Best CFD Broker For Beginners for 2024 - TOP 5

What is CFD? How does it work?

CFD is a contract for differences in prices of assets. Traders do not own the asset they buy or sell, but only earn on the difference of the price of an asset. This means that if a user buys a CFD and the price of the underlying asset goes up (or down), they can make a profit from it.

CFDs are a popular trading instrument among traders, and they are offered by many Forex brokers, because stocks and many other assets are strictly regulated and not every company can offer them. CFDs are more accessible, and a simpler instrument compared to real assets.

By trading CFDs, traders can earn both from price increase (buying a contract), and price decrease (selling a contract). As traders do not own the underlying asset, they do not have the privileges related to owning this asset. For example, if a trader buys CFDs on dividend shares, they will only be able to earn a profit on the price change. They won’t receive any dividends or the voting right.

Best CFD Broker for beginners: Investment Programs

Earning passive income is just as important for traders as earning profit by actively trading. Therefore, it is important to consider investment instruments offered by the company. There are different investment programs and their choice strongly depends on a specific broker. TU analysts have prepared a review of investment programs of the 5 best brokers.

1

RoboForex - Investment Programs

Investment Programs, Available Markets and Products of the Broker

RoboForex is the ideal broker for those looking to invest their money in the Forex market. This company has everything to earn a stable income — from professional analytics to technical functionality and optimal trading conditions. It is especially worth noting its investment program like RoboForex CopyFx which allows you to receive passive income without doing anything. According to customer reviews, RoboForex is the most popular brokerage company.

RoboForex CopyFx is a service for copying deals

RoboForex CopyFx is a passive investment option that involves connecting an investor's account to a professional trader's account and then copying his transactions. In this case, all trader's transactions are automatically opened on the investor's account. A specific trader's commission is deducted from the investor's profit in case of a successful transaction. The entire service is fully automated which minimizes your work to almost 0%. Learn More about CopyFX From RoboForex

CopyFX at RoboForex - how to choose a trader | Firsthand experience of Oleg Tkachenko

The minimum deposit is only $100, so everyone can test the waters. Having started working, the investor gets access to professional traders' ratings, which indicates the period of the account's existence, profitability, maximum drawdown level, and other statistics. Also, the investor can contact the trader directly.

An investor can connect to an unlimited number of traders, provided that his deposit can withstand such a load. Such diversification of risks makes it possible to form a full-fledged investment portfolio from traders' transactions.

An investor can disconnect from a trader at any time if he doesn't like something in his trading methods. It is a serious tool for protecting a deposit from RoboForex, which not all brokerage companies provide.

Separately, it should be noted that any person can simultaneously act as both an investor and a trader. All statistics on the effectiveness of copying transactions are displayed in the client's account.

Algorithm of working with the CopyFx copy trading platform:

• Once you register and pass verification, open a trading account. Investors can open any account, except for accounts with the MT5 and R StocksTrader platforms. Traders planning to provide signals open a separate account by choosing Open FxCopy Trader Account.

• In the Investment menu, open MT4 Trader Rating. Traders must meet minimum requirements of the broker in order to be included in the rating, such as the number of trades, the number of days the account has been active, and profitability. You will need to contact Customer support to learn about specific requirements.

• You will see main criteria in the list of traders: maximum drawdown, number of copy traders, profitability, account existence period, etc.

• Click on the profile of each trader to view trading statistics. You can activate the copy trading option in the profile of the trader you’d like to copy.

Copy trading is available on real accounts, subject to the deposit in the amount higher than the one specified in the trader’s profile. You can disconnect from a trader’s account at any time.

How to start investing in copy trading with RoboForex | Firsthand experience of Oleg Tkachenko

RoboForex affiliate program

It is not necessary to be familiar with trading to make money with RoboForex. Attract customers and earn up to 50% of the company's income. It works like this:

• You register as a partner, after which you receive information materials for posting on your website/blog, forums, or social networks. You also get a referral link.

• The person follows your referral link and deposits capital in his account.

• The broker receives the spread and credits a part of his profit to the partner's account in the referral trades.

Also, each partner can participate in the loyalty program with the possibility of receiving up to 20% additional partner remuneration every month.

