Trading is a profession that is becoming more popular all across the globe. More and more people are aspiring to become successful traders and are testing their luck in the world’s most risky arena. The trading arena is also offering myriads of opportunities for traders. Traders can trade on different financial instruments like stocks, futures, options, ETFs, Forex, cryptocurrencies, and so on. In this article we will compare and find the best CFD brokers for you!
CFD is another great option for traders who are good at the anticipation of price movements. However, finding a good platform for CFD trading is a very tricky part. But the fact is – you have to find a good CFD trading platform one way or another.
You will find various CFD platforms with different features. For example, some of them offer a better CFD variety as compared to their competitors. Others offer better features, interfaces, and are also good in terms of regulatory compliance. So, you have to look at CFD trading platforms from different angles to choose the best CFD trading platform for yourself.
In today’s post, let us look at different CFD brokers and their trading platforms to help you choose the one CFD platform that might suit you.
What are the best CFD brokers?
Our list of the best 11 CFD brokers is based on hundreds of hours of extensive research. We have tested and analyzed hundreds of online CFD brokers to prepare an ultimate list of the very best platforms.
eToro is one of the leading social trading and investing platforms. It has been in the industry for more than 14 years now and therefore, is one of the most established trading platforms. eToro is also among the most trusted trading platforms as more than fifteen million users have put their trust in eToro.
- eToro enables you to trade stocks, forex, ETFs, cryptocurrencies, and CFDs on a single innovative platform.
- Virtual Portfolio gives you the opportunity to learn to trade and gain experience without risking your money.
- The Social Trading feature allows you to capitalize on the benefits of social trading and the combined wisdom of the social community.
- eToro also gives you the golden opportunity to copy trades of expert traders through the CopyTrading feature.
- It is also among the best CFD brokers because it offers access to seven CFD markets including cryptocurrencies.
- eToro gives you access to thirty-seven cryptocurrency CFDs and two thousand stock CFDs.
eToro requires a $200 minimum deposit to open an account.
eToro offers 49 currency pairs, 12 stock index CFDs, 2,000 stock CFDs, 256 ETF CFDs, 14 commodity CFDs, and 37 cryptocurrency CFDs.
eToro charges the following fees for trading different types of CFDs. Fee includes all commissions, spreads, and financing charges for initiating a position, holding for one week, and closing.
- S&P 500 Index CFD fee is $1.7
- Europe 50 Index fee is $2.9
- Apple CFD fee is $1.2
- EUR/USD benchmark fee is $8.1
- GBP/USD benchmark fee is $7.5
CFD trading fees are not too much as compared to the industry’s standards. However, non-trading fees are high. For example, eToro charges a $5 withdrawal fee.
Who is it best for?
eToro is one of the best trading platforms that are best for social trading, cryptocurrency CFDs, and zero-commission stock trading.
eToro is one of the highly regulated CFD trading platforms. The Financial Conduct Authority (FCA) in the UK, Cyprus Securities and Exchange Commission (CySEC) in Cyprus, and the Australian Securities and Investment Commission (ASIC) in Australia regulate eToro. The company is also registered with De Nederlandsche Bank N.V. (DNB). eToro has also secured a license from the Seychelles Financial Securities Authority.
eToro offers three funding methods – bank transfers, credit/debit cards, and electronic wallets.
- User-friendly platform with numerous top-quality features
- Distinguishing features like virtual account, copy trading, and social trading
- Very easy and instant opening of an account
- Commission-free stock and ETF trading
- Supports a wide variety of CFDs including cryptocurrency CFDs
- Reasonable trading fees
- Supports only USD accounts
- High non-trading fees such as the $5 withdrawal fee
- Customer support can be improved
Pepperstone is another award-winning trading platform that empowers traders to discover opportunities on more than twelve hundred financial instruments. The extensive range of CFDs on Forex, stocks, commodities, ETFs, cryptocurrencies, and more grants you the freedom of CFD trading. Pepperstone also allows traders to choose from three different trading platforms, MetaTrader 5, MetaTrader 4, and cTrader. You can also use one account for all three trading platforms. Pepperstone also gives you the opportunity to follow and copy trades of other successful traders on the social trading platform. In short, Pepperstone with its great trading platforms is one of the best CFD brokers currently operating in the market. In addition to being a fast and reliable platform with a 99.99% fill rate, Pepperstone offers several remarkable features.
- A variety of trading platforms, MetaTrader 5, MetaTrader 4, cTrader, and Social trading, makes Pepperstone a unique CFD trading platform. You can choose one or use all three trading platforms through a single account.
- More than twelve hundred financial instruments across stocks, Forex, commodities, indices, currency indices, ETFs, and cryptocurrencies give you access to the trading world of opportunities.
- A demo account gives you the opportunity to see if CFD trading really suits you. It also allows you to learn and gain experience without risking a single penny of your capital.
