Have you always wanted to know which are the best CFD brokers in UK to trade online, but have you never been able to find a guide that is clear and complete to consult?
On this page, we will take care of listing all the best CFD brokers that provide their services in the UK. These are regulated, registered, and therefore totally safe platforms.
We will take care of talking in detail about their offers so you will be able to opt for the platform that best suits your needs, free and easy to use from day one.
All the UK CFD brokers that we recommend on this page provide the use of a forex demo account, which allows you to operate on the markets in virtual mode.
This means that you can test the platform in detail before you even deposit funds on it. By doing so, it will be possible to evaluate the broker in question without any type of risk.
Online CFD trading in UK
Below, you will find the reliable forex brokers with which to trade CFDs. They are all based in and outside the UK and are all authorized by the FCA.
eToro CFD broker
The eToro CFD broker is one of the best sites to trade on a very large number of markets. Among these we find:
- currencies and forex, more than 45 pairs
- Cryptocurrency trading (Bitcoin, Ethereum, Dash, Ripple, etc)
- the main raw materials (precious metals, food and oil)
- equity indices (13 of the main ones in the world)
- over 250 ETFs
We are talking about a company regulated by the FCA and CySEC, recognized and appreciated above all for the real-time tools at its disposal and for the possibility of being able to do forex trading on the move and with a very simple to use application.
Furthermore, eToro remains one of the best known brokers in the world precisely for the Copy Trading service (Copy Portfolios) which allows you to copy the best traders of the platform with a single click.
Features of the platform
The platform is easy to use even for the most inexperienced traders. The advice we give you is to start anyway, with a demo account to check all the features of the platform live, without risking your money.
In addition to the countless financial instruments made available and copy trading, the eToro platform allows you to trade by reading all the information and discussions of traders on a given asset. A sort of public forum where the best traders exchange information on the performance of the stock in question.
The assistance and technical support are first level, there are operators who answer in many languages and also via chat and telephone. In short, the trader is never left alone and we have tested this on more than one occasion..
Deposits and trading account
It is possible, as happens in most platforms, to operate with a demo account or in real mode starting from accounts with a minimum deposit of even $200. The leverage is very high, equal to 1: 30, and offers the possibility of making very substantial transactions as explained in the paragraph on margins and financial leverage.
In conclusion, we can affirm that the etoro.com site represents up to now one of the best platforms for CFD trading thanks to the completeness and reliability of the tools and of the company that manages the Broker.
XTB CFD Broker
With over 20 years of industry experience, XTB is one of the most popular brokers in Europe and one of the few to be listed on the stock exchange, which reinforces its degree of reliability and security.
It has over 353,000 customers worldwide who have chosen it for the ease of its platform, live performance statistics and the speed of execution that guarantees an average time of 85 milliseconds.
On XTB.com it is possible to trade over 5,200 different assets and learn how to trade with the training material made available which includes: eBooks, videos and articles on macroeconomic data, video courses conducted by professional traders and weekly webinars.
Furthermore, tradable assets range from Forex, Stocks and real ETFs with 0% commissions (for a monthly volume of up to 100,000 euros) to CFDs on indices, commodities and cryptocurrencies.
Among the peculiar factors of XTB we point out:
- Leverage up to 30: 1
- Over 5,200 assets
- 48 Forex currency pairs
- 21 raw materials
- 60 CFDs on ETFs
- Over 35 stock market indices
- Advanced trading platform with a simple and intuitive design
- Competitive trading conditions and low spreads
- 0% commissions on Real Shares and ETFs
- Free and fast deposits by credit/debit card, PayPal or bank account
The strength of XTB is the fact that there is no minimum deposit required. These and other advantageous conditions have made it a popular choice with both professionals and beginners.
XTB has a platform dubbed xStation Mobile and its dedicated to Android and iOS devices, which allows you to trade from anywhere. Conversely, withdrawals can only be made to a bank account. Furthermore, it is regulated by the largest financial supervisors such as FCA, CySEC and KNF.
CFD broker Capital.com
Capital.com is an FCA and CySEC licensed CFD broker and is the preferred choice of thousands of traders across Europe. It allows you to invest in over 3,000 assets including stock market indices, Forex, Commodities, Stocks and Cryptocurrencies.
The Capital.com broker offers an agile and user-friendly investment experience, even on the mobile app or Meta Trader 4 and MetaTrader 5. It provides technical indicators, advanced charts and analysis tools.
Trading platform recommended for those looking for a technical broker , but suitable for an entry-level audience. Capital.com offers a free demo account, a course to learn basic skills and other useful tools. In addition to a hedging method and risk management tools.
Let's see the main features of Capital.com:
- Platform based on artificial intelligence
- Over 3,000 market assets
- Lots of technical indicators, charts and analysis tools
- Risk management tools
- Fully functional mobile app
- Spread among the lowest
- Received several international awards
Note that Capital.com reviews on Trustpilot have an unprecedented rating for a CFD trading platform (4.1 out of 5).
CFD Broker ETX Capital
Founded in 2002, ETX Capital is an online financial trading platform owned and operated by Monecor Ltd. based in the UK. The parent company was founded in 1965 and is based in London. Their head office is located at One Broadgate, London, England, EC2M 2QS. The company is also a member of the London Stock Exchange. ETX Capital was initially formed as TradIndex until 2007 when it was relaunched as ETX Capital.
This UK CFD broker is one of the most popular and well-known brokers by investors at a particular level, as it has a very large number of underlying assets available.