Depending on the chosen partnership program and account type, the total amount of partner rewards can exceed 50% of the fees paid by the referral. For example, on Affiliate accounts, rewards are up to 70%. Taking into account the general fee of the VIP program with the loyalty reward, the total rewards of a partner could be as high as 84%.

2

Exness - Investment Programs

Investment Programs, Available Markets and Products of the Broker

Exness clients can make passive income on copy and algorithmic trading. Forex novice traders can earn from copying trades of experienced traders with the social trading platform and standard opportunities of MetaTrader platforms. If Exness clients know how to trade, they can make additional income on broadcasting their own strategies.

How to start earning with social trading

Exness clients can choose any convenient method to receive trading signals. These can be signals broadcast directly on MetaTrader or in the Exness in-house mobile app.

• Strategy copying. This option is available on the Exness proprietary platform. Investors choose the strategy based on important parameters for them, such as income, number of subscribers, leverage, fees, etc. The Most Copied option allows traders to view the most popular strategies among investors.

Who can provide strategies? Experienced traders with effective trading can do that. Currently, Exness offers two account types for providers — Social Standard and Social Pro. The minimum deposit for both of them is $500. Leverage is up to 1:200 and the fee is up to 50% of the investor’s profit.

Who can become an investor? Any Exness client with a verified user account can be an investor. The minimum investment is $10, thus this option is available even to Forex novice traders without big capital. Investors choose strategies and copy them in the social trading mobile app. Install it on your smartphone or tablet and log into your Exness user account. The broker’s website provides a link to download the app from Google Play and the App Store. Also, there is a QR code.

• Copy trading . To copy trades of other traders, use the MetaQuotes signal service — MQL4 on MT4 and MQL5 on MT5. First, investors pay subscription fees, and later they pay fees to traders for successful trades.

In addition to copying trades and strategies, Exness clients can use bots and expert advisors, which are available in app stores on the MQL4 and MQL5 websites. There are paid and free plug-ins. Also, you can ask an experienced trader to develop an advisor to fit your trading goals. Algorithmic trading is not available for Exness proprietary platforms.

How to copy signals from traders to your account. | Firsthand Experience of Oleg Tkachenko by TU

Partnership programs

Partner rewards are another type of passive income available to Exness clients. Any broker’s client can receive these rewards, regardless of their trading activity and deposits. The main condition to receive fees is to comply with the partnership program requirements.

Rewards for Exness partners:

• From $880 to $31,200 per month under the Introducing Broker (IB) program;

• From $10 to $1,850 for each client who makes the first deposit under the Affiliate Program.

Rewards for IBs depend on the number of referred clients — the more of them there are, the higher the fee. The maximum rate is 40% of Exness income from referral trading. Participants in the Affiliate Program receive fees subject to the first referral deposits.

3

FTMO - Investment Programs

Investment Programs, Available Markets and Products of the Broker

The FTMO offer is itself an investment program, the essence of which is as follows: each trader can get 400 thousand USD at his disposal, but before that, you need to go through two test steps. Before testing, there is an opportunity to practice on a demo account.

Invest in yourself | How to become a professional trader with almost no investment

The path to becoming an FTMO trader and earning real money consists of 2 steps:

• Evaluation stage. At this stage, the trader chooses the amount of the initial deposit from 10 thousand to 200 thousand US dollars. The test fee, respectively, will be €155 euros for a deposit of 10 thousand US dollars. The higher the deposit, the larger the fee. Requirements: target achieving a profit of 10% of the deposit, which must be received within a maximum of 30 days when trading at least 10 days. It is not necessary to trade all 30 days. Permissible losses are allowed up to 10% of the total deposit or up to 5% daily.

• Verification stage. At this stage, the trader is given up to 60 days to meet the requirements for the maximum daily and total drawdown, but the requirements for the target profit are reduced by 2 times. Conditions are simplified to work on more conservative strategies.

Testing is paid and depends on several factors such as the type of account chosen (regular trading or aggressive) and on the initial deposit amount. The fee is paid only once, so at the second stage, you do not need to pay. If the test is passed, the trader receives real money under management of about 400 thousand dollars. In case of a violation, the test must be re-taken. The number of "retakes" is not limited, but discounts are not provided.

