Access to over 800 stocks No commission to pay (0% commission applies to stock investment, spreads will be applied to CFD products) $200 minimum deposit (eToro operates in USD only) Regulated by the FCA, CySEC and ASIC
The trading platform is native to eToro and has been designed with new traders in mind. 80.2% 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. Pepperstone requires no minimum deposit and offers low trading fees. It offers fantastic financial market analysis and trading ideas. While the educational tools are adequate, the news flow is basic. Customer service is available via phone, email and live chat, and all queries are answered promptly. It is regulated by the FCA, ASIC, CySEC, BaFin, DFSA, CMA, SCB. Pepperstone uses TradingView, MetaTrader 4, MetaTrader 5 and cTrader platforms. MetaTrader is considered one of the best CFD platforms. It provides CFD access to 25 major stock indices, more than 900 shares CFDs, 21 cryptocurrencies, 62 forex, 100+ ETF and 17 top commodities, all in CFD form. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.8% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. With over 2,000 stocks, Plus500 is an easy-to-use platform with lots of educational material, a demo account and customer service 24/7. There is a £100 minimum deposit but no fees for:
Deposits Real-time quotes Dynamic charts and graphs Live share CFD prices Opening and closing of trades Rolling position
Plus500 uses its own platform that comes with a trading app. Though Plus500 is very user-friendly, CFDs are ‘complex financial products’, thus the platform is not suitable for beginners/inexperienced traders. It is regulated by the FCA and listed on the London Stock Exchange.
XTB is a trusted all-around broker, established in 2002. It is regulated by the FCA and listed on the Warsaw Stock Exchange. There is no minimum deposit for opening an account. XTB uses its xStation 5 platform, which offers good customisation, search functions and modern design. As a platform, it has all the standard educational resources and research tools. It has over 2,000 stocks, though all cryptocurrency trading is paused on weekends. Overall, the only negatives of XTB are that its fundamental data is limited, and there are high fees for some CFD trades. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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. It offers a 20% welcome bonus up to $10,000, according to regulation and a free 21-day demo account with $100,000. Instruments include:
Metals Commodities Stocks FX Options Oil ETFs Options Crypto currencies CFDs Indexes Shares Spread betting Indices Forex Bonds
AVATrade EU Ltd is regulated by the Central Bank of Ireland. (No.C53877) Ava Trade Markets Ltd. is regulated by the B.V.I Financial Services Commission. It is also highly regulated in Australia, South Africa, Japan, Middle East, Cyprus and Israel You can not trade with AvaTrade in the US, North Korea, New Zealand, Iran or Belgium. Mínimum deposit of $100, no withdraw limit and no fees.
Its strong points include:
No minimum first-time deposit No commissions Several payment methods for deposits and withdrawals Tight spreads from 0.5 pips
It offers one of the best execution speeds in the industry with low latency below 0.004s. It utilizes the most advanced technology to improve users’ trading efficiency – users can automate trades, build integrations and create trading apps using ActivTrades’ market-leading CFD and spread betting technology. Exceptional trading infrastructure is available on ActivTrader and MetaTrader 4 and 5. ActivTrades invests deeply in specially developed educational materials for its clients – including webinars, regular outlooks, manuals, etc. Type of offers: ActivTrades focuses on well-developed products in its trading portfolio. Customers can choose from over 1,000 CFD or spread betting instruments across forex, indices, shares, commodities, financials and ETFs. It also offers investing solutions for its institutional partners. Spread betting allows UK residents ONLY to trade the prices of financial instruments, including forex, indices, commodities and LSE shares. Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread betting and CFDs work and whether you can afford to take the high risk of losing your money As a broker, Vantage Markets is well-regarded and considered safe thanks to regulation by ASIC and the FCA. Vantage Markets offers access to the markets through the popular MT4 and MT5 platforms, and a feature-stuffed mobile app. There are three account types:
Standard STP. Perfect for novices, this is a no-commission account that works across all trading instruments, with a minimum spread of 1.4 pips. The minimum deposit is $200. Raw ECN. Designed for more experienced traders, this account charges commission at $3 per lot per side but the spreads start at 0.0 pips. The minimum deposit is $500. Pro ECN. This is for professional, high volume traders, and offers commission at $2 per lot per side, with spreads from 0.0 pips. The minimum deposit is $20,000.
