Best CFD Brokers In Europe For 2025

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Go to broker’s website Plus500 Overview

If you're too busy to read the entire article and want a quick answer, the best CFD broker in Europe is Plus500. Why? Here are its key advantages:

Is legit in your country (Identified as United States )
Has a good user satisfaction score 6.82 out of 10
Transparency and no hidden fees
Diversity of instruments and markets – the ability to trade not only currencies, but also CFDs on stocks, indices, commodities and cryptocurrencies.

Go to broker’s website Plus500 Overview

Below, we'll explain in more detail why we believe this and how brokers were evaluated.

Best CFD brokers in Europe:

Eightcap - Best broker to trade directly from TradingView charts
XM Group - Best Order Execution (99.35% of orders are executed nearly instantly)
RoboForex - Best Forex broker for beginners ($10 min. deposit, copy trading)
TeleTrade - Best for learning trading basics (a lot of educational and analytical materials)
VT Markets - Attractive Forex bonuses (50% welcome bonus, 20% deposit bonus)

Choosing a reliable Forex broker is a key step for traders seeking stable profits and comfortable work in the currency market. This review presents the top brokers with favorable conditions: tight spreads, fast order processing, and convenient methods of depositing and withdrawing funds. Each of these brokers is tested for quality of service and reliability, so that you can focus on your strategies without unnecessary risks. Our recommendations will help you choose a partner that best suits your trading style and financial goals.

Best CFD Brokers in Europe

CFD trading provides unique opportunities to work with a variety of assets - from currencies and stocks to cryptocurrencies and commodities, allowing traders to profit from market fluctuations. To trade successfully, you should choose a broker that provides high-quality conditions, competitive commissions and reliable protection of funds. We have collected the leading CFD brokers in Europe, which stand out for their reliability, high level of service and favorable conditions suitable for traders of any level of experience.

Best CFD brokers in Europe
	Min. deposit, $	Max. leverage	Min Spread EUR/USD, pips	Max Spread EUR/USD, pips	Open account
Eightcap	100	1:500	0,4	1,5	Open an account Your capital is at risk.
XM Group	5	1:1000	0,7	1,2	Open an account Your capital is at risk.
RoboForex	10	1:2000	0,5	2	Open an account Your capital is at risk.
TeleTrade	10	1:500	0,8	1,4	Open an account Your capital is at risk.
VT Markets	100	1:500	0,4	1,2	Open an account Your capital is at risk.

How to choose the best CFD broker

To choose a reliable CFD broker, focus on several key criteria that will ensure the convenience and safety of trading:

Regulation and security. Look for brokers regulated by the European Securities and Markets Authority (ESMA) or reputable national bodies like the UK’s Financial Conduct Authority (FCA) or Cyprus Securities and Exchange Commission (CySEC). These organizations enforce essential protections like leverage limits, negative balance protection, and disclosure requirements to protect retail traders.
Spreads and commissions. The size of spreads and the commission structure have a direct impact on the profitability of trading. The best brokers offer low spreads and clear commissions without hidden fees. For example, many brokers charge a commission for overnight holding of positions or for withdrawal of funds, so when comparing brokers, it is worth considering all possible costs.
Order execution conditions. High order execution speed reduces slippage, which is especially important when trading in volatile markets. Some brokers offer additional features such as guaranteed stop losses, which allow you to limit losses even during strong market movements.
Available trading platforms. Many traders prefer the MetaTrader 4, MetaTrader 5 or cTrader platforms due to their stability and variety of trading instruments. Some brokers also provide their own platforms with unique features, allowing traders to choose solutions that suit their style and strategy.
Variety of trading instruments. The best CFD brokers offer a wide range of assets, including Forex pairs, indices, stocks, commodities and cryptocurrencies. This allows traders to effectively diversify their portfolio and trade across different market segments. Explore the best cryptocurrency exchanges in Europe.

Pros and cons of CFD trading

CFD trading offers traders several significant benefits, but there are also certain risks that are important to consider.