FTMO’s affiliate program:

The FTMO affiliate program involves attracting traders who would like to unleash their potential, but do not have start-up capital. The company offers each affiliate 8% of the fee amount paid by the referral. Each affiliate receives a referral link and marketing materials.

4

NPBFX - Investment Programs

Investment Programs, Available Markets and Products of the Broker

NPBFX is a broker that will appeal to both active traders and passive investors (or those who work withboth options). NPBFX's passive trading opportunities are represented by a trade copying service with access to the international ZuluTrade platform. As an alternative, NPBFX offers copy trading on the AutoTrade platform by MyFxBook. The broker's partner program offers two options for cooperation, with partner rewardshigher than the market average.

ZuluTrade and NPBFX — copying trades on an international platform

ZuluTrade is an independent international platform that provides access to a database of traders, whose trades can be copied. The platform provides a variety of options for traders to manage their accounts, set different terms for copying trades, and build investment portfolios with varying levels of risk and strategy types. Portfolios can be used both for passive earnings and to engage other investors.

Pros of ZuluTrade:

• availability of the ZuluGuard mechanism, which protects the investor's deposit from high-risk strategies such as the use of Martingale coefficients.

• signal providers are traders from all regions. Users can trade 24/7.

• NPBFX ensures that orders are executed automatically and quickly.

• Modeling tool. You can simulate potential profit and loss of your strategy taking into account several scenarios of the situation development even before connecting to their accounts.

• Automated risk management. This is automated lot distribution among several traders depending on their trading performance with instant shutdown, if strategy’s statistical parameters set by investors are exceeded.

This is how social trading works: an investor connects to the account of a trader, whose trades are automatically copied to the investor's account. In the case of a profitable trade, the trader receives commission, which is deducted from the investor's income. The terms of copying (percentage of the trader's position volume, fixed or full volume, and risk level) are set by investors through their user accounts.

Copy trading on AutoTrade by MyFxBook

AutoTrade by MyFxBook is an automated trading platform providing for automatic copying of trading signals of traders by investors. It differs from ZuluTrade in more simplified functionality for inexperienced investors. Platform’s users get access to MyFxBook’s analytical tools aimed at deep trading statistics analysis.

Advantages of AutoTrade:

• Strict approach to compiling the rating of traders. Losing and demo accounts do not participate in this rating. If traders become unprofitable and try to adjust the strategy by increasing position volume, they are removed from the rating;

• Opportunity to use demo accounts for training;

• Minimum additional tools. Novice investors only need to understand the mechanism for setting copying parameters. They need neither additional software, nor VPS server;

• Real trading statistics of traders, which can be checked by investors using the investor password.

AutoTrade is a copy trading service for novice traders who want to become signal providers over time.

NPBFX referral program

The broker offers the following types of partnership programs:

• Revenue Share. This program provides for rewards for referral’s regular trading. The more and the longer referrals trade, the more the partner earns. The reward amount is up to $19 per one standard lot;

• CPA (Cost Per Action). This program provides for one-time reward for referral’s verification and deposit. The reward is up to $900 for each referred trader.

Advantages of NPBFX referral programs include high remuneration rates, additional benefits, and special individual terms for regional representatives.

5

Libertex - Investment Programs

Investment Programs, Available Markets and Products of the Broker

At Libetex you may open an Invest Account to be able to invest in real shares. Nevertheless, the broker currently is focused on providing active CFD trading services and integrating auxiliary tools for making trading decisions into the platform. As an alternative, each trader can use the built-in MT4 and MT5 platforms from the MetaQuotes developer.

How it works:

• Register on the Libertex website, download MT4 or MT5, open an account, and link it to the platform. Account details will be sent to your email address provided during registration.

• Register on the MQL5 website. Link your MQL5 account in MT4 or MT5. It is available in the “Service/Settings/Communities” tab.

• Fund your MQL5 account and account opened with Libertex.

What is a Good CFD Trading Provider for Beginners?

A good CFD trading provider for beginners should offer several features that can help new traders get started in CFD trading. Here are some of the things that a good CFD broker should offer:

Low Minimum Deposit

A good CFD trader provider for beginners should not have a high minimum deposit requirement. Trading CFDs involves a certain degree of risk, and it is vital that beginner traders are able to start trading without having to risk too much capital. Forex minimum deposit requirements enable them to practice trading on a live account with low risk and help them build their trading confidence.

