CFD Brokers – Find The Best CFD Broker And Platform In 2020

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Good for Beginners!
    Free Education + Free Demo Account!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

Contents

CFD Brokers – The Best CFD Platforms And Brokers 2020

Find the best CFD brokers and platforms with our comparison tools and list. From the cheapest trading costs, to the top platforms, we explain how to compare brokers. So whether you are looking to use CFDs to trade forex, stocks or cryptocurrency – we will guide you on how to select the best CFD broker for you.

List Of The Best CFD Brokers In 2020 For Traders in Russia

Binary.com $5 90% » Visit BDSwiss $10 N/A » Visit 24Option $100 » Visit

How to Compare Brokers

  1. Spread / Commission
  2. Leverage and Margin Requirements
  3. Trading Platform
  4. Deposit and Withdrawal options
  5. Additional features
  6. Regulation
  7. Mobile App

We cover each section in detail below.

Spread or Commission

The spread or commission hits every trader and every trade. It represents the ‘cost’ of making the trade. It is therefore key to compare one broker to another. Direct comparison may not be simple however. The spread will differ between assets, and may also change day by day if an asset is volatile. So a broker may have the smallest spread for Forex pairs, but the largest for indices – and the figures might change the next day.

Depending on the asset, a broker might be the cheapest choice – or the most expensive. So when comparing brokers and the spread, ensure you are checking the spread on the assets you will be trading most.

Leverage and Margin

The margin represents the funds that a trader must deposit (and commit) in order to open a trade. So a £1,000 trade on the GBP/USD currency pair may only require £50 to open.

That trade though, has exposed the trader to £1,000 worth of risk (the risk of losing the entire investment is extremely small, but that is the value of the position) – hence the warning attached to CFD trading “losses can exceed your initial deposit“.

Margin is also referred to as ‘leverage’. Where this is the case, the leverage is often illustrated in terms of multiples – so 200:1 would indicate leverage of 200 times the deposit. The equivalent margin would be 0.5%.

So when comparing brokers, a low margin requires smaller deposits. This will be important to some traders, but less so to others.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Good for Beginners!
    Free Education + Free Demo Account!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

Trading Platform

Trading platforms might be thought of as broadly the same. This can be a mistake if a trader finds a particular platform difficult to use. Yes, most platforms will have similar functions – but the usability and look and feel can vary – and some will not suit every trader.

It is vital to be trading on software that is familiar and easy to use. Traders can miss prices, or worse, make mistakes trading, because the trading platform did not suit them for whatever reason.

The trading buttons might be very clear to some users, but if you are the trader that ended up entering a large trade by mistake, you might wish you had based a broker choice on the clarity of the platform. All of the brands listed here offer demo accounts – try before you buy.

Deposit and Withdrawal Options

This is becoming less important as more and more payment methods are added by brokers – but if you have ever had problems making payments or receiving money from a broker because they have a restricted list of withdrawal methods – you will know how important it can be to check first.

From bankwire to e-wallets such as Skrill, Neteller and Paypal – you want to use your preferred method.

Features (Charts, Technical Analysis, Research)

If you plan to research your trades via your broker or their software, you want to ensure you have the best research tools available. Charting standards do differ significantly. Some brokers offer the best charting facilities, with a range of technical analysis tools that will satisfy even the most ardent technical analysis experts.

Some brokers however, assume their traders either do not do research, or do it elsewhere. Their tools lag behind some rivals. So again, take a look via a demo account and see if the broker delivers to a standard you need.

Other Factors

Other factors that enable new traders to compare CFD brokers might include the quality and availability of a mobile trading application. As ever, trading on the move will be important to many traders – others will be happy to not use a mobile app.

Regulation should be a key criteria for any broker. Only regulated CFD brokers are included on these pages. This is less of a comparison factor than a prerequisite.

Bonuses can sometimes sway a trader. Terms and conditions are always important with any bonus deal. They can often cause a new customer to over trade. However, where used correctly, a bonus can mean more funds to trade with, or a couple of risk free trades – so they can be useful. Just remember that a short term bonus is not going to make up for expensive spreads in the long run.

Our reviews cover all of the factors required to compare CFD brokers, and as mentioned previously, all of the CFD brokers listed on our pages provide demo accounts. So traders can take their time, read the detailed review, and try out the platforms themselves before making a choice. Once you have all the information, you can then decide the best CFD broker for you.

Find The Best CFD Brokers

Use these steps to make an informed decision about the best broker for you and your unique investing style;

  • Consider your own trading style. For example, What assets do you trade, how frequently? How large is each trade, what is your overall trading aim etc.
  • Shortlist the cfd brokers that suit your trading style and strategy
  • Take advantage of demo accounts. Compare each trading platform you shortlist.
  • Use and trade on each platform – then make the best choice for you.
  • Deposit real money, and trade

Remember: Traders can use any number of broker accounts, and use those with the best terms for specific trades or assets. Trade Gold with one firm, but US Stocks with another. Use whichever account offer you the best deal for that particular trade.

List of the best CFD Broker 2020 – Trusted reviews

Table of Contents

Due to the large choice of different offers on the internet, it is difficult to find a secure and reputable CFD Broker today who can offer the client good trading conditions. Especially international it is confusing through many comparison sites because they do not always recommend the best CFD provider. In the following list, you get the guarantee to find the online broker with the best trading conditions. Read also the important criteria of this comparison, which was carried out by us with more than 7 years of experience in the industry.You will get a deeper look at these companies by our reviews in the following sections.

