6 Best CFD Brokers (2024) - Top Trading Platforms

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eToro - Best CFD Broker in 2024

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Top CFD Brokers:

1

eToro - Biggest copy trading community in the world (over 3,000 verified investors with copiers)

2

OANDA - Best for trading with advanced technical analysis tools (TradingView charts support)

3

Coinexx -

4

IG Markets - Huge choice of supported CFDs (over 17,000 markets)

5

FOREX.com - Best markets diversity (over 4500)

6

Interactive Brokers - Best broker for international investors (assets from 33 countries, 150+ markets)

It’s possible to refer to CFDs as financial instruments that are critical to a trader’s portfolio. But, how does the whole system work? Basically, experts calculate profit and losses by comparing the differences in price that exist between when traders enter and exit a contract.

Essentially, brokers will pay these differences depending on whether or not traders make a profit. If it’s a loss, the trader has to pay the broker the difference in prices.

For beginners to CFD trading, this can all seem like a complicated process. However, the choice of a CFD broker can make trading a seamless process. This is a choice traders will find easier after reading this comprehensive guide. Keep reading to find out the best CFD brokers in 2024.

Do you prefer watching videos? Then watch the video summary of this article.

Below you will find all the information.

TOP 6 CFD Brokers in 2024

  • 1. eToro - Biggest copy trading community in the world (over 3,000 verified investors with copiers)

    Open an Account
    Your capital is at risk.
    eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

    The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA.

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  • 2. OANDA - Best for trading with advanced technical analysis tools (TradingView charts support)

    Open an Account
    Your capital is at risk.

    The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

  • 3. Coinexx -

    Open an Account
    Your capital is at risk.

    Coinexx gives customers access to cryptocurrency markets. Deposit and withdrawal of funds are available via cryptos allowing for instant financial transactions. Here at Coinexx one can find top customer care service, narrow spreads, fast order execution, access to the cryptocurrency market from all over the world, and instant deposit of funds.

  • 4. IG Markets - Huge choice of supported CFDs (over 17,000 markets)

    The Forex broker IG Markets is a structural subdivision of the IG Group corporation. Its securities are listed on the London Stock Exchange and are included in the FTSE 250 index. IG Markets is a UK registered company created in 1974, but since its inception, its representative offices have appeared in some other European countries. Since 2014, a retail line of brokerage services has been opened. The international division of the broker is registered in Bermuda and licensed by the Bermuda Monetary Authority (54814). The main activity of the broker is the provision of services for trading financial derivatives (CFDs).

  • 5. FOREX.com - Best markets diversity (over 4500)

    Forex.com is a company owned by GAIN Capital Holdings, Inc. (" title="FCA">NYSE: GCAP) and has earned a reputation as a reliable broker in the trading industry for its transparent work and high quality of services. The company cooperates with clients in 140 countries. The broker is registered in the Cayman Islands and supervised by CIMA (Certified Institute for Management Accountants). The license number is 25033. The parent company of the Forex.com broker is registered in England and Wales under the number 1761813 at the UK Companies House. It is licensed by one of the most reputable regulators in the world, " title="FCA">FCA (No. 113942).

  • 6. Interactive Brokers - Best broker for international investors (assets from 33 countries, 150+ markets)

    Interactive Brokers is among the best-known US investment companies, operating since 1977. The broker offers to trade currency pairs, but its basic instruments are stocks, CFD, indices, metals, ETF, futures, and other exchange market assets. You can also trade cryptocurrencies on Interactive Brokers. The company is regulated by the US Securities and Exchange Commission (SEC), the US Financial Industry Regulatory Authority (FINRA), the UK Financial Regulatory Authority (FCA), and other international financial regulation commissions. In 2020, the broker was awarded the "Best Online Broker” (Barron's) and "Best Broker for Economical Investments" (NerdWallet) titles and got five stars in the Online Stock Trading for Traders category (Canstar). Also, the broker is popular in other countries. Here you can read reviews of Interactive Brokers in Canada, Singapore, Australia, Hong Kong, Ireland.

As one of the top CFD brokers in 2024, traders can expect the best level of service. They offer advanced trading options to foster a long-term business relationship.

