim to guide your decision-making process in choosing the best CFD broker suited to your trading preferences.
Pepperstone
Pepperstone receives acclaim for its efficient CFD trading infrastructure and low-latency execution. Users value the availability of multiple trading platforms and competitive spreads offered by the broker.
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“I rate it 5* because this is the trading platform which offers lowest possible spread (difference between ask and bid prices) during the market hours for active trading indices such as S&P500, US100, DE40, FTSE100, etc., which helps us save some money.” – Sudharshan
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“I’ve used many trading platforms, and this is my favourite. Took me a while to get used to it, as it was slightly different from what I was used to, but now love it & all its features.” – Jana from Gold Coast
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“Easy to open. Easy to use. Easy to add money. Easy to withdraw money. Good customer service. Fast execution. Less spreads. Just learn how to trade and have fun.” – Pruthviraj Rathod.
Plus500
Users commend Plus500 for its intuitive CFD trading platform and the availability of various CFD instruments. However, some users suggest improvements in educational resources and customer service responsiveness.
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“After many years of trading on this platform I had the chance to learn and improve my trading skills. It’s the best app and easy to use. I’ve tried other platforms but this one it’s far better ?” – Ludovic Gyorfi
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“Very good, no problems with deposits or withdrawals, real time prices, you can make alot of money here.” – ramzyki
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“What made me happy and relieved in my trading life with plus500 is the withdrawals they so quick it literally never took me more than 6 minutes it was approved. Well guys hope south Africa uses your great platform ??” – Sifiso Lucky Biyela
Spreadex
Spreadex earns praise for its intuitive platform and accessibility in spread betting. Users appreciate the simplicity of the interface and the diverse range of markets available, making it an attractive choice for spread betting enthusiasts.
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“Easy to use Platform, v friendly staff. Never had any issues” – Matthew Hill
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“Been with Spreadex more than ten years, great range of markets, particularly among UK smaller caps. Pay up quickly when a short goes to ‘zero’ too, much better experience than I have had with CMC for example.” – TheAceTrader
XTB
Traders admire XTB’s comprehensive CFD trading tools and educational resources. The platform’s analytical tools and customer support are highlighted as beneficial for CFD trading.
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“I have shares in other brokers, but I’m using this app to check prices and charts because it’s simply better. Flawless usability” – Kosciej
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“Very good app. Customer service is welcoming. Lots of information for new traders available for free. Feel very valued and accepted as a beginner. Best app I have found after trying 10+ others.” – Thomas Ashley
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“Excellent account managers who keep in touch. Find the app easy to use. Lots of educational content to help me learn. Good use of news and kept up to date with any stock market changes.” – Ross
eToro
Users praise eToro for its user-friendly CFD trading platform and social trading features. The platform’s diverse range of CFD offerings and the ability to copy successful traders receive positive feedback.
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“Good reliable platform for investing in various asset classes and also for day trading. The assigned RMs are proactive and available to give guidance as needed. The RM follows up until the query is resolved.” – Ankit
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“Really I think it is amazing app” – AmirFerdos
AvaTrade
AvaTrade’s app receives acclaim for its comprehensive CFD trading options and user-friendly interface. Users appreciate the platform’s accessibility and the array of available CFD instruments.
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“Milyan A was kind, expertly and helpful. He helped me set metatrader software on mac in no time. What a great guy and a great experience!” – Arvind Prabhaker
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“Very smooth and clean, educational videos to support your understanding of the system and trading in general. Interactive customer service that actively try to support you as best they can, very friendly and understanding” – Jaundre Koekemoer
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“Application is easy to use. The customer services is very helpful. And it’s a great way to learn and trade with professional help alway their to assist” – Stefan Strydom
FxPro
Users praise FxPro for its tight spreads and cutting-edge trading technology. The platform’s transparency and customer-centric approach make it a preferred choice for those seeking a polished and professional trading experience.
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“I just love this app, everything is clear, it’s perfect for all types of investor also for long term invest.” – Dibakar Barua
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“While providing the services, they did it quickly and proactively. The provides a wide range of functions that are useful while generating monthly and yearly returns. The dashboard is designed to be easy to use and understand” – Nitesh Saini
OANDA
OANDA’s CFD offerings are appreciated for their reliability and range of available instruments. However, some users mention the need for additional educational materials focused specifically on CFD trading strategies.
