Best stock CFD broker - Roboforex
The top stock CFD brokers for 2024 are:
RoboForex - Extensive stock CFD selection (Over 12.000)
Exness - Zero commissions, strong CFD liquidity
FxPro - Comprehensive stock CFD trading (1,700+ stocks)
Tickmill - Competitive fees, fast execution
Admirals - Wide range of tradable symbols
eToro - Social trading, top-tier regulation
IC Markets - Low forex fees, wide stock CFD range
AvaTrade - Easy account opening, free deposit
InstaForex - High leverage, wide asset selection
Interactive Brokers - Low commissions, global market access
In this article, TU experts will discuss the top stock CFD brokers for 2024, highlighting their key features, advantages, and potential drawbacks. They will delve into each broker's offerings, such as asset selection, trading platforms, fees, leverage options, and regulatory compliance. Additionally, the article will provide valuable insights on how traders can choose the best CFD broker suited to their trading preferences and risk tolerance. Experts will also explore the fundamentals of share CFD trading, including its mechanics, differences from traditional stock trading, and the pros and cons associated with this form of investment.
What is CFD stock trading?
CFD stock trading involves speculating on stock price movements without owning the actual shares.
Are stock CFDs better than stocks?
It depends on individual preferences and goals; stock CFDs offer advantages like leverage and short-selling but lack benefits such as dividends and voting rights.
How do I choose a stock CFD broker?
Consider factors like regulation, fees, asset variety, trading platforms, and customer support when selecting a stock CFD broker.
Is stock CFD trading so hard?
Stock CFD trading can be challenging due to its complexity and risks, but with education, practice, and discipline, it can become manageable.
Warning:
There is a high level of risk involved when trading leveraged products such as Forex/CFDs. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
| Broker | Leverage | Spread | Best For | Trading Platforms |
|---|---|---|---|---|
Up to 1:20 |
From 0 pips |
- Wide range of CFDs - Advanced features for trading - ETFs, stocks, indices, currencies, more |
MetaTrader 4, MetaTrader 5, cTrader, R Trader |
|
Up to 1:2000 |
From 0.1 pips |
- Low fees - Wide range of assets - Beginner-friendly - Social trading |
MetaTrader 4, MetaTrader 5, WebTrader, Exness Trader |
|
Up to 1:500 |
From 0.6 pips |
- Professional traders - Multiple asset classes - Advanced tools |
MetaTrader 4, MetaTrader 5, cTrader, FxPro Edge |
|
Up to 1:500 |
From 0.0 pips |
- Competitive pricing - Advanced traders - Forex and indices |
MetaTrader 4, MetaTrader 5, WebTrader, Tickmill Trader |
|
Up to 1:500 |
From 0.8 pips |
- Premium analytics - Wide range of tradable symbols - Heat protection tools |
MetaTrader 4, MetaTrader 5, WebTrader, Supreme Edition |
|
Up to 1:30 (EU) |
From 0.75 pips |
- Social trading - Beginner-friendly - Stocks, ETFs, cryptocurrencies |
eToro Platform, eToroX Exchange, CopyTrader |
|
Up to 1:500 |
From 0.0 pips |
- Low forex fees - Advanced traders - Wide range of experience |
MetaTrader 4, MetaTrader 5, cTrader, WebTrader, IC Markets Platform |
|
Up to 1:400 |
From 0.9 pips |
- Easy account opening - Great research tools - Negative balance protection |
MetaTrader 4, MetaTrader 5, AvaTradeGO, WebTrader |
|
Up to 1:10 |
From 3 pips |
- Interest accrual on account balance - Wide currency pair selection |
MetaTrader 4, MetaTrader 5, WebTrader, InstaTick Trader |
|
Up to 1:50 (EU) |
From 0.1 pips |
- Low commissions - Advanced platforms - Wide selection of tradable securities |
Trader Workstation (TWS), IBKR Mobile, Client Portal, WebTrader, API access |
RoboForex provides an extensive selection of over 12,000 stock CFDs from different countries, allowing traders to access popular stocks like Apple and Amazon. Trading fees include a commission of 0.009 USD per share, with spreads starting from 0.01 USD. Overnight fees may apply based on leverage and assets. Traders can utilize platforms like MetaTrader 4 and 5, along with R WebTrader and R MobileTrader for convenient trading. Leverage of up to 1:20 is available, and various deposit methods are offered, including cards, bank transfers, and e-wallets. Beginners can utilize a demo account for practice, while educational resources such as webinars and tutorials are available to enhance trading knowledge.
