How Do Brokers Make Money On Cfd

CFD Brokers

The best CFD brokers 2021 can get lost in the long list of providers. Before you join a CFD trading platform, you need to understand what a CFD broker is, how they make money, and what to compare when weighing up your options. We'll also cover regulation, payment methods and reviews of some of the largest, top CFD brokers in the world.

Top CFD Brokers in Singapore

Regulated

Bonus Offer

Low Deposit

Signals Service

Binary Options

CFDs

Forex

Cryptocurrency

Copy Trading

MetaTrader 4

MetaTrader 5

cTrader

PAMM Account

LAMM Account

MAM Account

ECN Account

Islamic Account

ZAR Account

INR Account

Accepts PayPal

FXTM is a leading forex and CFD broker. Offering a huge range of markets and 6 account types, they cater to all levels of trader.

Trade CFDs on popular indices, shares, forex, crypto & commodities. Award winning platform, zero commission, free education and low spreads.

Leading forex and CFD broker regulated in Ireland, Australia, Canada and South Africa. Avatrade are particularly strong in integration, including MT4

A regulated bank, Saxobank offer Equities and Forex trading on 40,000+ markets via the SaxoTrader Pro and SaxoTrader Go platforms

An investor with a Plus500 account can trade CFDs on underlying financial instruments such as Forex, Stocks, Commodities, Cryptocurrency (Availability subject to regulation), Options and Indices. With tight spreads and no commission, they are a leading global brand.

72% of retail CFD accounts lose money.

Deriv.com are a new brokerage, offering options and CFDs on a simple, reliable, flexible platform. Get access to volatility indexes exclusively at Deriv.

BDSwiss offer 250+ Shares, Indices, Forex, Commodities and Cryptocurrencies markets via CFDs. With spreads from 1 pip and an award winning app, they offer a great package.

Open an account with just $10. Trade over 14 Cryptocurrencies directly, traditional forex with low spreads or trade digital options with payouts up to 900%.

XM.com Offer a range of Account types and a low minimum deposit to appeal to all levels of trader. With 1000+ markets and low spreads they offer a great service.

Forex.com boast a global reputation. Regulated in the UK, EU, US and Canada they offer a huge range of markets, not just forex, and offer very tight spreads and a cutting edge platform.

Finq.com offer a great all round service with trading on 2100+ assets and immediate bonus offers. Up to $4000 in Deposit Bonuses.

easyMarkets.com - Simply Honest. Trade CFDs on Forex, Commodities, Indices, Shares & Cryptos With a Top Rated Forex Broker

Trade CFDs in a range of financial markets.

Reliable and affordable trading since 2009. Join over 400,000 others trading on 300+ CFD products over assets like forex, gold, indices and shares from 0.0 spreads through TradingView, MT4 or MT5. Vantage FX is ASIC regulated and client funds are segregated. Open an account in under 5 minutes.

Oanda Logo

Global brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features.

Trade CFDs with up to 1:2000 leverage.

FXChoice offers leveraged CFD products on a breadth of financial markets.

Trade on a range of CFDs with competitive spreads and leverage.

Fusion Markets are delivering low cost forex and CFD trading via low spreads and trading costs. Their message is - Stop paying too much to trade

Capital.com Logo

Capital.com offer CFDs and Forex on a huge range of assets, with competitive spreads and unique platforms, including the fully functional mobile app.

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Invest in the markets with online CFDs.

Trade Forex on 0.0 pip spreads with the world's leading True ECN forex broker - IC Markets.

Access multiple financial markets with CFDs.

Axiory Logo

Trade CFDs with high leverage & low spreads.

Trade Nation Logo

Diversify your portfolio with contracts for difference in multiple financial markets.

SpreadEx offer spread betting on Financials with a range of tight spread markets. Popular award winning, UK regulated broker.

FBS Logo

Invest in the markets with CFDs at FBS.

Trade CFDs on forex, indices, shares, precious metals, and energies.