74.93% of retail CFD accounts lose money

76% of retail CFD accounts lose money

62% of private investor accounts lose when trading CFDs

76.4% of retail CFD accounts lose money

75% of retail CFD accounts lose money

75% of retail CFD accounts lose money

75.6% of retail CFD accounts lose money

71% of retail CFD accounts lose money

74% of retail CFD accounts lose money

81.27% of retail CFD accounts lose money

How to find a good CFD Broker? – Criteria for the reviews

In order to find a serious and secure CFD Broker at all, you have to check the company for different criteria. By checking before opening a portfolio, you can assume that there will be no fraud. Especially dubious companies hope for the ignorance of the new customers in order to cheat them about the invested assets. Therefore you should read through this website completely. For much more information about the companies, you can also click on “Read the review” in the list above and you will get many more facts about the CFD Broker.

Note that the most online brokers offering CFDs and Forex together.

Security and safety for customers fund is the most important point for traders

Before you sign up with any CFD Broker you should check if it is a regulated company. Brokers with no regulation or license are not secure for the client’s money. On the internet, you can read a lot about complaints and frauds from unregulated brokers. As a customer, you should check the license and security for customer funds. If you do not find any information you should better ask the CFD Broker before you sign up.

From our experience, Online Brokers who got an official license from a financial authority are safe and secure. You can make unlimited profits and withdrawal your money without any problems. To find the best CFD Broker you should have a look at the further criteria of a good one. All companies in this review are checked by this checklist.

Criteria for a good CFD Broker:

  • Official regulation and financial license
  • Safety of customerfunds (seperated funds)
  • Fast execution of trades;
  • Good trading data and charting
  • Free demo account with virtual money
  • Regulated and secure payment methods
  • Fast withdrawal of profit
  • Professional customer support and service in different languages

On this website we gurantee that any broker we recommend is checked and proven by our team. With more than 7 years experience in financial trading we know how the industry works and how to get the best conditions for traders.

Quick recap: What are CFDs?

The shortcut CFDs means Contact for Difference (Wikipedia). These are contracts between the trader and the CFD Broker. The Contract for Difference can be used to invest in every market you want. The contract shows you exactly a copy of the real asset like stocks, commodities, or indices. It is an over the counter product which means you invest in the contract and not in the real asset. The broker has to hedge the risk on the markets or against other traders of the platform.

CFDs are developed to avoid taxation and now it is a popular financial product for retail traders. The advantages of CFDs are very clear. You can invest very easy into rising and falling prices. Short trades are not a problem for stock trading with CFDs. Furthermore, it is possible to start investing with a very small amount of money and you can use high leverage which is depending on the CFD Broker.

List of the more detailed CFD Broker Reviews:

1. Marketsx (Markets.com) – Comfortable trading platform with the best spreads

When it comes to online trading the most traders want to invest with a trading platform which is easy to use and very compact. Compared to the other CFD Brokers on this site Markets.com is one of the largest companies for online investing too. The advantages of the trading platform are that the software is very userfriendly and when you want to trade with more professional tools you can use the platform MarketsX.

Markets.com belongs to the Playtech PLC which is listed on the London Stock exchange. This shows us the very high trust and safety. In addition, the customer funds are very safe with this broker because of the Financial Service Compensation Scheme (£85,000). The CFD Broker is multi-regulated by important regulators like FCA, CySEC, and ASIC. International clients are accepted.

The trading platform is very compact and recommended for beginners. You clearly see what you can trade and where you can invest. New traders can try the free demo account to test the platform. Two platforms are offered. MarketsX is a new chapter of the broker. You will get more tools, analysis, and chances to do professional strategies. All in all, Markets.com is recommended to trade with because of the huge range of assets, trustworthiness, and user-friendly platform.

The official website of Marketsx

The advantages of Marketsx (Markets.com):

  • Multi-regulated CFD Broker
  • The company is listed on the London Stock Exchange (Playtech PLC)
  • 2,000 different markets and 2,200 assets to trade
  • CFDs on forex, commodities, cryptocurrencies, stocks, and more
  • Free and unlimited demo account
  • Variable spreads (0.6 pips) and no hidden fees
  • VIP accounts and professional platforms (MarketsX)
  • PayPal, bank wire, Credit Cards for funding and withdrawal
  • High security of customer funds

(74.93% of retail CFD accounts lose money)

2. IQ Option – Userfriendly and customizable platform with new assets

IQ Option is another international broker for trading CFD. Especially the trading platform of this company is very unique. It is userfriendly and very customizable. You can do multi-charting and use more than 100 different tools to do technical or fundamental analysis. Compared to other platforms is IQ Option easy to use.

You can start with a minimum deposit of 10$ or with the free demo account. IQ Options offers more than 500 different markets traded with CFDs or other financial instruments. Moreover, different options are available to trader with the possibility of a profit of 900%+. Next, to the good conditions the broker offers a 24/7 support in different languages. If you are searching for an easy way to invest you definitely should try IQ Option.