- You can also take full advantage of educational content available on Pepperstone’s website. You can avail of this opportunity to learn the basics of CFDs and how to trade them.
- Pepperstone is a safe, fast, and reliable platform at which you don’t need desk intervention to close deals.
- Pepperstone allows you to choose the type of account that suits you from two account types -Standard and Razor.
- Customer support is available 24/5 during weekdays and 18 hours during weekends.
There are no account minimum requirements for trading on Pepperstone.
Pepperstone gives you the opportunity to trade on 60+ shared CFDs, 14 major stock indices, 15 commodities, 5 cryptocurrencies, and USDX CFD.
Pepperstone offers the lowest spread rates. The platform charges commission on Razor accounts only when trading on stocks and Forex CFDs.
Pepperstone is best for having different trading platforms, no account minimum requirements, tight spreads, and competitive prices.
Pepperstone is among the highly regulated trading platforms. It is regulated by the world’s most popular regulatory authorities – FCA, CySEC, ASIC, DFSA, SCB, BaFin, and CMA.
Pepperstone supports multiple funding methods.
- Bank transfer
- Union Pay
- Three different trading platforms MT5, MT4, and cTrader
- Social trading
- User-friendly interface
- Lots of educational content
- Demo account facility
- No account minimum requirements
- Mobile applications for android and iOS
- Negative balance protection of UK and European clients
- Exceptional customer support
- Relatively limited variety of available trading instruments
- Negative balance protection is limited to the UK and European clients
AvaTrade is another CFD broker that deserves the attention of CFD traders all across the globe. The broker offers three trading platforms – MetaTrader 4, MetaTrader 5, and WebTrader. You can also use automated trading platforms. Automated trading platforms enable you to avoid the difficulties of manual trading. All AvaTrade’s trading platforms come with innovative features and a user-friendly interface. Moreover, the broker gives you access to the world’s most popular financial instruments ranging from stocks and commodities to Forex pairs and cryptocurrency CFDs. AvaTrade also does all the hard work for traders to give them a seamless trading experience. The netting and hedging freedom, easy short-selling and scalping, seamless order execution, ultra-low spreads, and much more make AvaTrade one of the most sought-after CFD trading platforms. AvaTrade also offers spectacular features that cannot be overlooked.
- MT4 and MT5 are among the world’s most popular trading platforms. They offer analytical capabilities that take trading to the next level.
- Platforms come with numerous interactive charts, built-in indicators, multiple timeframes, and several other phenomenal tools that are enough for effortless trading.
- You can access trading platforms from any type of device you have including PCs, Android, or iOS devices.
- AvaTrade’s WebTrader platform is another great platform for traders, especially for beginners. It brings all the critical functionality directly from your web browser.
- You can get access to a huge variety of tradable CFD instruments including stocks, commodities, bonds, indices, ETFs, and cryptocurrency CFDs.
- The leverage CFD trading helps you magnify your profits by amplifying your exposure to the markets.
- If you want to copy the trades of the most successful traders, the AvaSocial platform will give you access to the AvaTrade community.
- AvaTrade also offers the best multilingual customer support that guides you resolve your issues with the utmost respect and compassion.
- AvaTrade invests a huge amount of money in providing the best educational content to its clients. You can learn all about CFD trading through the platform itself, ebooks, and video tutorials.
AvaTrade requires a minimum deposit of $100.
AvaTrade offers more than twelve hundred symbols in total for trading as CFDs including the stocks of the world’s most popular organizations like Adidas and Alibaba. You can also trade on cryptocurrency CFDs and 9 popular Forex pairs.
AvaTrade’s CFD fees are low as compared to the industry’s standards. If you hold a $2,000 position for one week, AvaTrade charges $1.1 for S&P 500 Index CFD, $0.8 for Europe 50 Index CFD, $9.0 for Apple CFD, and $6.0 for Vodafone CFD.
AvaTrade is best for offering a variety of trading platforms, innovative tools, social trading platforms, and competitive CFD fees.
AvaTrade is a globally regulated broker that has secured licenses from 5 continents. ASIC in Australia, The Abu Dhabi Global Market Authorities (ADGM) and Financial Services Regulatory Authority (FSRA) in the Middle East, Financial Sector Conduct Authority (FSCA) in South Africa, British Virgin Islands (BVI) Financial Services Commission (FSC) in the British Virgin Islands, Financial Services Agency (FSA) and The Financial Futures Association of Japan (FFAJ) in Japan, and Investment Industry Regulatory Organization of Canada (IIROC) in Canada regulate AvaTrade.
AvaTrade supports a number of funding methods including bank transfer, credit/debit card, and electronic wallets.
- A variety of robust trading platforms
- Innovative features include free research tools
- Seamless and quick account opening
- Free deposit and withdrawals
- Low trading fees
- Exceptional customer support services
- Highly regulated CFD broker
- High non-trading fees
- Limited options for CFD trading
XTB is another big name on the list of the most established brokers currently operating in the industry. The company has been in the business for more than 15 years and has offices in more than 13 countries including the UK, France, Germany, Poland, and Chile. XTB is extremely popular for providing the best trading experience to its clients by constantly improving its trading platforms. It always uses cutting-edge technologies to bring innovative solutions for clients. Moreover, XTB is one of the safest and trusted stock-exchange listed brokers in the world.