Access to a wide range of markets
CFD trading provides exposure to stocks, currency pairs, indices, commodities, and cryptocurrencies, enabling flexible and rapid portfolio diversification from a single platform.
Trading with leverage
Allows control over larger positions with less capital, enhancing return potential.
Earning on both market rises and declines
CFDs support both long and short positions, allowing profit on both upward and downward price movements, which is especially valuable in volatile markets.
No asset ownership required
Enables price speculation without ownership-related costs like taxes or transaction fees.

Increased losses due to leverage
Leverage boosts profit potential but also heightens risk, with possible losses exceeding the initial capital. Effective risk management is essential.
High volatility
CFD instruments are highly susceptible to sharp price swings, requiring continuous monitoring and risk management strategies.
Holding costs
Include overnight fees and spreads, which may reduce profitability, particularly for frequent trades.
Counterparty and regulatory risks
Broker reliability is crucial; choosing unregulated platforms increases risk.

How to start trading CFDs

CFDs (contracts for difference) are a tool for trading assets that do not require large investments. To master CFD trading, follow these tips:

Learn the basics of the market and trading approaches
Before you start trading CFDs, understand the basic concepts: how CFDs work, the features of margin trading and the available financial instruments. Understanding the basics, such as orders, types of analysis and the use of indicators, will help you confidently navigate the market and reduce the risk of mistakes in the future.

Develop an individual trading strategy
Successful traders use a well-thought-out strategy to know when to open and close positions. Formulate entry and exit rules, test them on past data (backtesting) and adapt them to real trading conditions. This approach helps maintain discipline and avoid impulsive decisions that can lead to losses.

Risk management
Risks when trading CFDs include high volatility, liquidity and the use of leverage. To control losses, set stop-loss orders and choose reasonable leverage levels. Risk management not only reduces losses, but also supports the stable growth of your capital.

Practice on a demo account
Reinforce theoretical knowledge in practice using a demo account. Trading with virtual funds allows you to test your strategy and get used to the platform. Practice without real money allows you to calmly work out mistakes and improve accuracy without putting your finances at risk.

Legality and regulation of CFD trading

CFD trading in Europe is legal, but strictly regulated to protect the interests of investors. The main regulatory measures in the EU are determined by the European Securities and Markets Authority (ESMA), which has set clear rules to minimize risks for traders, including leverage limits and negative balance protection. These measures are aimed at preventing excessive losses associated with high volatility and margin requirements. In the UK, the Financial Conduct Authority (FCA) is the regulator, which requires brokers to also comply with transparency standards and the protection of client funds.

While the rules and standards of ESMA and FCA provide security for traders, choosing a regulated and reputable broker remains an important step to protect against fraud and ensure access to transparent trading conditions. In addition to the EU, countries such as Australia and Canada also have strict regulations in the field of CFD trading, while in the US, CFD trading is prohibited for citizens of the country due to restrictions of the Securities and Exchange Commission (SEC).

The regulation is aimed at ensuring transparency and stability in the CFD market, but the safety and success of trading also depend on the personal discipline of the trader, a quality trading plan and an understanding of risk instruments.

CFD trading restrictions in Europe

In Europe, CFD trading faces strict regulation to manage risks to retail investors. The European Securities and Markets Authority (ESMA) has set rules that include limits on leverage and other measures to protect traders from large losses. These rules cap leverage from 30:1 for major currency pairs down to 2:1 for cryptocurrencies, based on asset volatility. Additionally, ESMA requires margin close-out protections, meaning that a position is closed automatically if the account balance drops to 50% of the required margin. Negative balance protection also limits losses to the funds in the client’s account, so traders don’t owe more than their initial deposit.

To further reduce risks, ESMA restricts brokers from offering incentives that might lead to excessive trading. Brokers must also provide a standardized risk warning, informing clients about the high percentage of accounts that lose money with CFDs. While these regulations apply across the EU, some countries like Belgium have added extra restrictions, including bans on certain speculative products. These measures reflect the commitment to protecting retail investors from the inherent risks in leveraged CFD trading in Europe.