Accounts for Beginners

A good CFD trading provider should offer demo, cent, and micro accounts for beginners. For instance, demo accounts allow traders to practice trading without risking real money. They should also offer cent and micro accounts that enable traders to open small positions with minimal capital while gaining real market experience. These account types are better suited for new traders who are just starting out and need to build their trading skills gradually.

Passive Income Options

A good CFD trading provider should also have passive income options available to its clients. Passive income options such as copy trading and PAMM accounts allow traders to earn extra income without having to actively manage their trades. This is an excellent option for beginner traders who may not have enough time to actively manage their trades but still want to earn additional income.

Advanced Educational Content

A good CFD trading provider should offer educational resources to help beginner traders learn the ropes. Advanced educational content such as webinars, tutorials, and online courses can help beginners learn trading strategies, understand risk management, and familiarize themselves with the trading platform. This can be a big help in building their confidence in their ability to trade and ultimately become successful traders.

By finding a CFD trading provider that offers low minimum deposit, accounts for beginners, passive income options, and advanced educational content, new traders can confidently enter the world of CFD trading and start to build their trading skills and experience.

Can I Make Money in CFD Trading as a Beginner?

Yes, it's possible to make money in CFD trading as a beginner, but it's not easy. It requires discipline and dedication to research and refine your skills. You need to have a robust trading plan that is regularly updated as you gain more experience. It's also essential to find the right broker who offers demo accounts with virtual funds so you can practice before investing real money. Trading CFDs involves risk, so it's best for experienced traders rather than beginners.

How To Start Trading CFDs Better

Trading CFDs can be a complex and risky undertaking, but with the right approach, you can improve your performance and increase your profitability over time. Here are some tips to help you trade CFDs effectively:

Learn the Fundamental Concepts

Before you start trading, it is essential to understand the fundamental concepts behind the CFD market. Understand the factors that drive market trends, the role of leverage, and how margin works. Learn about the difference between long and short positions and how to analyze market data to make informed trading decisions.

Practice on a Demo Account

Before you start trading with real money, practice on a demo account. This will enable you to test various trading strategies, familiarize yourself with the trading platform, and gain experience without risking your capital. Take advantage of the demo account to refine your approach and develop your trading skills.

Pay Attention to Risk Management

CFDs offer several advantages, such as the ability to leverage, which can increase your potential profits. However, keep in mind that it also carries potential risks. A sound risk management strategy is essential. To manage risks, you must set stop-loss orders and use moderate leverage. Proper risk management is critical for long-term success in CFD trading.

Use Technical Analysis

Technical analysis is a powerful tool that can help you predict market trends and make informed trading decisions. Learn about technical indicators such as moving averages, oscillators, and Bollinger bands, and understand how they work. Use charting software to analyze market data and identify trends, support, resistance levels, and price patterns that can provide valuable insights into market behavior.

Plan Your Trades and Stick to It

Develop a comprehensive trading plan that outlines your approach, risk management strategy, and exit criteria. By developing a detailed plan ahead of time, you can reduce the likelihood of making impulsive decisions based on emotions or speculation. Stick to your plan, and don't let your emotions govern your trading decisions. Consistency and discipline are critical components of successful CFD trading.

Can I Make Money in CFDs Without Large Investments?

Yes, you can make money with CFDs without having to make a large investment. Most CFD brokers have a low minimum deposit requirement, which means you can start trading with a small amount of money. The minimum deposit can range from $10-$200, depending on the broker. The reason why this is possible is that CFDs are traded on high leverage, which enables you to trade with a fraction of the trade's value as your initial margin deposit.

The maximum leverage ratio varies from broker to broker and the region of the world. For example, in the EU and the UK, the maximum leverage ratio for retail traders on CFD trades is capped at 1:33. However, professional clients can still have access to high leverage with additional requirements.

On the other hand, for offshore regulated entities, the maximum leverage ratio can rise to as high as 1:1000. Countries like Belize, Seychelles, and the Cayman Islands offer offshore regulation for CFD brokers, often with more relaxed regulations and a lower level of investor protection.