The company is also regulated by four regulatory authorities and that’s why more than 2,75,000 clients trust XTB. XTB is also renowned for excellent 24/7 customer support services and an extensive library of educational materials for everyone interested in learning. XTB’s trading platform is xStation. The platform is user-friendly and highly customizable. Features like the best execution speed, trader’s calculator, sentiment, innovative charts, performance statistics, market order depth, and many others make xStation one of the most versatile trading platforms.
- xStation is one of the most robust, reliable, and innovative trading platforms that accompanies numerous remarkable features.
- The platform also has a simple but intuitive design that makes it really easy for you to manage your financial assets quicker and easier.
- xStation mobile app is also a good one that helps you explore the vast world of trading on the go.
- XTB ensures 24/7 customer support services to answer your queries and solve your issues through a really supportive team.
- XTB brings 2,100 global markets including stocks, Forex, indices, commodities, ETFs, and cryptocurrencies to your desktop or mobile phone.
- You can trade on stock CFDs of various popular organizations like Apple, Amazon, Barclays, Facebook, etc.
- XTB also enables you to keep yourself updated with important market news and make informed trading decisions.
- XTB also puts a huge emphasis on providing educational content to its clients through trading academies and articles.
There is no account minimum requirement for opening an account on XTB.
XTB gives you access to more than two thousand tradable financial assets including cryptocurrency CFDs.
XTB fees are competitive and it charges different spread rates on account types. FX spread for a standard account is 0.5 while a Pro account spread is 0.1. XTB also charges a commission of $3.50 per lot for trades on the Pro account. XTB also charges a €10 inactivity fee.
XTB is best for offering the best safety, competitive prices, and good customer service.
XTB is among the huge CFD brokers that are listed on the stock exchange as well. The world’s most popular supervision authorities regulate XTB. The Financial Conduct Authority (FCA), UK, Financial Supervision Authority (KNF), Poland, Cyprus Securities and Exchange Commission (CySEC), Cyprus, and the International Financial Services Commission, Belize regulate XTB.
XTB supports a wide variety of funding methods including bank transfer, Visa/Mastercard/Maestro credit cards, and Skrill/Paysafe/safety pay/Neteller electronic wallets.
- xStation is one of the best and user-friendly trading platform
- Established and one of the most trusted brokers
- A wide variety of tradable assets including CFDs
- Low spreads
- Low trading fees
- Clients’ accounts protection is available
- Highly regulated broker
- Great customer service
- Doesn’t facilitate clients from the USA
- Higher spread costs except for FX
- Lacks in backtesting or automated trading facilities
Plus500 is another classic option for CFD traders looking for the best CFD broker and CFD trading platform. It is the gateway to endless trading opportunities across more than 2,000 financial instruments. Plus500 is one of the leading CFD brokers providing effortless CFD trading experience alongside an innovative trading platform. It is also among the most trusted and established brokers having more than 4,30,000 + active clients. The company was established 13 years ago in 2008 and is among a few CFD brokers listed on the London Stock Exchange. Plus500 is secured by SSL and licensed by the Australian Securities and Investment Commission (ASIC). That means, it is one of the brokers that can easily be trusted by clients.
Moreover, the company also ensures the ultimate security of the client’s money as clients’ money is segregated. Opening an account on Plus500 is extremely easy and account approval takes just one day. So, if you want to experience CFD trading on an innovative platform with numerous key features, Plus500 is your obvious choice.
- The WebTrader platform is one of the most popular and innovative trading platforms. It offers numerous features like risk management, alerts, economic calendar, news & market insights, and much more.
- Plus500 is one of the CFD brokers specialized in CFD brokerage services. It offers CFD trading for all financial instruments. You can trade CFDs on stocks, commodities, Forex, indices, options, ETFs, and cryptocurrencies.
- Plus500 also offers one of the most reliable and innovative mobile trading platforms. You can do trading even on the go with the help of a simple mobile application with numerous top-quality features.
- Leverage of up to 1:30, zero commission, and low spreads also make Plus500 a worthwhile CFD broker currently available in the market.
Plus500 requires a minimum deposit of $100 upon opening of account.
Plus500 opens the door to CFD trading opportunities on more than 2,000 financial instruments including stocks, commodities, Forex, indices, options, ETFs, and cryptocurrencies.
Plus500 doesn’t charge any commission and makes money from spreads. Its spread rates are also very competitive in the industry. However, the broker charges a $10 inactivity fee and also charges an overnight funding fee.
Plus500 is best for not charging a commission, low spread rates, and good customer service.
