10 Best CFD Brokers Reviews in 2021
CFD markets consist of a sophisticated trading system, and the underlying assets are also different. Different types of commodities, products, and even an entire market industry can be your instrument to trade-in.
There are hundreds of CFDs list of commodities available in the market. You can use them for trading and it is the best practice to know all commodities & their trends.
Our reviews are well-researched by the most experienced experts in the industry for more than a decade. We have analyzed every aspect to make our list. Let’s go through our review and learn everything you need to start your CFD trading. We also have shared a QnA section to make sure that your queries are answered. Let’s start with the list of our best picks on CFD brokers.
Top 10 Best CFD Brokers List
There are hundreds of CFD brokers providing trading services in the industry. We have picked the best performing and reputed platforms for you. Check out our list of the best CFD trading platforms.
- XTB – Best Broker for CFD Trading
- City Index – Best CFD Trading Broker
- eToro – Best Crypto CFD Broker
- IG – Best Stock CFD Broker
- XM – Best CFD Broker for Beginner
- com – Best Trading Broker for CFDs
- NinjaTrader – Best CFD Trading Broker for Beginner
- ZuluTrade – Best Broker to Trade CFDs
- Plus500 – Best CFD Stock Trading Broker
- InteractiveBrokers – Best Stock CFD Broker for Beginner
What are CFD Brokers?
CFD brokers are different than other brokers, and responsibility is also different than others. Brokers are allowing traders to invest only a little bit of the original assets’ prices because they are paying the rest of the payment on behalf of the investors.
The best CFD broker’s primary responsibility is defining various trading contract terms, the underlying trading assets or instruments, and the margin requirement. All of these are very significant for CFD trading, and you cannot enter into the CFD market without them. Here’s the
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In CFD trading, you can use several instruments to invest in, including commodities, indices, and stocks. However, hundreds of brokerage companies are providing CFD trading services, and the popularity is growing at a higher pace.
To attract new customers with their service, they are developing new conditions, strategies, and trading systems. Most brokers are also in the competition to get new customers, so they are always trying to be ahead of others to compete with their competitors.
Types of CFD Brokers
Hundreds of CFD brokers are providing trading services to millions of customers. All those brokers can be divided into two sophisticated groups or types, market makers & direct market access brokers.
Below we will discuss both of them so that you can understand which one you should choose. It is essential for every beginner traders to understand the types of CFD brokers. It helps to identify the best CFD brokers among others in the market.
These brokerage firms often acquire a significant number of liquidity providers’ positions and keep them on hold for customers. After that, when new CFD investors come in, they allow them to buy a small portion of the available positions based on the customers’ requirements. They can enable the customers to invest less money because they can pay to cover the deficits on behalf of those customers.
Direct Market Access Brokers
They are also known as DMA brokers, and they allow traders to go straight to the liquidity providers to enter the CFD trading. Mostly the contact happens through an Electronic Communication Network or ECN broker. As the trader trades directly with the providers, they need more money to enter because the DMA broker does not cover the deficits.
How to Choose the Best CFD Trading Platform?
Choosing the best CFD broker is a challenging task than you think. You must select the one that you can rely on trading safely. Here we have explained some crucial factors that you need to consider to know before you decide. Learn and understand every aspect we have shared in this section below.
Authorization from the market is essential to consider while choosing any broker. The traders must select only regulated brokers that are legalized by proper authority. Traders’ investments must be safe so that they can safely invest their money on assets or commodities they wish.
Irregulated brokers are not responsible for keeping your investment because the authority will not take any responsibility if any of those brokers cheat customers. Our experts always consider regulated brokers, and they are examining legal documents that prove brokers’ regulation in the market.
Type of Software Platform the Broker Use
During selecting any broker for entering the CFD market, you need to understand which software has a better user interface that you are comfortable with. There are two types of software platforms available in the market: proprietary platform and non-proprietary platform.
The proprietary platform is such trading software that the brokerage or its sister concern develop. The primary benefit of this specific type of platform is that it has more in-depth functionality. The reason is that they are in-house built for dedicated customers who are agreed to trade on that particular CFD broker.
The non-proprietary platforms are not broker-owned software. A unique software development company developed this industry-standard trading software. Among a few of these software technologies, we can mention Metaquotes and cTrader because they are the most popular. These technologies are not developed for any particular trading, but all types of trading. However, you can go with the one that you are comfortable with.