CFDs are available on multiple markets, including FX, indices, shares, commodities & cryptocurrency

71.89% of retail investor accounts lose money when trading CFDs with this provider.

Explore Investous, A brand new Forex and CFD broker offering MT4 and Webtrader platforms. Official sponsors of PSV Eindhoven

NinjaTrader Logo

NinjaTrader offer Traders Futures and Forex trading. Use Auto-trade algorithmic strategies and configure your own trading platform, and trade at the lowest costs.

IG offer spread betting, CFD and Forex trading across a range of markets. They are FCA regulated, boast a great trading app and have a 40 year track record of excellence.

IronFX offers online trading in forex, stocks, futures, commodities and cryptocurrencies

Multi-Award winning broker. Specialising in Forex but also offering stocks and tight spreads on CFDs and Spread betting across a huge range of markets.

Dukascopy is a Swiss-based forex, CFD, and binary options broker

Binary.com are the established pioneers of binary options. The choice of the advanced trader, Binary.com offer the greatest flexibility of any binary broker. They also offer Forex and CFD via the MT5 platform.

CFDs are available on multiple financial markets including FX, indices & shares.

AdroFX offers margin trading on CFDs across popular financial markets.

Contracts for difference are offered on popular financial markets with tight spreads.

Trade on a range of leveraged CFD products at HYCM.

Rockfort Markets clients can trade a range of CFDs with high leverage rates, covering crypto, forex, commodity and international equity markets.

Buy and sell across the financial markets with leveraged CFD products.

Buy and sell CFDs on the financial markets.

CFDs are available on hundreds of markets including FX, indices, shares, & commodities.

Trade CFDs with tight spreads and leverage.

CFD trading is available across multiple financial markets.

Trade CFDs with up to 1:30 leverage in multiple markets.

Trade thousands of CFDs across a range of markets with up to 1:500 leverage.

Trade online CFDs with up to 1:30 leverage.

Trade CFDs with leverage across multiple markets.

Trade CFDs on currency pairs, indices, & commodities with tight spreads.

CFDs available on major indexes, stocks, FX, commodities, and cryptocurrency

CFDs are supported for US stocks, equity indices, currency indices, energies and metals.

Trade on the financial markets with CFDs.

Zulutrade provide multiple automation and copy trading options across forex, indices, stocks, cryptocurrency and commodities markets

A suite of contracts for difference are available across popular markets with up to 1:500 leverage.

Fondex Logo

Fondex is an award-winning forex and CFD broker with industry low trading costs

83.57% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Pepperstone offers CFD trading to both retail and professional traders. Clients can trade FX, indices, commodities and shares on MT4, MT5 and cTrader platforms.

CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs.

Trading 212 Offer a truly mobile trading experience. With tight spreads and a huge range of markets, they offer a dynamic and detailed trading environment. Recent customer care issues have severely damaged the reputation of the brand.

Ayondo offer trading across a huge range of markets and assets. They also offer negative balance protection and social trading.

Alpari offer forex and CFD trading across a big range of markets with low spreads and a range of account types that deliver for every level of trader from beginner to professional.

Trade CFDs on forex, indices, & commodities

Show All Brokers ⇩

What Is A CFD Broker?

CFDs, often traded with leverage or on margin, are an over the counter (OTC) derivative instrument, meaning you never own the underlying asset. Instead, profits are made from movements in price from when you enter and close a trade. A CFD Broker is the online trading platform that gives you access to these instruments, and different brokers may offer CFDs on different underlying assets like currency pairs, stocks, commodities and cryptos.

See here for further guidance on trading CFDs, including strategies.

How Do CFD Brokers Work?

CFD brokers facilitate the trading process through an online platform. Users sign up for an account, deposit funds, trade CFD products and then withdraw any profits.

Account types differ, as does the quality of platforms, the fees charged, and customer service.

