Finding the best CFD broker in the UK can be a daunting task, especially for newbies who do not know how to go about it. We’ve seen many traders make the wrong choices because they could not be patient enough to conduct thorough research and review the brokers accordingly.
Worry not because we are here to help. Our team of experts has gone out of their way to ensure they get the best CFD brokers without being biased. All the CFD brokers you find here vary with the type and number of CFDs they offer. Ultimately, non is better than the other. You just need to find the one that complements your investment requirements.
In this guide
Top 6 Best CFD Brokers in the UK 2021
- 1. CMC Markets – Tightest Spreads And Lowest Fees in the UK
- 2. IG Markets – Best for Advanced CFD Traders in the UK
- 3. eToro – CFD Trading for Beginners in the UK
- 4. Plus500 – Easy And Fast Demo Account Opening in the UK
- 5. IG Markets – Best CFD Stock Broker in the UK
- 6. City Index – Best CFD Broker for Research in the UK
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.
Compare The Best CFD Brokers in the UK
It took us more than 160 hours to finally have a list of the best CFD brokers in the UK. Although the process was not easy, we believe that it was all worth it, since our readers will get the best of the best. Below are the metrics we based our research on to show you just how seriously we took the process.
The brokers we recommend here are not only based on our test results, but with a combination of honest user reviews from Trustpilot, Google Play, and App Store. The following are the ratings that we gathered from those reviews.
1. CMC Markets - Tightest Spreads And Lowest Fees in the UK
CMC Markets is a pioneer CFD broker that was founded in 1989. Rest assured that your investments are safe with this broker because it is regulated by top-tier financial authorities, including the Financial Conduct Authority (FCA). With its excellent track record, it is also listed on London Stock Exchange.
Opening a trading account on CMC Markets is straightforward. You will find more than 10,000 tradable instruments across CFDs and spread betting. The Next Generation trading platform is fully digital and has no minimum deposit requirement. It also has unique features that are easily customisable, making you take full control of your trading activities. Additionally, it has a charting package with technical indicators and drawing tools that give you various options for your training needs.
When it comes to CMC Markets trading fees, it offers one of the tightest spreads in the market, starting at 0.7 pips. Traders will be able to spread bet on various asset classes, including commodities, indices, shares, ETFs, currency pairs, and treasuries. However, the broker charges overnight fees and equity trading commissions starting from 0.10%.
CMC Markets is supported on all devices. To confirm what the broker offers, feel free to try it out using the risk-free demo account. Although you cannot earn profits using this account, it gives you a feel of how the live one works without investing a single pound.
- More than 10,000 financial instruments to choose from
- Competitive spreads
- No minimum deposit requirement
- Fully digital Next Generation trading platform
- Stock CFD charges are high
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). No doubt IG Markets is a safe broker to invest in.
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 as low as 0.1 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.
- 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
3. 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. However, eToro has a minimum deposit requirement of approximately £150, which you can pay using debit/credit 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.
- 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
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 commission-free. 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. 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 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.
- 0% commission on trades with tight spreads
- Allows the application of leverage
- Easy-to-use trading platform
- Variety of tradable instruments
- Limited educational and research tools
Risk Warning: 76.4% 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. IG Markets - Best CFD Stock Broker in the UK
If you are looking for the best CFD stock broker in the UK, then IG Markets might be worth contemplating. Founded in 1974, this broker has grown to be one of the best stock brokers in the UK, let alone globally. It is also regulated by tier-one financial authorities, making it a safe home for your investment needs.
Navigating through the IG Markets trading platform is easy because it is customisable. The platform has MetaTrader 4 feature that is backed up with a plethora of charting tools, making you take full control of your trading activities. Although this stock broker is primarily recommended to professional traders, newbies can also quickly catch up trading on its platform because of the available extensive research and educational tools.
IG Markets offers very competitive spreads in the market. Trading stock CFDs is relatively costly. Therefore, before committing to this stock broker, make sure that your investment capital aligns with its charges.
Ultimately, IG Markets is the best CFD stock broker in the UK because of the thousands of tradable instruments it offers. Whether you are a beginner or an expert investor, this stock broker has something for you. To avoid risking your investment capital, we highly recommend you test the broker on its demo account before going all in.
- Free IG Academy with many educational tools
- +17,000 tradable instruments
- Access to foreign markets
- MT4 trading platform with a plethora of charting tools
- High stock CFD trading fees
6. 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.
- 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
How To Choose the Right CFD Broker in the UK
CFD trading is a high-risk investment that could be highly profitable if you apply the right strategies. We usually recommend this type of trading to professional investors who have a complete understanding of how it works. However, if you are a novice investor willing to give CFD trading a shot, then the first step to increase your chances of succeeding is choosing the right broker.
This should be the first thing to look into before testing your best CFD broker. The broker must be licensed and regulated by the Financial Conduct Authority (FCA). Should they have more than one world-class financial authority regulating them, then do not agonise because this shows that they can be trusted even more with your hard-earned investment capital.
CFD trading is complex in itself, so the last thing you want is a trading platform that is not customisable and lags your trading activities. Confirm if it is fully-digital, allows direct market access, and is backed up with enough educational and resource tools to improve your trading skills. Additionally, the trading platform must be fully functional on all devices so that you can also install it on your mobile device and keep track of your trading activities anywhere, anytime.
Before choosing a CFD broker, you need to set aside your investment capital to avoid digging into all of your savings. Then, find a CFD broker whose trading charges align with your budget by checking and comparing their trading and non-trading costs.
There are various tradable instruments CFD brokers in the UK offer, including forex, shares, indices, commodities, and treasuries. A broker with more tools means that you can have access to a lot of opportunities. It also means that you have something to keep you engaged for a more extended period.
The best CFD broker must have a reliable and reputable customer support service. Since CFD trading is a complex, high-risk investment, you may at some point require clarifications. If there is no reliable after-sale service, then your trading activities will be affected. The support service should also be available 24 hours, daily on various communication channels, including phone, email, and live chat
There are various payment methods that CFD brokers allow traders to use when making deposits and withdrawals. They include debit/credit cards, bank transfers, and e-wallets such as Neteller and PayPal. Note that not all brokers will allow all these modes of payments. Therefore go for a CFD broker allowing your preferred payment method.
Imagine choosing a CFD broker that does not have a risk-free account to test how it works. Terrible, right? Demo accounts are the only tools that confirm if a broker is worth investing in or not. You do not want to fully commit to a CFD broker and realise that they aren’t fit for your trading requirements.