Best CFD Brokers In The UK For 2025



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If you're too busy to read the entire article and want a quick answer, the best CFD broker in the UK is Plus500. Why? Here are its key advantages:
- Is legit in your country (Identified as United States
)
- Has a good user satisfaction score
- Competitive spreads and low commissions for highly profitable trading.
- Provide comfortable and efficient trading.
Best CFD brokers in the UK:
- 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)
Are you looking to start trading CFDs in the UK but unsure which brokers offer the best combination of features, reliability, and affordability? Finding the right CFD trading platform in the UK can be overwhelming, especially for beginners. To simplify your search, Traders Union has identified the best FCA-regulated brokers in the UK. These brokers offer a broad selection of CFDs, low fees, and trustworthy services, making them suitable for both new and experienced traders.
Best brokers for CFD trading in the UK
Choosing the best broker for CFD trading in the UK is essential for managing risks and maximizing potential returns. With a wide range of brokers offering competitive spreads, advanced trading platforms, and regulatory compliance, finding the right fit can be challenging. Below, weβve compiled a comparison of the top CFD brokers in the UK, focusing on their features, fees, and suitability for different trading strategies to help you make an informed decision.
Demo | Min. deposit, $ | Max. leverage | Min Spread GBP/USD, pips | MAX Spread GBP/USD, pips | Investor protection | FCA regulation | Open an account | |
---|---|---|---|---|---|---|---|---|
Yes | 100 | 1:500 | 0,8 | 1,5 | Β£85,000 β¬20,000 | Yes | Open an account Your capital is at risk. |
|
Yes | 5 | 1:1000 | 0,6 | 1,2 | Β£85,000 β¬20,000 | No | Open an account Your capital is at risk. |
|
Yes | 10 | 1:2000 | 0,5 | 1,5 | β¬20,000 | No | Open an account Your capital is at risk. |
|
Yes | 10 | 1:500 | 0,1 | 0,5 | No | No | Open an account Your capital is at risk. |
|
Yes | 100 | 1:500 | 0,4 | 1,4 | No | No | Open an account Your capital is at risk. |
Tips to choose the best CFD brokers in the UK
Check-up regulation
If you live in the United Kingdom, you should choose an FCA-regulated CFD broker because a broker regulated by a reputable regulator provides better trading conditions and better protection for its users' funds. Reputable UK CFD brokers ensure that your investments are secure while adhering to stringent compliance standards.
Try it in demo mode
A demo account would assist novice traders in gaining a thorough understanding of the trading platform's features. Using a demo account on the best CFD trading platform UK also aids in comprehending the trading conditions, preparing you for live trading with minimal risk.
Pay attention to the reviews
Before you create a trading account with a CFD broker UK and make your first deposit, you should first read reviews from its users. A large number of negative reviews should be a red flag, and itβs safer to avoid that broker. Look for reviews of the best CFD brokers UK to identify brokers with a solid reputation and positive user feedback.
Test research options
Technical indicators, educational content, analytical reports, and charting tools all play an important role in a CFD trader UK's success. Check to see if the CFD broker you intend to use provides robust analytical tools to enhance your trading strategies.
Explore automation tools
Copy trading and PAMM are examples of automation tools that can help you execute trades without your physical presence. Choosing one of the best CFD brokers UK who provides advanced automation tools is always a smart decision for both novice and experienced traders.
Rules and regulation
Licensing in the UK
To operate legally, CFD brokers must be authorized by the FCA. This involves a detailed evaluation of the firm's financial stability, governance, and adherence to regulatory standards. The FCA issues licenses based on specific business activities:
Dealer license (Market Maker). Requires a minimum capital of β¬730,000 and allows brokers to act as counterparties in trades.
Intermediary license (Matched Principal). Requires a minimum capital of β¬125,000 and is suitable for brokers facilitating trades without taking market positions.
Advisory license. Requires a minimum capital of β¬50,000 and is for firms providing investment advice without handling client funds.
These capital requirements ensure firms are financially resilient, which protects client interests.