The official homepage of IQ Option

The advantages of IQ Option:

  • Regulated broker since 2020
  • Minimum deposit 10$
  • Minimum investment amount 1$
  • Userfriendly platform and easy to use
  • Stocks, Commodities, ETFs, CFDs, Binary Options, Digital Options, and more
  • Yield 80 – 100%
  • Competitive spreads
  • High leverage up to 1:1000
  • Support 24/7
  • Fast deposit and withdrawal

(77% of private investor accounts lose when trading CFDs)

3. eToro – The best offers for CFD traders

Etoro is one of the most famous CFD Broker worldwide. Next, to a huge range of assets, they offer you to do social and copy trading. For example, you copy the trades of professional traders or become a copied trader by yourself to earn additional money. Also, fonds for investing are available on the platform. It is a very userfriendly trading platform for beginners. Moreover, advanced traders will find the right tools and charting analysis for their successful trading.

The CFD Broker is based in many different countries and got official financial licenses. Customer funds are managed on big European banks and are separated from the broker money. You can use different payment methods like PayPal, credit card or bank wire to deposit and withdrawal your money. Furthermore, you get professional support through their support team. All in all, eToro offers the best overall package for CFD traders.

The official eToro homepage

The advantages of eToro:

  • Multi regulated and licensed CFD Broker founded in 2007
  • They know how to serve clients desires
  • More than 1,500 asstes (forex, CFDs, real stocks, cryptocurrencies, commodities)
  • Competitive spreads
  • Fast execution and high liquidity
  • Social and copy trading
  • Professional and userfriendly trading platform
  • Good support for traders (phone and email)
  • Free education and analytics
  • Regulated payment methods (PayPal, Bank wire, credit card, e-wallets)

(Risk Warning: eToro is a multi-asset platform that belongs to stocks and cryptocurrencies as well as trading CFD investments.

CFDs are administrative financial instruments. Because of the leverage, they run a certain risk of losing money quickly. 62% of private investor accounts lose money when trading CFDs with this provider

Please hear yourself heard in advance about CFD trading rights as high rights cannot be heard.

Cryptocurrencies are not listed and their prices can fluctuate widely. Not even cryptocurrencies authorized itself for all investors. Trading cryptocurrencies under closed government supervision through EU regulatory measures. Your capital is heard.

Past performance is not indicative of the same results. This release does not constitute investment advice. CFD trading)

4. Plus500 – One of the worlds largest trading brands

When it comes to CFD trading many traders know the brand Plus500 because of its advertising. It is an international broker where you can trade more than 200 assets. It is such a large brand that the Plus500 is listed on the main market of the London Stock Exchange. The CFD Broker is multi regulated and got different branches around the world.

Traders get a clear and userfriendly trading platform which is easy to use and understand. You get access to CFDs on currencies, stocks, commodities, cryptocurrencies, options, and more. Also, the spreads are variable and always depending on the market conditions and assets. For trading you can use a guaranteed stop loss which is a huge advantage of the broker. Just start with a low minimum deposit of 100$ and use many different payment methods. In conclusion, Plus500 is one of the best CFD Brokers because the trading platform is easy to use for everyone and you get good conditions.

The official homepage of Plus500

The advantages of Plus500:

  • Multi regulated CFD Broker
  • Plus500 is listed on the main market of the London Stock Exchange
  • More than 2,000 assets
  • New and innovative markets to trade
  • Low minimum deposit of 100$
  • Competitive spreads and no hidden fees
  • Support 24/7
  • PayPal, bank wire, E-wallets, and other regulated payment methods

(76.4% of retail CFD accounts lose money)

5. IG Online Broker – CFD Trading at its finest

IG is one of the oldest and leading brokers in the trading industry. The company is listed on the London Stock Exchange and shows us high trust. It is a multi regulated broker with international branches. From our experience, the broker really knows how to give the customer the best conditions.

You can trade more than 16,000 markets on one platform. Different trading platforms are available, also for professional trading with direct market access. Furthermore, you can trade different financial products like cryptocurrencies, options, spread betting, forex, CFDs, stocks, bonds, and more. The offer for traders is really huge.

Through our tests, IG offers the best education and service for each customer. They want their traders to succeed because they will earn more money in a long-term relationship. With this broker, you can learn professional trading strategies and get a good education for free. In conclusion, IG ist one of the largest and most trusted brokers for CFD Traders.

The official homepage of IG

The advantages of IG:

  • Professional broker since 1974
  • The company is listed on the London Stock Exchange
  • More than 16,000 markets to trade
  • Different financial products (stocks, options, CFDs, and more)
  • Free demo account
  • Low spreads (0.6 pips) and no hidden fees
  • Very good support and education
  • PayPal, bank wire, Credit Cards for funding and withdrawal
  • High financial security

(75% of retail CFD accounts lose money)

6. CMC Markets – Professional CFD Broker

CMC Markets is a well-known brand because the company exists since 1989 and is listed on the London Stock Exchange which shows us high trust. The CFD Broker is multi-regulated and accepts international clients. The main customer base is in Europe where the trader is managed by the FCA (UK) license.

The financial security is very high and there is a Financial Services Compensation Scheme (FSCS) for more than £85,000. The customer funds are managed in big international banks with high liquidity. The history of the company shows that the customer base and revenue of the broker are growing continuously.