Plus500 is also among the highly regulated CFD brokers. The Financial Conduct Authority (FCA), the Australian Securities and Investment Commission (ASIC), the Financial Market Authority (FMA), the Financial Sector Conduct Authority (FSCA), and the Monetary Authority of Singapore (MAS) regulate Plus500.
Plus500 supports bank transfer, credit/debit cards, and electronic wallets.
- Supports more than 2,000 financial instruments for CFD trading including commodities, Forex, indices, options, ETFs, and cryptocurrencies
- Advanced WebTrader trading platform with innovative features
- Highly regulated platform regulated by various regulatory authorities
- Commission-free brokerage services
- Low spreads
- 24/7 and multilingual customer support services
- Non-trading costs like inactivity fee
- Less analytical and research tools as compared to various other brokers
IG Markets is among the most established brokers that began its journey in 1974. The platform is another enticing CFD broker for CFD traders who want access to unlimited trading opportunities. It grants you access to a multitude of financial instruments across thousands of markets. IG Markets has signed up to the FX Global Code of Conduct. It indicates the sincerity of the management team that wants to ensure best practices in the market. IG Markets has a very innovative and intuitive platform. It has numerous advanced features and still, it is one of the easiest platforms for trading.
The simple and clean platform layout gives you an instant overview of what is happening in the market. IG Markets also ensures the best risk management methods through stops and limits that help you reduce risks and protect your profits. Moreover, the platform also makes account opening really simple and seamless for new clients. IG Markets is also among the most trusted CFD brokers as it is also a highly regulated CFD broker. IG Markets offers a multitude of features that can easily attract thousands of traders worldwide.
- IG Markets’ cutting-edge platform is robust, intuitive, and innovative that fulfills all your trading requirements.
- The broker offers the best charting tools that enable you to track performance across multiple timeframes and compare up to four timeframes on a single chart.
- The platform also empowers you to conduct in-depth market analysis through 28 indicators. It also facilitates opening, closing, and editing trading positions in just a couple of clicks.
- ProRealTime is an advanced charting feature for advanced traders for seamless performance analysis.
- IG Markets also ensures access to the latest news from the world’s leading news organizations.
- In-house analysts conduct fundamental and technical analyses that also help you find what you need to make informed trading decisions.
- IG Markets’ automatic alerts feature is an ultimate facility that enables you to set alerts on your preferred price moves, events, and so on.
- The customizable platform also allows you to customize the platform according to your own needs and requirements.
- You can trade on financial instruments and their CFDs across 17,000 plus markets including stocks, Forex, indices, bonds, cryptocurrencies, and commodities.
IG Markets doesn’t require any account minimum.
IG Markets offers CFDs on a range of exciting markets including 10,000 + stocks, all major Forex pairs, indices, bonds, cryptocurrencies, and commodities.
IG Markets charges very competitive fees. From 0.6 points for CFDs on popular FOREX pairs, from 0.1 for major indices like FTSE 100, from 0.3 for Spot Gold, and so on.
IG Markets is best for getting access to innovative charting tools, advanced ProRealTime, and competitive rates.
The Financial Conduct Authority (FCA) in the UK and the Federal Financial Supervisory Authority (BaFin) in Germany regulate IG Markets. The broker is also listed on the London Stock Exchange and ensures transparency by disclosing all its financials.
IG Markets supports bank transfers, credit/debit cards, and electronic wallets.
- A variety of trading platforms including ProRealTime
- A huge collection of CFD options across 17,000 + markets
- Excellent alerts and stop-loss tools
- Exceptional charting features
- Expert support
- Quick and seamless signing up
- Lots of educational content
- Exceptional customer support services
- Lacks in social trading and copy trading
- Lacks in backtesting
- Higher non-trading fees like inactivity fee
City Index is another remarkable CFD trading platform that was voted “the best CFD provider” award at the OPWA Awards 2021. The broker started its journey in 1983 in the UK and is now among the leading Spread Betting, Forex, and CFD trading platforms. City Index gives its clients access to more than 12,000 global markets. The platform is highly trusted and popular for providing an excellent trading platform and the necessary tools. City Index offers two types of trading platforms, MetaTrader4 and WebTrader. You can also get a mobile trading app for convenience and trading on the go.
The best thing is – City Index trading platforms suit everyone irrespective of the level of trading expertise and experience. City Index also offers the best charting tools in the industry. You have multiple options to customize your charts according to your own requirements. Moreover, the broker also ensures other cutting-edge tools to help you conduct perfect fundamental and technical analysis. That’s not all. City Index is also among the most trusted CFD brokers and has more than 2,95,000 clients worldwide. The platform can give you access to numerous enticing features.
- MetaTrader4 and WebTrader are among the most reliable, efficient, and user-friendly trading platforms. Platforms suit every trader irrespective of the level of trading expertise and experience.
- City Index charts are excellent. You can take full advantage of multiple chart layouts, deal-through charts, multiple chart types, and market comparisons.