Taxation of CFD trading in Europe

Yes, CFD trading is generally taxable in European countries, however, the tax treatment varies depending on the legislation of each country. In the UK, for example, CFD trading is not subject to stamp duty, but profits from such transactions are subject to capital gains tax.

Other countries, such as Ireland and Germany, also have their own tax regulations for CFDs. In Ireland, there is no tax on spread trading, but profits from CFDs are subject to capital gains tax. In Germany, recent changes to the law have introduced additional tax obligations for traders dealing with derivatives, including CFDs.

It is important to note that the taxes on CFDs and spread betting are different. For example, in the UK, CFDs are subject to capital gains tax, while spread betting is exempt. In Spain, on the other hand, profits from spread betting are considered ordinary income and can be taxed at rates of up to 48%, depending on the region.

In general, tax rules for CFDs vary across the EU. To ensure compliance, it is recommended that you consult a tax professional who is familiar with the specifics of the tax laws in your country.

How to choose best CFD brokers in Europe for lower taxes and clear fees

When selecting a CFD broker in Europe, a unique strategy is to think about the “tax efficiency” of your chosen broker’s jurisdiction. Many European countries, such as the UK and Ireland, have specific tax exemptions for certain types of CFD trading, particularly for spread betting accounts. Although not directly available in all EU countries, understanding tax nuances, like whether a broker offers such accounts or has favorable tax agreements, can help reduce the long-term tax burden on your profits. Moreover, some brokers cater to residents of particular countries with tax-friendly setups, making it advantageous to explore brokers that explicitly optimize for your country’s tax policies.

Another advanced consideration is the transparency of fee structures and incentives. Some brokers in Europe offer “tiered trading accounts” where traders who reach specific volume or funding levels get lower spreads and rebates. This means that as your trading experience grows, your costs can decrease, impacting profitability positively. Make sure your broker outlines these features clearly, avoiding hidden costs that could erode profits. By aligning your broker choice with both tax benefits and clear, incentive-based fees, you’re better positioned to grow your account sustainably and with lower friction over time.

Methodology for compiling our ratings of Forex brokers

Traders Union applies a rigorous methodology to evaluate brokers using over 100 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 range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
Other factors like brand popularity, client support, and educational resources are also evaluated.

Find out more about the unique broker assessment methodology developed by Traders Union specialists.

Conclusion

CFD trading is a flexible and attractive tool for trading in financial markets, but it requires a careful approach and understanding of the risks. In Europe, the industry is highly regulated, which provides a certain level of investor protection, but also imposes restrictions such as leverage limits. Before trading, check the tax regulations in your country, as tax liabilities may vary. To effectively manage risks, it is worth considering the use of automated controls such as stop loss and take profit. With the right approach and discipline, CFD trading can be an effective part of a diversified portfolio, especially if it fits your financial goals and investment plan.

FAQs

What are the risks of low liquidity when trading CFDs?

Low liquidity can make it difficult to execute orders at the desired price, especially when the market moves quickly. With limited supply and demand, trades may be delayed or subject to slippage, increasing costs and potential losses, especially on volatile assets.

How does money management impact success in CFD trading?

Money management helps you minimise losses by controlling position sizes and risk per trade. For example, it is wise to not risk more than 1-2% of your capital on a single position and use a stop loss to limit losses in the event of adverse market movements.

Can CFDs be used to hedge an investment portfolio?

Yes, CFDs are often used for hedging. For example, if you have shares in your portfolio, you can open a short CFD position on the same share to hedge against potential losses if the share price falls. This helps you maintain balance in your portfolio.

How do economic events impact CFD trading?

Economic events such as employment reports or interest rate changes can dramatically impact the volatility of the CFD market. To reduce risk during such periods, use stop losses and monitor the economic calendar to anticipate possible fluctuations.

Team that worked on the article

Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.

Learn about our editorial policies

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

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).

CFD

CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.

Extra

Xetra is a German Stock Exchange trading system that the Frankfurt Stock Exchange operates. Deutsche Börse is the parent company of the Frankfurt Stock Exchange.

Investor

An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.

Leverage

Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.

Risk Management

Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.

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