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“Account was easy to open and was contacted next day by Luke a VERY helpful account manager who was very knowledgeable and answered all my questions quickly. Happy with service.” – Lucy P T
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“The most reliable broker out there I’ve been with them for years and they’ve never disappointed me and when it comes to withdrawal they are super fast I would rate them 10/10 but obviously no broker is perfect but so far so good” – Zukisa Gaca
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“iOS 12.3.1 is the software I’m currently using and the app crashes out of the blue a lot and I’m using the app on my iPad Pro 11 inch with iOS 12.3.1 and on my iPhone XR running the same software! The only way to describe the crash is that it happens out of the blue I could launch the app and it runs fine for a few minutes and then it just crashes and kicks me back to the home screen and then sometimes I’ll open the app pull up a chart and try to switch between the different time frames and it will crash! Please fix this I do most of my trades from my mobile devices and I love the oanda app but the random crashes Haagen got to go thanks in advance!!!” – Michael
XM
XM’s CFD trading platform is recognized for its user-friendly interface and access to various global markets. However, there are occasional remarks about customer service and the need for more advanced trading tools within the platform.
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“I have never seen a cool app like this, deposits are super fast, withdrawals also the same, verification, it’s super cool, it’s really amazing, thanks to team xm, I really recommend every trader to use this app” – Ahabwe Peter
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“The service was outstanding. Deposit and withdraw very fast.
Bonus 100% limited to 500 usd, it’s better to increase the amount limited bonus. ?. Overall the trusted broker and legitimate.” – Abdul Baset
City Index
Traders commend City Index for its diverse range of CFD markets and user-friendly platform. The availability of research tools and responsive customer support are valued by users.
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“I must say I’m not sure why people are writing bad reviews, I have been a trader for a few years now with city index and I must say I can not fault them at all.” – gp.c
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“Very quick and responsive to my question through the online chat support. City Index is outstanding, I truly love trading with them.” – Chris Colquhoun
The Ultimate Guide About CFD Trading
When dealing with CFDs, it’s vital to comprehend that employing leverage can amplify your potential losses significantly. As a trader, a profound understanding of the associated risks is paramount. Note that between 70-80% of retail investors lose money with leveraged products — a clear indication that CFD trading may not be suitable for every investor.
To mitigate the risks associated with CFD leveraged products, always assess your risk tolerance and level of trading experience before venturing into this market. Moreover, be mindful of the UK’s regulatory framework, which imposes a 1:30 leverage cap on CFDs. This limitation aims to mitigate risk but can still result in substantial losses in the event of an unexpected downturn.
Stepping into the world of CFD trading requires a mix of understanding, strategy, and smart decisions. Here, we have put together comprehensive sections to help you navigate through this dynamic field. Our goal is to provide you with detailed insights and practical guidance, empowering you to tackle the complexities of CFD trading with confidence and skill.
What are CFDs?
Contracts for differences (CFDs) are agreements between investors and financial institutions where investors speculate on the future price movements of an asset. Unlike traditional investing, where you own the asset itself, CFD trading allows you to profit from price changes without needing to own the underlying asset. This unique feature makes CFDs a popular choice for traders looking to capitalise on market fluctuations across various financial instruments.
One of the key features of CFDs is leverage, which allows traders to control a larger position with a relatively small amount of capital. This amplifies both potential profits and losses, making CFD trading a high-risk, high-reward endeavour.
CFDs can be traded on a wide range of assets, including stocks, indices, currencies, commodities, and cryptocurrencies. Traders can take both long (buy) and short (sell) positions, profiting from both rising and falling markets.
Overall, note that CFD trading is not suitable for everyone, as it involves significant risks. Traders should thoroughly understand the mechanics of CFDs and have a solid risk management strategy in place before engaging in this type of trading.
How Do CFD Brokers Work?
CFD brokers act as intermediaries between traders and the financial markets, providing platforms for trading Contracts for Difference. These platforms, accessible online, offer a suite of tools and features designed to assist traders in executing trades, analysing market data, and managing positions effectively.
