Best CFD broker UK – Beginners guide to CFD platforms

The contract for Difference (CFD) trading is one of the most used forms of derivatives trading around the globe. However, the experience and success in CFD trading depend on the type of CFD trading platform.

To trade CFDs, you have to look for a CFD trading broker with a good CFD trading platform. The CFD trading platform is the application that allows you as the trader to access the financial markets and sell or buy financial assets.

Some of the main advantages of CFD trading include the ability for traders to hedge the financial markets and trade on margin. Also, in countries like the United Kingdom, CFD trading is exempt from stamp duty.

CFD brokers can offer CFDs of any financial asset as long it is legal to so. They can offer CFDs on fiat currencies, cryptocurrencies, stocks, securities, commodities, and shares. Therefore it will be upon you to decide which type of CFDs you want to trade to choose a broker that offers those CFDs.

Platform

GB residents

FCA regulated

Min. first deposit

Open account

Plus500

YES✔️

YES✔️

€100

FXTM

YES✔️

YES✔️

$ 0

Pepperstone

YES✔️

YES✔️

$200

XTB

YES✔️

YES✔️

$0.00

City Index

YES✔️

YES✔️

$100

Etoro

YES✔️

YES✔️

$200

IG

YES✔️

YES✔️

£250

XM

YES✔️

YES✔️

$5-100

Capital.com

YES✔️

YES✔️

£20

CFDs 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. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

How to find the best CFD trading platform: our criteria

Finding the best CFD trading platform is crucial to your trading experience. The trading platform determines the type of CFDs you will trade, how you shall trade them, and also what the cost of trading shall be. Therefore, you have to research the CFD broker well before making up your mind to invest your funds with them for trading.

But how do you find a good CFD broker? What makes the best CFD trading platform? Below is a criterion you can use to compare CFD brokers:

  1. Costs of CFD trading :
    CFDs trading charges vary from one broker to the other. And since these charges/fees have an impact on your ROI, you should carefully examine the charges of each broker charges to determine the broker with the most favourable charges.
    These charges include:

    • Spreads: – this is the difference between the Sell and Buy prices. When placing any trade, you have to cater for this. That is generally why any trade that you enter always enters the market at a negative value, which is usually the spread, and once that spread is paid, then you can start counting your profit.
      The tighter the spread the faster you will be able to make profits since it requires a smaller price movement to cover it. Some CFD brokers that have small spreads also charge commissions, therefore, you have to be keen to take into account the overall cost without concentrating only on the spreads and forgetting the other costs.
    • Swaps or Holding Costs – This is a fee that is charged on positions that remain open beyond the close of each trading day. Depending on the financial asset involved, this fee could either be positive or negative. However, different CFD trading platforms offer different swaps and it is good to look for the most favourable costs.
    • Commissions – some CFD providers charge a certain percentage on the profit or loss that you make. The size of the commissions vary depending on the financial asset and also from one broker to another.
      It is also possible to find a CFD broker charging both spreads and commissions, though some either charge spreads only or commissions only.
  2. Safety and security :
    This is the most important aspect when reviewing a CFD broker. You have to ascertain that the broker is legit and not just another scam.To do so, you should check whether the CFD broker is registered or regulated by any financial regulatory authority. For security reasons, you should look for a top tier regulatory authority rather than regulatory authority used for an offshore account.
  3. Ease of opening trading account : It should also be easy to open a trading account with the broker of your choice. The process should be smooth and should take the least time possible.Most CFD brokers will require to verify your personal information before allowing you to start trading with them. Therefore, they will require you to upload specific documents for approval. You should look at the reviews from other traders to find out how long the account verification takes to be sure if you are ready to wait that long.
  4. Variety of CFD products offered : Different CFD brokers offer different CFD products. Therefore, you should look at the type of CFDs offered to make sure that the broker offers that they offer the products you would like to trade.
  5. Countries that the broker accepts clients from : Depending on the regulations, a CFD broker may accept traders from certain countries and decline to allow traders from other regions. A good example is the regulations in the USA, which are quite strict and a broker has to adhere to them to be allowed to offer services to US citizens or to operate in the USA.

