Best CFD Brokers of 2024
We rigorously test brokers on real accounts and evaluate them using our methodology. Here are the best CFD brokers based on our analysis:
- 1
IC Markets - Best CFD broker - A wide range of trading assets. Low spreads. Variety of trading platforms. - 2
Pepperstone - Wide selection of trading platforms. Tight spreads and favourable trading conditions. Numerous regulatory licenses. - 3
AvaTrade - A wide selection of financial assets. Innovative trading platforms. Highly rated educational resources. - 4
Roboforex - A variety of trading platforms. Over 12,000 trading assets. Different types of trading accounts. - 5
FxPro - Various trading platforms. A diverse range of available markets and products. Multiple analytics tools. - 6
CMC Markets - Low trading fees. Wide range of markets and products. Access to the popular MetaTrader 4 and CMC Markets platforms. - 7
AMarkets - A wide range of trading assets. Extensive analytical capabilities using modern tools and trading robots. No commissions on many operations. - 8
- 9
ActivTrades - Wide range of trading assets. A wide variety of trading platforms. Extensive training materials including webinars, videos, articles and guides. - 10
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. 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.
Pros and Cons of IC Markets
Pros
- A wide range of trading assets.
- Low spreads.
- Variety of trading platforms.
- Quality educational materials.
- Efficient customer support service.
Cons
- High minimum deposit.
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.
Pros and Cons of Pepperstone
Pros
- Wide selection of trading platforms.
- Tight spreads and favourable trading conditions.
- Numerous regulatory licenses.
- A large number of trading assets.
Cons
- 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.
Pros and Cons of AvaTrade
Pros
- A wide selection of financial assets.
- Innovative trading platforms.
- Highly rated educational resources.
Cons
- Limited trading account options.
- Account inactivity fee.
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.
Pros and Cons of Roboforex
Pros
- A variety of trading platforms.
- Over 12,000 trading assets.
- Different types of trading accounts.
- Competent 24/7 customer support.
- Loyalty programs and bonus offers for clients.
- Low spreads and fees.
Cons
- 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.
Pros and Cons of FxPro
Pros
- Various trading platforms.
- A diverse range of available markets and products.
- Multiple analytics tools.
- Extensive educational materials.
Cons
- An inactivity fee.
- Absence of cent accounts and services for copying trades.
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.
Pros and Cons of CMC Markets
Pros
- Low trading fees.
- Wide range of markets and products.
- Access to the popular MetaTrader 4 and CMC Markets platforms.
- Extensive analytical materials.
- Comprehensive educational materials.
Cons
- Limited account options.
- Inactivity fee.
- No online chat.
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.
Pros and Cons of AMarkets
Pros
- A wide range of trading assets.
- Extensive analytical capabilities using modern tools and trading robots.
- No commissions on many operations.
- Convenience and simplicity of opening an account and managing it.
Cons
- Not the most extensive educational materials.
- 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.
Pros and Cons of Admirals
Pros
- Low trading fees.
- Wide range of payment methods.
- Extensive analytical resources.
- A rich collection of educational materials.
Cons
- Inactivity fee.
- Some users complain about the intrusiveness of the support service.
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.
Pros and Cons of ActivTrades
Pros
- Wide range of trading assets.
- A wide variety of trading platforms.
- Extensive training materials including webinars, videos, articles and guides.
- Professional Support Team.
Cons
- Lack of diversity in trading accounts.
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.
Pros and Cons of Oanda
Pros
- Tight spreads.
- Diverse markets and products.
- Advanced trading platforms.
- Quality analytics.
- Extensive learning section.
Cons
- Limited trading account types.
- Inactivity fee.
- High swaps.
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.
How was the list of 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.
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.
FAQ
Which broker is best for CFDs?
The best brokers for trading CFDs (Contracts for Difference) are known for their reliable trading conditions, wide range of instruments, low fees, and excellent customer service. Some of the top brokers for CFDs include:
- IC Markets: Known for its extensive range of CFDs on stocks, indices, commodities, and currencies.
- Plus500: Offers a user-friendly interface and a broad selection of CFD instruments.
- eToro: Features social trading and a wide variety of CFDs on different assets.
- CMC Markets: Provides a comprehensive range of CFDs and an excellent trading platform.
- Saxo Bank: Offers extensive CFD trading opportunities with competitive spreads.
Are CFD brokers safe?
The safety of a CFD broker depends on its regulation and reputation. To ensure the safety of your funds, choose brokers that:
- Are regulated by reputable authorities: Such as FCA (UK), ASIC (Australia), CySEC (Cyprus), and others.
- Have transparent trading conditions and a long history of operation.
- Segregate client funds in separate accounts to protect them from being used for the broker's operational activities.
- Offer negative balance protection, so clients cannot lose more than their investment.
How do I choose a CFD broker?
When choosing a CFD broker, consider the following factors:
- Regulation and licenses: Ensure the broker is regulated by reputable financial authorities.
- Trading conditions: Look for tight spreads, low commissions, leverage options, and fast order execution.
- Range of instruments: A broad selection of CFDs on stocks, indices, currencies, commodities, and cryptocurrencies.
- Trading platform: Ease of use, availability of mobile versions, and additional analysis tools.
- Customer service: 24/7 support, educational materials, and positive reviews from other traders.
What is the largest Forex CFD broker?
One of the largest Forex CFD brokers is IG Markets. The company has over 45 years of experience in the market, offers a wide range of CFDs on various assets, and is regulated by top financial authorities worldwide.
Has anyone made money with CFD?
Yes, many traders have made money trading CFDs. Success in CFD trading depends on the trader's knowledge, experience, risk management strategies, and discipline. However, it is important to remember that trading CFDs involves high risks, and traders can experience both profits and losses.
Which is better, Forex or CFD?
The choice between Forex and CFDs depends on your trading preferences and goals:
- Forex: Focuses primarily on trading currency pairs. It is suitable for those interested in currency markets and trading on global macroeconomic news.
- CFDs: Offer the ability to trade a wide range of financial instruments, including stocks, indices, commodities, and cryptocurrencies. It is suitable for those who want to diversify their portfolio and take advantage of various market opportunities.
Both options have their advantages, and your choice will depend on your trading interests and strategies.
