Best CFD Brokers of 2024
Trading on financial markets is becoming increasingly accessible and popular. One of the most sought-after trading instruments is Contracts for Difference (CFD).
For successful CFD trading, a reliable and professional broker is essential. This article will list the best brokers that offer the opportunity to trade CFDs on stocks and other assets. Considering your needs and criteria, this rating will help you choose the most suitable broker.
Top-10 CFD Brokers of 2024
This top ranking is based on extensive market research in brokerage services and opinions and reviews from experienced traders. The table features the most reliable and vetted brokers from our complete Forex brokers list, offering a wide selection of assets for trading through Contracts for Difference (CFD).
1. IC Markets
IC Markets is a reliable and versatile broker that offers a wide range of services and tools for trading in the financial markets. The company provides impressive trading instruments, high-quality trading platforms, advanced analytical tools, and valuable education for traders of all levels.
IC Markets is likely most suitable for experienced traders who value deep liquidity, tight spreads, and advanced trading tools. Beginner traders can also benefit from the educational materials offered by the company, but they should be prepared for some additional expenses and a higher minimum deposit requirement.
Advantages of IC Markets
- Regulation. IC Markets is regulated by two serious financial regulators, ASIC and CySEC, which guarantees client funds protection and trading conditions fairness.
- A wide range of trading instruments. IC Markets clients can trade various assets, including currency pairs, stocks, indices, commodities, and cryptocurrencies.
- Low spreads. IC Markets offers some of the lowest spreads on the market, making trading more accessible and cost-effective.
- MetaTrader, cTrader, and TradingView platforms. These platforms are widely recognized for their advanced trading features and analysis tools.
- Educational materials. The broker offers high-quality training materials suitable for beginners and experienced traders.
- Efficient customer support service. IC Markets clients note the high level of customer support service, which responds quickly and professionally to problems and questions.
Disadvantages of IC Markets
- High minimum deposit. The entry threshold for opening a trading account with IC Markets is relatively high and may be inconvenient for novice traders or those who do not want to invest large sums at once.
- A limited number of withdrawal options. The options for withdrawing funds from IC Markets are limited, which may cause inconvenience, especially for clients who prefer specific payment systems.
2. Pepperstone
Pepperstone is a significant and reliable broker that offers a broad range of trading instruments and attractive trading conditions. With regulation by serious authorities, clients can be confident in the security of their funds.
The broker is suitable for various types of traders. Beginners will find extensive educational materials, including trading guides, webinars, instructional videos, and Forex trading courses. Experienced traders will also appreciate Pepperstone's opportunities, including favorable trading conditions, various trading platforms, and access to complex trading instruments.
The broker's technical support operates at a high level, offering clients quick and efficient responses to any questions.
Pepperstone is an excellent choice for traders of all experience levels. With a unique combination of educational materials, trading tools, and high-quality customer service, this broker ensures excellent conditions for successful trading.
Advantages of Pepperstone
- Wide selection of trading platforms.
- Tight spreads and favourable trading conditions.
- Numerous regulatory licenses.
- A large number of trading instruments, including over 600 CFDs on stocks.
Disadvantages of Pepperstone
- Lack of diversity in types of trading accounts.
- Withdrawals are only available via bank transfer, which can prolong the process for an extended period.
3. AvaTrade
AvaTrade is ideal for traders looking for various trading tools and a high level of investment protection. Beginners will be comfortable with the intuitive interface of the AvaTradeGO mobile platform, while experienced traders will appreciate the depth of MetaTrader's customization and analytical tools. However, traders who need access to STP or ECN accounts should pay attention to other brokerage companies.
Advantages of AvaTrade
- A wide selection of financial instruments. AvaTrade offers more than 60 currency pairs and CFDs on stocks, indices, commodities, cryptocurrencies, and other assets.
- Innovative trading platforms. AvaTradeGO, MetaTrader 4 and 5, and WebTrader provide convenience and functionality for trading.
- Educational resources. Access to an education center with video tutorials, articles, and other materials helps traders improve their skills and knowledge.
Disadvantages of AvaTrade
- Limited account options. The absence of market execution of orders, cent accounts, and fixed spread accounts may limit options for traders.
- Fees. Costs for account inactivity and maintenance may impact trading profitability.
4. RoboForex
RoboForex is recognized as one of the few Forex brokers with an impeccable reputation. The company strictly adheres to its regulations, does not delay payments, and provides fair quotes. RoboForex can be a good choice for both novice and professional traders due to its robust offerings, which include a variety of trading instruments, account types, platforms, and competitive trading conditions. The broker's commitment to transparency and customer service further solidifies its standing in the Forex community.