Through CFD brokers, traders gain access to a diverse range of financial instruments, including stocks, indices, currencies, commodities, and cryptocurrencies. The unique aspect of CFD trading is that traders can speculate on the price movements of these assets without needing to own them outright.
One of the prominent features offered by CFD brokers is leverage. Leverage allows traders to control larger positions with a smaller amount of capital, thereby amplifying potential profits. However, it’s crucial to understand that leverage also increases the risk of losses, necessitating diligent risk management strategies.
How Do CFD Brokers Make Money?
CFD brokers employ various strategies to generate revenue and sustain their operations. One primary source of income for these brokers is through spreads. The spread represents the difference between the buy (bid) and sell (ask) prices of a CFD. By offering slightly wider spreads than the actual market prices, brokers can profit from each trade executed by their clients.
Besides spreads, some CFD brokers may charge commissions on CFD trades. These commissions may be based on the size of the trade or the volume of transactions. While not all brokers charge commissions, those that do may offset this by offering lower spreads to attract clients.
Another way CFD brokers make money is through overnight financing fees. When traders hold leveraged positions overnight, they incur financing fees, also known as overnight financing charges or swap rates. Brokers may charge these fees to compensate for the capital tied up in leveraged positions held overnight.
Furthermore, CFD brokers may earn interest on the margins held by their clients. Margin is the initial deposit required to open a leveraged position, and brokers may earn interest on these funds, especially if they offer margin accounts that allow traders to borrow funds to leverage their positions.
We also noticed that the majority of reputable CFD brokers offer additional services for a fee, such as research reports, trading signals, or premium account features. These services provide added value to traders seeking advanced tools and insights to enhance their trading experience.
Factors to Note Before Trading on CFD
Before stepping into the world of CFD trading, especially if you’re a beginner, there are some crucial factors to keep in mind.
- Understanding the Risks – CFD trading can be highly volatile and involves significant risks. It’s essential to fully comprehend the risks involved and equip yourself with proper knowledge before investing real funds. Take the time to educate yourself about CFDs, leverage, and risk management strategies to protect your capital.
- Choosing a Reputable CFD Broker – Selecting the best CFD trading platform UK is paramount. Opt for a broker that is regulated by a reputable financial authority, ensuring transparency and security for your investments. Research the broker’s reputation, read reviews, and check for any past regulatory actions to make an informed decision.
- Setting a Budget – Before diving into CFD trading, establish a budget and stick to it. Determine the amount of capital you’re willing to risk and avoid overleveraging your positions. Setting clear financial boundaries can help you manage risk and avoid potential losses beyond your means.
- Understanding the Assets – Familiarise yourself with the assets available for CFD trading. Different brokers offer a diverse range of assets, including stocks, indices, currencies, commodities, and cryptocurrencies. Understand the characteristics and market dynamics of each asset class to make informed trading decisions.
- Continuous Learning – CFD trading is a continuous learning process. Stay updated with market news, economic events, and trading strategies. Take advantage of educational resources provided by brokers, attend webinars, and seek advice from experienced traders to improve your trading skills over time.
How to Choose the Right CFD Broker in the UK
CFD trading holds the promise of high profitability, but it’s also a high-risk investment venture that demands careful consideration. While it’s often recommended for seasoned investors with a deep understanding of the market, novice investors eager to explore CFD trading can also find success, provided they choose the right broker. Here are some factors to consider in your choices.
Safety should be your foremost concern when selecting a CFD broker UK. Therefore, ensure that your CFD broker is regulated by a reputable financial authority in the UK, such as the Financial Conduct Authority (FCA). Regulatory oversight provides a level of protection for investors and ensures that the broker operates within strict guidelines. Moreover, trading with a regulated broker safeguards your funds against fraudsters who have dominated the UK financial space.
The trading platform provided by the broker plays a crucial role in your trading experience. Look for a platform that is user-friendly, intuitive, and equipped with advanced trading tools and features. Test out demo accounts offered by brokers to get a feel for their trading platforms before committing real funds. The platform should also host quality learning materials for continuous skills development.