- Advanced trading tools like SMART Signals, Trade Execution, Strategy Tools, Performance Analytics, SMS Volatility Alerts, and Economic Calendar can help you maximize your trading profits.
- You can trade CFDs on 4500+ global shares, 21 global indices, 84 Forex pairs, and 25+ global commodities across more than 12,000 global markets.
- City Index also has a research portal that highlights trade ideas using fundamental and technical analysis.
- You can also trade from wherever you are through the advanced and fully functional applications developed specifically for tablets and smartphones.
- City Index also provides the latest market news and analysis that help you make informed trading decisions.
- There is a lot of educational content including a series of educational videos, articles, and practical examples. You can substantially increase your trading knowledge and enhance your trading skills with quality educational content.
There is no minimum deposit requirement for opening an account on City Index.
City Index offers CFDs on 4500+ global shares, 21 global indices, 84 Forex pairs, and 25+ global commodities across more than 12,000 global markets.
City Index makes money through spreads. The Forex spread rate is similar to the industry’s standards. For example, the typical average spread on the EUR/USD is 1.1 points. However, stock CFD fees are slightly higher and it also charges an inactivity fee of £12 per month after one year of inactivity.
City Index is best for Spread Betting, coverage of 12,000+ global markets, excellent charting tools, and educational content.
City Index is a publicly-traded broker that is listed on NASDAQ. It is also one of the highly regulated CFD brokers and is regulated in multiple jurisdictions. The Australian Securities and Investment Commission (ASIC), Monetary Authority of Singapore (MAS), and the Financial Conduct Authority (FCA) regulate City Index in Australia, Singapore, and the UK respectively.
City Index supports bank transfers, credit/debit cards, and electronic wallets.
- Excellent trading platforms with exceptional tools
- Phenomenal charting features with multiple customization options
- Highly regulated platform
- One of the most established and trusted CFD brokers
- Credit/debit cards are acceptable
- Seamless account opening
- CFDs on a wide variety of tradable assets
- Great customer support services
- Quality educational content
- Lacks in Social trading and copy trading
- High fees for stock CFDs
- The desktop platform is comparatively less user-friendly
IC Markets is relatively new but one of the top CFD brokers that have been in the business since 2007. The company from Australia is one of the most popular trading companies right now. IC Markets brings cutting-edge and innovative trading platforms and great liquidity. It gives its clients the opportunity to trade on the world’s most popular MetaTrader 4 platform. The platform is popular for its user-friendliness, great features, and automated trading abilities. IC Markets also gives you access to an updated and improved version of MT4. MetaTrader 5 exceeds in features from its predecessor.
The advanced charting tools and order management abilities enable you to monitor and control your trading positions with ease and perfection. IC Markets also offers a cTrader trading platform that is another spectacular trading platform for traders. Moreover, if you want automated trading facilities, IC Markets also gets you covered from this angle too. IC’s order matching engine processes over 500,000 trades every day and two-thirds of these trades come from automated trading. IC Markets is also among the safest CFD trading platforms as it complies with all the relevant laws, regulations, standards, and policies. Therefore, IC Markets can be your perfect partner if you want a unique and seamless trading experience.
- MT4, MT5, and cTrader with all their advanced features are exceptional trading platforms that help you take your trading to the next level.
- Order execution is exceptionally fast on the IC Markets trading platforms with an average order execution speed of under 40ms.
- IC Markets has introduced twenty advanced trading tools that weren’t previously available on MT4. So, MT4 is a substantially better and improved platform here.
- Virtual Private Server enables you to run automated trading strategies 24/7.
- IC Markets also grants you access to a carefully selected range of financial instruments across the most popular and liquid markets.
- You can trade CFDs on 61 most popular currency pairs, 23 indices from across the globe, 22 commodities, 1600 + stocks from NYSE, NASDAQ, and ASX, 11+ bonds, and 13 cryptocurrencies.
- IC Markets also gives you the opportunity to trade CFDs on 4 global futures.
The account minimum requirement at IC Markets is £200.
IC Markets offers CFDs on 61 most popular currency pairs, 23 indices from across the globe, 22 commodities, 1600 + stocks from NYSE, NASDAQ, and ASX, 11+ bonds, and 13 cryptocurrencies.
IC Markets offers very competitive spreads such as starting from 0.1 pips on the Forex EUR/USD pair.
IC Markets is best for lower Forex spreads, additional MT4 tools, and CFD trading on a multitude of financial instruments.
You can trade with peace of mind on IC Markets because the world’s strictest financial regulatory authorities Monitor it. The Seychelles Financial Services Agency (FSA) regulates the broker.
IC Markets supports different funding methods such as bank transfer, credit/debit cards, and electronic wallets such as PayPal and Skrill.