Vantage Markets is seen as a good, reliable broker that offers social and copy trading – without being prohibitively expensive in terms of non-trading costs or commission. The CFDs offered by Vantage Markets are largely based around blue chip companies in the EU, UK and US. There are more than 70 EU/UK company shares available as CFDs, with a minimum trade of 10 Euros (For UK/EU Shares CFD) and a minimum trade commission of 6 USD (for US shares CFD), and these can be traded on the MetaTrader 5 platform. Vantage Markets offers 1:20 leverage for all shares CFDs There are more than 50 US companies available as share CFDs, which can be traded on MetaTrader 4 and 5. Deposits are free, and withdrawals are too (for withdrawals to electronic wallets or credit/debit cards). Trading Forex and CFDs involves significant risk of losing of your invested capital and is not suitable for all investors. 64.86% of retail investor accounts lose money when trading CFDs with this provider. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. CMC Markets has received awards for having the best trading conditions. It has 9,400 global shares, and commissions start from 0.10% per share. There is no minimum deposit, but the trader needs to have funds available to buy and share. The education tools are excellent, and customer service is available at a reasonable speed through phone, email and live chat. CMC Markets is listed on the stock exchange and has negative balance protection. While it does not hold a banking license, it is regulated by the top-tier FCA. Unfortunately, while forex fees are low, stock CFD fees are high. 77% of Retail CFD or Spread Betting Accounts Lose Money. City Index is an award-winning broker that offers low forex and stock index CFD trading. There is no minimum deposit for opening an account, but there are fees for non-activity on an account and as such, may not suit those looking to take long term positions. Considered a leader in spread betting, it offers one point per share and competitive conditions for forex pairings. It uses its own platform, as well as MetaTrader 4. There are excellent educational tools, including a demo account, and customer service is available via live chat and phone Monday to Friday. City Index is listed on the stock exchange. While the portfolio is limited, it is regulated by the UK’s FCA and operates in over 8,000 markets.
They are cash-settled, which means the brokerage will pay out the difference between the opening and closing prices of an underlying stock (or other instrument) rather than delivering any physical goods. They’re designed to replicate the benefits of owning the underlying instrument, without having to actually own it. CFDs only require a small deposit when opening a position (to cover potential losses), as opposed to having to pay in full for a share. This means that CFDs can offer tremendous leverage, which can magnify gains and lossesAny short-term financial rewards may allow you to make bigger long-term investments. It also gives the investor the ability to speculate the price of movement over a short-term, for stocks, commodities and forex. CFD trading is an advanced trading strategy that is not allowed in the US. The advantages of using a CFD brokerage are that:
As you are not classed as a full-time trader, any money you make from a CFD trade is tax-exempt Any short-term financial rewards may allow you to make bigger long-term investments You have the potential to take a position in a market and gain profit regardless of fall or rise
As trading involves your money, you need to make sure that you find a reputable broker that suits all your needs.
Key Points to Consider When Choosing a CFD Broker
So, what should you look for when choosing a CFD broker?
Is the Broker Regulated?
This is the most fundamental piece of information you need. As a UK trader, you want your broker to be regulated by the Financial Conduct Authority (FCA). Other EU based authorities will also be governed by similar organizations, but as Brexit’s full effect is still to take place, it is advisable to find one that is FCA regulated. Being listed on the stock exchange is also desirable. It suggests that the broker is fully transparent with their financial records. These financials should also be made available for public viewing.
What Are the Trading Fees?
This is the commission charged by the broker when opening your position in the market. However, with many brokers to choose from, services are competitive and financial incentives, such as no minimum deposit or no transfer fees, are common. While researching, calculate the fees involved in relation to the amount of money you will realistically be trading with. Demo accounts which allow you to trade without using real money should help you with this.
Tradeable Assets
How many and what assets does the broker hold? Are they strictly forex and CFD, or does its portfolio extend beyond that? Do you want a broker that excels in that area as well as providing you with long-term investment options?
The Trading Platform
A good trading platform can make a huge difference. It should have educational material, research tools, be easy to use and to look at – especially if you are trading on your mobile phone.
How Good Is the Customer Service?
This is especially important while you familiarise yourself with the platform. Some brokers offer 24/7 help, while some are closed on weekends. Are there certain days when you are more likely to need to support? Do you prefer a call centre or live chat? Some brokers offer their own proprietary trading platforms, which might offer extra benefits if you are registered with that broker. Pepperstone offers quite a lot more in terms of services, but there is much more cost involved and it might not be as useful for the beginner trader. You can trade CFDs on most assets in the UK, including commodities and indices as well as forex.
AvaTrade FXChoice
It is regulated by the appropriate financial bodies and operates in several countries around the world.
Plus500 ETX Pepperstone City Index
Individual brokers should be regulated by the relevant financial authority for the country that they are operating in, but CFDs themselves aren’t always regulated. In the UK, for example, CFDs are regulated by the Financial Conduct Authority. However, in the USA, CFDs aren’t allowed as they are unregulated. To gain access to one of them, you will need to make sure that you fulfill the criteria for that particular broker. Most people will choose to hold CFDs for less than six weeks, however, after this point, the charges tend to increase. Before deciding on a CFD broker, take advantage of any trials or demo accounts so you can get a full feel for the platform. The key points to remember are: If you are considering trading as a career or hobby, find a trading course that suits you in our article on the best day trading courses. WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal capital.