| Pros | Cons |
|---|---|
RoboForex offers different account types, catering to various trading preferences and experience levels |
RoboForex is not available for traders located in the US or Japan |
Orders are executed swiftly on the RoboForex platform, ensuring efficient and timely trading execution |
|
RoboForex provides access to a range of free research tools, educational programs, and videos, aiding traders in making informed decisions |
|
With a minimum deposit requirement of just $10, RoboForex offers accessibility to traders with varying capital levels |
Exness offers a wide range of popular stocks from diverse industries, such as technology, finance, and consumer staples, totaling over 100 options. The broker imposes zero commissions on Standard, Raw Spread, and Pro accounts, making trading cost-effective. Spreads are variable, with starting rates as low as 0.1 pips on major stocks, though exact figures may vary by asset. Overnight swaps apply for positions held after market close, influenced by individual asset rates and prevailing interest environments. Traders access industry-standard MetaTrader 4 & 5 platforms, renowned for advanced charting and automated trading tools. The Exness Trade App provides convenient mobile trading, enabling order placement and position management on-the-go. Leverage of up to 1:2000 is available, amplifying both profits and losses. Additional features include demo accounts for practice, price gap protection for select assets, and multilingual support accessible 24/5 via live chat, email, and phone.
| Pros | Cons |
|---|---|
Competitive Fees: Zero commissions and tight spreads |
Limited Asset Selection: Compared to some competitors |
Wide Asset Selection: Over 100 popular stocks available |
|
Multiple Trading Platforms: MetaTrader 4 & 5 and Exness Trade app |
|
Useful Features: Demo account, price gap protection, multilingual support |
FxPro offers comprehensive stock CFD trading with a vast selection of over 1,700 stocks from global exchanges, spanning major US markets like NYSE and Nasdaq, European markets such as LSE and Euronext, and Asian markets like HKEX and TSE. These stocks cover diverse industries like technology, finance, consumer goods, and healthcare. The platform charges zero commissions on trades, with competitive spreads starting from 0.1 pips on major stocks. Various trading platforms are available, including industry-standard MT4 & MT5, user-friendly cTrader, and web-based FxPro Edge. Leverage of up to 1:20 is offered, enabling traders to control larger positions with less capital. Additional features include demo accounts for practice, advanced order types, and 24/5 multilingual support for assistance in preferred languages via phone, email, or live chat.
| Pros | Cons |
|---|---|
Wide Asset Selection: Over 1,700 stocks from global markets |
Limited Non-Trading Features: Lacks some features offered by other brokers |
Competitive Fees: Zero commissions, competitive spreads |
High Leverage Risk: Leverage can amplify losses |
Advanced Features: High leverage, demo account, advanced order types |
No Negative Balance Protection: Losses can exceed deposits |
Regulation: Regulated by CySEC and FCA |
Tickmill provides CFD trading on a range of stocks, offering over 100 popular options across diverse sectors like technology, finance, consumer staples, and healthcare. While not the largest selection, Tickmill focuses on renowned and established companies, appealing to traders seeking familiar names. The platform boasts competitive spreads starting from 0.0 pips for major stocks, with zero commission fees on all accounts. Trading is facilitated through MetaTrader 5 (MT5), offering advanced charting tools, technical indicators, and automated trading capabilities. Additional features include leverage up to 1:20, dividend payments based on stock holdings, fast execution averaging 0.20 seconds, and 24/5 multilingual support via phone, email, or live chat.
| Pros | Cons |
|---|---|
Competitive Fees: Tight spreads, zero commission fees |
Limited Asset Selection: Smaller range, especially for non-major stocks |
Fast Execution: Average speed of 0.20 seconds |
No Negative Balance Protection: Losses can exceed deposits |
User-Friendly Platform: MT5 known for ease of use |
Limited Educational Resources: Fewer resources compared to competitors |
Regulation: Regulated by FCA and FSA |
Admirals provides a robust platform for CFD trading, offering over 8,000 stocks across global exchanges, including major US, European, and Asian markets, as well as emerging markets. They offer two account types: Invest, with no commission fees but wider spreads, and Trade, with lower spreads but commission fees. Trading platforms include MetaTrader 4 & 5, along with the exclusive MetaTrader Supreme Edition for additional features. Admirals Invest offers a user-friendly web platform for commission-free stock investing. Additional features include leverage up to 1:500 for retail clients and 1:20 for professional clients, negative balance protection, dividend payments, educational resources, and multilingual support. Regulated by FCA and CySEC, Admirals ensures security and oversight. Minimum deposits vary, and various account types, including Islamic accounts, cater to diverse investor needs.