By using the above criteria in our CFD trading brokers review, we were able to find 9 best CFD trading platforms that you could choose from. These include:

FXTM: a MetaTrader only broker

FXTM is the trading name of ForexTime Limited based in Cyprus. Its headquarters are in Limassol, Cyprus.

However, the broker has other offices across the world. It has offices in South Africa, UK, and Mauritius, where it is regulated by the regulatory authorities in those countries.

In the UK, it operates under ForexTime UK Limited.

In Mauritius, FXTM is registered under the name Exinity Limited, which besides being registered with the regulatory authority in Mauritius, is also a member of the Financial Commission. The Financial Commission is an international institution that deals with dispute resolution that pertains to Forex around the globe.

Features

  1. Regulations: In Cyprus, ForexTime Limited is regulated by CySEC (under license number 185/12). in South Africa, it is registered with the Financial Sector Conduct Authority (FSCA) under license No. 46614. In the UK, the ForexTime UK is regulated by the Financial Conduct Authority under license No. 777911
  2. Broker Type: Market Maker and ECN
  3. Maximum Leverage: 1:2000
  4. Minimum Deposit: $ 0 for standard accounts
  5. Trading Platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5) for personal computers, Mac, iOS, Android, and web. It also offers its mobile trading platform, the MyFXTM, for Android, and iOS.
  6. Deposit/Withdrawal Options: Bank Wire, debit/credit cards, Neteller, VIPSkrill / Moneybookers, VLOAD, Crypto, TC Pay Wallet, Alfa-Click, WebMoney, Yandex.Money, QIWI, Perfectmoney, Bitcoin, Konnexone, FasaPay, African Local Solutions (D), Latin American solutions, TC Payment, Sub-Saharan Africa, and Dubai Local Transfer, Latin American solutions via Skrill, Malaysian Local Transfers, Syrian Local Agent (KD), South East Asia Online Banking, Ghanan Local Transfers, Turkish Local Transfers, South Arabian Peninsula Local Transfer, Nigeria Local Bank Wire Transfer, Indonesian Local Transfer, Algerian Local Transfers, Kenyan Local Transfers, Local transfer for India and Pakistan, Online Banking Malaysia, Online Banking Indonesia, Local Exchange House, Afghani Local Transfers, Laos Local Transfers, Nganluong (E-wallet & banking channel), GlobePay, Egypt Local Transfer, Bangladeshi Local Transfer, Iraqi Local Transfers, Palestinian Local Transfers, Online Banking Vietnam, Online Banking Thailand, and China Online Banking (P).
  7. Trading Accounts: Standard Account, Cent Account, Stock CFDs Account, ECN Account, ECN Zero Account, and FXTM Pro Account.
  8. Base currency: USD, EUR, GBP, and NGN
  9. Minimum Spread: 0 pips
  10. Commission: all the other accounts except the ECN account have no commission. The ECN account has a commission of $2 per lot.
  11. Minimum lot size: 0.01
  12. Demo Account: Yes
  13. US Customers: No
  14. Types of CFDs: CFDs on currencies, shares, Cryptocurrencies, commodities, indices, and spot metals.
  15. Bonus: It has a refer freed to earn $50 each plan

Pros of trading with FXM broker

  1. The broker provides an account that suits every kind of trader including a cent account for those that cannot afford to trade with large sums of money.
  2. It is regulated by several top tier regulatory authority.
  3. It has low trading costs with most accounts only having spreads with no commissions.
  4. It has a mobile trading platform to allow traders to trade on the go.
  5. It offers free education courses and guides.
  6. It offers access for copy trading through its FXTM Invest copy trading program

Cons of trading with FXM broker

  1. It does not offer services to residents of SA, Japan, Canada, Haiti, Suriname, the Democratic Republic of Korea, and Puerto Rico.