The products available also vary. However at the biggest brokers, you can expect to trade online CFD products in:

Forex
Stocks
Futures
Options
Commodities
Cryptocurrency
ETFs

Types Of CFD Brokers

CFD brokers can be split into two categories:

Market makers – Brokerages purchase significant positions from liquidity providers which they then sell to individuals. They match selling assets to traders with buy orders and vice versa. Market makers often accept lesser deposits as they can cover liquidity deficits.
Direct Market Access (DMA) brokers – DMA brokerages let users go straight to liquidity providers. The most common type is an Electronic Communication Network (ECN) broker. Upon entering a position, your trade heads straight to the ECN, passing through the broker without any intervention. The downside is that users need more capital as DMA providers don't cover liquidity gaps.

Note there are also advisory brokers, who give guidance and recommend trades. However, following a crackdown from legislators, the list of regulated CFD advisory firms has shrunk. This article will concentrate on non-advisory CFD brokers.

Types Of Accounts

The top CFD brokers offer different accounts. Some are best for beginners while others are geared towards advanced traders:

Micro Account – Best for beginners, minimum deposits start at just $50.
Mini Account – Good for beginners and up, minimum deposits start at $500.
Standard Account – The most popular type of account requiring an average minimum investment of $1,000. This type of account will also come with higher leverage options.
VIP Account – Mostly used by institutional investors, you'll need $20,000 to open a VIP account. However, leverage and customer support will trump other accounts.

How Do CFD Brokers Make Money?

When you're doing a comparison of CFD brokers, you need to consider costs. But to do that, you first need to understand how they make money.

Spreads & Commissions

Most platforms will make money through spreads. This is the difference between the quoted buy and sell prices, and real market prices.

It's essentially a mark-up for the broker's services. Fees also come in the form of commissions which take a percentage of each trade. The good news is that to stay competitive, many of the best CFD brokers are waiving commission fees.

Financing & Hedging

CFD brokers make money through financing. When clients trade using margin or leverage, they essentially borrow funds from the brokerage to increase their position size. Most firms factor in a fee for these financing services.

CFD brokers may also make money through hedging. To do this, they aim to offset potential losses by matching a complementary trade in a different market. So if the trader wins, for example, they have offset their liability.

Note some brokerages also charge deposit and withdrawal fees.

CFD Broker Reviews

The best CFD trading brokers will have positive customer reviews. Of course, it's important to note that rankings will vary depending on what you're seeking. The best broker for beginners may not suit the advanced needs of an experienced trader.

To compare the top CFD providers you also need to factor in where you live. The best DMA brokers in the UK, for example, will be different from those in New Zealand or Nigeria.