Types of Account the Broker Provide
Another useful factor that worth considering is how many types of account brokerage firms are providing. There several kinds of accounts available in the market, such as
- Micro Account
- Mini Account
- Standard Account
- VIP Account
These account types enable how much money you need to invest in starting your CFD trading. Depending on your budget and understanding, you should choose the account type you want to enroll in. The best thing is to start small and gradually increase investment by gaining knowledge about the market. Reaching out to experts and consult with them before entering any market is the best thing if you are new to this business.
Spreads and Commissions
Most of the brokers are earning money from spreads and commissions. They take it from the customers’ tradings. Well, there is nothing wrong with earning by providing legit service that customers love. Considering customers’ investment as the most significant, you should choose a credible broker that takes a minimal commission or spread when you have it.
You will find many brokers who offer low spreads, but you should not fall for them. Always recheck every feature the brokers offer to you. Make sure you will get everything you see on the feature list of your decided broker. Low spread does not always mean they are credible and reliable with their services. Select the broker who has the best reputation and profit margin with regulation and authorization from respective authorities.
The broker must have proper customer service to respond to clients when needed. Only the quality brokers who provide professional CFD trading services can manage to have customer care. As a trader, you may face complications in trading or handling trading platforms at any time. It will be best if you select the broker that assures responding to you instantly whenever you need it.
The Top 10 Best CFD Brokers Reviews
Here in this section, we will review the best performing and reputed CFD brokers for you. It will surely help you to decide which broker would befit your requirement. Our CFD trading experts have used almost all of the brokers’ services to review them adequately. Let’s go through our review carefully, and make your way of earning profits to building a business that will serve you well.
XTB – Best Broker for CFD Trading
XTB is the 4th largest stock exchange company, and it has the head office in both London and Poland. The UK and all European regulators authorize XTB. The broker has dedicated CFD trading services that allow users to trade on various CFD market instruments. They have earned many awards for their CFD and other trading services in this industry.
XTB has been serving many years in this industry and earned a reputation for its services. They also have a dedicated trading platform where their customers place orders. Reliable customer service will respond if you contact them following their rules. Let’s check their pros and cons.
- Globally recognized & regulated CFD broker
- Low CFD fees & no hidden costs
- Currency based multiple account facility
- Traders can use any strategy to trade
- Easy & user-friendly trading platform
- Great resources hub for learning about CFD trading
- XTB provides XTB’s Trading expert club to discuss relevant things
- 5-days/week customer care service
- Conditions changes according to regulators and traders
City Index – Best CFD Trading Broker
City Index is one of the oldest CFD trading companies in this industry. It is a sister concern of Gain Capital and started its journey in 1983. The company is regulated by most of the financial authorities, including FCA, MAS, and ASIC. They offer different CFD trading instruments to trade on, and it is safe to trade on their platform. Such a long service period will make sure that they are capable of keeping your investment safe.
You know that CFD trading is a bit sensitive, and without careful trading, you may lose your investment. If you want to get a reliable and friendly broker who will sell service to you and helps with issues, City Index can be your broker. Let’s check out the good and bad sides of the broker.
- Regulated by most financial authorities
- Low CFD fees without any hidden cost
- Easy and quick account opening facility
- A massive resource hub for researching
- No withdrawal fee
- No minimum investment requirement
- User-friendly web & mobile trading platform
- Dedicated software for trading
- Complicated desktop user-interface
- Stock CFD fees are higher
- Inactivity fee available
- 24/7 support system is not adequate
eToro – Best Crypto CFD Broker
eToro is another CFD broker that provides innovative trading services in the industry. The company is in the market since 2007, and after entering this business, it has served millions of people. They have achieved authorizations from most familiar and reputed financial authorities in this industry. Regulators from the USA, Australia, UK, and EU recognized the company as an authority and quality trading service provider.
Their sentiment indication system comes with a great win, and experts call it a revolution in this industry. Their system can indicate based on the market behavior based on hundreds of factors behind it. Clients who take their service become a fan of them, so if you are searching for a reputed trading partner for CFD strategy, then eToro is the right path you should follow. Let’s go through eToro’s pros and cons.