Pepperstone: a broker with an interbank network utilizing Equinix

Pepperstone is the trading name of Pepperstone Group Limited that is based in Melbourne, Australia. It was founded in 2010.

Pepperstone is known to maintain a close interbank network using Equinix. And besides the trading accounts, it also offers an MT4 Percent allocation management module (PAMM) for a client that wants to open a money management account.

Features

  1. Regulations: Pepperstone Limited is regulated by the Financial Conduct Authority (FCA) under license No. 684312 in the UK and by the Australian Securities and Investments Commission (ASIC) under license number (414530).
  2. Broker Type: ECN, Market Maker
  3. Maximum Leverage: 500:1 in Australia and 30:1 in the UK.
  4. Minimum Deposit: AUD$200
  5. Trading Platforms: MT4 for desktop, iPhone/iPad, and Android, MT5 for desktop, cTrader web platform, cAlgo, cTrader mobile, and EDGE FX trading platform.
  6. Deposit/Withdrawal options: Visa, Mastercard, POLi, Bank transfer, BPay, PayPal, Neteller, Skrill, and Union Pay.
  7. Trading Accounts: standard account and Razor account
  8. Base currency: AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD, and HKD.
  9. Minimum Spread: 0 pips
  10. Commission: Standard accounts have no commission while the Razor has from AUD$7 for every 100k traded.
  11. Minimum lot size: 0.01
  12. Demo Account: Yes
  13. US Customer: No
  14. Bonus: Clients has Earn USD100 when you refer a friend
  15. Types of CFDs: CFDs on indices, commodities, and cryptocurrency

Pros of trading with Papperstone broker

  1. The broker offers Low spreads
  2. It is regulated by a top tier regulatory authority.
  3. It offers fast trade execution
  4. It has an award-winning customer support
  5. It allows social trading to its clients.
  6. Offers PAMM.
  7. All its accounts allow hedging and scalp trading.
  8. It has an Active Trader Program that aims at rewarding high volume traders with cash rebates that are paid daily.

Cons of trading with Papperstone broker

  1. It does not offer No-Dealing Desk trade executions.

XTB: offering ETF CFDs

XTB is the trading name of the XTB group that includes X-Trade Brokers DM SA, XTB Limited, XTB Sucursal, and XTB International Limited. Its headquarters are in Warsaw, Poland.

Besides the head offices in Poland, it also has other offices in UK, Czech Republic, Belize, Germany, Romania, Slovakia, Turkey, Hungary, Italy, France, Portugal, Netherlands, Austria, Sweden, Belgium, Greece and Bulgaria, and Spain.

The broker was founded in 2002 as X-Trade before rebranding as XTB in 2004. In 2007, XTB became listed on Warsaw Stock Exchange and became a member of the Polish National Clearing House.

In 2005, a few years after XTB was formed, it was named the ‘Best Broker in Europe’.

Features

  1. Regulations: XTB International Limited is regulated by the International Financial Services Commission (IFSC) in Belize under License No. IFSC/60/413/TS/17. XTB Limited is regulated by the Financial Conduct Authority (FCA) under License No. 522157 and by the Cyprus Security Exchange Commission (CySEC) UNDER LICENSE No. 169/12. X-Trade Brokers DM SA is regulated by the Komisja Nadzoru Finansowego (KNF) in Poland. XTB Sucursal is regulated by Comisión Nacional del Mercado de Valores (CNMV) in Spain.
  2. Type: Market Maker
  3. Maximum Leverage: 1:500
  4. Minimum Deposit: $ 250
  5. Trading Platforms: MT4, xStation 5 and xStation Mobile
  6. Deposit/Withdrawal options: Bank transfer, Credit/Debit card, PayPal, Skrill, BlueCash, PayU, and SafetyPay. However, withdrawals are only possible through Bank wire.
  7. Trading Accounts: Standard account, Pro account, and Islamic account.
  8. Base currencies: USD, EUR, and GBP
  9. Minimum Spread: 0.28
  10. Commissions: standard account has no commission, the Pro account has commissions ranging from $3.50 per lot and the Islamic account has commissions ranging from $10 per lot.
  11. Minimum lot size: 0.01
  12. Demo Account: Yes
  13. US Customers: No
  14. Types of CFDs: CFDs on stock indices, commodities, ETFs, cryptocurrency

Pros of trading with XTB broker

  1. It allows automated trading.
  2. Clients’ funds are put in a segregated account.
  3. Offers CFDs on Exchange Traded Funds (ETFs)
  4. The process of opening an account with the XTB broker is easy and fast.