Reviews of CFD Brokers
Broker	Demo	Min Dep.	MT4	Bonus
101investing	Yes	$250	Yes	No
12Trader	Yes	$500	No	No
4xCube	Yes	$10	Yes	No
A+ Trader	No	$100	Yes	Yes
AAAFx	Yes	$300	Yes	Yes
AAATrade	Yes	0	No	Yes
AccentForex	Yes	$50	Yes	Yes
ActivTrades	Yes	$500	Yes	Yes
ACY Securities	Yes	$50	Yes	No
Admiral Markets	Yes	$100	Yes	No
AdroFX	Yes	$25	Yes	Yes
ADS Securities	Yes	$100	Yes	No
AETOS	Yes	$250	Yes	Yes
AGEA	Yes	$1	Yes	Yes
Alpari	Yes	From $/£/€ 5	Yes	Yes
Alpho	Yes	$100	No	No
Alvexo	Yes	500 EUR/USD	Yes	No
Amana Capital	Yes	$50	Yes	Yes
AMarkets	Yes	$100	Yes	Yes
ArgusFX	No	$0	Yes	No
Arum Capital	Yes	$500	No	No
AskoBID	No	€250	No	No
ATC Brokers	Yes	$5,000	No	No
Atiora	Yes	$1	Yes	Yes
AvantGardeFX	Yes	$500	Yes	No
Avatrade	Yes	$100	Yes	No
Axes	Yes	$100	No	No
Axi	Yes	0 $/€/£	Yes	No
Axiory	Yes	$10	Yes	Yes
Ayondo	Yes	£1	Yes	No
BCS Forex	Yes	$1	Yes	Yes
BDSwiss	Yes	100 $/€/£	Yes	No
Binary.com	Yes	$5	Yes	No
BlackBull Markets	Yes	$200	Yes	No
Blackwell Global	Yes	$250	Yes	No
BMFN	Yes	$50	Yes	No
BP Prime	Yes	$5,000	Yes	No
Brokereo	Yes	$250	Yes	No
Bulbrokers	Yes	$100	Yes	No
BUX X	Yes	$50	No	No
Capex	Yes	$100	No	Yes
Capital Index	Yes	$100	Yes	Yes
Capital.com	Yes	£/$/€20 (Varies by payment method)	Yes	No
CGS-CIMB	Yes	100 SGD	Yes	No
City Credit Capital	Yes	$500	Yes	No
CityIndex	Yes	£/$100	Yes	Yes
CIX Markets	Yes	$500	Yes	No
CMC Markets	Yes	£ 0	Yes	No
CMSTrader	Yes	$500	No	No
CMTrading	Yes	$250	Yes	No
Colmex Pro	Yes	$500	Yes	No
Core Spreads	Yes	$0	Yes	No
CPT Markets	Yes	$100	Yes	No
CrescoFX	Yes	$1,000	Yes	No
Daniels Trading	Yes	$2,000	No	No
Darwinex	Yes	$500	Yes	No
DeltaStock	Yes	$100	Yes	Yes
Deriv.com	Yes	€/£/$5	No	No
DIF Broker	Yes	Undisclosed	No	No
DirectFX	No	$100	Yes	No
DMM FX	Yes	Undisclosed	Yes	No
Dukascopy	Yes	$100	Yes	Yes
E-Trade	Yes	$500	Yes	Yes
EagleFX	Yes	$10	Yes	No
Easy Markets	Yes	€100	Yes	No
Eightcap	Yes	£/€/$100	Yes	No
Equiti	Yes	$500	Yes	No
ETFinance	Yes	$250	Yes	No
eToro	Yes	$200 ($50 in US)	No	No
ETX Capital	Yes	£250	Yes	No
EuropeFX	Yes	€200	Yes	No
EuroTrader	Yes	$0	Yes	No
EverFX	Yes	$250	Yes	Yes
eXcentral	No	$250	Yes	No
Exinity	Yes	Trader Pro: $10,000 Trader: $100  World:$20	Yes	No
Exness	Yes	$1	Yes	Yes
EZ Invest	Yes	$500	Yes	No
FBS	Yes	$1	Yes	Yes
FCMarket	Yes	$500	Yes	No
FIBO Group	Yes	$50	Yes	No
Finalto	Yes	$100	Yes	Yes
Financial Spreads	Yes	£250	No	No