| Pros | Cons |
|---|---|
Regulation: Admirals is regulated in multiple Tier-1 and Tier-2 jurisdictions, ensuring transparency and investor protection |
Maximum Contract Size: Limited to 100 lots on MT5 Trade account |
Advanced MetaTrader Features: Includes StereoTrader dashboard and Supreme indicators |
Social Trading Feature: Falls behind competitors like eToro and ZuluTrade |
Premium Analytics: Offers Dow Jones News, sentiment analysis by Acuity Trading, and Trading Central signals |
eToro provides a user-friendly platform for stock CFD trading, offering over 2,000 stocks from global markets like the US, Europe, and Asia. With zero commission fees, trading is cost-effective, though spreads can be wider compared to some rivals. Their proprietary web-based platform offers basic charting tools and order types but lacks advanced features like automated trading found on MetaTrader. Notably, eToro excels in social trading, enabling users to copy successful investors' trades. Additionally, they offer fractional shares, allowing investment in expensive stocks with smaller amounts. Leverage of up to 1:20, 24/7 multilingual support, regulatory compliance, and a low minimum deposit of $10 cater to both beginners and experienced traders.
| Pros | Cons |
|---|---|
Free Stock and ETF Trading: Commission-free trading |
Withdrawal Fees: $5 withdrawal fee |
Social Trading: Copy trading feature available |
USD Base Currency: Limited to USD |
Wide Range of Assets: Over 1,000 CFDs with competitive spreads |
Customer Support: Improvement needed |
Top-Tier Regulation: Regulated in multiple jurisdictions |
Algorithmic Trading Limitations: No support for automated strategies |
Negative Balance Protection: Provided for clients |
Mandatory Stop-Loss and Take-Profit may hinder certain strategies |
IC Markets, a renowned online broker, offers CFD trading on a wide array of assets, including over 2,100 stock CFDs from major global markets. With competitive spreads starting from 0.0 pips and no commission fees on most accounts, it ensures cost-effective trading. The platform provides various trading platforms like MetaTrader 4 & 5 and cTrader, catering to different preferences. Additional features include leverage up to 1:500, demo accounts for practice, negative balance protection, and 24/5 multilingual support. Regulated by authorities like ASIC and FCA, IC Markets ensures security and oversight, with minimum deposits varying based on account type and region.
| Pros | Cons |
|---|---|
Low Forex Fees: Competitive forex fees |
Limited Product Selection: Doesn't offer stocks, ETFs, or funds |
Fast Account Opening: Quick and easy setup |
|
Wide Range of Experience: Years of experience, compliant with MiFID regulations |
Slow Live Chat Support: Live chat may lack responsiveness |
Educational Resources: Basic educational materials provided |
Investor Protection for Non-EU Clients: Non-EU clients lack EU-level protection |
Stock CFD Range: Impressive range of stock CFDs |
AvaTrade, an online broker, offers CFD trading on a range of assets, including over 1,500 stock CFDs from global markets like the US, Europe, and Asia. With competitive spreads starting from 0.0 pips and no commission fees, trading is cost-effective. The platform provides MetaTrader 4 & 5, renowned for advanced charting tools and automated trading capabilities, along with AvaTradeGo, a mobile platform for beginners. Additional features include leverage up to 1:20, demo accounts for practice, and 24/5 multilingual support. Regulated by authorities like the Central Bank of Ireland (CBI) and the Financial Conduct Authority (FCA), AvaTrade ensures security and oversight, with minimum deposits varying based on account type and region.
| Pros | Cons |
|---|---|
Easy and Fast Account Opening: Quick and straightforward process |
Limited Product Portfolio: Only offers Forex, various CFDs, and cryptocurrencies |
Free Deposit and Withdrawal Options: Various free methods available |
High Inactivity Fees: Charges $50 per quarter after 3 months of inactivity |
Negative Balance Protection: Ensures protection against negative balances |
Average CFD Fees: While Forex fees are low, CFD trading fees are average |
Multiple Top-Tier Regulations: Regulated in several jurisdictions |
InstaForex, an online broker, offers CFD trading on a vast array of assets, including over 6,000 stock CFDs from global markets such as the US, Europe, and Asia. With variable fee structures depending on the account type, spreads can start from 0 pips with commission fees for some accounts, making fees competitive. The platform provides MetaTrader 4 & 5, industry-standard platforms with various plugins and add-ons, along with InstaForex WebTrader for beginners. Additional features include high leverage up to 1:10, social trading options through PAMM and Copy Trading systems, demo accounts for practice, and 24/7 multilingual support.