- Revolutionary sentiment indicator provides useful signals
- The user-friendly user interface on both mobile & desktop platform
- Reputed & regulated to ensure your investment security
- It offers more than 76 technical inside indicators to trade
- It does not have user-oriented customer service
- No-live chat or phone calling facility
- It provides less competitive spreads
IG – Best Stock CFD Broker
IG is another one of the oldest and reputed CFD brokers in the industry. It is a UK based trading service provider and regulated by FCA and BaFin. IG group itself is listed on the London stock exchange. Apart from their features, trading with IG is safer than most others because they are enlisted. Besides that, every year, the IG group releases transparent financial papers to the public. It makes them credible and reliable CFD trading service provider in the industry.
IG CFD broker has the resource hub for their clients that everyone desires to have. Hundreds of experts are working on discovering new strategies that may help their clients. The customer service they have developed is proactive. They respond to queries instantly to keep their reputation at the top.
IG Group offers each type of CFD instrument to trade on, and you should know that CFD trading is a bit tricky than others. IG Group has a community enriched with industry experts and leaders who keep publishing new strategies, ideas, and possibilities. If you are searching for a broker that you can rely on when trading in the CFD market, IG is the partner you should consider. Let’s check out the pros and cons of the IG group.
- Regulated and reputed CFD trading service provider in the industry
- No withdrawal fee needed
- Low fees for stock index CFD trading
- Low minimum deposit & no limit if you transfer from a bank
- User-friendly trading platform for both mobile & desktop
- Massive learning hub with unlimited resources
- Client-friendly customer service
- Stock CFD fees are higher than regular
- A bit lengthy Account opening process
- No 24/7 customer service is available
- Website live chat often does not work
XM – Best CFD Broker for Beginner
The XM has started providing CFD trading services in 2009, and they did acquire their popularity well. They have achieved authorization from most of the regulators and build their reputation. Now, traders are starting to love XM and enrolling in their services to generate profits. This particular broker provides the customized indicators that must help traders get indications on a specific market they are trading in.
If you want to trade in the CFD market for the most profi9table instruments, you must go through their resource hub. XM has one of the most knowledge-enriched resource centers where you will find all articles and instructions.
Most significantly, if you can cope with their resources, you will find out that they are regularly publishing. In CFD trading, you must know everything going on in the market that can change the price movement of the instrument you want to trade-in.
Trading with the XM CFD broker is safe because most financial authorities regulate it. One of the biggest complications traders faces whether their investment is safe or not. XM has owned that trust throughout their service period. You can trade on the various underlying assets because they are offering the most instruments for CFD trading. Let’s check out the pros and cons of the XM CFD trading broker.
- Low CFD trading fees
- Minimum withdrawal fees
- Pretty straightforward account opening process
- Impressive learning tools
- Low minimum deposit to start trading
- Free withdrawal through the wire if its more than 200
- Minimum portfolio for their products
- Non-EU clients do not get investment protection
Forex.com – Best Trading Broker for CFDs
Our next pick is one of the most reputed CFD brokers in the industry. It was established in 2001 and never stops growing their company and the services they provide. This particular broker is proudly listed on the New York stock exchange, proving their credibility on the services. The company is mostly known by its website name Forex.com and its significant influence that people call them.
Forex.com is a sister concern of Gain capital. The mother company has enough influence to grow the broker in the right direction, and it has grown in popularity. Traders feel safe when they trade on their software platform. Safety of the investment is the most confusing matter that every trader asks, and Forex.com ensures it quite well. The broker is authorized and regulated by two of the most reputed financial authorities (FCA & CETC) that the world recognizes for the trading industry.
The software platform they provide for the traders is promising, and it has a user-friendly interface. The broker facilitates its services with the most demanding features. If you want to get a trader that you can rely on for investing, then select it. Your trading experience will be mind-blowing. Let’s check out the pros and cons of Forex.com.
- Trusted and reputed broker for CFD trading
- Low minimum deposit to start CFD trading
- Low CFD fees
- No withdrawal fees
- Minimal stock index CFD fees
- Massive amount of technical research tools
- High stock CFD fees
- Desktop user interface is not interactive enough
- Traders have to pay Inactivity fees
- A bit lengthy account verification process
NinjaTrader – Best CFD Trading Broker for Beginner
NinjaTrader is a sophisticated CFD brokerage firm that is not really working like others in the industry. This particular broker is like a broker of the brokers such as Dorman Trading or Philip Capital. It provides vital information about the broker you have invested with. Meaning is that NinjaTrader has access to the broker you trade with, and they can give you information regarding your assets or whichever instrument you use.