Financika	No	$200	No	Yes
Finexo	Yes	$100	Yes	No
Finotrade	Yes	$1,000	Yes	No
Finq.com	Yes	$100	Yes	No
Fondex	Yes	$0	No	No
Forex.com	Yes	$100	Yes	No
Forex4you	Yes	$0	Yes	Yes
ForexChief	Yes	$10	Yes	Yes
ForexMart	Yes	1 EUR/USD	Yes	Yes
ForexTB	Yes	$250	Yes	No
FortFS	Yes	$5	Yes	Yes
Fortrade	Yes	$100	Yes	No
FP Markets	Yes	$100	Yes	No
FreshForex	Yes	$10	Yes	Yes
Fullerton Markets	Yes	$100	Yes	Yes
Fusion Markets	Yes	$0	Yes	No
FXCC	Yes	$0	Yes	No
FXChoice	Yes	$100	Yes	Yes
FXCM	Yes	£300	Yes	No
FXDD	Yes	$/£1	Yes	No
FXFlat	Yes	€200	Yes	No
FXGiants	Yes	$100	Yes	Yes
FXGM	No	$200	No	No
FxGrow	Yes	$100	No	No
FxNet	Yes	$50	Yes	No
FXOpen	Yes	$300	Yes	Yes
FXPesa	Yes	$5	Yes	Yes
FXPIG	Yes	$200	Yes	No
FXPrimus	Yes	$100	Yes	No
FXPro	Yes	$100	Yes	No
FXTM	Yes	From $50	Yes	Yes
FXTrading.com	Yes	$200	Yes	Yes
GCI	Yes	$500	Yes	Yes
GKFX	Yes	€100	Yes	No
Global Market Index	Yes	$2,000	Yes	No
Global Prime	Yes	AUD $200	Yes	No
GO Markets	Yes	$200	Yes	Yes
GoStreams	Yes	$100	Yes	No
Grand Capital	Yes	$10	Yes	Yes
Hantec Markets	Yes	$0	Yes	No
HFTrading	Yes	$250	Yes	No
HotForex	Yes	$100	Yes	No
House Of Borse	Yes	$5,000	Yes	No
HQBroker	No	$250	Yes	No
Hugo's Way	Yes	$50	Yes	No
HYCM	Yes	$100	Yes	Yes
IC Markets	Yes	$200	Yes	No
ICE FX	Yes	$30	Yes	No
ICM Brokers	Yes	$300	Yes	No
ICM Capital	Yes	$200	Yes	No
IFC Markets	Yes	1 USD / 1 EUR / 100 JPY	Yes	Yes
IFGM	Yes	$200	Yes	No
iFOREX	Yes	$100	No	No
IG Group	Yes	£250	Yes	No
Infinox	Yes	£1	Yes	No
InstaForex	Yes	€100 to €50000 (Account choice dependent)	Yes	No
Interactive Brokers	Yes	$10000	No	No
InterForex	Yes	$500	No	Yes
Intertrader	Yes	$500	Yes	Yes
Investous	Yes	$250	Yes	No
IQ Option	Yes	$10	No	No
IronFX	Yes	$100	Yes	Yes
ITradeFX	Yes	$0	No	No
JFD Bank	Yes	$500	Yes	No
JP Markets	Yes	$0	Yes	Yes
Juno Markets	Yes	$100	Yes	Yes
JustForex	Yes	$1	Yes	Yes
Key To Markets	Yes	$100	Yes	No
Khwezi Trade	Yes	R 2,000	Yes	No
KLMFX	Yes	$250	No	Yes
Land FX	Yes	$300	Yes	Yes
Larson & Holz	Yes	$250	No	Yes
LBLV	Yes	$5,000	No	Yes
LCG	Yes	0 $/€/£	Yes	No
LDC	Yes	$100	Yes	No
LegacyFX	Yes	$500	No	No
LH Crypto	Yes	€10	No	No
Libertex	Yes	€100	Yes	No
LiteForex Europe	Yes	$50	Yes	No
LiteForex Investments	Yes	$50	Yes	Yes
Livemarkets	Yes	$250	Yes	No
LMFX	Yes	$100	Yes	Yes
LQDFX	Yes	$20	Yes	Yes
M4Markets	Yes	$5	Yes	Yes
Markets.com	Yes	$100	Yes	No
Mega Trader FX	Yes	$0	Yes	Yes
Mitrade	Yes	$0	No	Yes