Advantages of Roboforex
- A variety of trading platforms, including MetaTrader 4, MetaTrader 5, cTrader, and R StocksTrader.
- Over 12,000 trading instruments, including currency pairs, stocks, indices, ETFs, commodities, metals, and cryptocurrencies.
- Different types of accounts for traders of all experience levels, including accounts with ECN and STP access.
- Competent 24/7 customer support.
- Loyalty programs and bonus offers for clients.
- Low spreads and commissions, as well as the ability to trade with high leverage.
Disadvantages of Roboforex
- Regulation in an offshore jurisdiction.
- Beginner traders may find a lack of educational materials.
5. FxPro
FxPro provides a comprehensive range of services and tools for traders. With its variety of trading accounts, platforms, and available markets, it is well-suited to meet the needs of different traders. This broker suits traders looking for a wide selection of markets, diverse platforms, and analytical tools. It is also apt for beginner traders, thanks to the educational materials and experienced traders who value flexible trading conditions.
Advantages of FxPro
- Various trading platforms, such as MetaTrader 4, MetaTrader 5, cTrader, and FxPro Edge, provide flexibility and convenience in trading.
- A diverse range of available markets and products, including currency pairs, CFDs on indices, stocks, commodities, futures, and cryptocurrencies.
- Analytical tools, including signals from Trading Central and Autochartist functionality.
- Extensive educational materials, including free courses, articles, videos, and webinars, contribute to the development of traders.
Disadvantages of FxPro
- An inactivity fee is charged after six months of no position opening or closing.
- Average trading commissions. FxPro does not have the tightest spreads in the market and not the most minuscule trading commission per transaction.
- Absence of cent accounts and services for copying trades of successful traders.
6. CMC Markets
CMC Markets has been a reliable CFD and Forex broker in the business for a long time. Top-tier financial authorities regulate the company, offers an excellent trading platform, and has low commission fees.
We believe it is an excellent choice for beginners and experienced traders. CMC Markets is a good option if you are seeking a trustworthy broker with extensive experience.
Advantages of CMC Markets
- Regulation. CMC Markets is regulated by leading financial authorities, including the UK FCA, ensuring the security of client funds.
- Low trading fees. The broker offers competitive spreads and swaps and does not charge fees for deposits or withdrawals.
- Wide range of markets and products. CMC Markets provides access to various trading instruments, including currency pairs, stocks, indices, commodities, and cryptocurrencies.
- Trading platforms. Access to the popular MetaTrader 4 and CMC Markets platforms, which offer flexible settings and an intuitive interface.
- Analytics. The broker offers extensive analytical materials, including news from Reuters, an economic calendar, and technical analysis.
- Education. CMC Markets offers comprehensive educational materials, including webinars, seminars, and courses.
Disadvantages of CMC Markets
- Limited account options. The broker offers a limited number of account types, which may not meet the needs of all traders.
- Inactivity fee. The broker charges a monthly fee if an account remains inactive for 12 months.
- No online chat. While support is available 24/5, the lack of an online chat option may hinder instant communication with support.
7. AMarkets
AMarkets is a versatile broker offering a full range of services in the Forex market. It enables independent trading and investing funds in copy trading with equal success.
Traders can access several accounts with low spreads, permitted scalping, and fast trade execution. Up-to-date analytics, valuable services, and rapid fund withdrawal support a stable technical platform.
Investors who are not keen on engaging in independent trading can still achieve significant profits by copying the trades of successful traders. Building a portfolio is time-efficient and offers the possibility of passive income.
Advantages of AMarkets
- A wide range of trading instruments, including currencies, stocks, indices, commodities, and cryptocurrencies.
- Extensive analytical capabilities using modern tools and trading robots.
- No commissions on many operations.
- Convenience and simplicity of opening an account and managing it.
Disadvantages of AMarkets
- Not the most extensive educational materials. The broker offers essential resources such as a blog and FAQ but lacks deeper educational content such as webinars, courses, etc.
- The broker does not offer a trading platform, which may disadvantage those seeking a unique trading solution.
- On some assets, spreads are higher than those of competing Forex brokers.
8. Admirals
The broker Admirals is suitable for a broad spectrum of traders. With its strict regulation, various account types, and a competent set of educational and analytical materials, this broker provides high-quality services for novice and experienced traders.
Beginners seeking detailed educational resources and support will undoubtedly appreciate this broker. Experienced traders will also find it beneficial due to competitive trading commissions, abundant tools for analysis and trading, and the convenience of the depositing and withdrawal process.
Advantages of Admirals
- Regulation. Admirals is regulated by several leading financial authorities, including the FCA in the UK and CySEC in Cyprus, ensuring high reliability and security.
- Trading Fees. Trading commissions are set at a competitive level, making trading with Admirals cost-effective.