Cons of trading with XTB broker

  1. The minimum deposit of $250 for the standard account is quite high, especially for beginners.
  2. Clients can only withdraw their funds through bank transfer.
  3. The broker charges an additional $30 for withdrawals below $50.

City Index: offering both CFDs and spread betting

City Index is the UK based Forex, CFDs and Spread betting broker. It is a subsidiary of GAIN Ca-pital UK Ltd. It is regulated by the Financial Conduct Authority (FCA) in the UK.

The parent company, GAIN Capital Limited, is a US-based company that is listed on the New York Stock Exchange.

It is headquartered in London, UK, and also has other offices in Australia, Singapore, and Dubai.

It was founded in 1983.

Since it was established, the company has received several awards with the most recent being ‘Best Trading Platform’ Best Spread Betting Provider’, and Best Mobile Application at the OPWA awards in 2019. At the ADVFN awards in 2019, it was also voted Best CFD Provider. The same year the broker was voted the ‘Best Spread Betting Provider’ and ‘Best Professional Trading Platform’ at the 2019 Shares Awards.

Features

  1. Regulations: It is regulated by the Financial Conduct Authority (FCA) in the UK under License No. 113942. In Australia, it is regulated by the Australian Securities and Investments Commission (ASIC). In Singapore, it is regulated by the Monetary Authority of Singapore (MAS).
  2. Type: Market Maker
  3. Maximum Leverage: 400:1
  4. Minimum Deposit: $0 for bank transfers and $100 for debit/credit cards
  5. Trading Platforms: HTML5 Web Trader, iOS and Android Mobile Trading Apps, MetaTrader 4 (MT4), and AT Pro for Professional traders.
  6. Deposit/Withdrawal options: Debit/credit cards, PayPal, and Bank Transfer.
  7. Trading Accounts: Trader Account, Premium Trader Account and Professional Account
  8. Base Currency: EUR, AUD, USD, CHF, GBP, HUF, CHF, JPY, and PLN
  9. Minimum Spreads: 0.8 pips
  10. Minimum lot size: 0.01
  11. Commission: minimum of $10.
  12. Demo Account: Yes
  13. US Customers: No
  14. Types of CFDs: CFDs on Forex pairs indices, commodities, stocks, and ETFs

Pros of trading with City Index broker

  1. Its web trading HTML 5 platform allows traders to use multi-chart layouts.
  2. It allows Hedging.
  3. It is Authorised and regulated by several top tier regulatory authorities.
  4. Provides traders with risk management tools to help them protect their positions.
  5. Allows trading on the go through their mobile trading platform.
  6. It offers fast, easy payments as well as secure withdrawals.

Cons of trading with City Index broker

  1. It has limited deposit and withdrawal options.
  2. Its trading portfolio is also limited compared to other CFD brokers.

Etoro: social trading and multi-asset CFD broker

eToro was founded in 2007 in TelAviv Israel as RetailFX. Afterwards, it was rebranded to eToro under the management of eToro Group Limited.

In 2010, it unveiled its OpenBook social investment platform that allowed traders to do social trading. OpenBook was the first social trading platform to be developed around the world. The bro-ker also unveiled its mobile trading platform the same year.

Over the years, eToro has been viewed as the world leader in social trading due to the success of its social trading platform.

Besides Israel, eToro has offices in the United Kingdom, United States, Cyprus, China, and Aus-tralia.