Mitto Markets	Yes	$0	Yes	No
Moneta Markets	Yes	$200	Yes	Yes
MTrading	Yes	$100	Yes	Yes
MultiBank FX	Yes	$50	Yes	Yes
Naga	Yes	$250	Yes	No
NBH Markets	Yes	$100	Yes	No
nextmarkets	Yes	$0	No	No
NinjaTrader	Yes	$50	Yes	No
Noble Trading	Yes	$100	Yes	Yes
NPBFX	Yes	$10	Yes	Yes
NSFX	Yes	$300	Yes	No
Oanda	Yes	$0	Yes	No
OBR Invest	Yes	$250	Yes	No
OctaFX	Yes	$100	Yes	Yes
Orbex	Yes	$200	Yes	No
OspreyFX	Yes	$25	Yes	No
Pacific Union	Yes	$50	Yes	Yes
PaxForex	Yes	$10	Yes	Yes
Pepperstone	Yes	£200 / $200	Yes	No
Plus500	Yes	$100	No	No
Price Markets	Yes	$5,000	Yes	No
ProfitiX	No	$250	No	No
Purple Trading	Yes	$20	Yes	No
Q8 Trade	Yes	$250	Yes	Yes
Questrade	Yes	$1,000	No	Yes
Robinhood	No	$0	No	No
RoboForex	Yes	$10	Yes	Yes
RoboMarkets	Yes	$/£/€100	Yes	No
Rockfort Markets	Yes	$200	Yes	No
ROInvesting	Yes	$250	Yes	No
Sage FX	Yes	$10	Yes	Yes
Saxo Bank	Yes	$3000	No	No
Sheer Markets	Yes	$200	Yes	No
SimpleFX	Yes	$0	Yes	Yes
Skilling.com	Yes	100 £/€/$ or 1000 NOK, SEK	Yes	No
Smart Prime FX	Yes	$25,000	Yes	No
SmartFX	Yes	Undisclosed	No	No
Spread Co	Yes	£200	No	No
Spreadex	No	$1	No	No
SquaredFinancial	Yes	$100	Yes	No
Stratton Markets	Yes	£250	Yes	No
StreamsFX	Yes	$500	Yes	No
Superforex	Yes	$1	Yes	No
SVK Markets	Yes	$100	Yes	No
Swissquote	Yes	$1,000	Yes	No
SynergyFX	Yes	$50	Yes	Yes
TeleTrade	Yes	100 EUR/USD	Yes	No
TeraFX	Yes	$100	Yes	No
ThinkMarkets	Yes	$0	Yes	No
Tickmill	Yes	$100	Yes	Yes
Tier1FX	Yes	$1,000	Yes	No
Tiger Brokers	Yes	$0	No	No
TIO Markets	Yes	$50	Yes	No
TMS Brokers	Yes	$0	No	No
TP Global FX	Yes	$200	Yes	No
Trade Nation	Yes	$0	Yes	Yes
Trade Republic	No	$0	No	No
Trade.com	Yes	$100	Yes	No
Trade12	No	$250	Yes	No
Trade360	Yes	$250	No	No
Trader's Way	Yes	$10	Yes	Yes
TradeStation	Yes	$500	Yes	No
TradeTime	Yes	$500	Yes	Yes
Tradeview	Yes	$100	Yes	Yes
Trading212	Yes	€/£/$1	No	No
TrioMarkets	Yes	$500	Yes	Yes
UOB Kay Hian	No	$3,000	No	No
Uptos	No	$250	No	No
Valutrades	Yes	$0	Yes	No
VantageFX	Yes	$200	Yes	Yes
Varianse	Yes	$500	Yes	No
Videforex	Yes	$250	No	Yes
VT Markets	Yes	$200	Yes	Yes
Weltrade	Yes	$25	Yes	No
WH SelfInvest	Yes	€500	Yes	No
Windsor Brokers	Yes	$100	Yes	Yes
XGlobal Markets	Yes	$500	No	No
XM	Yes	5 $/€/£	Yes	Yes
XTB	Yes	$0	No	No
XTrade	Yes	$250	No	No
Yadix	Yes	$100	Yes	Yes
Zenfinex	Yes	$50	Yes	No
Zero Markets	Yes	$200	Yes	Yes
ZuluTrade	Yes	$1 to $300 (Broker choice dependent)	Yes	No