TOP 6 CFD Brokers comparison

Here we compare the top-selling points of each of the best CFD brokers of 2024.

eToro OANDA Coinexx IG Markets FOREX.com Interactive Brokers

Trading platform

Mobile Trading, WebTrader

WebTrader, MetaTrader4, Mobile platforms, MetaTrader5

Mobile platforms, MT4, MT5

MetaTrader4, Web platform, ProRealTime, Trading apps

FOREX.com, MT4, MT5

Trader Workstation, IBKR Mobile, APIs

Min deposit

$50

No

$10

$450

$1000

No

Leverage

From 1:2
to 1:30

From 1:1
to 1:200

From 1:0
to 1:500

From 1:1
to 1:200

From 1:1
to 1:400

From 1:1
to 1:50

Trust management

No

No

No

No

No

No

Accrual of % on the balance

No

No

No

No

No

No

Spread

From 2 points

From 0 points

From 0 points

From 0.6 points

From 0.2 points

From 0 points

Level of margin call / stop out

No

No

70% / 50%

100% / 50%

No

No

Execution of orders

Instant Execution

Market Execution

Market Execution

Market Execution, Instant Execution

Market Execution

No deposit bonus

No

No

No

No

No

No

Cent accounts

No

No

No

No

No

No

Open account
Your capital is at risk.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Open account
Your capital is at risk.
Open account
Your capital is at risk.

How to Choose the Best CFD Broker?

Wondering how to pick the best CFD broker in 2024? Several factors can make this process easy for you:

  • Range (Trading Instruments)

    Range (Trading Instruments)

    Traders will want to select a platform that allows for investments in different financial markets.

  • Types of Trading Accounts

    Types of Trading Accounts

    A great broker offers different types of accounts with attractive benefits. Such benefits may include higher protection, greater leverage, more spread, etc.

  • Spreads

    Spreads

    Typically, the best option is to choose a broker that offers the lowest spreads. However, this shouldn’t be the main determining factor. Instead, juxtapose it with the other essential factors we discuss in this section.

  • Quality for Order Execution Quality

    Quality for Order Execution Quality

    A useful feature to look out for in a broker is having orders executed precisely at the asking price.

  • Trading Platform

    Trading Platform

    Finally, traders must invest in a trading platform they’re comfortable with. Verify the trading platform before signing up with a CFD broker.

What are CFDs?

Contracts For Differences (CFDs) are a type of financial instrument that allows traders to speculate on the price movements of an underlying asset without actually owning the asset itself. In CFD trading, the trader enters into a contract with a broker to exchange the difference between the opening and closing price of an asset.

Pros of CFDs

The following is a list of pros of CFDs:

High leverage: CFDs allow traders to use leverage, which means they can control a larger amount of the underlying asset than they would be able to if they were buying the asset outright. This can result in potentially higher profits.

Wide set of trading assets: CFDs are available in a wide range of markets, including stocks, indices, commodities, and cryptocurrencies, which allows traders to diversify their portfolios.

Short selling: CFDs allow traders to profit from falling prices by short selling, which is impossible when buying the asset outright.

Hedging: CFDs can be used to hedge against existing positions in a portfolio. For example, if an investor holds a long position in a stock, they could use CFDs to take a short position in the same stock, offsetting the risk of the long position.

Lower transaction costs: CFDs typically have lower transaction costs than traditional stock trading. This is because CFDs are usually traded through a broker, rather than through a stock exchange.

Cons of CFDs

CFDs have the following cons:

High risk: CFDs are a high-risk investment, as losses can exceed the initial investment. This is due to leverage and the fact that CFDs are highly volatile.

Lack of ownership: CFD traders do not own the underlying asset, which means they do not have any voting rights or entitlement to dividends or other benefits associated with ownership.

What Can You Trade with CFD Brokers?

Some of the most popular financial instruments that you can trade with CFD brokers include:

1

Stocks: CFD brokers offer access to a vast range of stocks from around the world, including blue-chip stocks, small-cap stocks, and penny stocks.

2

Indices: CFD brokers offer access to popular stock indices like the S&P 500, US30, NASDAQ 100, FTSE 100, and DAX 30, among others.

3

Forex: CFD brokers provide access to the currency markets, allowing you to trade popular currency pairs such as EUR/USD, GBP/USD, USD/JPY, and many others.

4

Commodities: CFD brokers allow you to trade commodities like gold, silver, crude oil, natural gas, and agricultural products like wheat, soybeans, and corn.

5

Cryptocurrencies: CFD brokers offer access to popular cryptocurrencies such as Bitcoin, Ethereum, Ripple, and others.

Disclaimer: CFD trading is a leveraged product and can be risky to your capital. Before trading with a CFD broker, ensure you fully understand the risks and seek professional advice.

CFD Broker Versus Forex Broker

Although CFD and Forex brokers are similar and often mistaken for the same thing, there are some differences between the two.

CFD brokers enable traders to speculate on the price movements of various financial instruments, such as stocks, commodities, and indices. CFDs offer the potential for higher leverage and the ability to trade a wider range of markets compared to Forex.

