Top Platforms for CFD Trading in the UK
A financial derivative product called a "contract for difference" pays the difference in settlement price between the beginning and end of a trade. CFDs are a very popular option for FX and commodities traders because they are a tax-efficient way to speculate on the financial markets. You can speculate on the rising or falling prices of swiftly changing international financial markets, such as forex, indices, commodities, shares, and treasuries, through CFD trading.
So, do you want to start trading CFDs in the UK but don't know what the best CFD platforms in the UK are? The Traders Union experts searched the market for the top 8 CFD trading platforms that are FCA regulated, provide a broad selection of CFDs, and have low fees to create a ranking of them in this article to assist you in beginning your CFD trading journey.
A list of the top 8 CFD trading platforms in the UK in 2023
MT4 from Tickmill
xStation 5 by XTB
cTrader from Pepperstone
FxPro’s MT4
IC Markets cTrader
MT4/MT from XM
Admiral Markets
R Stock Trader from RoboForex.
MT4 from Tickmill
xStation 5 by XTB
Top 9 Platforms for CFD Trading in the UK
Tickmill MT4 - best for Forex CFDs
Another CFD trading platform you should be signing up with if you are considering CFD trading online is Tickmill, a well-regulated CFD trading platform. The Seychelles Financial Services Authority (FSA) oversees Tickmill Ltd.'s compliance with securities dealer regulations. Furthermore, it has a license from reputable Australian (ASIC), British (FCA) and Cypriot (CySec) regulators. This establishes them as trustworthy and valuable brokers who offer trading fees that are very competitive with those of major currency pairs.
Tickmill is among the best CFD trading platforms, offering beginner and professional traders a range of options. Additionally, Tickmill offers over 80 trading products to institutional and retail clients globally through different trading platforms. And with a minimum deposit of $100, low trading fees, and instantaneous account activation, you can get started with CFD trading online using the Tickmill CFD trading platform.
Key features and tools
With the aid of a fully automated No-Dealing Desk (NDD), Tickmill ensures that there are no requotes.
Tickmill integrates a robust and versatile trading platform like MetaTrader 4 and MetaTrader 5.
There is an option for a demo trading account.
Tickmill gives users the tools they need to mimic the trades of seasoned investors.
Tickmill has one tier-1 regulator (high trust), two tier-2 regulators (average trust), and zero tier-3 regulators (low trust).
Tickmill features advanced analysis tools, customizable charts, Autochartist, a VPS service, and a built-in economic calendar.
👍 Pros
•Tickmill provides a wide range of trading resources and learning resources for traders on its CFD trading platform.
•In addition to 295 other tradable symbols, Tickmill offers CFDs on currency pairs, indices, metals, bonds, and cryptocurrencies.
•CfD traders can take advantage of Tickmill's low spreads, quick execution, and risk-free trading conditions.
•It is simple to fund an account quickly, thanks to the availability of a wide range of payment options and movable account settings.
👎 Cons
•For some beginners, the $100 minimum deposit might not be convenient, and order execution delays are more common in volatile trades.
XTB
The main offices of the international CFD broker XTB are located in London and Warsaw. It was established in 2002 and has been offering trading brokerage services all over the world for almost 20 years. Several international regulatory organizations, including the UK's Financial Conduct Authority, are in charge of regulating it. The XTB broker offers two trading platforms, MetaTrader 4 and xStation 5, as well as a sizable array of trading instruments.
The third-party trading platform that XTB provides is MetaTrader 4. It is an easy-to-use and well-liked trading platform. On a tablet, smartphone, or desktop, a browser provides access to the full functionality of the classic MetaTrader 4. Although XTB provides MT4 in some regions, its feature-rich xStation 5 trading platform steals the show with its sleek aesthetic and potent tools. French, Turkish, and Japanese are among the 19 languages that the trading platform is available in. The xStation 5 is well-designed and easy to use. The XTB trading platform on the web can be modified by users. Windows, Mac, and desktop computers can all run xStation 5.
