Best CFD Brokers

Want to jump straight to the answer? The best forex broker for most people is definitely FOREX.com or CedarFX.

Financial engineering has created many exotic instruments with the potential of generating considerable returns. However, one should always bear in mind the high risk involved with such operations. A contract for difference (CFD) is one example. You can speculate on the future price moves of assets, such as stocks, indices, forex, bonds, cryptocurrencies and commodities if you find the best CFD broker for you.

The Best CFD Brokers
Take a look at our list of the best CFD Brokers.

1. Capital.com
   When you use Capital.com, you can trade CFDs on the NASDAQ 100, gold, oil, Tesla and about 6500 other assets or markets. When Capital.com, you get:

Tight spreads
No commissions
Fast order execution
High privacy and security standards
Educational tools
Current news items
As you look into investing in CFDs, you can do more than throwing your money into the markets and waiting for a result. You can make informed decisions and grow your portfolio naturally.

The firm is regulated by:

Financial Conduct Authority
The Australian Securities and Investments Commission
The Cyprus Securities and Exchange Commission
National Bank of the Republic of Belarus
With an easy-to-use interface and intuitive, AI-powered platform, you benefit from Capital.com learning about your trading habits and informing you of best practices that can help you grow your portfolio.

Best For
Market-leading Spreads

get started securely through Capital.com’s website
Disclosure: 79.17% 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.

1. Plus500
   Plus500 is a specialist CFD broker and offers CFD trading for stocks, forex, commodities, ETFs, options, indices and cryptocurrencies. It offers a portfolio of over 2,000 instruments.

Plus500 is authorized and regulated by the following regulatory agencies:

U.K.’s Financial Conduct Authority (FCA)
The Australian Securities and Investments Commission (ASIC)
The Financial Market Authority (FMA) in New Zealand
The Financial Sector Conduct Authority (FSCA) in South Africa
The Monetary Authority of Singapore (MAS)
Plus500CY Ltd authorized & regulated by CySEC (#250/14).
Plus500 allows funding through wire transfer, Visa/Mastercard, Skrill and PayPal. The platform also offers a demo account. Withdrawal and deposit can be managed from the “Funds Management” tab on the platform, and then input details regarding the mode of withdrawal or deposit.

The firm offers customer support in 32 languages. It has a webpage dedicated to answers for some FAQs, and there is an online form for entering questions that are not answered by the FAQ section. The firm also has a 24/7 online support team.

Plus500 has a proprietary web trading platform called WebTrader as well as iPhone/iPad, Android and Windows apps.

The firm does not charge a commission but makes money from spreads. It charges an overnight funding fee and a $10 inactivity fee. Plus500 will charge a currency conversion fee of up to 0.7% for all trades on instruments you hold in a currency that is different from your account’s currency. They offer leverage of up to 1:30 for retail accounts and up to 1:300 for a professional account. Note: professional accounts don’t have ICF rights. Negative balance protection is available for both account types following EU requirements.

Best For
Non-US Mobile Users

get started securely through Plus500’s website Best For
Non-US Mobile Users

N/A

1 Minute Review
Plus500 is a European derivatives broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments.

Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.

Best For
Traders looking for a smooth mobile experience

Pros
Great mobile app
Low spreads and commissions
Unlimited demo account

Cons
Only derivatives are available
Not open to U.S. residents

72% 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.

1. eToro
   eToro is one of the most unique platforms in the world, providing users with the opportunity to invest in crypto, stocks and ETFs. In addition to these investment, CFDs are available. CFDs on commodities, currencies and indices are available, ensuring as much diversification as possible.

eToro makes the trading experience that much simpler by offering:

Investing in full stocks or fractionals for as little as $10
Engaging with real and experienced investors who can share strategy tips
Combine your crypto, stock, CFD and other investments in one portfolio

View detailed charts, indicators and analyses
get started securely through eToro’s website
Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

1 Minute Review
eToro is a broker that offers access to over 25 of the world’s most popular cryptocurrencies, forex and over 1600 stocks. They have a few unique education and useability tools. Traders can begin buying and selling in as little as 10 minutes.

eToro’s unique Copy Trader feature allows new investors to “copy” the buy and sell orders of professional investors, while the company’s eToro Club feature provides investors with a range of additional education tools and resources.

Best For
Traders looking for an easy-to-use platform
Traders who want to practice their trades using a virtual account before entering the market

Pros
Simple platform that is easy to master
CopyTrader feature that allows new traders to copy the same strategies used by professionals
Virtual dummy account that gives you $100,000 to practice trades

1. FOREX.com
   The highly regulated firm FOREX.com offers 220 CFDs across major asset classes through its FOREX.com brand. That information, plus a quick test-drive of FOREX.com’s platforms means it’s all you need to confirm that you’re in good hands. Exceptional platform speed and performance drives the FOREX.com experience, and you’ll get CFD trading on stocks, commodities and indexes.

No matter what you trade, you’ll gain access to FOREX.com’s Advanced Trading Platform, the renowned MetaTrader 4 platform as well as a web-based platform and mobile trading option. All accessibility options ensure that you won’t miss a thing.