Pay close attention to the trading fees charged by the best CFD broker UK. This includes spreads, commissions, overnight financing fees, minimum deposit requirements, and more. Compare the fee structures of different brokers to ensure that you are getting competitive pricing and value for your money.
Consider the range of market instruments offered by the broker for CFD trading in the UK. Look for a broker that provides a diverse selection of assets, including stocks, indices, currencies, commodities, cryptocurrencies, and more. Having access to a wide range of instruments allows you to easily diversify your trading portfolio and take advantage of various market opportunities.
Reliable customer support is essential, especially for beginner traders who may encounter issues or have questions along the way. In this regard, choose the best CFD trading platform that offers responsive and knowledgeable customer support services via multiple channels, such as phone, email, and live chat.
Check the available payment methods supported by the broker for deposits and withdrawals. Ensure that the broker offers convenient and secure payment options that suit your preferences and needs. The last thing you want is to find a CFD broker with sluggish transactions, thus affecting your trades’ performance.
Lastly, consider user recommendations and reviews on Google Play, the App Store, and Trustpilot when selecting a CFD broker in the UK. See what other traders say regarding their experiences with the broker’s services, reliability, and overall satisfaction. This way, you can fully understand a broker’s strengths and weaknesses and make the best decisions suitable for your trading requirements.
How to Start CFD Trading
Contract for Difference (CFD) trading is a popular form of derivative trading that allows investors to speculate on the price movements of various financial instruments without owning the underlying assets. While CFD trading offers significant opportunities for profit, it also carries inherent risks. However, with proper knowledge and guidance, you can navigate this market effectively. Below, we outline a step-by-step guide on how to start CFD trading in the UK.
Choose a reputable CFD broker like the ones we recommend above and visit its website to begin the account registration. You can click any of the links on this page for quick access, and ensure you understand your broker’s terms and conditions before signing up. If you are always on the move, install the broker’s app on your mobile device to effectively manage your trades on the go.
Once you are done with the first procedure above, locate the “Sign Up” or “Create Account” button and click on it to initiate the account creation process. Follow the instructions provided by the broker, which typically involve filling out an online registration form with your personal details. These may include your name, email, phone number, date of birth, and more. You may be required to create a username and password for your trading account.
To comply with the FCA regulatory requirements and ensure the security of your account, most CFD brokers require users to undergo an account verification process. This process usually involves submitting identification documents such as a passport, driver’s license, or utility bill to verify your identity and address. Once your documents are verified, you will receive confirmation from the broker, and your account will be activated.
After your account has been verified and activated, you can proceed to fund your CFD trading account. Log in to your account and navigate to the “Deposit” or “Funds” section, where you will find various payment methods supported by the broker, such as bank transfer, credit/debit card, or electronic wallets like PayPal or Skrill. Choose your preferred payment method and follow the instructions to complete the deposit process. Be mindful of any minimum deposit requirements set by the broker.
With funds deposited into your trading account, you are now ready to start trading CFDs. If you are a beginner, start by familiarising yourself with the broker’s trading platform by exploring its features, tools, and functionalities via its demo account. After transitioning to the live trading account, choose the financial instruments you wish to trade, such as stocks, indices, commodities, or currencies, and execute your trades accordingly.
Remember, conduct thorough research and analysis to identify potential trading opportunities based on your trading strategy and market outlook. Also, implement risk management techniques such as setting stop-loss orders and adhering to proper position sizing for maximum experience.
Types Of CFD Brokers
When it comes to CFD trading, there are several types of brokers to choose from, each with its own characteristics and advantages. Understanding the different types of CFD brokers can help you make an informed decision when selecting the right one for your trading needs. Here are the common types.
- Dealing Desk (DD) – Market Maker
Dealing Desk brokers, also known as market makers, operate by executing trades internally within their own brokerage firm. When a client places a trade, the broker acts as the counterparty, taking the opposite position. For example, if a client buys a CFD, the broker sells the same CFD from its own inventory. Similarly, if a client sells a CFD, the broker buys it from the client.
The key characteristic of Dealing Desk brokers is that they create a market for CFDs by setting their own bid and ask prices. These prices are typically derived from the underlying market prices but may be adjusted slightly by the broker to account for their profit margin. Dealing Desk brokers often offer fixed spreads, which means the difference between the bid and ask prices remains constant regardless of market conditions.