You can connect most of the broker account on the NinjaTrader trading platform. We have tested NinjaTrader, and find out that the platform is regulated by the most reputed and best financial authorities. It is safe to use their platform to trade the CFD market. You can open a trading account on Philip Capital with this platform. You know that Philip Capital is one of the most revenue making trading broker.
Connecting all the providers or brokers into one single platform will let you explore more opportunities. You will get useful information on the most profitable assets that you need to know. It would help if you analyzed the whole analytics about all the commodities, assets, indexes, etc. You can trade like a pro and make money out of it. Let’s check out the pros and cons of NinjaTraders.
- Reputed and reliable CFD broker
- Low CFD trading fees
- Multi-broker connectable system
- Excellent trading platform for profit trading
- Great resourceful learning center
- Low & transparent trading fees
- Low minimum deposit with zero fees
- Quick withdrawal system within only 1-business day
- Higher withdrawal fees
- Complex account opening process
- The mobile application is not available
FP Markets – Best Broker to Trade CFDs
FP Markets is another CFD broker that was established in 2005. The broker started its journey in Australia, but after that, it has expanded its services worldwide. Two of the most reputed financial companies (Australian ASIC and the Cypriot CySEC) is regulating FP markets, and they recognized both of them as a safe trading platform.
The broker offers a free demo account, and their trading platform is interactive. Traders can use a demo account to learn how the CFD market is working. They have a user-friendly interface where traders can understand the trading system easily. It is essential because CFD trading is a completed trading system that you should learn before trading in the live market.
FP Markets has a dedicated information center where you will find high-quality educational tools and e-books. Learning and understanding the CFD market to start trading. CFD Markets has a large community of professionals who publish new strategies and articles on a regular basis. If you can go through that learning center, then by following their tutorial, you will learn to trade like a pro.
Let’s check the pros and cons of FP Markets.
- General CFD fees are low
- Account opening process a quick and easy
- Comparatively faster deposit and withdrawal process
- Deposit fees are lower than other of it’s kind
- Currencies are different based on the account type
- User-friendly trading interface
- Design of the trading platform is very attractive on a mobile device
- Stock CFD trading fees are higher
- International bank withdrawal fees are comparatively higher
- The minimum deposit for CFD trading is high
Plus500 – Best CFD Stock Trading Broker
Plus500 is a globally recognized CFD broker. The company was founded in Israel in 2008 and got listed on the London stock exchange. It is regulated by most reputed financial authorities, including FCA and ASIC. These top-tier regulators are responsible for making traders’ investments safe by monitoring your broker. Millions of traders are investing their money to make a profit by trading on different CFD instruments. Your money is safe only when you select the best and the most trustable CFD broker.
Consider the risk of trading in the CFD market. Regardless of being patient while trading, many people are trying to make a profit fast. That’s why they lose their money. CFD trading is more complicated than you think, and you need to learn and practice trading often. To understand the market movement, analyzing factors, and different instruments, you must study and learn the market.
Plus500 has a user-friendly interface that traders can use with ultimate comfort. It is crucial to partner with a CFD broker that has a dedicated trading platform. Well, it is about your money, and if the platform is informative and resourceful, then your trading will be proper. It will also improve your trading quality and the profit from it, increasing day by day.
Let’s check out the good and bad sides of Plus500 CFD Broker.
- Dedicated broker for CFD trading
- Interactive & user-friendly trading platform
- Offering low CFD trading fees
- Account opening process easy compared to others in the industry
- Withdrawal fees are affordable (5 withdrawals are free every month)
- Low minimum deposit
- Informative and actionable chart
- The learning center is not resourceful
- Resources are not quite beginner-friendly
- It takes inactivity fees
InteractiveBrokers – Best Stock CFD Broker for Beginner
Interactive Brokers is one of the oldest trading brokers in the industry. It was founded in 1978 and started working as a US-based trading company. However, the broker has expanded its services worldwide and now regulated by the most familiar and reputed financial authorities. The UK’s financial conduct authority, also known as FCA, and SEC, the US securities and exchange commission, regulate them with full responsibility.