- Gives the opportunity to choose from three different trading platforms
- MT4 comes with 20 advanced features
- Offers CFD trading on a wide variety of financial assets
- Lower Forex trading costs
- Great customer support services
- Exceptionally good mobile applications
- No deposit and withdrawal fees
- Below standard design of the platforms
- High financing rates
- Lack of non-European clients’ investment protection
CMC Markets is the CFD broker that needs no introduction. Being one of the most innovative brokers, CMC Markets gives you the ultimate freedom to trade as you want and aspire. It was established in 1989 and is among the most established CFD brokers around. The huge emphasis on innovation is evident from the most powerful web and mobile trading platforms. Next Generation is one of the most unique, innovative, and feature-rich trading platforms. MetaTrader 4 is another option that CMC Markets’ clients can use.
The broker offers unique charting features that empower you to analyze price movements and conduct technical analysis effortlessly. You can capitalize on exceptional drawing tools, 12 chart types, and 70 chart patterns. Moreover, conducting technical analysis on CMC Markets is made easier by an in-built technical analysis suite. If you want to go back in history, CMC Markets gets you covered with its extensive price history covering as much as 20 years. You can easily switch between chart intervals ranging from seconds to one month. In short, CMC Markets is the CFD broker that can help you achieve great milestones in your trading journey.
- CMC Markets gives you the opportunity to use two of the world’s most popular trading platforms, Next Generation and MT4.
- The advanced charting tools with 12 chart types, 35 drawing tools, over 115 technical indicators, and much more offer all that you need for your trading.
- The Client Sentiment tool enables you to analyze the market sentiment. It is a great feature in terms, especially during volatile market conditions.
- The price action comparison allows you to compare the price action of all correlated products by dragging and dropping one product over the other.
- Price projection and pattern projection are other advanced tools that facilitate anticipation of price movements.
- You can trade thousands of CFDs on financial instruments across stocks, Forex, indices, commodities, treasuries, and cryptocurrencies.
- CMC Markets offers 330+ currency pairs, 80+ indices, 14 cryptocurrencies, 100+ commodities, and 9,400 stocks from 23 countries.
- You can also trade CFDs on more than 50 treasury investments.
- CMC Markets also provides exceptional educational content that helps you learn different trading strategies.
- CMC Markets also keeps you aware of what is going on in the market through the latest market news.
CMC Markets doesn’t require any account minimum balance.
CMC Markets offers 330+ currency pairs, 80+ indices, 14 cryptocurrencies, 100+ commodities, 9,400 stocks from 23 countries, and more than 50 treasury investments.
CMC Markets makes money through spreads. Spreads on major Forex pairs range from 0.7 to 1.1. On indices, spreads range from 0.5 to 2. Spreads on cryptocurrencies range from 3.8 to 125. Commodities spread range from 0.3 to 2.5.
CMC Markets is the best for Next Generation feature-rich trading platform, extensive range of CFD products, and customer support services.
CMC Markets is also among the highly regulated CFD brokers. The Australian Securities and Investment Commission in Australia, Investment Industry Regulatory Organization of Canada (IIROC) in Canada, Monetary Authority of Singapore (MAS) in Singapore, and the Financial Conduct Authority in the UK regulate CMC Markets.
CMC Markets supports all popular funding methods such as bank transfer, credit/debit cards, and electronic wallets.
- One of the most innovative Next Generation trading platform
- Extensive range of highly useful tools
- A wide variety of CFD products
- Highly regulated broker
- Excellent customer support services
- Quality educational content
- Remarkable protection of user accounts
- US clients are unacceptable
- Stop-losses available only on Next Generation
- Slightly higher spreads
- Lacks in backtesting, social trading, and copy trading
Another big name that deserves to be on the list of the best CFD brokers is Markets.com. It is a subsidiary of a company listed in the UK. Markets.com offers four different trading platforms. MetaTrader 4 and MetaTrader 5 are among the traditional and widely used platforms. The broker provides the most basic version of MetaTrader 4. A multitude of add-ons is available.
However, if you need advanced trading tools, you have to subscribe to them. MetaTrader 5 is a better option for traders on Markets.com who want better tools for trading. However, flagship MarketsX and MarketsI trading platforms indicate a genuine service by the broker. Both of these trading platforms offer an extensive selection of remarkable trading tools. The platforms are also user-friendly besides being feature-rich. The MarketsX platform offers fourteen trading tools that help traders fully analyze the market.
Moreover, traders, who want to trade from wherever they are, can take full advantage of highly effective mobile applications. Markets.com offers a MetaTrader 4 application alongside the in-house trading app fully compatible with Android and iOS. A tool like Strategy Builder is another specialty of Markets.com that assists in developing effective trading strategies. In short, Markets.com deserves your attention when looking for the best CFD broker and the best CFD trading platform.
- The clients of Markets.com can choose the trading platform of their choice from a collection of four trading platforms.
- MetaTrader 4 offers automated trading solutions for traders who rely on automation for trading. MetaTrader 5 is a great alternative to MT4 for traders looking for more advanced features.
