Best CFD Brokers

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Best CFD Brokers

When you’re an experienced investor who understands the movements of a certain market, you may wish to broaden your horizons and try more advanced trading products. Contracts for Difference (CFDs) could be one such product for you. Working with an online broker, you can trade CFDs in a variety of markets and countries, with a range of tools at your fingertips.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What Constitutes a Good CFD Broker?

With so many online CFD brokers available, it can be difficult to choose the right one for you. Good CFD brokers at the very least:

  • offer competitive and transparent fees
  • feature a simple account opening and verification process
  • accept multiple deposit options

Today, most of the reputable online platforms offer demo accounts which let you try out different investment strategies without losing (or gaining) any money. It is highly recommended that you use these demo accounts first so that you get used to the broker’s features and the general behaviour of CFD markets. 

The following are some of the best CFD brokers you can use.

Plus500

Plus500 CFD Broker Instruments List
Screenshots are shown for illustration purposes only. Actual product may vary.

A Background of the Broker

As a leading CFD platform, Plus500 is ideal for traders who are looking for a wide variety of trading instruments. Founded in 2008, the trading platform is listed on the London Stock Exchange FTSE 250 Index. While suitable to most traders, scalping is forbidden and can get you banned.

Fees

Plus500 does not charge any trading commissions and features both fixed and dynamic spreads which start from as little at 0.01%. Apart from CFDs, the platform offers a real asset offering of Forex and Crypto.

Opening an Account

Plus500 offers two types of real money accounts; Standard and Professional. The Standard Account is available to all users and only requires a deposit of at least $100. To qualify for the Professional Account you need to carry out a minimum of 10 transactions per quarter for one year and your total investment portfolio needs to be valued at €500,000.

Deposit and Withdrawal

The main payment methods accepted are cards, bank transfers, PayPal, and eWallets. Conversion rates are charged to the client, while there are no deposit fees. The first five withdrawals per month are also free, but there is a fee of $10 for every subsequent withdrawal. A similar fee applies for any withdrawal of less than $100.

Trading Platforms

Plus500 offers web, mobile, and even desktop trading platform. Currently, it does not allow manual leveraging.

Pros & Cons

ProsCons
Fees & LimitsVery low spreads with up to 5 free withdrawals per month at 0% commissionSupports only CFDs
User ExperienceAvailable in more than 32 languages with 24/7 customer supportDesign is not very user-friendly and can look too complicated especially for beginners
OtherSupports 12 different cryptocurrency CFD coins

Overall Verdict

If you are looking to start trading CFDs, Plus500 offers you a user-friendly platform and the possibility to trade across 2,000 markets. The platform offers you up to 1:30 leverage for a Standard Account, and up to 1:300 for a Professional Account.

80.5% of retail CFD accounts lose money.

Risk Disclaimer

It is important for you to realise that CFD trading is a high-risk investment. 80.5% of Plus500 retail investor accounts end up with losses when trading CFDs, so before you begin you must be able to afford to lose whatever funds you invest.

If you would like to find out more about this practice, it’s good to keep in mind these 10 CFD Trading Tips, which will help you perfect your skill and strategy in this exciting financial investment journey.

eToro

eToro Best Broker for Cryptocurrency CFDs
Screenshots are shown for illustration purposes only. Actual product may vary.

A Background of the Broker

Set up in 2007, eToro is an FCA-regulated entity which offers a popular social trading opportunity which allows novice traders to copy trade more experienced and successful traders.

Fees

The platform offers different fees depending on the user’s country. It offers free stock trading in Europe, for example, and low fees for non-EU users. On the other hand, the social trading platform has high financing and non-trading fees.

Opening an Account

eToro’s account opening procedure is straightforward and easy. You can register an account and start trading within a few minutes. Furthermore, there is no minimum balance requirement.

Deposit and Withdrawal

The platform allows a variety of payment methods, including cards, bank transfers, PayPal, and eWallets. Deposits are free, but withdrawals carry a fee of $25.

Trading Platforms

eToro’s platform options are two; web and mobile. Both are extremely user-friendly and simple to learn. It is not possible to set leverage manually on either platform.