Traders can trade more than 10,000 different markets. Currencies, cryptocurrencies, bonds, stocks, ETFs, and more are available on the professional trading platform “Next Generation”. The platform provides more professional features than the popular MetaTrader. In addition, traders can trade Spread Betting products next to the CFDs. From our experience, CMC Markets is a highly reliable broker which offers a good service for its clients.

The official website of CMC Markets

The advantages of CMC Markets:

  • Professional broker since 1989
  • The company is listed on the London Stock Exchange
  • More than 10,000 markets to trade
  • CFDs and Spread Betting
  • Free demo account and 0$ minimum deposit
  • Low spreads (0.7 pips variable) and no hidden fees
  • Exclusive Support (Webinars and more)
  • High financial security
  • Professional Trading Platform “Next Generation”

(75% of retail CFD accounts lose money)

ETX Capital is a best known CFD Broker and part of a company (Monecor London) which was founded in 1965. Clients get access to over 5,000 different markets with a spread of 0.6 pips. This includes forex, cryptocurrencies, commodities, metals, bonds, and a huge range of stocks. Moreover, the platform the MetaTrader 4 and ETX pro trader is available.

The company is based in the United Kingdom (UK) and regulated by the FCA (Financial Conduct Authority). In addition, the client’s funds are protected by the FSCS scheme with money up to £85,000. Traders can be sure that their money is protected in top one-tier banks.

If you want to start trading you can open a free demo account or start live trading with only $250 deposit in the account. As you know CFDs (Contract for Difference) are leveraged financial products. Through the FCA regulation, ETX Capital can offer a leverage of 1:30 for retail clients and 1:500 for professional clients. From our experience, ETX Capital can be used as a reliable broker for any investing.

The official website of ETX Capital

The advantages of ETX Capital:

  • CFD Broker founded 2002
  • Based in the United Kingdom
  • FCA (UK) regulated with high financial security
  • Free demo account
  • Minimum deposit 250$
  • Spreads starting 0.6 pips
  • More than 5,000 different markets
  • Spread Betting
  • Good trading education for beginners and advanced traders

(75.6% of retail CFD accounts lose money)

8. ActivTrades – Professional brokerage with high security

On this page, we present you only reputable and safe CFD Brokers. ActivTrades is one of them. Founded in Switzerland the company moved to the financial center in London (United Kingdom). In addition, ActivTrades is regulated there by the FCA (Financial Conduct Authority) like many other CFD Brokers.

ActivTrades offers very professional software and support for its clients. Besides that, the minimum deposit is with 1,000$ very high but we want to present you this broker because of the good conditions and services. Also, you can open a free demo account to test the platform.

For trading, more than 450 available assets the software ActivTrader and MetaTrader 4/5 are offered. The ActivTrader gives you professional market data with market depth and volume for the best execution. The spreads are starting from 0.45 pips. In addition, the financial security is very high and there is a insurance protection up to £1,000,000.

The official website of ActivTrades

The advantages of ActivTrades:

  • Regulated by the famous FCA (UK)
  • Financial Services Compensation Scheme £85,000
  • Additional insurance protect customers up to £1,000,000
  • Free demo account
  • Spreads starting 0.45 pips
  • More than 450 assets
  • No Dealing Desk Broker
  • Professional trading platform ActivTrader
  • Good support and education for traders

(71% of retail CFD accounts lose money)

9. easyMarkets – Fixed spreads on a high quality platform

easyMarkets is a European CFD Broker which is based in Cyprus and regulated by the CySEC. Also, the company got a trading regulation in Australia by the ASIC. The slogan of easyMarkets is that it is a simple and honest online broker. From our experience, the trading platform is very easy to use and there are a lot of features for beginners.

Start trading with over 200 different financial markets by forex, CFDs, and vanilla options. The broker shows us a huge variety of assets. You can open a free demo account or deposit $100 for live trading. What is so special about this broker? – It offers fixed spreads in each account. So traders exactly know which trading fees they have to pay. This is a big advantage.

In addition, there are some special features like the “deal cancellation” for trades. You can cancel lost trades by paying a small fee within an hour. That is perfect insurance against high volatility. The “freeze rate” can freeze the price for 3 seconds. This is also a very special tool. Overall, easyMarkets is a competitive CFD Broker that offers good and transparent trading conditions.

The official website of easyMarkets

The advantages of easyMarkets:

  • Regulated by the CySEC (EU) and ASIC (AU)
  • High secure platform for traders
  • Free demo account
  • Minimum deposit of $100
  • Fixed spreads starting 0.9 pips
  • More than 200 assets
  • User-friendly interface
  • Deal Cancellation
  • Price freezing of 3 seconds
  • Multi-language support

(74% of retail CFD accounts lose money)

10. 24Option – European based CFD Broker with competitive features

24Option was known as one of the biggest brands for options trading in Europe. Nowadays the broker offers more than 250 different CFDs to trade. To open an account with 24Option is quite simple. Just try the free demo account or start live trading with a 250$ deposit.

In addition, 24Option offers different account types for small and huge deposits. If you deposit more money the broker can give you smaller spreads for trading. The spreads are starting with 1.1 pips variable.

The company 24Option is regulated by the Cyprus CySEC for European clients. International clients are trading under the IFSC (Belize) license. Overall, 24Option always offers the newest trends like cryptocurrencies or cannabis stocks. It is a recommended broker with competitive spreads and good service for traders.