Investor protection in the UK
The FCA has implemented several measures to safeguard CFD investors.
Client fund segregation. Brokers must hold client funds in separate accounts to ensure their availability for withdrawal and prevent misuse.
Financial Services Compensation Scheme (FSCS). Covers up to Β£85,000 per client in case of broker insolvency.
Leverage restrictions. Limits on leverage ratios help reduce the risk of large losses for retail traders.
Risk warnings. Brokers are required to clearly state the risks associated with CFD trading, ensuring traders are well-informed.
Taxation in the UK
CFD trading in the UK has specific tax rules.
Capital gains tax (CGT). Profits are subject to CGT. For the 2024/25 tax year, gains exceeding the Β£3,000 allowance are taxed at 10% for basic rate taxpayers and 20% for higher rate taxpayers.
Loss offsetting. Losses can be offset against other capital gains, reducing overall tax liabilities.
Stamp duty exemption. CFD trades are exempt from stamp duty, making them more tax-efficient compared to direct share purchases.
Traders should maintain detailed transaction records and consult tax professionals to comply with HM Revenue and Customs (HMRC) requirements.
Understanding these regulations and tax implications is essential for anyone engaging in CFD trading in the UK, as they have a significant impact on legal compliance and profitability.
CFD trading restrictions
One of the primary restrictions on CFD trading in the UK is leverage limits. In Europe, the maximum leverage for retail traders is capped at 30:1 for major currency pairs, while other assets have lower leverage limits. These measures, strictly followed by the best CFD trading platform UK, are intended to reduce the risk of large losses.
Another restriction is the ban on bonuses and promotions. The European Securities and Markets Authority (ESMA) prohibits CFD brokers UK from offering signup bonuses, rebates, or other incentives to encourage trading. This regulation prevents traders from taking on excessive risks for bonuses.
Furthermore, some regulators impose stricter rules on specific types of CFDs. For instance, the FCA has banned the sale of cryptocurrency-based CFDs to retail consumers in the UK, making it vital for traders to choose the best CFD broker UK that complies with these rules.
Can I trade with non-FCA regulated brokers?
While it's technically possible for UK residents to trade with brokers not regulated by the Financial Conduct Authority (FCA), doing so carries significant risks. The FCA enforces strict standards to protect investors, including the segregation of client funds, provision of negative balance protection, and participation in the Financial Services Compensation Scheme (FSCS), which offers compensation up to Β£85,000 if a broker fails.
Brokers regulated outside the UK may not adhere to these protections, potentially exposing traders to higher risks, such as fund mismanagement or lack of recourse in disputes. Therefore, it's advisable for UK traders to engage with FCA-regulated brokers to ensure a higher level of security and regulatory oversight.
How to trade CFDs
Are you interested in trading CFDs but unsure where to start? This guide will provide you with a step-by-step approach to help you begin CFD trading UK.
Understand what CFD trading is
CFD trading allows traders to speculate on price movements of a wide range of financial assets such as forex, commodities, indices, and individual stocks. CFDs are based on margin and leverage, meaning traders only need to invest a small percentage of the total trade value to gain market exposure. However, please note that CFDs come with risks, and itβs important to have a sound trading strategy in place before you start trading with the best CFD brokers UK.
Choose a broker
The first step to trading CFDs is finding a reputable CFD broker UK. Look for UK CFD brokers regulated by the Financial Conduct Authority (FCA) to ensure they adhere to the strictest customer protection standards. Opt for the best CFD trading platform UK that provides a demo account to practice trading with virtual funds before going live. Moreover, research thoroughly about the fees, spreads, and quality of customer service, as these factors can significantly affect your trading experience.
Fund your account
After selecting a CFD broker, you need to fund your account. Most CFD brokers UK offer a range of payment methods, such as credit cards, bank transfers, and e-wallets. Ensure you understand the minimum deposit requirements, withdrawal processes, fees, and other terms to avoid any surprises.
Start trading
As a beginner CFD trader UK, start small and focus on one or two markets to gain expertise. Remember that CFDs are traded on margin, and leverage enables you to magnify gains and losses. Keep your risk management in check by setting stop-loss and take-profit orders to minimize losses.
