Best CFD Brokers

A Contract for Difference (CFD) broker is a financial services provider that helps people trade CFDs, which are financial instruments allowing traders to bet on asset price changes without owning them. Let’s dive right in.

How Does CFD Trading Work?

CFD trading operates through contracts that replicate real financial markets. You trade these contracts similarly to how you would trade the underlying market but with additional advantages like the ability to go short or long, leverage, and hedging. 

Instead of deciding on a specific asset amount to invest, you choose how many contracts to buy or sell. If the market moves in your favor, you profit. If it moves against you, you incur a loss. You realize your profit or loss when you close the position by selling the contracts you initially purchased. Similar to traditional investing, your profit from a trade is determined by the size of your position and the number of points the market has shifted.

How to choose the best CDF broker

Here are some key factors to consider when choosing a CFD broker:

Regulation

To safeguard your funds, search for a CFD broker that is licensed and regulated by reputable financial authorities. Look for brokers overseen by well-known regulators such as:

• The Financial Conduct Authority (FCA) in the UK
• The Securities and Exchange Commission (SEC) in the US
• The Australian Securities and Investments Commission (ASIC) in Australia
• The National Futures Association (NFA) in the US 
• Cyprus Securities and Exchange Commission (CySEC)

Trading fees

Trading fees are a crucial factor to take into account when selecting a CFD broker.  best CFD broker should be transparent about its fees. You should look at commissions, spreads, and overnight financing charges. 

Non-trading fees

Other than trading fees, there are other fees we can look at like withdrawal and non-activity fees. Withdrawing money from your trading account may attract withdrawal fees. Just as well, going for an extended period without using your account can garner an inactivity fee. 

CFD products available

When choosing a CFD broker, look for one with a wide range of assets available for trading, such as forex, stocks, commodities, and cryptocurrencies. This will help you diversify your investment portfolio and take advantage of different market conditions depending on your trading strategies.

Available trading platforms 

There are various popular platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and WebTrader. Picking the best CFD broker means choosing a trading platform that ticks all the boxes. It should be high-quality, user-friendly, and reliable, offering a wide array of tools and features. Don’t forget to check if the platform is compatible with your preferred device (desktop or mobile). On top of the basics like charts and indicators, some brokers go the extra mile by providing additional services like news, analysis, and education. 

Educational resources

Another key to finding the best CFD broker is to look for one that offers educational resources designed for both beginners and advanced traders. While many brokers offer trader education, top CFD brokers set themselves apart by delivering top-notch video content, articles, and webinars. 

Always consider multiple factors and not just one. For example, while fees are an important factor, do not go for low fees only as a broker with low fees may not necessarily provide you with the best trading experience.

The Best CFD brokers 

IG

Founded in 1974, IG is a trusted CFD broker offering a range of markets (17,000) available to you, depending on which of IG’s regulatory entities holds your account. It offers trading in Forex, Indices, cryptocurrencies, shares, commodities, ETFs, options, interest rates, knock-outs trading, bonds, and sectors

Some of its top features include:

• Regulation and security: The broker is regulated by top bodies including FCA, ASIC, and the NFA. This regulatory oversight ensures a high level of security and reliability for traders.
• Trading platforms: IG is not only user-friendly but also supports trading platforms like MetaTrader 4. 
• Range of Markets: You can access over 17,000 markets, including all the major ones. This allows you to diversify your portfolio and find trading opportunities across different asset classes.
• Leverage: IG offers leverage of up to 1:30 for retail clients, and a higher leverage available for professional clients, depending on the region and regulatory constraints.
• Spreads and fees: IG has a transparent fee structure, and competitive spreads and ensures cost-effective trading.
• Educational materials: At IG, you will find comprehensive educational tools, including webinars, tutorials, articles, and market analysis, which you can use to support your trading strategies. 

Admiral Markets

Admiral Markets operates globally as a forex and CFD broker, offering a diverse selection of financial instruments for trading, such as forex, stocks, ETFs, commodities, indices, and cryptocurrencies. 

Its top features include:

• Regulation and security: Admiral Markets is regulated by FCA, ASIC, and CySEC. 
• Trading platforms: This broker offers various trading platforms. You can trade using the Admirals Platform and mobile app,  MetaTrader 5, MetaTrader4, MetaTrader WebTrader, MetaTrader Supreme Edition, and StereoTrader.
• Range of Markets: You can trade and invest in over 8,000 instruments.
• Leverage: Similar to IG, Admirals offers leverage of up to 1:30 for retail clients, with higher leverage ratios available for professional clients. 
• Spreads and fees: The CFD broker also has a transparent fee structure and competitive spreads.
• Educational materials: Admirals offers educational materials for new, intermediate and advanced traders. These resources include articles, webinars, tutorials, and a Zero to Hero free trading course. 

CMC Markets

CMC Markets was established in 1989. It is a top-tier CFD broker that prioritizes education and technological innovation. It has become the go-to option for traders of all levels.

Top features include:

• Regulation and security: Regulation by the FCA and ASIC. 
• Trading platforms: CMC has powerful web and mobile trading platforms, and you can trade using any device including an iPad, iPhone, or Android device. It also offers access to MetaTrader 4. 
• Range of Markets: You can trade your favorite instruments, choosing from 10,000 markets, including forex, indices, shares, commodities, cryptocurrencies, and treasuries. 
• Leverage: You get access to leverage of up to 1:30 depending on your region and regulatory requirements.
• Spreads and fees: CMC has no hidden fees and includes all charges upfront to help you manage your trading funds.
• Customer Support: CMC has a comprehensive FAQ section with access to provides access 24/5 customer support through multiple channels, including phone, email, and live chat. Emphasizes excellent customer service, offering prompt and professional assistance to traders.

SAXO

Founded in 1992, Saxo Markets is a globally recognized online trading and investment specialist, celebrated for its sophisticated trading platforms, wide variety of financial instruments, and strong regulatory compliance.

Its features include:

• Regulation and security: Regulation by the Financial Conduct Authority (FCA) in the UK, the Danish Financial Supervisory Authority (FSA), the Australian Securities and Investments Commission (ASIC), the Japanese Financial Services Authority (JFSA), and the Monetary Authority of Singapore (MAS).
• Trading platforms: Saxo has three proprietary platforms you can use to trade; SaxoInvestor, SaxoTraderGO, and SaxoTraderPRO. 
• Range of Markets: You can access over 40,000 instruments across various asset classes, including forex, stocks, bonds, ETFs, options, futures, commodities, and cryptocurrencies.
• Leverage: Saxo offers a leverage of up to 1:30 for retail clients, with higher leverage ratios available for professional clients. 
• Spreads and fees: The CFD broker also has a transparent fee structure and competitive spreads.
• Educational materials: Admirals offers educational materials for new, intermediate, and advanced traders. These resources include articles, webinars, tutorials, and a Zero to Hero free trading course. 

Finally

When it comes to selecting the best CFD broker, it all boils down to your own trading requirements, experience, and preferences. It’s absolutely essential to carefully evaluate each broker based on factors such as their regulatory status, trading platforms, fee structures, range of assets, and customer support. Moreover, it’s wise to make use of demo accounts to thoroughly test the brokers’ platforms and services before making any financial commitments.