The official website of 24Option

The advantages of 24Option:

  • European based CFD Broker
  • Regulated by the CySEC (Cyprus)
  • Free demo account
  • Low minimum deposit of 250$
  • Different account types (VIP)
  • More than 250 assets
  • Innovative (new assets)
  • Competitive spreads 1.1 pips
  • MetaTrader 4 and web platform
  • Recommended service and support

Top 10 CFD Brokers for 2020 – Best CFD Trading Accounts

The CFD (Contract-for-Difference) space has heated up in recent years, with both casual and more experienced traders now able to speculate on a range of financial products without needing to actually own or store the underlying asset itself.

As such, this makes CFDs ideal for those that want to make seamless investments in a safe, secure and user-friendly eco-system, without the burdens of having to utilize the services of an offline broker.

However, with hundreds of leading CFD brokerage platforms now operating in the market, how do you know which one is best suited for your individual needs? In our comprehensive CFD Brokers guide, we’ll point you in the direction of the very best CFD platforms for 2020 and beyond.

Find in This Article

Best UK CFD brokers

If you’re based in the UK and looking for the best CFD brokers, we would suggest taking a closer look at some of the following platforms.

Ever since the CFD market became available to retail investors the paradigm of trading changed forever. In between thousands of brokers that have emerged over the years, there are some that simply shine between the coals. CryptoRocket is a fully dedicated CFD platform that has become incredibly popular in Europe and Australia.

Even though it started as a cryptocurrency dedicated firm, it has drifted and diversified into other markets. Today the firm offers a broad range of markets like FX, Stocks, Commodities, and of course, cryptocurrency.

If you are interested in trading CFDs, we recommend taking your time to fully review CryptoRocket as a strong option and alternative to traditional brokers. Since the firm does not have its business located in Europe, it does not have to follow rules in terms of leverage and other retail restrictions, allowing traders to operate with much more freedom than with an European broker.

Pros:

    High Leverage – 1:500 No transaction and deposit fees MT4 and WebTrader available Professional and valid customer support services Highly secure trading platform

Cons:

    Limited Deposit Methods Less regulated than other brokers

Launched backed in 2020, Markets.com are an ideal CFD platform if you are still relatively new to online trading. Not only is the Markets.com platform highly favorable to beginners, but traders also have access to a full suite of educational tools. In terms of regulation, Markets.com are licensed by CySEC in Cyprus, ASIC in Australia and the FCSA in South Africa.

CFDs can be traded in a full range of asset classes. This includes commodities (hard metals and energy), currencies, bonds, ETFs, indices and of course, traditional blue-chip stocks.

Pros:

    Ex cellent trading platform for beginners Full suite of education tools CFDs available in all major asset classes No commission fees for trading – everything included within the spread Good selection of payment methods supported Leverage available No withdrawal fees

Cons:

    Guaranteed stop losses not available with CFDs Spreads on certain CFD products are less competitive

Plus500 are one of the largest and most well-established players in the CFD brokerage space. In fact, the entity are listed on the London Stock Exchange, and the CFD platform is fully regulated by the UK’s FCA. Plus500 have the capacity to facilitate a plethora of CFD products, including but not limited to ETFs, stock indices, currency pairings, shares and even cryptocurrencies.

Trading fees, alongside average PIPs, are ultra-low, which is great for high-frequency traders. On the other hand, a slight drawback with the Plus500 platform is that leverage financing costs are on the high side. If leverage isn’t your thing anyway, then this shouldn’t be an issue. When it comes to user-friendliness, the Plus500 trading website is easy to navigate through on both their online and mobile platforms.

Pros:

    One of the most established CFD brokers in the space – listed on the London Stock Exchange Low trading fees and tight spreads Excellent selection of asset classes listed Regulated by the UK’s FCA Platform layout and design ideal for newbies

Cons:

    Lack of fundamental news analysis Leverage financing fees expensive

80.6% of retail CFD accounts lose money

Best CFD brokers for U.S customers

Due to regulatory uncertainties, access to online CFDs platforms for those based in the U.S. is somewhat limited. However, there are still a good number of well-regarded platforms that allow U.S. citizens to deposit, trade and withdraw funds with ease.

Established back in 1995, VarengoldBank FX are a German-based brokerage firm that among many other financial instruments, facilitate CFD trading. Regulated by BaFin in Germany, U.S. citizens are eligible to join. In terms of the CFD products available at VarenGold, this mainly centres on currencies, commodities and indices.

Pros:

    Regulated by the BaFin in Germany Open to U.S. citizens Established back in 1995 Utilizes Meta Trading 4, which is ideal for first timers Deposit funds via credit/debit cards, PayPal or bank wire

Cons:

    Minimum deposit of $2,500 Limited number of CFD products

An additional well-established CFD broker that is also U.S. friendly is that of OANDA. Launched in 1997, the platform is home a good selection of educational materials, customer support is highly rated and payment channels includes PayPal. The OANDA brokerage platform is ideal for those that like to trade currency-based CFDs, as more than 72 currency pairs are listed.