They are popularly recognized as the discount broker that offers many bonuses and gives discounts on their platforms. However, offering more bonuses is not adequate every time for any stable and quality website. You need to be very careful while you are selecting a broker. The reliability of a broker is much more significant than you think it is.
Unlike other CFD trading platforms, Interactive Brokers is providing advanced services to advanced traders. If you understand the CFD market and have enough expertise to trade, this particular broker can help you. Apart from these facts, the broker has some good and bad sides. Let’s check them out first.
- Regulated by most reputed financial authorities
- A minimal amount of fees for CFD trading
- Many underlying products or assets are available for trading
- Low margin rates compared to others
- Impressive resources for learning
- Most of the account types need no minimum deposit
- Sophisticated multiple manageable accounts for different currencies
- Interactive graphic charts for presenting activities & results
- Better customer services compared to other brokers
- Lengthy and complicated account opening system
- They charge inactivity fees
- The trading platform is not very user-friendly
Types of CFDs Instruments
CFDs market includes several types of instruments and allows investors to trade. In this section, we will discuss the different kinds of CFD instruments. You must understand them to get an in-depth idea of CFD trading. It will help you by winning the profit you desire. Let’s check it out.
Share CFDs are not very sophisticated in the trading industry, as it is simply trading stocks or shares through CFD strategy. Besides that, share CFDs also considered stock CFD because, in this trade, you trade on individual shares or stocks. This particular kind of trade allows investors to speculate in both negative and positive price movements. And you know that your trade will be just on the stock or share. You do not have to own the underlying assets or commodities.
Index CFDs trading happens over the equity indexes available in the market to trade. Typically, you may consider an index as a basket of assets, and most of the time, you will see indexes are stocks. However, any assets can be an index. It is measured by the capitalization of every company in the market. Although the index value influences most of the largest companies, their price varies depending on that index.
Commodity CFDs are simply known as the trade contract on the price changes of any particular commodity. The commodity is regardless of it’s kind, and you can choose whichever you think can make a profit. You have to select the commodity—the price at a point in the current position or a set point in the future.
Traditionally, in trading nature, most commodities are traded by the standardization of future contracts. It helps to consider the cost and lets you decide whether you want to carry or hold the commodity when the date expires. In commodity CFDs trading, everything is cash-settled, and there will only the price changes in the contract are considerable, not the physical commodity itself.
Treasury CFDS are nothing but to trade on the treasury notes as the underlying instrument. Several types of instruments and platforms allow traders to invest in different bonds. It is a decent way to earn profit from the price change in the entire volume. Many treasury instruments are there, including EURO bonds, US bronds, Australian bonds, etc.
You can trade on an entire industry in sector CFDs regardless of location, instead of any particular instruments. Like others, you can choose any of them from short trade or long trade, so it lets you profit from even a declining industry.
The good side of sector CFD trading is that you do not need to analyze any specific commodity or asset as you bet on the entire industry, such as the metal industry. However, you must analyze the industry’s larger view to get overall movements and the behavior to understand its next move.
The sector CFD trade system has already diversified, and volatility is a less concerning factor that you must consider in single asset trading. You have to understand the tendency of the industry and pick the right one to trade on. Experts recommend selecting an industry with many stable big companies performing well in the past few years.
Inflation CFDs basically depend on the consumer price index (CPI). In inflation CFDs, the market’s liquidity can be low, and the asset you are trading on. The profit can be different according to the initial CPI figures, and it is the primary drawback of this method of CFD trading. There will be no revision needed to figure out the payouts if you are trading in inflation CFDs. Traders do not have to worry about the losses because the inflation CFD ensures the hedge options to fill in the losses.
Finishing Words: Best CFD Brokers Trading Platforms Reviews
We are at the end of our review article about CFD brokers. We have tried to share the best brokers providing the best CFD trading services in the industry. Our goal from this review is to assist you in improving your knowledge about CFD trading and brokers. Our experts have invested hours of effort and time in reviewing all of these brokers.