- Wide Range of Payment Methods. Clients can deposit and withdraw funds using various convenient payment methods, including bank transfers, credit/debit cards, and electronic wallets.
- Analytics. Admirals offers extensive analytical resources, including an economic calendar, trading news, weekly podcasts, and technical and fundamental analyses.
- Education. The broker provides a rich collection of educational materials, including webinars, articles, guides, and e-books.
Disadvantages of Admirals
- Inactivity fee. Admirals charges a fee if an account remains inactive for a certain period, which may be undesirable for some investors.
- Support. Although the support service provides multiple communication channels and quick responses, some users sometimes complain about its intrusiveness and note unprofessionalism. Additionally, information about the support service's working hours is missing from the Admirals website.
9. ActivTrades
ActivTrades is suitable for beginner traders who value simplicity and intuitive trading platforms, as well as a variety of educational materials to improve their skills. Moreover, this broker can be a suitable option for experienced traders who prefer to trade various instruments and use the powerful features of the MetaTrader 4, MetaTrader 5 and TradingView platforms.
However, for traders with more specific requirements, such as a variety of trading accounts or individual conditions for professional traders, ActivTrades may be less attractive.
Advantages of ActivTrades
- Regulation. ActivTrades is a regulated broker with licenses from leading financial regulators such as the FCA and CySEC. This provides broker's clients with protection and reliability.
- Wide range of instruments. ActivTrades offers access to a wide spectrum of trading instruments, including currency pairs, CFDs on stocks, indices, commodities, and cryptocurrencies, allowing traders to diversify their trading.
- Trading Platforms. ActivTrades offers popular trading platforms MetaTrader 4, MetaTrader 5, TradingView and its own ActivTrader platform. These platforms provide traders with various features, indicators, and tools for analysis.
- Educational materials. The broker provides an extensive set of educational materials, including webinars, videos, articles, and guides, which helps traders of different experience levels to improve their trading skills.
- Professional Support Team. ActivTrades' support service stands out for its high level of professionalism, ensuring effective and knowledgeable communication with clients, thus enhancing the overall trading experience.
Disadvantages of ActivTrades
- Lack of diversity in trading accounts. ActivTrades offers a limited number of types of trading accounts, which may not meet the needs of all traders, especially those looking for more flexible trading conditions or special offers for different levels of experience and trading volumes.
10. Oanda
Oanda is an excellent choice for traders seeking a reliable and regulated broker with competitive spreads and various trading assets.
With quality analytics and diverse educational materials, Oanda suits beginners and experienced traders.
Advantages of Oanda
- Strict Regulation. Oanda is regulated by leading financial authorities worldwide, ensuring high security.
- Tight Spreads. Oanda offers competitive and transparent spreads.
- Diverse Markets and Products. The broker provides a wide selection of assets, from Forex and CFDs to indices and commodities.
- Advanced Trading Platforms. Oanda supports MetaTrader 4 and 5 and its proprietary platform, fxTrade.
- Quality Analytics. Automatic pattern recognition, advanced tools for MetaTrader, a currency converter, and other resources are provided.
- Extensive Learning Section. Oanda offers rich educational materials and resources, including webinars, videos, and articles.
Disadvantages of Oanda
- Limited Account Types. Oanda offers only one standard type of account, which may not be suitable for traders with different needs.
- Inactivity Fee. An inactivity fee may be charged if the account is not used for an extended period.
- High Swaps. Oanda has relatively high swap rates, which could reduce the profitability of long-term trades.
How was the list of top CFD brokers compiled?
In compiling the list of top CFD brokers, we relied on strictly defined and weighted criteria:
- Ranking by our Forex broker rating: The basis for evaluating brokers was taken from our Forex broker list.
- High scores according to our methodology: Brokers were selected based on the stringent standards of our evaluation methodology, ensuring their quality and reliability.
- Accessibility of services for traders: All selected brokers provide services on terms accessible to a wide range of traders, including offers specific to CFD trading.
- Ensuring safe and efficient trading conditions: The brokers included in the list meet high-security standards and offer trading conditions necessary for successful CFD market operations.
These criteria guarantee that the brokers included in the list are reliable and offer quality services in CFD trading.
What is CFD?
In the context of trading and finance, a CFD (Contract for Difference) is a financial derivative that allows traders to speculate on the price changes of assets without actually owning those assets. Instead of buying or selling the asset, a trader contracts with a broker on the difference between the asset's initial and final price.
Advantages of CFDs
- Liquidity: Quick and easy opening/closing of positions.
- Leverage: The ability to increase the size of the trade using borrowed funds.
- Wide Range of Assets: Stocks, indices, commodities, currencies, etc.