- MarketsX accompanies great charting tools that make technical analysis effortless. The platform also offers almost 90 technical indicators and oscillators for better study of the price movement.
- MarketsX and MarketsI are also easy-to-use platforms that make Markets.com an equally good option for both, new and experienced traders.
- Markets.com also provides detailed research reports for various CFDs to enable CFD traders to make better and informed decisions.
- Markets.com offers quality educational content and also does an excellent job by providing live webinars to keep clients updated.
Markets.com requires an account minimum of $100 to open an account.
Markets.com offers CFDs on more than 2,000 tradable assets. The number of available CFDs is 2,179 excluding 57 Forex Pairs.
The advertised spreads are as low as 1.9 points on the EUR/USD pair.
Markets.com is best for its collection of four trading platforms and its emphasis on customer service.
Two tier-1 regulators authorize Markets.com. The first one is the Australian Securities and Investment Commission (ASIC) and the Financial Conduct Authority (FCA).
Markets.com supports funding methods like bank transfer, credit/debit cards, and electronic wallets.
- A variety of available trading platforms
- Feature-rich MarketsX and MarketsI platforms
- Regulated and trusted trading broker
- Excellent customer support services
- Fully functional mobile applications
- Slightly higher spreads as compared to industry’s standards
- Lacks in social trading and copy trading
XM was established in 2009 and has grown at an astonishing pace since its inception. The broker’s flexible trading conditions and trading platforms suit traders of every size and level of experience. You can trade on MetaTrader 4 with flexible leverage ranging from 1:1 to 888:1. MetaTrader 5 is another option for traders, especially for traders looking for more advanced trading tools and additional CFD products. Moreover, you can gain access to your trading platform from any device of your choice. XM offers a trading platform for all devices including desktops, smartphones, and tablets. If that’s convincing enough, then you also need to know that XM is also one of the safest and authorized CFD brokers.
- XM users have a collection of 16 trading platforms to choose from and trade from anywhere.
- Traders can capitalize on free daily technical analysis and make informed trading decisions without having to conduct technical analysis on their own.
- XM grants free access to Forex market research to enable Forex traders to make timely and accurate trading decisions.
- Daily Forex market outlook and Forex trading signals also enlighten the path of Forex trading for traders.
- XM also provides quality educational content including unlimited access to video tutorials and daily Forex webinars.
- 24/5 customer support in more than thirty languages indicates the broker’s emphasis on providing quality customer support services.
The minimum deposit required for starting trading on XM is $5-$100.
XM offers CFDs on 55+ popular Forex pairs, stocks of more than 60 companies, major global indices, commodities, metals, and energies.
XM makes money through spreads. The broker offers tight spreads as low as 0.6 pips on all major Forex pairs.
XM broker is best for CFDs on Forex and Forex trading.
XM is also among the CFD brokers authorized by two tier-1 authorities. The Australian Securities and Investment Commission (ASIC) and the Financial Conduct Authority (FCA) regulate and authorize XM.
XM supports funding methods like bank transfer, credit/debit cards, and electronic wallets.
- Easy and straightforward opening of account
- Highly regulated CFD broker
- Low stock CFD fees
- No withdrawal fees
- Several account base currencies
- Quality educational content
- Limited CFD products
- Lacks in some advanced charting and other key features
CFD stands for Contract For Difference. It is a contract between a buyer and a seller. CFDs are usually short-term investments. At the end of the contract, both parties exchange the difference between the opening and closing prices of financial instruments like Forex, stocks, or commodities. In other words, contracts for difference enable you to take trading positions on prices of financial instruments without actually owning them. That’s the reason CFDs are derivative products because you don’t own underlying assets while trading CFDs.
CFD trading is a type of trading that solely works on speculation – the speculation on short-term price fluctuations of financial assets. CFD traders either make profit or loss depending on which direction their chosen assets move in. That means, CFD traders can make a profit or incur losses from both types of market trends, rising as well as falling.
As we know that CFD trading is a type of derivatives trading. CFD traders deal on prices derived from the underlying markets instead of dealing on the underlying market itself. It has become one of the most popular forms of trading because of the following benefits.
CFD trading enables traders to enhance their capital with leverage trading. Traders have to deposit a fraction of the full values of their trades. The deposit traders have to make is known as margin. How much deposit you need to make for opening a position depends on your chosen financial instrument and your position. For example, if an instrument has a 20% margin factor and you need to open a position worth $20,000, then you only need to deposit $4,000.
CFD trading is more flexible than other types of trading because traders have to exchange the difference between opening and closing prices. That means traders can make a profit on both types of market trends, down and up. Traders decide to trade at the selling price if they think that the price of the underlying asset is likely to go down. On the other hand, traders decide to trade at the buying price if they think that the price of the asset is expected to go up.
Trade a wide range of markets
CFD trading empowers traders to trade more than 15,000 markets. You don’t have to access different platforms for trading different markets. All good CFD brokers grant you access to thousands of markets including stocks, ETFs, bonds, commodities, Forex, cryptocurrencies, and many others.