| Pros | Cons |
|---|---|
Interest Accrues on Account Balance: Benefit from interest on balances |
Market Diversity Is Low: Limited diversity in non-currency markets |
Low CFD Commissions on Stocks: Enjoy low commissions for stock CFDs |
|
Wide Currency Pair Selection: Large variety of currency pairs available |
|
Islamic Accounts Supported: Islamic accounts cater to specific needs |
|
Multi-Language Support: Accessible in multiple languages for diverse users |
Interactive Brokers (IBKR) is a leading online broker renowned for its extensive asset selection and advanced trading platform. While IBKR does not offer CFDs on individual stocks in major regions like the US and EU, it provides access to a diverse range of assets. Traders can explore over 135 global exchanges for individual stocks and trade options on listed stocks, offering flexibility and risk management alternatives. IBKR boasts competitive fees, with low commissions starting from $0.005 per share for US stocks and a tiered commission structure based on trading volume. Their proprietary platform, Trader Workstation (TWS), offers advanced functionality but requires a learning curve. With high leverage options, margin trading, and multilingual support, IBKR caters to traders' diverse needs.
| Pros | Cons |
|---|---|
Low Commissions and Pricing |
High Minimum for Earning Interest on Uninvested Cash |
Advanced Trading Platforms |
Platform and Execution Issues |
Wide Selection of Tradable Securities |
|
Global Market Access |
|
Fractional Shares Trading |
|
Strong Interest Rates on Cash Balances |
Choosing the best stock CFD broker can be intimidating for beginners, but considering these tips can help:
| Tips | Description |
|---|---|
Regulation and Trustworthiness |
Choose brokers regulated by respected authorities like the FCA or ASIC for transparency and investor protection. Look for brokers with positive reviews |
Fees and Costs |
Compare fees, including spreads, withdrawal fees, and commissions. Lower costs can impact profitability significantly |
Asset Variety |
Check the range of CFDs available, including stocks, indices, Forex, and cryptocurrencies, to diversify your trading portfolio |
Trading Platform |
Test trading platforms with real money to assess features, usability, and charting tools for effective trading and analysis |
Risk Considerations |
Understand the high risk of rapid capital loss in CFD trading due to leverage. Implement risk management strategies to mitigate potential losses |
Regulation and Reputation |
Prioritize brokers regulated by reputable authorities and research their history, reviews, and awards to ensure reliability and track record |
Educational Resources |
Choose brokers offering educational materials, webinars, or demo accounts to help beginners learn and improve their trading skills |
Share CFD trading is a way for investors to make money from the changing prices of stocks without actually owning those stocks. Here's a simple breakdown:
CFD stands for Contract for Difference, which is like a contract between you and your broker. Instead of buying actual shares, you agree to pay the broker the difference in the stock's price from when you enter the trade to when you exit it.
When you engage in share CFD trading, you're essentially making predictions about whether a stock's price will rise or fall. If you anticipate that a stock's value will increase, you "buy" the CFD, which is called going long. Should the stock's price indeed rise, you'll earn a profit determined by the disparity between the buying and selling prices. Conversely, if the stock's value decreases, you'll experience a loss.
Conversely, if you believe that a stock's price will decrease, you can "sell" the CFD, referred to as going short. If the stock's price does indeed drop, you'll make a profit from the difference between the selling and buying prices. However, if the stock's value rises instead, you'll end up with a loss. This trading method allows for potential gains in both rising and falling markets but also entails risks, as losses can occur if predictions are incorrect.