The XTB broker provides favorable CFD trading conditions. CFDs on 1,848 stocks, 135 ETFs, 22 commodities, 36 indices, 5 cryptocurrencies, and 57 forex pairs are accessible to traders through XTB. The company also has three account types, with a minimum deposit of $1 for all account types. The type of account and the particular trading instrument determine the spread's size. Leverage must be at least 1:30, and lots must be at least 0.01. The broker's policy is primarily focused on working with traders in Europe.
👍 Pros
•Properly regulated
•There are two platforms available;
•There is a swap-free Islamic account.
•A minimum deposit of USD 1 is required.
•A diverse selection of trading instruments
👎 Cons
•No VPS.
•Bonus schemes are only valid for non-European users.
Pepperstone’s cTrader platform
Pepperstone is an Australian online broker. The services provided by the company are governed by the UK Financial Conduct Authority and ASIC in Australia. Pepperstone Group, founded in 2010, has emerged as one of the world's top-tier online brokers. Pepperstone users can trade CFDs on popular platforms such as MetaTrader 4, MetaTrader 5, and cTrader. Pepperstone clients have access to the MetaTrader 4 and 5 WebTraders. The cTrader platform is also an important offering by Pepperstone. This trading platform is streamlined with all the trading tools required to execute trades on the web.
The updated user interface for cTrader now includes functions like one-click trading, payment gateway integration, and real-time data processing. The trading platform's user-friendly working application improves the trading experience for novice traders as well. Although it can be installed on different operating systems, it is mostly used online. The cTrader web interface is user-friendly and fairly stable.
For trading more than 1200 CFDs in forex pairs, individual shares, commodities, indices, and cryptocurrencies, Pepperstone is currently one of the most reputable brokers. The fact that Pepperstone offers investor protection for UK traders up to £85,000 is another aspect that makes it secure. For CFDs on UK and German stocks, the broker charges a 0.10% commission on the total trade value, with a minimum commission of $10. Additionally, there is a $0.02 per share fee for CFDs on US stocks. Other benefits of this broker include quick order execution and very low spreads starting at 0.0 pips.
👍 Pros
•On CFD trades, it provides spreads that are reasonably low.
•It provides clients in the UK with investor protection.
•It provides a variety of trading platforms and tools for social trading.
•It is now legal under all EU governments thanks to the Financial Conduct Authority regulation.
👎 Cons
•$200 is the required minimum deposit.
•It doesn't accept customers from the US.
FxPro MT4
FxPro is known for being a trustworthy broker with excellent and secure trading conditions; they also offer the best CFD trading platform. The broker offers a range of services designed for CFD trading online that are ideal for both beginner traders and professionals. The FCA, CySEC, SCB, FSCA, and FSCM regulate FxPro.
You can start CFD trading online on the FXPro CFD platform with a minimum deposit of $100. With more than 2100 trading instruments, FxPro offers CFDs across 6 asset classes.
Although the fees are incorporated into the spread, trading with FxPro will incur fees starting at $3.50, spreads start at 0.06 pips, and commission-free trading depends on the account.
Key features and tools
Integrate top trading platforms like MT4, MT5, cTrader, and FxPro Platform
You can use a Demo account on FXPro to practise CFD trading online.
Free resources for research and professional education
FxPro provides sophisticated trading tools and platforms.
FxPro offers a PAMM account.
👍 Pros
•FXPro is among the top CFD trading platform that is duly regulated
•Also, the user interface is friendly and offers a variety of trading platforms with competitive trading conditions.
•FxPro is a CFD trading platform that offers top-notch research and educational materials.
•Exceptional client service with live chat and prompt response
•FxPro does not impose account fees or fees for deposits or withdrawals.