Pros & Cons

ProsCons
Fees & LimitsLow spread fees and no extra commission$25 withdrawal fee
User ExperienceEasy to use platform with an integrated social trading platform
OtherNumerous payment methods including PayPal and 17 cryptocurrencies available for trading

Overall Verdict

eToro is a great platform on which to trade CFDs and other products, such as stocks, EFTs and cryptocurrencies. Its social trading option is its primary unique feature, and this is used by millions of its users around the world. eToro offers a fast account opening process and charges zero commission for stock trading in Europe. Its non-trading and withdrawal fees are, however, steeper than many users would like.

Risk Disclaimer

CFDs are complex trading products which should only be used by experienced investors. 66% of retail investor accounts on eToro lose money when trading these products, so before you start trading, you need to afford to lose part or all of your investment.

IQOption

IQ Option CFD Broker Best Cryptocurrency CFDs available
Screenshots are shown for illustration purposes only. Actual product may vary.

A Background of the Broker

IQOption is a large trading platform which was founded in 2013 and today counts over 20 million users worldwide. The company is based in Cyprus and is regulated within the EU by the Cyprus Securities and Exchange Commission (CySec).

Fees

The platform allows traders to trade a variety of real asset offerings, including stocks and forex. IQOption does not charge trading fees and commissions, and the platform supports traders with favourable financing rates.

Opening an Account

Apart from offering a demo account, IQOption’s account opening procedure is fast and easy. The majority of users open a Standard Account, but if you deposit $3,000 or more, you are automatically upgraded to the VIP Account.

Deposit and Withdrawal

IQOption offers a variety of deposit and withdrawal methods which include cards, bank transfers, and eWallets. The minimum deposit is set at $10, and there are no deposit or withdrawal fees. The lowest withdrawal minimum, based on which payment method you use, is only $2.

Trading Platforms

IQOption’s proprietary trading platform is available on the web and on mobile. While it is possible to get a maximum of 1:1,000 leverage for professional traders, it is not possible to leverage manually on the platform.

Pros & Cons

ProsCons
Fees & LimitsNo deposit or withdrawal fees
High spread percentages (In certain cases twice more expensive)
User ExperienceOffers a wide variety of trading product and an intuative designSlow customer supports
OtherOffers 12 different cryptocurrency CFDs No compensation funds in case the broker gets hacked

Overall Verdict

IQOption is a great way to start trading CFDs and other trading products as it does not charge most of the fees charged by other platforms. The company’s goal is to make a profit whenever a trader succeeds, and this gives it a strong and loyal user base.

Risk Disclaimer

Trading CFDs is a high-risk investment strategy which is better suited to experienced investors. Up to 89% of retail investor accounts on IQOption have registered losses when trading CFDs.

AvaTrade

AvaTrade Regulated CFD Broker 24 by 7 cryptocurrency trading
Screenshots are shown for illustration purposes only. Actual product may vary.

A Background of the Broker

AvaTrade is a trading broker established in 2006 and responsible for a trading volume of over $62 billion per month. It has over 200,000 users, who carry out 2 million trades per month. Due to the platform’s core values of fairness and integrity, it continues to grow rapidly.

Fees

AvaTrade makes most of its profits through spreads, and, as such, does not charge commissions for most spreads. The platform offers favourable financing rates, and you can invest in a variety of assets, including shares and bond commodities.

Opening an Account

The account opening process with AvaTrade is fast and simple, allowing you to select your base currency from several options, including USD, EUR, and AUD. The platform accepts individual accounts as well as corporate ones.

Deposit and Withdrawal

The main payment methods accepted are cards and bank transfers. AvaTrade does not charge any deposit or withdrawal fees, and the minimum deposit amount is $100. Its withdrawal policy is slightly complex and depends on the value of your last deposit.

Trading Platforms

With AvaTrade you can opt to trade using a variety of proprietary platforms. These are available on the web, mobile, and desktop, and compatible with all major operating systems. It is not possible to leverage manually on any of its platforms.

Pros & Cons

ProsCons
Fees & LimitsThe platform offers a wide range of investable assets at relatively low spreads
Fees are slightly more expensive than some of the previously mentioned brokers but still respectable
User ExperienceMultiple languages and base currencies availableDesign and general user experience can be improved
OtherOffers 11 different cryptocurrency CFDsNo compensation funds in case the broker gets hacked

Overall Verdict

AvaTrade is a trading platform which appeals to a broad range of investors thanks to the many options it offers. Traders can take advantage of the platform’s flexible leverage options, and make trades using different linked platforms.