| Aspect | Stocks | Stocks CFDs |
|---|---|---|
Ownership |
Buying stocks means owning part of a company and having voting rights |
CFDs do not involve ownership of the underlying asset |
Direction of Trading |
Only allows going long (buying) on stocks |
Allows both long (buying) and short (selling) positions |
Tax Implications |
Tax implications related to dividends, capital gains, etc. |
Tax treatment varies; may have different tax rates than stocks |
Trading Flexibility |
Generally held for the long term |
Can be used for short-term trading, day trading, or hedging |
Costs and Fees |
Full price for shares plus brokerage fees |
Lower upfront costs, but trading fees and financing charges apply |
Risk and Volatility |
Generally less risky, suitable for long-term investors |
Higher risk due to leverage, amplified gains and losses |
Trading Platform |
Traded on stock exchanges |
Traded over-the-counter (OTC) with a CFD broker |
Shorting |
Can only profit if the price goes up |
Can profit from both upward and downward price movements (shorting) |
Dividends |
Receive dividends with ownership |
Not applicable; some brokers may offer equivalent cash adjustments |
Regulatory Environment |
More heavily regulated |
Less regulation compared to stocks |
Complexity |
Less complex |
More complex due to leverage and higher risks |
These are the various advantages and disadvantages associated with trading stocks through CFDs, highlighting both the potential benefits and risks involved in this form of investment.
👍 Pros of Stocks CFD Trading:
• Leverage: This feature allows you to potentially earn bigger profits by controlling larger positions with less money. However, it's important to note that it also increases the risk of significant losses
• Shorting: Unlike traditional stock trading, CFDs enable you to make profits even when the prices of assets are falling. This opens up more opportunities for trading
• Accessibility: With CFDs, you can trade a wider variety of assets, including those not typically available on regular stock exchanges, giving you more options for investment
• Hedging: CFDs offer the ability to hedge existing stock positions, providing a way to protect yourself against potential losses
• Lower Costs: Compared to directly owning stocks, CFD trading usually involves lower costs since there are no stamp duties or custody fees to worry about
👎 Cons of Stocks CFD Trading:
• No Ownership: Unlike buying actual stocks, trading CFDs doesn't grant you ownership rights such as receiving dividends or voting in company decisions
• Regulation: CFD trading is generally less regulated compared to traditional stock exchanges, which could expose you to more risk from the broker's side
• Complexity: Successfully trading CFDs requires a deep understanding of the market and trading strategies, and it comes with higher risks due to its complex nature
• Psychological Impact: The availability of leverage in CFD trading can lead to impulsive and emotional decision-making, which may result in significant losses
• Counterparty Risk: Since CFDs involve contracts with brokers, there's a risk that if the broker defaults, you could lose your invested funds. It's essential to choose reputable brokers to mitigate this risk
Tips for successfully trading stock CFDs as a Beginner:
Set clear trading goals and understand your risk tolerance
Develop a structured trading plan and stick to it to avoid emotional decisions
Conduct thorough market analysis using technical and fundamental tools
Start with small positions and gradually increase size as you gain experience
Implement effective risk management strategies, including setting stop-loss orders
Stay updated on market developments and continuously learn and adapt your strategies
Choose a reliable broker with good regulatory compliance, competitive spreads, and excellent support. Test their platform using demo accounts before committing real funds
Traders Union applies a rigorous methodology to evaluate brokers using over 100 both quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified
Trading instruments. Brokers are evaluated on the breadth and depth of assets/markets available to trade
Fees and commissions. A comprehensive analysis is done of all trading costs to analyze overall cost to clients
Trading platforms. Brokers are assessed based on the variety, quality and features of platforms offered to clients
Other factors like brand popularity, customer support, education resources are also evaluated
In 2024, the top stock CFD brokers include RoboForex, Exness, FxPro, Tickmill, Admirals, eToro, IC Markets, AvaTrade, InstaForex, and Interactive Brokers. Each offers unique features like extensive stock selections, competitive fees, and advanced trading platforms. Choosing the best broker involves considering factors such as regulation, fees, asset variety, and platform usability.
Stock CFD trading allows investors to speculate on stock price movements without owning the actual shares, offering benefits like leverage and short-selling. However, it comes with risks, including potential losses and complex market dynamics. Success in stock CFD trading requires setting clear goals, sticking to a trading plan, conducting thorough market analysis, implementing effective risk management strategies, continuous learning, and choosing a reliable broker with solid regulatory compliance.
Parshwa is a content expert and finance professional possessing deep knowledge of stock and options trading, technical and fundamental analysis, and equity research. As a Chartered Accountant Finalist, Parshwa also has expertise in Forex, crypto trading, and personal taxation. His experience is showcased by a prolific body of over 100 articles on Forex, crypto, equity, and personal finance, alongside personalized advisory roles in tax consultation.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).