👎 Cons
•The $100 minimum deposit on the FxPro CFD trading platform might not appeal to novice traders. Another issue that traders might encounter is the payment of inactivity fees and stock CFD fees.
IC Markets cTrader
You need a CFD trading platform like IC Markets if you have chosen CFD trading online and want low-cost forex or CFD trading. IC Markets is a worthy option as it has a competitive product selection that includes crypto and offers over 2100 stock CFDs.
Also, the trading platforms used by IC Markets, like cTrader and MetaTrader, incorporate a flexible design and functionality that will be familiar to numerous forex traders. IC Markets is considered trusted, not publicly traded, and does not operate a bank. Additionally, they are authorized by one tier-1 regulator (high trust), one tier-2 regulator (average trust), and one tier-3 regulator (low trust).
With a flexible fee structure and tight spreads with a reasonable commission, you are sure of profitable CFD trading online. While the minimum deposit at IC Markets starts at $200, there is a $3.5 commission per standard lot round turn on IC Markets' Raw Spread Account.
Key features
The spreads include IC Markets' commissions on stock index CFDs.
IC Markets provides excellent trading costs, high leverage, low latency connectivity, and superior liquidity.
Copy trading services are available to help social traders, and new traders can use a demo account to practise CFD trading online.
IC Markets offer the best CFD trading platform for beginners; it includes a high-quality educational platform and 24/7 customer support.
Advanced traders have access to FIX API when they use cTrader.
👍 Pros
•There are no charges for account opening, inactivity, deposits, or withdrawals.
•IC Markets' low commissions and platform flexibility (MetaTrader and cTrader) make it a top CFD trading platform.
•IC Markets offers CFD trading online on different derivatives, including bonds, indices, stocks, currencies, cryptocurrencies, and commodities.
•In addition to protecting against negative balances, IC Markets keeps client deposits separate from corporate funds.
•IC Markets is regulated by important regulators in Australia, Europe, Britain, etc.
👎 Cons
•IC Markets does not have a proprietary trading platform for the assets you are investing in, nor does it provide any financial information (such as income statements or financial ratios for equity CFDs).
XM
Because of how well it complies with these regulators, XM is a top CFD trading platform, demonstrating its dependability and trustworthiness as a broker. The Financial Conduct Authority (FCA) in the UK, Belize's IFSC, CySEC in Cyprus, and ASIC in Australia oversee XM's operations.
With a fixed minimum deposit of $5, beginners will not have any trouble trading, especially if they are funding with a credit card or an e-wallet. The minimum deposit for funding made by wire transfer is $200. Individual stocks, stock indices, and commodities are just a few of the many Contract for Differences (CFDs) that XM provides traders.
Key features and tools
For stock CFDs, XM offers MetaTrader 4 and MetaTrader 5.
The XM mobile app offers outstanding charting resources with a simple order placement procedure.
Online investors can use XM's top algorithmic trading and technical analysis tools.
Customers who trade CFDs on XM's platform can use its copying trading service.
They offer 57 forex pairs among its 1,230 CFDs and the Autochartist tool.
👍 Pros
•Opening an XM account is simple, and you can use your account that very same day.
•Average Forex and stock index CFD fees
•XM incorporates an excellent resource for research and education, including regular podcasts, videos, and well-structured articles.
•At XM, CFD trading costs are affordable with no withdrawal costs.
👎 Cons
•Due to its focus on CFDs and forex trading and lack of investor protection for clients outside of the EU, XM has a small selection of products.
Admiral Markets
Because CFDs are sophisticated instruments with a high potential for rapid financial loss brought on by leverage, you need the best CFD broker and CFD trading platform. The best CFD broker will make the process straightforward; this is where Admiral Markets comes in.
This Forex CFD trading platform integrates excellent tools and software for CFD trading online. Their investor education option and advanced MetaTrader features make them the best platform for CFD trading. Again, ASIC, FCA, CySEC, and JSC are among Admiral Markets regulators.