One advantage of Dealing Desk brokers is that they can provide instant trade execution, as they do not need to wait for orders to be routed to external liquidity providers. However, with Dealing Desk brokers, there is potential for conflicts of interest. Since the broker acts as the counterparty to client trades, there is a risk that the broker may have a vested interest in seeing clients lose money. This can lead to concerns about transparency and fairness in trade execution.
- No Dealing Desk (NDD) Broker
In contrast to Dealing Desk brokers, No Dealing Desk (NDD) brokers operate by providing direct access to the interbank forex market or other liquidity providers. NDD brokers act as intermediaries, routing client orders directly to the market without any intervention or dealing desk. This means that client trades are executed at the best available bid and ask prices in the market.
NDD brokers offer transparent pricing, as client orders are executed based on real-time market prices. They typically do not intervene in trade execution or manipulate prices, which can provide a level playing field for all traders. Moreover, NDD brokers offer access to deep liquidity and competitive pricing. Since client orders are routed directly to the market, traders can benefit from tight spreads and fast order execution.
However, NDD brokers may charge a commission on trades instead of widening spreads. While this can result in lower overall trading costs for traders, it’s essential to consider the impact of commissions on your trading profitability.
Types of Accounts
When it comes to CFD trading, brokers offer various account types to accommodate the diverse needs of traders. Here’s a breakdown of some common account types.
- Standard Account – Standard accounts are the go-to choice for many traders, especially beginners, as they offer a balanced set of features suitable for most trading styles. They typically require a reasonable minimum deposit and provide access to a wide range of trading instruments. Standard accounts may have either fixed or variable spreads, depending on the broker’s pricing model.
- Premium Account – Premium accounts are tailored for high-volume traders or those with larger trading capital. These accounts often come with exclusive perks and benefits, such as lower trading fees, priority customer support, access to advanced trading tools, and personalised account management services. Premium accounts are ideal for expert traders looking for enhanced trading conditions and additional support.
- Islamic Account- Islamic accounts, also known as swap-free accounts, cater to traders who adhere to Islamic principles that prohibit the payment or receipt of interest (riba). These accounts are compliant with Sharia law and do not incur swap or rollover fees for holding positions overnight. Islamic accounts provide an ethical and accessible option for Muslim traders who wish to participate in CFD trading.
- Corporate Account – Corporate accounts are designed for businesses or corporate entities that engage in CFD trading. These accounts may have specific requirements and features tailored to the needs of corporate clients. Corporate accounts often require additional documentation to open and may offer benefits such as multiple user access, customisable trading permissions, and specialised reporting tools. They provide a professional and structured approach to corporate trading activities.
Read about the Metatrader 4 brokers in the UK in our other guide.
FAQs
Yes, CFD trading is legal in the UK for as long as you invest in a broker that is licensed and regulated by the Financial Conduct Authority (FCA). Examples of such brokers are recommended in our mini-reviews above.
In addition to using a licensed broker, one also has to be at least 18 years old, legally reside in the UK, and be able to verify both identity and address. This system is in place to protect both you as a trader and the broker, and it means that the registration process and requirements to open a trading account are the same for everyone.
When closing a CFD trade, you are exempted from stamp duty because you do not possess underlying assets. However, at the end of the year, your overall profits will be subjected to taxation, commonly known as capital gains tax.
In other words, yes – you have to pay taxes on all profits from CFD trading as a UK national.
In case you want to avoid taxes but still want to trade, we can suggest that you try spread betting. Unlike CFD trading (which is regulated as trading), spread betting is regulated as betting and is therefore tax-free in the UK.
Spread betting is offered by several of the best CFD brokers and is a very safe and exciting way to make use of global financial markets.
Yes. Day trading using CFDs is popular in the UK. Since CFD trading involves the use of leverage, day traders find it beneficial because they use it to trade small price fluctuations. Moreover, CFD trading is accessible and quite easy to get started with, making it the perfect option for both experienced traders and beginners alike.