Learn and develop your strategy
CFD trading UK is a constantly evolving process. You should consistently seek to learn new trading strategies and tools to refine your trading approach. Many best CFD brokers UK offer educational resources, such as trading videos and tutorials, to help you improve your skills and adapt to changing market conditions.
Pros and cons of CFD trading
CFD trading UK can offer certain advantages for beginners, although itβs important to keep in mind that it also comes with risks. Here are some pros and cons to consider when trading CFDs as a beginner:
- Pros
- Cons
Low entry barrier. Many CFD brokers offer demo accounts with virtual funds, making it easy for beginners to try their hand at CFD trading without risking their own money. The best CFD trading platform UK often provides robust demo accounts for practice.
Easy to access. UK CFD brokers make trading accessible from anywhere with an internet connection.
Potential for passive income. CFD brokers UK allow for overnight positions, which can result in passive income for traders.
Flexible trading options. Traders can choose from a wide range of underlying assets, including stocks, indices, and commodities, through the best CFD brokers UK.
Ability to profit from market volatility.Β CFD trading allows traders to profit from both rising and falling markets, making it a versatile tool for beginners and seasoned CFD traders UK alike.
Risks of high leverage. CFD trading involves high leverage, which can amplify profits but also losses. Many CFD broker UK platforms provide risk management tools, but leverage remains a challenge for beginners.
Most beginners lose. The majority of beginner CFD traders in the UK lose money, so it is important to tread carefully and do your research. Working with the best CFD broker UK can provide access to educational resources and better support for beginners.
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:
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Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
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User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
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Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
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Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
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Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
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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.
One often overlooked detail is the brokerβs approach to order execution, regarding slippage
When starting CFD trading in the UK, itβs important to focus on more than just fees and platform usability. One often overlooked detail is the brokerβs approach to order execution, especially regarding slippage and requotes. Some brokers may not execute trades at the price you expect during volatile market conditions, leading to unexpected outcomes. Choosing a broker with a clear and transparent execution policy can help ensure your trades are completed at the prices you anticipate.
Another important factor is the availability of effective risk management tools. While stop-loss orders are common, guaranteed stop-loss orders (GSLO) offer additional protection by ensuring your position is closed at the set price, even during sharp market swings. Keep in mind that brokers may charge extra for GSLOs, so itβs worth understanding the associated costs. Also, check if the broker provides negative balance protection, which prevents losses from exceeding your account balance β a crucial safeguard when trading with leverage.
Conclusion
CFD trading offers exciting opportunities for traders to capitalize on market movements. To ensure a successful trading experience, selecting a reliable broker regulated by the FCA is crucial. Such brokers provide enhanced security through segregated funds, negative balance protection, and compliance with strict regulatory standards.
Beginners should take advantage of demo accounts to practice trading strategies and familiarize themselves with platform features. Keeping a trading journal and employing robust risk management tools, like stop-loss orders, can help build a disciplined approach to trading.
FAQs
Can UK citizens trade CFDs on cryptocurrencies?
CFDs on cryptocurrencies are considered too risky by the FCA, and they were banned in the UK.
Are CFDs considered risky?
Yes, CFDs are considered to be one of the riskiest types of investment because 60-80% of traders lose money when trading CFDs.
Should novice traders copy more experienced CFD traders?
Because beginner traders are most likely to lose money when trading CFDs themselves, copying a more experienced trader decreases this risk. However, you should be very careful when choosing which trader to copy.
Are CFDs tax-free in the UK?
No, CFDs are not tax-free in the UK. CFD traders have to pay capital gains tax (CGT) in the UK.
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Team that worked on the article
Maxim Nechiporenko has been a contributor to Traders Union since 2023. He started his professional career in the media in 2006. He has expertise in finance and investment, and his field of interest covers all aspects of geoeconomics. Maxim provides up-to-date information on trading, cryptocurrencies and other financial instruments. He regularly updates his knowledge to keep abreast of the latest innovations and trends in the market.
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).