Hedge stock portfolios
CFDs also allow you to offset any potential losses on your stock portfolios. For example, you own stocks of a company and plan to hold these stocks for the long term. If you predict that your company’s sector is going to face a downfall, you can open a short position on CFDs. If you are correct, your CFD position will make a profit for you and thus will offset the loss caused by decreasing stock prices of your company.
You know that CFDs are leveraged products but what does leverage mean? Leverage means that you only need to deposit a small amount of the overall value of trade if you want to trade CFDs. Leverage offers several benefits for traders. It allows them to magnify their returns because traders can open positions beyond the limits of their own capital. However, the downside of leverage trading is that you may also incur huge losses if your predictions are wrong.
You may follow the following key steps to start CFD trading effectively.
1. Understand how CFDs work
You can expect to hit the road of successful CFD trading if you don’t know how CFDs work. There are various differences between CFD trading and other forms of trading. Understanding those differences is the only way forward.
2. Choose a CFD broker that suits your requirements
After careful study and understanding of how CFDs work, it is time to choose a broker that suits your requirements. Our comprehensive reviews of the world’s top 11 CFD brokers will assist you in this quest.
3. Open and fund an account
Opening a CFD trading account is a straightforward and seamless process for almost all popular CFD brokers. Once your account is approved, fund your account with the balance of your choice or minimum deposit required by some brokers.
4. Choose a CFD trading platform
All top CFD brokers offer multiple trading platforms such as MetaTrader 4, MetaTrader 5, cTrader, etc. Choose a trading platform that suits your trading style and preferences.
5. Pick the market to trade
Now is the time to choose the market you want to trade. You have different markets to choose from such as stocks, Forex, and so on. It is always a rational decision to pick the market you fully understand.
6. Develop an effective trading plan
Consider aspects like time commitment, your risk attitude, goals, available capital, motivation, etc. and build an effective trading plan. Only an effective trading plan can guide you to make better trading decisions even when under pressure because you have your trading plan.
7. Look for profitable trading opportunities
There is no need to rush. Look for profitable trading opportunities patiently. You can utilize the range of tools provided by your trading platform to find opportunities with maximum profit potential.
8. Initiate, monitor, and close your first trade
The final step is to initiate your first trading position, monitor it, and close it. The best thing about CFD trading is that you can go long as well as short. If you think that the price of the underlying asset will fall, you go short. Conversely, if you think that the price will rise, you go long.
Your CFD broker is your gateway to profitable CFD trading. Therefore, it is always imperative to choose the best CFD broker to open the door of myriads of profitable opportunities. What makes a good CFD broker?
Many CFD brokers have come and gone over the years. They are never able to establish themselves in the industry. You need to avoid them and look for an established and trusted CFD broker that has been in the industry for years. Only established CFD brokers ensure regulatory compliance. The Financial Conduct Authority (FCA), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are among the most respected regulatory authorities. You need to ensure your broker complies with any one of them. Moreover, you also make sure that your chosen broker conducts business in accordance with the strict CFD rules and regulations.
Typically, listed CFD brokers as well as brokers that are part of some organizations like banks ensure regulatory compliance. They have to abide by all the regulations and thus promise the ultimate security investors to need.
A CFD broker is good for you if the trading platform of the broker offers better tools and you are also familiar with the platform. You have to look for a trading platform that brings user-friendliness and advanced features. Trading platforms vary depending on the offered features. You should choose a platform that suits your trading style and requirements. For example, if you trade with the help of charts, you need a platform with advanced charting features. Moreover, you can also look for web and mobile versions of the trading platform if you have to travel a lot. Mobile versions help you trade on the go.
Each CFD broker offers different trading instruments. You need to make sure that your platform offers the trading instruments of your choice. Moreover, you also need to make sure that the broker covers a wide range of markets. It will help you in transition if you would like to trade-in another market in the future.
Leverage is another feature that you need to consider. A broker is good if it offers maximum leverage. Therefore, make sure that the leverage offered suits your trading strategies.
Each CFD broker has its own minimum deposit requirements. Therefore, you can also make sure if you can meet its requirements or not.
Methods of depositing and withdrawing funds are also important. Check these methods and see whether these methods are convenient for you or not? All good CFD brokers offer various different funding methods for their clients. However, a few brokers offer only a couple of methods that may not suit you.
Typically, CFD brokers charge three types of fees, commission, spread, and overnight holding fees. You need to factor in all of them before choosing your platform. Some brokers also charge fees like withdrawal fees, inactivity fees, etc. Therefore, you need to consider fee criteria before finalizing your CFD broker.
CFDs deal with a wide range of markets and run 24/7. Therefore, you need a broker that offers at least 24/5 customer support. You must make sure that the customer support team is available for you whenever required. The factors you can consider are the geographical location of the broker, supported languages, timings of the customer support team’s availability, etc.