To clarify, there are many ways that a day trader can trade financial instruments and CFDs are only one. For example, some day traders also spread bets and trade stocks or forex directly on the market (DMA trading).
CFDs are risky investments that come with higher chances of losing money. However, if you have the right CFD broker like the ones recommended above and a good strategy, you may just earn some good profits.
Our best tip for everyone that is just getting started with CFD trading is to spend the time needed to learn the ins and outs of the markets you trade on. This way, you can limit some of the risks that CFD trading carries.
The best place to trade CFD is through a CFD broker who is licensed and regulated by the Financial Conduct Authority (FCA). To identify a suitable broker, make sure you test it first using a demo account and familiarise yourself with their offerings.
CFD is a complex leveraged instrument that comes with higher risks of losing money. It is possible to lose more than your investment capital since you will be trading using borrowed funds. Therefore, before you invest in CFD, make sure you are ready to lose what you can handle.
Conclusion
Investors considering CFD trading must thoroughly understand the associated risks and select a broker that suits their trading requirements. For beginners, start by practising with a demo account to gain experience without risking real money. And when you are ready to invest real funds, only put in an amount you are comfortable losing. Most importantly, apply risk management controls, especially when utilising leverage, to protect your capital. By staying disciplined, choosing the best broker for CFD trading, and being adaptable to changing market conditions, you will begin to reap the benefits of CFD trading.
How we test?
Our test process is really based on two different aspects: our independent tests and research, as well as user reviews from Google Play, the App Store, and Trustpilot, etc.
The first thing we do when testing is to check every detail and test every tool and instrument. Our experts spend more than 200 hours on every article. We pay special attention to the specific function or the criteria that we’re comparing during the comparing stage. This means that we must determine which broker is more suited for beginners, and which is better suited for experts, for example. Find out more about our test process here.
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I really like the idea that IG Markets is the best for advanced users. Their app gives me the flexibility to manage my accounts and monitor my trade, even when I'm away from the computer. Very clean UI, so far so good.
Can I open several demo accounts on Plus500?
No, you can only open one demo account and one real trading account with Plus500. However, the Plus500 demo account is unlimited meaning you can trade with it as much and for as long as you want.
Whenever you run out of virtual funds to trade with, Plus500 will top the account up with more.
Personally, I make use of IG Markets and City Index.
They are trustworthy and reliable. I’ve traded with them for more than 3 years already!
I use IG Markets too this broker has been the broker of my choice for more than 8 months now
I find them reliable and transparent with their fee
Personally, I make use of the City Index. City Index has grown to be one of the world leaders in spread betting and CFD trading. I’ve traded with them for more than 3 years already, so they are reliable. I highly recommend this broker for CFD trading.
I am Beginner in CFD Trading. Need I start with eToro?
yep
It is a great broker!
I use brokerage platforms to access the financial markets and invest my portfolios to reach my long-term financial goals. Choosing a broker can be difficult due to the wide variety of choices available. I choose a full-service broker with value-added products and tools they provide to help me trade efficiently!
Discovering the world of CFD trading felt daunting, but this guide made it a breeze! It walked me through choosing a reliable broker, emphasizing safety and market variety. The explanations on CFDs were crystal clear, making the complex seem simple. I appreciate the tips on risk management, especially as a beginner. Overall, this guide is a great starting point for anyone venturing into CFD trading.Thanks to the creators for making it easier to understand and sharing useful information.
Great read! I'm definitely interested in learning more about the top CFD brokers in the UK. As a beginner trader, it's important to choose a reliable and user-friendly platform. I'll definitely be considering the options you've listed in this post.
Great post! as a reader, I appreciate the effort you put into curating this list of the best CFD brokers and trading platforms in the UK. It's essential to have reliable and trustworthy brokers when engaging in CFD trading, and your list provides valuable insights for those looking for the best. I'm glad to see eToro made it to the list, as I've heard great things about their platform and the social trading feature. I'll definitely consider them for my CFD trading needs. Thanks for sharing!
Great compilation of CFD brokers and trading platforms! I've been searching for the perfect one to trade cryptocurrencies and this list has been really helpful. Thanks for the comparison and features breakdown, it's really informational. I'm considering signing up with Interactive Brokers.