There are 500,000 users and there is the possibility to open a free trial account with ETX demo trial for a period of 14 days, upon opening an account, there is no need to make a deposit minimum.
- Regulated by the FCA
- More than 10,000 assets available.
- Ability to open an account without having to make a minimum deposit.
- Completely free demo account.
- Great reputation and seriousness.
In conclusion, both for users with limited experience and for more experienced users, we can say that ETX Capital is one of the best choices for existing brokers, both for its widespread popularity and for the seriousness of making investments with the CFD.
While it does not have very attractive offers in terms of promotions or bonuses to customers at the time of their first deposit, it does have a number of benefits and services that make ETX Capital a choice to be seriously considered.
What is CFD Trading?
A CFD, or Contract for Difference, is in short a contract, made between the broker and the trader so that the difference in terms of quotation (value) of a given underlying asset is paid after the expiry of the validity period.
The underlying asset can be a market index, a stock, commodities, foreign exchange, cryptocurrency, etc.
Therefore, CFDs are nothing more than derivative instruments traded off the market (the so-called OTC market, over the counter) and therefore completely independent from the regulated market.
Stock CFD Broker
With CFDs, you don't really buy a company's stock. In reality, the underlying (part of it) will never become the property of the trader or broker. The profit or loss will be the price difference that the trader will get (or not) at the end of the contract and the intermediary, the broker, will pay or gain.
It is therefore clear that after a CFD trading negotiation, no dividends are obtained and one does not become a shareholder of the chosen stock.
Even though it is in the form of a contract, there is actually no real expiration date and the trader can sell the CFD stock whenever he wants to make a profit or to limit a loss.
Why trade CFDs?
With CFD contracts you have the possibility of being able to buy an underlying share (but remember it can also be an index, a currency, bitcoin, etc.) without having to buy the minimum allowed on the market.
In practice, through the margin (and the leverage) it is possible to buy a lot of a share by paying it with a few decimal places.
To buy Apple shares, it would take 150 dollars more or less per single share right now, which with a capital of $1500 means being able to buy a maximum of 10 shares. With the margin and leverage made available to CFD brokers, however, it is possible to buy 1000 APPLE shares for only $1500.
Such as? Applying leverage.
If I want to follow the performance of Apple (APPL), as if I had invested $150,000, I just need to buy $ 1500 of Apple stock and place a 1: 100 leverage in the purchase phase.
Let's say the underlying were to move by 2%, I would earn €3,000 or the same amount that those who deposited $150,000 would earn!
Of course, there is a risk that if the underlying stock were to lose even 1%, I would lose all of my investment. That's why we never recommend using such high levers, even a 1:50 leverage can be good and will allow you to recover something of your capital if things go wrong.
CFD Trading Advice
Trading with leveraged CFDs should be observed constantly.
You will not be able, for obvious reasons, to buy a CFD with 1: 100 leverage to turn off your computer and turn it back on the next day. A trader who invests in such aggressive levers will have to follow his investment constantly and close within the day. Think of the example above, such a small move in the underlying resulted in a 200% gain for us.
The alternative, if you don't want to constantly follow your trades, is to place Stop Losses and Take Profits wisely.
What are Stop Loss and Take Profit?
The meaning of the two terms is quite intuitive, with Stop Loss, we mean "End of losses" or an indication to the trading platform of the maximum limit that you are willing to lose before automatically placing a sale.
With Take Profit we mean practically the opposite, that is, you set a maximum value that you want to reach, after which the platform will execute the sell order.
The advice we give you is to always set Stop Loss and Take Profit even if you do not use particularly aggressive financial levers.
How do UK CFD brokers earn?
As we explained in the previous paragraph, a CFD Broker allows you to close a contract on an asset (stock, index, currency) with a low purchase margin and very high leverage. In exchange, it will ask you for nothing more than a spread , or a minimum difference between the purchase and sale of the CFD.
You will notice the earnings of the CFD broker the moment you place a trade. You will immediately find yourself with the minus sign, which corresponds to the spread obtained by the broker in exchange for your purchase. So if the broker charges you 1 euro for every buy/sell, you will find yourself immediately after the purchase a negative of 1 euro. But it is obvious that it is such a negligible figure that you will not even notice it.
CFD brokers finally offer the possibility for everyone to be able to enter the stock market with little credit and without huge availability of capital. But we also understand that unscrupulous financial levers can represent a significant risk to our savings.
Advantages of CFD trading UK
We, therefore, understood that one of the advantages of CFD trading is leverage. However, this could pose a risk to the inexperienced trader. Let's see what the other advantages of online CFD trading are.
Access to all financial markets
CFD brokers, especially those you will find on our pages, offer traders access to all major world markets. Thanks to online trading platforms, a trader can buy stocks of a Japanese company and in the meantime trade EUR/USD. Not only can you make withdrawals and deposits with your credit card or bank transfer without having to wait for the time and delay necessary to open a securities dossier at the bank.
Possibility to sell short
Not all traditional financial instruments are allowed to sell short and this is well known. With CFD Brokers this problem does not arise. In fact, it is possible to short sell any stock, cryptocurrency, or market index that you want to buy.
What does it mean to sell short?
It means buying an asset (security, currency, etc.) that we think may have a bearish trend. In reality, we are always buying the stock, only our profit grows inversely proportional to the price of the underlying. So the more the stock loses value, the more we earn.