Pros:

    Platform in operation since 1997 U.S. citizen-friendly More than 72 CFD currency pairings to trade Other CFD products include margin rates, commodities, bonds and indices Authorized and regulated with authorities in the U.S., Canada, Europe, Asia-Pacific, Australia and Japan

Cons:

    Less CFD products in comparison to other leading brokerage platforms.

Launched in 2007, Zulutrade are an online CFD platform that specialize in both social and copy trading features. This subsequently allows non-experienced users to copy the trades of seasoned traders, all within one easy-to-access ecosystem. The useful thing about Zulutrade for those based in the U.S. is that they have integrated their platform with other leading brokerage firms. As such, Zulutrade will ensure that you only place trades with platforms that allow U.S. citizens.

Pros:

    Platform in operation since 1997 Strong focus on social and copy trading – ideal for inexperienced traders Directs U.S. citizens to brokers that allow U.S. traders Zero commissions – fees are represented in the spread Vast majority of major CFD asset classes are supported

Cons:

    Has a reputation for hosting too many unprofitable copy traders.

Best CFD brokers for Australia & New Zealand

If you’re based in either Australia or New Zealand, then we would suggest taking a closer look at Plus500. Not only do Plus500 have ultra-low pips and competitive fees, but the platform is authorized to accept residents from both Australia and New Zealand.

Ever since the CFD market became available to retail investors the paradigm of trading changed forever. In between thousands of brokers that have emerged over the years, there are some that simply shine between the coals. CryptoRocket is a fully dedicated CFD platform that has become incredibly popular in Europe and Australia.

Even though it started as a cryptocurrency dedicated firm, it has drifted and diversified into other markets. Today the firm offers a broad range of markets like FX, Stocks, Commodities, and of course, cryptocurrency.

If you are interested in trading CFDs, we recommend taking your time to fully review CryptoRocket as a strong option and alternative to traditional brokers. Since the firm does not have its business located in Europe, it does not have to follow rules in terms of leverage and other retail restrictions, allowing traders to operate with much more freedom than with an European broker.

Pros:

    High Leverage – 1:500 No transaction and deposit fees MT4 and WebTrader available Professional and valid customer support services Highly secure trading platform

Cons:

    Not Available in the US Less regulated than other brokers

Pros:

    Highly established – even listed on the London Stock Exchange Huge selection of CFD asset classes Heavily regulated Super low spreads

Best CFD websites for experienced traders

If you are an experienced CFD traders looking to utilize a range of high frequency methods, then the likes of Vantage FX is potentially best suited for your needs. Through the use of an electronic communications network (ECN) and straight through processing (STP), traders not only have their trades executed in an ultra-fast manner, but direct market access is also available.

Pros:

    Suited for highly experienced CFD traders Both ECN and STP supported High leverage levels available Ultra-fast execution times

Cheap CFD brokers

Ever since the CFD market became available to retail investors the paradigm of trading changed forever. In between thousands of brokers that have emerged over the years, there are some that simply shine between the coals. CryptoRocket is a fully dedicated CFD platform that has become incredibly popular in Europe and Australia.

Even though it started as a cryptocurrency dedicated firm, it has drifted and diversified into other markets. Today the firm offers a broad range of markets like FX, Stocks, Commodities, and of course, cryptocurrency.

If you are interested in trading CFDs, we recommend taking your time to fully review CryptoRocket as a strong option and alternative to traditional brokers. Since the firm does not have its business located in Europe, it does not have to follow rules in terms of leverage and other retail restrictions, allowing traders to operate with much more freedom than with an European broker.

Pros:

    High Leverage – 1:500 No transaction and deposit fees MT4 and WebTrader available Professional and valid customer support services Highly secure trading platform

Cons:

    Not Available in the US Less regulated than other brokers

If keeping trading fees to an absolute minimum is your main priority, then we would recommend heading over to Plus500. This highly established and heavily regulated CFD broker has some of the lowest fees in the industry. Not only are CFD trades commission-free, but major asset classes have significantly low spreads.

Pros:

    Zero commission trades Ultra-tight spreads Overnight holding fees competitive

What is a CFD?

A Contract-for-Difference, or simply a CFD, is a financial product that allows investors to speculate on an asset without needing to own or store it. This is especially useful for those that want to invest in hard assets such as Gold, Silver or Uranium, as there is no requirement to actually hold the asset in question.

However, the potentialities of CFDs does not stop at just hard assets. You can invest in virtually all of the same asset classes that you would expect to find on major exchanges. This includes the trading of currencies, commodities, indices, ETFs, interest rates, options, futures and even cryptocurrencies such as Bitcoin.

How does a CFD broker work?

In its most basic form, a CFD broker is a third party platform that facilitates the trading of CFD instruments. Essentially, the CFD broker will enable you to deposit funds, trade and subsequently withdraw your money back out.

Each CFD broker has their own pros and cons, which ranges from fees, user-friendliness, regulatory status, accepted countries, number of asset classes and more.

What difference is there between trading CFDs and buying assets outright?

The fundamental factor that separates CFDs from that of traditional assets is that you do not actually own the underlying asset. For example, when purchasing blue-chip stocks through a conventional broker, you essentially own equity in the company in question. This gives you certain perks, such as the ability to receive company dividends, or the right to vote.

On the other hand, as CFDs merely represent the performance of the underlying asset, there is no ownership and thus, perks that you would otherwise receive by owning the asset are not present.