CFD Trading Platforms

The best CFD brokers provide clients with an easy to use platform. Some will have developed their own bespoke trading platform, others will integrate popular well established platforms.

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are particularly popular platforms. Many brokers will try and ensure their platform integrates with Metatrader. Some traders use it for analysis, and integrated trading gives them confidence in their broker.

cTrader is a similar platform that is utilised by a range of online cfd brokers.

Most top providers offer systems that are available on both your computer and through a mobile app.

When considering your options, a useful tip is to open a demo account. You can take the platform for a test run first, checking it's reliable and has all the charts and analysis tools you'll need.

Payment Methods

The best online CFD brokers will offer a range of deposit and withdrawal methods. Most providers facilitate debit and credit card transactions.

Bank transfers are also popular, but while secure, they can take several days. Other common payment methods include PayPal and cryptocurrency.

When looking at reviews, it's worth checking for any deposit and withdrawal fees. Your comparison should also include a check for payment limits. A prime example found at many platforms is a limit on the number of free payments per month, with any additional incurring a charge.

Regulation

Traders should only use regulated CFD brokers. Regulatory bodies protect users from scams and uphold confidence in the market. Fortunately, the list of regulated platforms in most countries is long.

In the UK, CFD brokers are regulated by the Financial Conduct Authority (FCA), headquartered in London. The protection afforded by the FCA includes caps on leverage and margin trading.

ESMA (European Securities and Markets Authority) is a Pan-European organisation that makes recommendations to national regulators, like the FCA in the UK, or CySec in Cyprus.

As these regulators 'passport' their services throughout the EU, they must adhere to the ESMA guidance – so there is almost two level of regulation in the EU right now.

Other regulators under the ESMA umbrella include BaFin in Germany, and the regulators in France, Switzerland and Denmark.

Elsewhere, providers in Dubai are regulated by the Central Bank of the UAE and the Dubai Financial Services Authority (DFSA).

In Switzerland, CFD brokers fall under the supervision of the Swiss Financial Market Supervisory Authority. You'll also find many global brokers with negative balance protection, meaning you can't lose more than your original deposit.

Access to the best CFD brokers in the USA is largely restricted. Fortunately, there are still some platforms that accept US clients. But on the whole, for US citizens it does mean more shopping around is required. Note UK and European investors can still trade CFD assets on US stocks.

The key takeaway is to check a provider is regulated in your jurisdiction before you open an account. See our regulation page for more details.

Interactive Brokers

US-based Interactive Brokers receives particularly positive reviews for its CFD offering. Promising competitive spreads and commissions, plus generous financing and margin requirements, it's a sensible choice for clients focussed on pricing and costs. Their platform also has a straightforward margin calculator.

The list of CFD products at Interactive Brokers includes stocks and shares found on multiple indices, such as the DAX, plus forex, gold, and cryptocurrencies like Bitcoin. Note Interactive Brokers' CFDs on stocks pay dividends too.

Interactive Brokers use the Trader Work Station (TWS) platform. Although arguably not the best system, which is often thought to be MetaTrader 4 (MT4), it still contains all the trading tools, symbols, and charts needed.

Interactive Brokers also has permission to offer CFD products in the UK, Germany, and Japan, amongst others. But CFD products are not available to offshore residents from certain countries, including Canada and Hong Kong.

Check out our reviews of other big names, including Plus500 and eToro.

Final Word

The best CFD brokers promise attractive leverage options, a user-friendly platform, and a wide range of products. With the list of regulated CFD brokers growing, make sure you do a thorough comparison before you sign up. Finally, remember there is no universal best broker, it will come down to personal preference.

For Specific Countries

FAQ

What's a CFD broker?

A CFD broker enables users to trade assets through their online CFD trading platform.

How do CFD brokers make money?

CFD brokers make money through commissions, including a mark-up on spreads and financing, plus through hedging.

What assets can you trade with a CFD broker?

You can trade almost all assets through a CFD broker, from stocks and shares to forex, ETFs and cryptocurrency.

Should I open a demo CFD trading account or a live account?

A demo account is a fantastic tool for beginners. It allows you to trial a broker while also practicing CFD trading. When you're comfortable, you can then open a real account.

Can CFD brokers be trusted?

To make sure you are using safe CFD brokers , check they are regulated where you live and read our reviews. This will help keep you away from websites set up to scam hopeful CFD traders.