In 2018, eToro Group Limited announced that a partnership deal with seven football teams from the UK premier league. These teams include Tottenham Hotspurs, Hove Albion FC, Crystal Palace FC, Briton, Leicester City FC, Southampton FC, and Newcastle United FC.

Features

  1. Regulations: the Cyprus Securities and Exchange Commission (CySEC), The Financial Conduct Authority (FCA), The Financial Crimes Enforcement Network (FinCEN), and then the Australian Securities and Investments Commission.
  2. Broker Type: Market Maker
  3. Maximum Leverage: 1:2000
  4. Minimum Deposit: $200
  5. Trading Platforms: eToro web trading platform and eToro mobile trading app
  6. Deposit/Withdrawal options: Bank transfer, Credit/Debit cards, PayPal, Skrill, Neteller, and WebMoney.
  7. Base Currency: AUD, EUR, GBP, RUB, JPY, CNH, and CAD
  8. Trading Accounts: individual account and cooperate accounts
  9. Minimum Spread: 1 pip
  10. Commission: 0
  11. Demo Account: Yes
  12. US Customers: Yes (But can only trade cryptocurrencies)
  13. Types of CFDs: CFDs currencies, ETFs, indices cryptocurrencies, stocks, currencies, and commodities

Pros of trading with Etoro broker

  1. It offers zero commission for trading CFDs on stocks.
  2. eToro is regulated by several top tier regulatory authorities including the FCA in the UK, thus making it a safe CFD broker to invest in.
  3. It allows the use of customized risk management tools like trailing stops.
  4. Their social trading features, CopyTrader and CopyPortfolio, allow less inexperienced traders to copy trades from the more experienced traders.
  5. eToro offers Negative balance protection for its clients’ accounts
  6. Traders can trade on the go using the broker’s intuitive mobile trading platform.

Cons of trading with Etoro broker

  1. eToro does not offer desktop trading platforms.
  2. eToro charges a flat $5 fee on all withdrawals, which is quite expensive for traders with a little amount to withdraw.
  3. The minimum withdrawal amount is $30.
  4. If an account is inactive for 12 months, a $10 inactivity fee is charged on the account balance.
  5. It takes about 4 business days to process funds deposited through bank transfer, which is extremely slow.

IG: a UK –based CFD trading platform

IG is the trading name of IG Markets Limited, a member of the IG Group Holdings Plc, which is a UK based company that was founded in 1974. The company provides CFDs trading and spread bet-ting on a variety of financial assets both in the UK and in the rest of the world.

Its head offices are located in London.

Its subsidiaries include IG International Limited, IG Europe, IG Bank S.A., DailyFX, and GmbH.

Features

  1. Regulations: Bermuda Monetary Authority in Bermuda under License No. 54814, Financial Conduct Authority (FCA) in the UK, Federal Financial Supervisory Authority (BaFin) in Europe, Swiss Financial Market Supervisory Authority (FINMA) in Switzerland, Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) in the USA, Australian Securities and Investment Commission (ASIC) in Australia, Financial Markets Authority (FMA) in New Zealand, Monetary Authority of Singapore (MAS) in Singapore, Japanese Financial Services Authority (FSA) in Japan, Financial Sector Conduct Authority (FSCA) in South Africa, and Dubai Financial Services Authority (DFSA) in UAE.
  2. Type: Market Maker
  3. Maximum Leverage: 200:1
  4. Minimum Deposit: For bank transfers, IG minimum deposit is $0, while for credit/debit cards and PayPal the minimum deposit is $300.
  5. Trading Platforms: IG’s trading platform, iOS, and Android apps, Progressive web app, ProRealTime, MetaTrader4, and L2 Dealer.
  6. Deposit/Withdrawal options: bank transfer, credit/debit cards, and PayPal
  7. Trading Accounts: IG offers one standard account but with different a different trading portfolio depending on your country.
  8. Base currencies: USD, GBP, AUD, EUR, SGD, and HKD.
  9. Spreads: 0.3 pips
  10. Commissions: Commission is charged on shares CFDs only. In Australia, the commission is 0.10%. In the US the commission is 2 cents per share. In Europe, the commission is 0.10%. In the UK, the commission is 0.10%.
  11. Demo Account: Yes
  12. US Customers: Yes
  13. Types of CFDs: CFDs on indices, commodities, stocks, currency pairs, and shares.
  14. Bonus: NONE