- Opportunity to Earn on Rising and Falling Prices: Traders can open long (buy) and short (sell) positions.
Risks of CFDs
- Leverage increases both potential profit and potential losses.
- Difficulty in predicting price movements.
- Spreads and commissions can significantly reduce profits.
- Not all CFD brokers are regulated by reliable financial authorities.
CFDs are complex instruments unsuitable for all investors due to the high risk of losing invested funds. Before starting to trade CFDs, studying this instrument and assessing your risks is essential.
How to Choose a CFD Broker for Trading Stocks or Other Assets?
When choosing a CFD broker, pay attention to several critical criteria:
- Reliability and Regulation: Choose a broker licensed and regulated by the appropriate authorities.
- Commissions and Costs: Ensure that the commissions and trading fees are not too high, which can significantly reduce your profits.
- Trading Conditions: Assess the availability of stocks, liquidity, spreads, etc.
- Technical Capabilities: Ensure the broker provides sufficiently high technological capabilities for comfortable and successful trading.
- Reputation and Reviews: Research the broker's reputation and read reviews from other traders.
- Education and Support: Opt for a broker that offers education and support for traders, especially if you are new to financial markets.
By adhering to these criteria, you can choose the most suitable broker for trading stocks.
What is the commission of CFD brokers for stock trading?
The commission fees for trading stocks with CFD brokers can vary and depend on several factors, such as the type of account, trading volumes, the stock exchange, etc.
Some brokers may offer commission-free trading of securities, but other charges, such as spreads and swaps, may apply in such cases.
Other brokers might charge a fixed commission per trade and additional fees for depositing and withdrawing funds.
Typically, the commission for purchasing stock CFDs with Forex brokers ranges from 0.01% to 0.1% of the transaction volume. However, it is essential to note that commissions can be significantly higher when trading large volumes. Therefore, before opening a trading account with a CFD broker, you should familiarize yourself with all the commissions and costs involved.
Features of the Stock CFD Market
Trading in stocks has unique characteristics that need to be considered when operating in financial markets:
- High Volatility: The price of stocks can fluctuate significantly due to news, company decisions, economic data, and other factors, leading to substantial losses or gains.
- Diversification Risks: Investing in the stocks of a single company can entail significant risks, so it's recommended to diversify the portfolio by investing in securities of various companies and sectors.
- The Need for Analysis: It's crucial to continuously monitor news, financial reports, and other information about the companies whose stocks you are trading, as well as to conduct technical and fundamental analysis.
- The Importance of Choosing the Right Broker: Selecting a reliable and professional broker is crucial, as it helps ensure quick market access, low commissions, and quality support.
- Spreads: In Forex trading, there can be significant spreads, which can affect the size of profits or losses.
Considering these features, traders can successfully trade on stock exchanges, but this requires appropriate knowledge and experience and adherence to a strategy and risk management plan.
Investing in the Stock Market vs. Trading CFD Contracts
Both options have advantages and disadvantages, depending on your preferences, investment goals, and experience. Here's a comparative table:
| Criterion | Stock Market Investment | CFD Broker Trading |
|---|---|---|
| Main Principle | Buying and long-term holding | Short-term trading on price differences |
| Liquidity | High | High |
| Commissions and Spreads | Usually lower | Usually higher |
| Margin Trading | Usually limited or unavailable | Available |
| Financial Outcome | Dividends and capitalization | Difference between buying and selling |
| Ability to Short Stocks | Limited or unavailable | Available |
| Regulation | Strict | Maybe less strict |
| Risk | Comparatively lower | Comparatively higher |
| Investment Duration | Long-term | Short-term |
It's important to note that investing in stocks on the stock market usually implies a more long-term strategy and suits those who are ready to invest for an extended period, aiming for dividends and capital growth.
Trading on exchanges with a CFD broker is more oriented towards short-term deals and suits those who want to profit from short-term market fluctuations.
Choose the option that best aligns with your investment goals, risk tolerance, and experience in the financial markets.
Conclusion
Choosing the right broker plays a vital role in the success of trading on financial markets. In 2024, the market offers a variety of reliable and vetted Forex brokers specializing in CFD trading.
When selecting a broker, consider the following criteria: regulation and licensing, trading conditions (spreads, commissions, margin requirements), the availability of instruments and order execution quality, customer support quality, and additional services such as educational materials, analytics, and trading platforms.
In our ranking, we have presented the best brokers specializing in CFD trading, considering all the criteria mentioned earlier. However, each trader has individual preferences and requirements. Therefore, researching and choosing a broker that best fits your needs and trading strategy is essential.
It is also essential to remember that CFD trading involves certain risks, and potential profits always correlate with the level of risk. Developing and testing strategies and closely monitoring news and market changes are advisable for successful trading.