Admiral Markets has a $100 minimum deposit requirement ($1 for an AM Invest account), and both wire transfers and credit cards are accepted.
Key features and tools
Admiral Markets provides access to a wide range of share, forex, and CFD markets, premium research content, and more than 4,200 listed instruments.
AM incorporates the MetaTrader Supreme Edition and volatility protection tools.
They support social trading.
Access to a premium analytics portal with free real-time market news is available.
AM integrates an interactive economic calendar, in-depth technical analysis, and market sentiment indicators.
Trading Central, Dow Jones News, and Acuity Trading are among the additional tools, research, and educational resources supported by Admiral Markets.
👍 Pros
•With its StereoTrader dashboard for MetaTrader, Admiral Markets stands out in the crowded field of brokers integrating MetaTrader.
•As stated earlier, Admiral Markets provides 8,425 tradable symbols: 3,827 CFDs and 4,598 exchange-traded securities (non-CFD).
•Each type of account has a low minimum deposit requirement, and different currencies are accepted.
•On most deposits, there are no extra costs.
👎 Cons
•Admiral Markets App is still a pretty basic app.
RoboForex R Stock Trader - best for stock CFDs
CFDs are investments that provide an opportunity to trade on global markets, although this can be overwhelming. And this is why you need the best CFD trading platform to increase your chances of profiting from CFD trading online. RoboForex is among the best CFD trading platforms you can rely upon when trading CFDs.
The FSC regulate RoboForex Ltd. Additionally, there is a 10 USD or 10 EUR minimum deposit requirement for all RoboForex accounts. However, the R StocksTrader account, which requires a minimum deposit of $100, is designed specifically for seasoned traders.
You can withdraw money without paying a commission from RoboForex, and there are no additional fees or fees for inactivity. Fees for trading with RoboForex are $10 and spreads range from 0.01 pip to 1.3 pip.
Key features and tools
RoboForex uses the quickest technical analysis tools.
Integration of automatic withdrawal system
A free trading robot builder makes it simple for traders to automate their trading processes.
Again, RoboForex gives users access to the best trading platforms, including MT4, MT5, and R StocksTrader.
Additionally, the RoboForex stocks trading app offers over 12,000 stocks, stock-related CFDs, index-related CFDs, ETF-related CFDs, and cryptocurrency-related CFDs.
RoboForex offers traders the chance to join the copy-trading community with tight spreads and an advanced copy-trading system.
👍 Pros
•RoboForex provides market-leading insurance and Negative Balance Protection.
•Zero Commissions
•RoboForex offers the best promotional deals to its customers in the financial markets.
•On Contracts for Difference (CFDs), RoboForex offers competitive spreads.
•RoboForex provides free demo trading accounts for new traders to practice forex trading in a completely risk-free setting.
👎 Cons
•Unexpected price changes may occur due to a lack of cryptocurrency trading tools on the R StocksTrader platform.
What are CFDs?
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. It's important to keep in mind that instead of considering the asset’s value, CFD only deals with the price difference between the trade’s entry and exit points. Both parties exchange the asset’s price difference at the end of the contract. Trading CFDs Just like any other trading style, it also means that you’ll either earn profit or experience loss depending upon the movement direction of your chosen asset.
How to choose a CFD trading platform in the UK?
Trying to choose the best CFD trading platform in the UK? Several factors, such as the following, can simplify this process for you:
Selection of trading assets
The forex market, stocks, indices, commodities, cryptocurrencies, and other markets are accessible through some CFD trading brokers. Verify the availability of the security you want to trade. Different trading platforms provide different markets. Finding a broker with a broad selection of securities is crucial, but it's not the only factor you need to take into account.
Platform features for trading
A fantastic broker offers numerous features with alluring advantages. These advantages could include improved protection, increased leverage, increased spread, various account types, and a feature for passive investment.