An additional benefit to investing in CFDs over traditional equity is that you not only have the option of going long, but also short. This means that you can speculate on the asset losing value on the open marketplace, as opposed to making gains.

What kind of CFD brokers are there?

In the vast majority of cases, leading online CFD brokers will utilize the Metatrader 5 (MT5) trading platform. Unlike its MT4 counterpart, the MT5 platform is highly suited for facilitating a range of CFD-backed financial markets.

An alternative trading platform that some leading CFD brokers utilize is that of cTrader. Launched in 2020, some commentators argue that cTrader is best suited for first time traders, not least because it commonly facilitates copy trading features.

What type of CFD trading accounts are there?

While each CFD broker will have their own underlying account types to choose from, in the majority of cases this will consist of either a ‘retail client’ or ‘professional/institutional client’.

Regarding the former, this is essentially best suited for casual traders that like to trade on a part-time basis. Once again, although this will differ from broker-to-broker, retail CFD clients will usually be restricted to ultra-low leverage levels, as well as having negative balance protection safeguards automatically installed.

On the other hand, and as the name suggests, professional/institutional client accounts are suited for highly experienced traders.

By falling in to this investor bracket, you’ll like have the option of obtaining high leverage levels, as well as having the capacity to go into negative balance.

One of the key drawbacks to a professional trading account is that you might not be accustomed to investor compensation schemes that are available in certain countries, such as the UK .

Tips to choosing a CFD broker

In order to assist you in your search for a CFD broker that best suits your individual needs, check out the following 10 tips.

First and foremost, it is crucial that you check what regulatory licenses the CFD broker holds. In most cases, brokers will be authorized to offer their CFD products by regulators in multiple jurisdictions. If the broker is not licensed by a single notable body, then you need to look elsewhere.

You need to spend some time assessing how much you are going to be charged to use the CFD broker. Fees can be somewhat tricky, not least because they cover a range of different factors. In most cases, this will include commission, leverage costs, trading fees and the cost of holding assets over night.

It is also a good idea to conduct some independent research on how well received the CFD broker is by the online community. This can include reviews that are available in the public domain. It is also worth ascertaining when the CFD broker was launched, as those with a longer trading history generally have a better reputation.

While leverage isn’t important to some traders, others view it as a highly important trading mechanism. The amount of leverage you are able to obtain from a CFD broker will depend on a number of factors, however this commonly centres on your geographical location, and whether you are a retail or institutional investor.

If you are a CFD trading beginner and like the sound of social or copy trading features, then spend some time finding out how the CFD broker facilitates this. You need to ensure that the platform is fully transparent on how it generates its performance statistics, insofar that you want to ensure you are actually backing a successful long-term trader, rather than somebody that has experienced a couple of lucky months.

Often overlooked, always spend some time understanding what payment methods the CFD broker supports. You don’t want to go through the rigmarole of opening an account, only to find that your preferred payment channel is not available. Moreover, you should also check what the minimum and maximum deposit amounts are.

  • Educational guides and market information

It gripes us when CFD brokers do not offer their users a comprehensive avenue to research market fundamentals. If possible, choose a broker that has a good offering of key market analysis. If you are a beginner, it’s also worth checking whether the CFD broker offers any useful educational materials.

The spread is the difference between the CFD buying price, against that of the current selling price. In a nutshell, if the spread is high, it generally means that liquidity levels are low, and volatility is high. As such, always choose a CFD broker with tight spreads.

As you depositing your own hard-earned money, you need to ensure that you are using a CFD broker that places security at the top of its priority list. One example of a crucial safeguard is that of two-factor authentication.

This will require you to enter a unique code that is sent to your mobile phone every time you want to perform key account functions, such as logging in, trading or withdrawing funds.

  • Number of CFD asset classes If you like the option of trading of a wide variety of asset classes, then make sure that the CFD broker in question offers a good number of markets. This should generally include currencies, commodities, indices, shares, ETFs and in some cases, cryptocurrencies.

How to use a CFD platform

If you are at the stage where you have selected your preferred broker, registered an account and then subsequently deposited funds, you should ensure that you have a firm grasp of key CFD practices. Take a look at some of these key factors below.

Firstly you need to choose your preferred market. This might be currencies, ETFs or shares, for example.

  • Choose the CFD asset that you want to trade

Once you’ve selected your desired market, you then need to choose the asset that you want to trade. For example, if you opted for blue-chip shares, then this could be Apple or IBM.

  • Determine whether you want go ‘Long’ or ‘Short’

As we noted earlier, one of the key benefits of CFD trading is that you can speculate on the asset going up in value (long), or alternatively, losing value (short).

If you want to go long, then you’ll need to ‘buy’ the asset. On the other hand, if you want to go ‘short’, then you will instead need to ‘sell’ the asset.

Regardless of your experience in the CFD trading space, it is crucial that you set-up stop losses. This will automatically close a trade when the value of the asset hits a certain position. Ultimately, this can be the difference between making a small loss, or your balance in its entirety.

Perhaps most importantly, you need to ensure that you understand how much you are risking on each CFD contract. You have the option of determining how much you want to stake for each movement in price, which is referred to as a ‘tick’. Each market will have its own tick value too.