Risk Disclaimer

Due to the complex and high-risk nature of CFDs, you should only invest in them as long as you understand the risks involved. 71% of AvaTrade retail investor accounts have registered losses, so you need to ensure that you can afford potential losses before using this provider.

XTB

XTB CFD Broker Trading Screen
Screenshots are shown for illustration purposes only. Actual product may vary.

A Background of the Broker

Established in 2002, XTB is a CFD and forex broker which is listed on the Warsaw Stock Exchange. The company is also regulated and licenced to offer its services in a variety of countries, amongst which is the UK’s FCA.

Fees

The platform charges market-average trading fees and competitive non-trading fees. Apart from CFDs, the majority of its users can also trade forex, stocks, and ETFs.

Opening an Account

If you would like to open an account with XTB, the process is fast, simple, and secure.

Deposit and Withdrawal

The platform accepts a variety of payment methods, including cards, bank transfers, and eWallets. While it does not charge any withdrawal fees, its eWallet fees are significant.

Trading Platforms

XTB allows you to trade using its web, mobile and desktop platforms. These are highly customisable, especially for viewing different charts. None of XTB’s platforms allow manual leverage.

Pros & Cons

ProsCons
Fees & LimitsSeveral deposit options accepted including PayPal
High eWallet deposit fees
User ExperienceUser-friendly and customisable interfaceLimited options based on jurisdiction (Restricted in Australia, Hong Kong, Singapore, USA & more)
OtherGood selection of 13 cryptocurrency CFDs

Overall Verdict

Regulated by more than 10 authorities around the world, XTB is one of the most reputable CFD brokers available. The platform offers fast payment processing and trader education tools, which are very useful. 

Risk Disclaimer

Trading CFDs involves certain high risks which you must be aware of before you start trading. 76% of retail investor accounts who trade CFDs with XTB have lost money, so before you invest anything, you need to understand the likelihood of losing part or all of your funds.

Trading 212

Trading 212 Broker CFD Account - Bitcoin Graph
Screenshots are shown for illustration purposes only. Actual product may vary.

A Background of the Broker

Trading 212 is a UK-based broker which is regulated by both the FCA and the Bulgarian Financial Services Commission. Incorporated in 2013, the platform boasts over 10 million users from across the world.

Fees

Trading 212 offers commission-free trading and some of the tightest spreads in the industry. The platform does charge currency conversion fees, if applicable, across its markets. You can use Trading 212 to trade forex, cryptocurrencies, and stocks, amongst other products.

Opening an Account

Opening a new account with Trading 212 is very fast and easy. The majority of new users open a normal account, but if you are ready to abide by certain conditions you can open a Professional Account.

Deposit and Withdrawal

You can deposit and withdraw funds using a variety of options including cards, bank transfers, and eWallets. Certain restrictions apply depending on your jurisdiction, so check your account to see which methods you can use. Trading 212 does not charge any deposit or withdrawal fees, and withdrawals are normally very fast.

Trading Platforms

Trading 212 offers both a web platform and a mobile app. The latter has proven to be extremely popular, especially considering the fact that it’s been downloaded over 12 million times. The platforms do not offer the possibility to leverage manually.

Pros & Cons

ProsCons
Fees & LimitsCommission-free trading
Low leverage compared to other brokers
User ExperienceUser-friendly mobile applicationPotentially too simple for advanced traders
OtherDetailed educational materialA limited selection of 9 cryptocurrency CFDs

Overall Verdict

Trading 212 makes trading CFDs on the go a breeze thanks to its well-designed mobile application. It’s very low fees make it an ideal broker to use if you are just starting out trading advanced products, as the platform also offers a wealth of educational information.

Risk Disclaimer

80% of retail investor accounts registered with Trading 212 lose money when trading CFDs. It is important that you understand the potential risk of losing part or all of your investment when you trade with these advanced products.

If you would like to read up on the world of CFD Trading and what it has to offer, we recommend for you to discover the difference between Crypto CFDs and Crypto Assets.

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