To fund your account, the minimum initial deposit required is at least 50 of your selected base currency. However, FOREX.com recommends you deposit at least 2,500 to allow you more flexibility and better risk management when trading your account.

Forex markets are open 24 hours a day, Sunday to Friday. FOREX.com makes itself available 24/5 during open market hours. Note that FOREX.com only offers CFDs only in FCA and CIMa regulated regions.

1 Minute Review
FOREX.com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker.

Best For
MetaTrader 4 users
Beginner forex traders
Active forex traders

Pros
Impressive, easy-to-navigate platform
Wide range of education and research tools
Access to over 80 currencies to buy and sell
Leverage available up to 50:1

Cons
Cannot buy and sell other securities (like stocks and bonds)

1. Interactive Brokers
   Clients can add quotes to the exchange book in the same way they would trading stocks because IBKR immediately matches all CFD orders with a hedge-order so that a non-marketable CFD order creates a matching non-marketable order for the underlying share on the exchange. Additional benefits include:

Transparent, Low Commissions and Financing Rates
Margin Efficiency
Efficient CFD Reference Pricing
Trade CFDs Alongside the Underlying Shares
Commissions start at 0.05% on all share CFDs, with lower rates available for active traders. Overnight financing charges start at benchmark +/-1.5%, with lower spreads available for larger balances.

Best For
Sophisticated Investors

get started securely through Interactive Broker’s website Best For
Sophisticated Investors

N/A

1 Minute Review
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 135 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For
Access to International markets
Active traders
Sophisticated investors
Detailed mobile app that makes trading simple
Wide range of available account types and tradable assets

Pros
IB SmartRouting searches for the best firm price at the time of your order
Trade on 135 markets, in 33 countries & 23 currencies worldwide
Invest globally in stocks, options, futures, currencies, bonds and funds from a single integrated account
Select from 24 currencies as a base currency for your account

1. FXTM
   Launched in 2011, FXTM offers CFDs on shares, indexes and commodities. It’s regulated by the International Financial Services Commission of Belize and has offices in China, India, Indonesia, Malaysia, Nigeria, South Korea and Thailand.

FXTM’s platform includes the web trading platform Webtrader, as well as MetaTrader 4 and MetaTrader 5 web platforms. Its platform provides tools such as economic calendar, market analysis videos, quarterly market outlook and educational videos.

Chat support is available through Live Chat, Viber, Telegram and Facebook Messenger. A call-back option is also available. Customer support departments can be contacted 24/5 from Monday through Friday from 11 to 16 hours on Saturdays and from 12 to 20 hours on Sundays.

The Micro Account has a minimum deposit of just $50 and the ECN Advantage account and ECN Advantage Plus account both come with a minimum deposit of $500.

Account Minimum
Micro account (with minimum deposit $/€/£ 50) and ECN Advantage & ECN Advantage Plus (both with minimum deposit of $/€/£ 500)

1 Minute Review
Cyprus-based ForexTime Limited, commonly referred to as FXTM, is one of the world’s most popular forex and contracts for difference (CFD) brokers. Since 2011, FXTM has provided traders with a wide range of trading instruments and educational resources, as well as fund protection, free demo accounts and account managers.

FXTM is regulated in a number of jurisdictions and supports the MetaTrader 4 and 5 (MT4&5) trading platforms and their mobile apps. In addition to forex, you can trade spot gold and silver, as well as CFDs on cryptocurrencies, indices, commodities and over 300 of the largest cap U.S. stocks. FXTM also provides educational webinars and seminars for less-experienced traders.

Best For
Beginning traders
Experienced traders
Copy traders and people looking for a managed forex account

Pros
Extensive list of trading instruments
Online webinars and seminars
Copy trading, PAMM and managed accounts

Cons
Does not accept U.S.-based traders
Does not support Myfxbook or ZuluTrader options for social trading
No futures or options trading

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Regional restrictions: FXTM brand does not provide services to residents of the USA, Mauritius, Japan, Canada, Haiti, Suriname, the Democratic Republic of Korea, Puerto Rico, Brazil, the Occupied Area of Cyprus and Hong Kong. Find out more in the Regulations section of our FAQs.

1. IFC Markets
   IFC Markets brings you a unique take on CFD trading. With IFC Markets, you can invest in:

Continuous index CFDs
Stock CFDs
Cryptocurrency CFDs
Continuous CFDs on commodities
CFDs on commodity futures
CFDs on ETF
CFDs on crypto futures
With IFC Markets, you benefit from the 15 years of experience the platform brings to the table. Clients from over 80 countries can establish an account, trade on several platforms and diversify their investments as much as possible.

Crypto CFDs are available for Bitcoin and Ethereum, with more coming in the near future. You can also avail yourself of 1:8 leverage, low minimums and low spreads.

Best-suited for intraday, mid-day and small-volume traders, you can use MetaTrader 4 or MetaTrader 5, NetTrade X to trade or try the GeWorko Portfolio Quoting Method to build synthetic assets.