Forex brokers, on the other hand, specialize in the trading of currencies. Forex trading involves buying and selling currency pairs to profit from changes in their exchange rates. Forex brokers offer direct trading in currency pairs by attracting quotes from major liquidity providers such as international banks.

In summary, while both CFD and Forex brokers allow traders to speculate on financial markets, CFD brokers tend to offer a wider range of markets and higher leverage with derivatives (CFDs), while Forex brokers specialize in direct currency trading.

Is CFD Trading Legit

CFD trading is a legitimate financial activity in many parts of the world, so long as it is conducted through regulated and licensed brokers. Different countries have varying laws and regulations on CFD trading as shown below:

US

In the US this financial asset is unregulated and considered as illegal.

UK

In the UK, CFD trading is regulated by the Financial Conduct Authority (FCA) under the Markets in Financial Instruments Directive II (MiFID II). The FCA has imposed strict leverage restrictions on CFD trading to protect retail traders from excessive losses.

The maximum leverage available to retail traders is 30:1 for major currency pairs, 20:1 for non-major currency pairs, gold and major indices, and 10:1 for commodities and other indices. However, professional traders can access higher leverage ratios.

In addition, the FCA has banned the use of bonuses as a marketing tool by CFD providers. This means that CFD providers cannot offer bonuses or incentives to traders to open accounts or place trades.

CFD Trading in the UK – Is it Taxable? Is it Safe?

EU

In the EU, CFD trading is regulated by the European Securities and Markets Authority (ESMA). ESMA has also imposed leverage restrictions on CFD trading in the EU to protect retail traders with similar leverage ratios as those in the UK.

ESMA has also banned the use of bonuses as a marketing tool by CFD providers, in the same way as the FCA. However, some EU countries have implemented their own stricter regulations on CFD trading, such as France and Belgium, where leverage is restricted to 1:20.

Rest of the World

In other parts of the world, regulations governing CFD trading may vary. It is critical to check with the local regulatory body to ensure that CFD trading is legal and regulated in that jurisdiction.

Can I Make Money in CFDs?

Yes, it is possible to make money in CFD trading. However, it is vital to note that CFDs are a high-risk financial product, and there is a significant chance that you may lose money. Statistics show that 80% of traders lose money in CFD trading due to a lack of strategy and leverage.

To make money in CFD trading, you must develop a trading strategy, understand the markets you are trading in, and keep up with market news and events that may affect price movements.

What are Good CFD Brokers for Beginners?

Are you a beginner in CFD trading? Here are some tips to help you get started:

Start with a demo account: Most reputable CFD brokers will offer demo accounts that allow you to practice trading with virtual money before risking your real funds.

Consider micro or cent accounts: Some brokers offer accounts that allow you to trade with very small amounts of money, thus reducing the risk involved.

Look for low minimum deposits: When choosing a broker, look for one that has a low minimum deposit requirement. This will allow you to start trading with a small amount of money and gradually build up your account as you gain experience.

Consider copy trading and PAMM accounts for passive income: Copy trading allows you to automatically copy the trades of more experienced traders while PAMM accounts allow you to invest in a managed trading account. These options can be a good way to generate passive income from CFD trading without having to actively manage your trades.

Considering the points above, RoboForex, Exness and IC Markets make up the best CFD brokers list.

Can I Make Money in CFDs without Large Investments?

Yes, you can. The minimum deposit in CFD trading is typically between $10 and $200.

FAQs

Below are answers to some common questions about using CFD brokers on Traders Union:

Can you make a living from CFD trading?

Making a living from CFD trading is possible, but it's a challenging endeavor. Success in CFD trading requires extensive knowledge, disciplined risk management, and the ability to adapt to changing market conditions. It's advisable to start trading with realistic expectations and consider CFD trading as a part of a diversified investment portfolio rather than relying solely on it for income.

Do professional traders trade CFD?

Yes, professional traders do engage in CFD trading. CFDs offer them flexibility and access to various markets to hedge their positions or seek trading opportunities. However, professional traders often have significant experience and resources, allowing them to navigate the complexities of CFD trading effectively.

How do I choose a CFD broker?

Start by checking the broker's regulatory status to ensure they operate within a reputable regulatory framework. Compare factors like trading fees, available assets, leverage options, and customer support, read reviews and seek recommendations from experienced traders to gauge a broker's reputation. Your choice should align with your trading goals, risk tolerance, and the specific CFD markets you intend to trade.

What is the easiest CFD to trade?

The easiest CFD to trade varies from trader to trader based on their expertise and market knowledge. Some traders may find CFDs based on major stock indices or currencies easier to trade due to their liquidity and relatively lower volatility. However, what's "easy" can change over time, and it's essential to choose CFDs that align with your understanding and trading strategy, rather than solely based on perceived simplicity.