Spreads and fees
People who trade on CFD brokers' platforms pay them for their services. While some charge a yearly or monthly subscription fee, the majority profit from spreads. Many charge overnight fees and inactivity fees for keeping positions open. Choosing a CFD trading platform provider with the lowest fees and spreads is typically the best course of action. This shouldn't, however, be the primary deciding aspect. Instead, compare it to the other important factors we cover in this section.
Regulation
Finally, traders need to spend money on a trading platform they feel confident using. Prior to registering with a CFD broker, check out its regulators. The best CFD brokers have licences from reputable regulators like the FCA, ASIC, and CySec.
Is CFD trading legit in the UK?
Yes, it is! The Financial Conduct Authority (FCA) in the UK oversees CFD trading in accordance with the Markets in Financial Instruments Directive II (MiFID II). To shield retail traders from disproportionate losses, the FCA has imposed strict leverage restrictions on CFD trading.
Retail traders may use up to 30:1 leverage on major currency pairs, 20:1 on non-major currency pairs, 10:1 on commodities and other indices, and 20:1 on major indices, gold, and non-major indexes. However, professional traders can access higher leverage ratios.
The FCA has also prohibited CFD providers from using bonuses as a marketing tool. This means that CFD providers are unable to entice traders to open accounts or execute trades by way of bonuses or other incentives.
Do I pay taxes on CFD trading in the UK?
Yes, CFD trading is taxable in the UK, and there is no stamp duty to pay when trading CFDs. In fact, both forex and CFD trading are taxable in the UK, and any gains you make on your CFD and forex trades will be subject to capital gains tax of 10 to 20% at the end of the tax year. Forex trading is tax-free in the UK if it is done as spread betting by an amateur speculator.
Can I make money with CFDs in the UK?
Yes, you can! With careful use, it is feasible. The risks associated with highly leveraged instruments for beginners should be kept in mind, though. Statistics show that a lack of strategy and leverage causes up to 80% of traders to lose money in this market. As a result, you must invest time in creating and testing a strategy as well as learning how to trade.
What are the cheapest CFD brokers in the UK?
The two largest forex brokers in the world based on trading volume, Tickmill and IC Markets, have the lowest spreads and fees per lot.
What is the best CFD trading platform provider for beginners in the UK?
The trading process is less demanding for beginners when you use a CFD trading platform that not only has a low minimum deposit but also offers copy trading, PAMM accounts for passive income, and demo accounts for learning how to trade with fake money before risking your real money. Naturally, there are many things to take into account when selecting a CFD trading platform; nonetheless, the best are from IC Markets and FxPro.
FAQ
Can you trade CFDs in the UK?
Yes, trading CFDs in the UK is entirely legal.
Which broker has the most CFDs?
XTB has the most CFDs available for traders.
Are CFDs tax-free in the UK?
No! Although UK retail traders do not need to pay stamp duty on CFD trades, they will need to pay capital gains tax on any profit they make on CFD trading.
Is learning CFD trading hard?
Learning CFD trading can be challenging and calls for practice, familiarity with a specific market, and knowledge of leverage and margin trading. This is so because it can be risky and, arguably, not suitable for beginners.
What is the easiest CFD to trade?
The easiest CFDs to trade are stocks and commodities.
How does CFD work in the UK?
In the UK, the Financial Conduct Authority (FCA) oversees CFD trading. The FCA, which is the country’s financial markets regulator, imposes certain restrictions on CFD trading, including leverage limits and a ban on monetary and non-monetary inducements offered to clients to encourage trading. CFD brokers are subject to requirements set forth by the FCA in order to safeguard retail traders.
Related Articles
Team that worked on the article
Winnifred Emmanuel is a freelance financial analyst and writer with years of experience in working with financial websites and businesses. Her expertise spans various areas, including commodities, Forex, stocks, and cryptocurrency. Winnifred tailors her writing to various audiences, including beginners, while also providing useful insights for those who are already familiar with financial markets.
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).