Best For
Small Volume Traders

get started securely through IFC Markets’s website Account Minimum
Micro Accounts: $1Standard Accounts: $1,000

1 Minute Review
Founded in 2006, IFC Markets is a popular forex and contracts for difference (CFD) broker that provides high-quality trading services to over 185,000 clients from more than 80 countries. The broker has oversight from the British Virgin Islands Financial Services Commission (BVI FSC) as well as the Labuan Financial Services Authority (LFSA) in Malaysia.

IFC Markets offers trading in over 600 financial instruments including forex, stocks, indices, commodities, cryptocurrency futures and synthetic assets through excellent trading platforms: MetaTrader 4, MetaTrader 5 and its own developed NetTradeX advanced platform. IFC Markets also gives clients unlimited trading opportunities via its unique GeWorko Portfolio Quoting Method that lets traders create their own synthetic instruments or choose from PCI Library, synthetic instruments created by professionals.

Best For
Traders who want to create their own trading instruments
Intraday and mid-term traders
Small volume traders
Trading platforms variety

Pros
The GeWorko Portfolio Quoting Method lets you create synthetic assets
15 years experience in the business
Highly rated by clients with 8 recent international awards
Insured by AIG Europe Ltd.

Cons
Only regulated by 2 minor agencies
Not available to traders in the U.S., Japan and Russia
IFC Markets is not available in the U.S. or Russia.

What’s Contract for Differences Trading?

A CFD is a contract executed between two parties, a buyer and a seller, which means that the seller pays the buyer the difference between the current value of an asset and its value when the contract is due. There isn’t any physical exchange of assets (which could be a physical share, currency pair or commodity) between the buyer and the seller, and neither party can claim physical ownership of the asset. CFD trading is illegal in the U.S., although European brokers allow CFD trading in U.S. assets.

Make Decisions and Trade

To trade CFDs, first decide on which underlying asset you want to trade. CFD instruments could be shares, treasuries, currency pairs, commodities and stock indices such as the U.K. 100, which aggregates the price movements of all the stocks listed on the FTSE 100.

Then, open a position and then enter details such as whether you want to buy or sell the CFD, the amount intended for investment, leverage and other considerations.

Leverage is available for a margin account. Leverage refers to a loan extended by a broker, and the securities and cash in your trading account serve as collateral. It allows you to enter into a larger deal than what your account funding permits.

You and the CFD broker then enter into a contractual agreement which covers details such as the opening price for the position, fees involved, etc.

Determine Profit/Loss

If the position closes in a profit, the broker is liable to pay the trader. If it closes in a loss, the brokerage charges the trader the difference. Assume you wish to go long on a CFD based on the shares of XYZ company, currently priced at $400, on the premise that the shares are undervalued and will likely go up. You now need to log into your brokerage account, which provides for CFD trading, and place an order for, say 100 XYZ CFD.

If the value of the shares rises by $10, in line with your expectations, you gain $1,000 (100 x $10). On the other hand, if the value falls by $10, you owe your broker $1,000. Due to the leverage allowed, a trader needs to pay only $4,000 if the margin requirement is 10%. In the first case when you made the right bet. Your profit percent will be $1,000/$4,000 *100 = 25%.

In the second case, your loss percent will be $1,000/$4,000100, which will be 25%. Meanwhile, if you had chosen to invest in the shares trading in a stock market, your loss percentage would have been 1,000/40,000100, or 2.5%.

What to Look for in a CFD Broker

As you zero in on the right CFD broker, it’s important to consider a slew of factors, including regulation, costs, tradable asset classes and the trading platforms available.

Regulation

Regulation ensures the safety of your funds from internal company fraud or financial setbacks. Make sure the broker you’re considering is regulated by the regulatory agency of that particular location. For example, in the U.K., the Financial Conduct Authority (FCA) is the regulatory agency and in Australia, it is the Australian Securities Commission (ASC).

Cost of Trading

CFD trading involves costs such as spread, holding costs and commission and possibly more, depending on the broker you choose.

The spread is the difference between the buy and sell price. You enter a buy trade using the buy price quoted and exit using the sell price. The narrower the spread, the less the price needs to move in your favor before you start to make a profit, or if the price moves against you, a loss.
At the end of each trading day, positions open in your account may be subject to a charge called a holding cost, and you’ll also pay a separate commission charge when you trade CFDs.
Also, how complicated is it to deposit and withdraw funds? The more funding options your broker offers, the better.

Broad Tradable Asset Classes and Markets

Broad tradable asset classes and markets give you wider choice availability. Some underlying assets you can trade include stocks, indexes, commodities, currencies, cryptocurrencies and ETFs.

Easy-to-Use Platform

Look for a trading platform that offers intuitive trading software, fast execution, good trading tools and order management system. You may lose out on profits if the user interface is poor and navigation is difficult. The platform should be secure and also give you the flexibility to place different types of orders.

Final Thoughts

There’s no one-size-fits-all broker for traders with different experience levels, risk-return and asset class preferences. For starters, regulation could be a key issue, especially because derivative instruments such as CFDs are risky. Because of the volatility involved, a fairly decent trading platform and demo account are invaluable. It pays to do some research before you decide which CFD broker is best for you.

FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets plus spot metals with low pricing and fast, quality execution on every trade.

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