We understand that you are here to learn and know the best CFD brokers for you. You need to consider many factors before selecting the right broker that will improve your profit from trading in the CFD market. Make sure you have not missed anything we have discussed here in the above discussion. It is essential because if you do not understand the way of trading CFD ten, you will lose your investment.
Read also: Forex Broker Review
FAQ: Best CFD Brokers Reviews
Many people are asking different questions about CFD trading because they are getting interested in CFD trading. We are receiving many emails containing queries every day. It inspires us to share new things, but we cannot reply to all of those emails individually. Our experts have developed a dedicated QnA section for your assistance below. You can go through all of these questions, and we hope you will find your answer regarding CFD trading.
Is one trading platform more trustable than another?
The reliability of any CFD trading platform depends on software design, in-depth analytics, and server quality. Besides that, if your internet speed is good, then your trading will be satisfying. Choose your platform wisely by checking quality, reviews, past user opinions, etc.
How do I find the best CFD trading platforms?
Selecting the best platform for CFD trading depends on the many factors, such as experience, trading positions, and the asset you are trading on. Follow our expert guidelines to add some assistance to your knowledge.
Can I use a practice account on any platform?
Yes, you can use a demo account on most of the popular platforms. However, not all of the platforms are providing a practice account feature. Additionally, it would be best if you chose the most reputed platform that offers a practice account before you go live trading.
Why are CFDs illegal in the US?
Unfortunately, all government commissions to regulate trading, security, exchanges, including CFTC & SEC, banned CFD trading for USA citizens and residents. The reason is that the loss can be massive and CFDs trading uses leveraging. It is illegal in the USA because they are using over-the-counter (OTC) products, and they are not exchanging regulated products as well.
Can you get rich trading CFDs?
Yes, you can get rich trading CFDs—all you need to do is learn and understand how this particular trading industry works. It will help if you do not hurry but resist your temptation and be patient to decide the right time to buy or sell. Ensure that you analyze how the asset price movement in past years before you go for that asset.
How do brokers make money on CFD?
Brokers make money from several factors and actions while customers are trading the CFD market. That includes direct commissions, leveraging, spreads. Sometimes brokers earn money from netting traders by putting one against another. However, brokers’ primary profiting source is earning commission through financing on behalf of traders.
Can you lose more than you invest in CFD?
Yes, you can lose more than you invest in CFD. It is working like you only pay 5% of the total payable amount, and if the price moves upward, you will get 100% profit. On the other hand, if the price goes down, the losses will be based on the original price as well. It is one of the major disadvantages of CFD trading.
How long should you hold a CFD?
The thumb rule for CFD trading is that you should hold CFDs for 4-6 weeks at once. However, there is no time limitation for holding a CFD, and you can hold a position as long as you can finance the position. Holding a CFD for the short term is more efficient compared to the long-term.
Can you trade CFD without leverage?
Yes, you can trade CFD without leverage on many platforms. It increases market exposure as well as your risk. The primary disadvantage of trading CFD without leverage is that it is not accessible for most investors. If you want to CFD trade without leverage, you will also need to prepare to face risks while trading directly.
Do day traders use CFD?
Yes, day traders use CFD to speculate their investment as they do not have to own the underlying assets. They can open or close their trading position within a shorter time, and it is adequate in CFD trading. While you are day trading using CFD strategy, the price movement is regardless at some point.
Day traders usually hold their positions for a more extended period, and in CFD, they hold the position mostly for a day. It helps them making money faster with the right strategy and knowledge they have.
Are all trading platforms secure and safe?
Not all trading platforms are secure and safe. It depends on the quality of software and server they are using. The time they are providing services in this industry. Reputation and positive reviews about any particular platform will give you an idea.
Please go through our best CFD trading platform reviews, and we have reviewed the most reputed ones in the above review section. Follow our “how to choose the trading platform?” and you will get the best solution because our experts have shown the most useful selection method for you.
Do the same bonuses exist on all platforms?
Well, bonuses are variable according to the platforms’ or brokers’ policy. If you are comfortable relying on those bonuses, please make sure you have gone through their policies well. You should know that the best CFD brokers will give you the least bonuses.
Try to educate yourself by correctly understanding the terms and conditions to get the rewards. There are several rules you must fulfill to get bonuses on the platform you are trading on. You need to read the best CFD broker’s reviews carefully for understanding the whole game at a glance.