For example, if you want to buy a CFD in Apple, and one tick is represented by $0.01, then every time the share price moves by 1 tick, you profit or loss will be multiplied by $0.01. Continuing on from the same example, if you choose to stake $0.50 per tick, and the share price of Apple increases by 10 ticks, then your profit would be $5.

  • Learning how to perform chart analysis

Although this is an art that takes time and effort to perfect, it is worth spending some time learning how to read charts. Known as technical analysis, many traders rely on chart analysis to predict how the market might move, based on historical trends.

How we rated these CFD brokers

When we went through the evaluation process of rating each broker, we took into account a range of key factors. This included whether or not the broker is regulated and by whom, the fees charged, the number of CFD assets, user-friendliness and reputation, among many other factors.

Ultimately, we decided to break each recommendation down by certain segments, such as the best broker for UK or U.S. citizens, or the best platform for beginners. This way, it allows you make an informed decision as to the best CFD broker for your individual needs.

Conclusion

If you’ve read our guide from start to finish, you should now have a firm understanding as to the many factors that you need to consider when choosing the right CFD broker. Essentially, there is no one-size-fits-all approach, not least because each platform will have their own advantages and disadvantages.

The best approach that you can take is to perform your own research prior to signing up to a new broker. We hope we’ve made this approach more conducive for you, by pointing you in the right direction.

FAQs

This is a complex question to answer, not least because each trading platform with have their own pros and cons. If you are looking to speculate on the price of stocks in the most convenient way possible, then it might be worth using a CFD broker.

If you want to buy stocks online, then there are a range of brokers that can facilitate this for you. If you are instead more interested in speculating on the underlying asset in the most cost effective and efficient manner, then a CFD broker might be more up your street.

The fees charged by conventional stockbrokers will vary from broker-to-broker. However, it is important to remember that traditional stockbrokers will charge a lot more than CFD platforms. The key reason for this is that stockbrokers must be remunerated for their efforts, insofar that they actually purchase the stocks on your behalf.

In effect, you can, however this process is primarily reserved for institutional investors. Unless you fall within this bracket of investor, then you will likely need to use a broker.

Virtually any asset class can be represented in the form of a CFD. Notable examples include currencies, shares, ETFs, indices, interest rates and cryptocurrencies.

If you ‘Go Short’ on a CFD, it means that you are speculating that the value of the underlying asset will go down. If it does, then your trade will result in profit.

Before you start trading with your own money, it is crucial that you gain a firm understanding of how the marketplace works. Even better, some CFD brokers allow you to open up a demo account, which is a great way to get comfortable trading CFDs.

CFD stands for ‘Contract-for-Difference’. However, they are usually just referred to as CFDs.

This depends. If you implement the correct safety procedures, such as installing stop-losses, then CFD risk-levels can be controlled. On the other hand, a failure to set-up stop losses and utilizing leverage can be very high-risk.

In most cases leverage is available when trading CFDs. However, this is usually dependant on your investor status. Institutional investors will most commonly be offered high leverage levels, due to their experience of the marketplace. While retail investors can be offered leverage, this is usually limited to ensure that you do not experience significant losses.

Unfortunately not. As you are speculating on the movement of the underlying share price rather than actually owning the stock, you would not be accustomed to dividend payments. For this you would need to purchase conventional stocks from a broker, rather than a CFD.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Good for Beginners!
    Free Education + Free Demo Account!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Trading
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!:

CFD Broker: Review: Regulation: Spreads: Assets: Advantages: Open Account:
1. Markets.com (5 / 5)
➜ Read the review
CySEC, FSCA, ASIC, FCA 0.6 pips variable 2,200+ + Easy to use
+ PayPal
+ Professional tools
Low spreads
2. IQ Option (5 / 5)
➜ Read the review
CySEC 1.0 pips variable 500+ + Best platform
+ Binary Trading
+ Support 24/7
+ Min. Deposit 10$
3. eToro (5 / 5)
➜ Read the review
CySEC, FCA, ASIC 3.0 pips variable 2,000+ + Best platform
+ Social Trading
+ Cryptocurrencies
+ PayPal
4. Plus500 (4.9 / 5)
➜ Read the review
CySEC, FCA, AFSL Variable 2,000+ + Support 24/7
+ PayPal
+ Cryptocurrencies CFDs
5. IG (4.9 / 5)
➜ Read the review
FCA, NFA, AFSL 0.6 pips variable 16,000+ + Huge diversity
+ PayPal
+ Broker since 1974
+ Professional education
6. CMC Markets (4.9 / 5)
➜ Read the review
FCA, ASIC, FMA, MAS 0.7 pips variable 10,000+ + Huge diversity
+ Very good platform
+ Broker since 1989
+ Exclusive support
7. ETX Capital (4.9 / 5)
➜ Read the review
FCA 0.6 pips variable 5,000+ + Spread Betting
+ Huge varierity
+ Good service
8. ActivTrades (4.9 / 5)
➜ Read the review
FCA 0.45 pips variable 450+ + High financial security
+ Low spreads
+ Professional platform
9. easyMarkets (4.5 / 5)
➜ Read the review
CySEC, ASIC 0.9 pips fixed 200+ + Fixed spreads
+ Deal Cancellation
+ Friendly Platform
10. 24Option (4 / 5)
➜ Read the review
CySEC, IFSC 1.1 pips variable 250+ + Account types
+ Good service
+ Always new assets