Pros of trading with IG broker

  1. It offers free educational videos and resources
  2. Allows traders to trade indices and cryptocurrency markets on weekends.
  3. Allows hedging.
  4. It offers quite a selection when it comes to trading platforms.

Cons of trading with IG broker

  1. It does not allow automated trading
  2. It does not offer negative protection for its clients’ accounts
  3. If an account is inactive for 2 years, the broker charges $18 every month.
  4. Account verification takes up to 3 days, which is quite a long duration of time.

XM: a top tier broker for trading CFDs

XM is the trading name of XM Global Limited, a subsidiary of Trading Point Holdings Ltd, which is a Cyprus based company with headquarters in Limassol. XM Global Limited is registered in Belize.

Besides the XM Global Limited, Trading Point Holdings Ltd has several subsidiaries including Trading Point of Financial Instruments Limited, Trading Point of Financial Instruments Pty Ltd, Trading Point of Financial Instruments UK Limited, and Trading Point MENA Limited.

Besides XM.com, the XM group of brokers operate other websites that include XMTrading.com, PipAffiliates.com, XMArabia.net, XM.co.uk, XMSina.com, and Trading.com

XM is one of the most popular CFD trading platforms. It was founded in 2009.

The broker offers over 1000 financial trading assets.

Features

  1. Regulations: Trading Point of Financial Instruments Pty Limited licensed by ASIC in Australia under License No. 443670, FCA in the UK under Licence No. 705428, and by the CySEC in Cyprus under License No. 120/10. In Belize, XM Global Limited is registered and regulated by the IFSC.
  2. Type: Market Maker
  3. Maximum Leverage: 888:1
  4. Minimum Deposit: $ 5
  5. Trading Platforms: MetaTrader 4 (MT4), MetaTrader 5 (MT5), XM WebTrader, and Android and iOS mobile trading app.
  6. Deposit/Withdrawal Options: Bank Wire, VISA, MasterCard, Neteller, and Skrill
  7. Trading Accounts: Islamic Account, Micro Account, Standard Account, XM Ultra-Low Account, and Shares Account
  8. Base currency: USD, EUR, GBP, JPY, CHF, ‎ AUD, HUF, PLN, RUB, SGD, and ZAR
  9. Minimum Spreads: 0.6 Pips
  10. Minimum lot size: 0.01
  11. Commission: $6 of for ECN trading
  12. Demo Account: Yes
  13. US Customers: No
  14. Types of CFDs: CFDs on Forex, Shares, Indices, Commodities, Metals, and Energies
  15. Bonus: 100% deposit bonus up to $5000 on the initial deposit, 20% deposit bonus up to $4,500 for subsequent deposits and XM loyalty program

Pros of trading with XM broker

  1. Account-holders are provided with personal Account Managers
  2. The broker also offers its client with Unlimited Access to Video Tutorials
  3. It offers Free Daily Technical Analysis and Daily Access to Forex Trading Signals
  4. It offers Negative balance protection for its clients
  5. Allows, hedging, scalping and automated trading

Cons of trading with XM broker

  1. PayPal deposits are not currently supported
  2. It does not allow traders from the United States, Canada, Israel, and Iran
  3. Withdrawals take 2-5 business days to reflect on clients’ accounts, which is long.

Plus500: a no commission CFDs broker

Plus500 is the trading name of Plus500 Ltd, which is listed on the London Stock Exchange.

Besides Plus500UK Ltd, which is based in the UK, Plus500 Ltd has several other subsidiaries which include: Plus500CY in Cyprus, and Plus500AU in Australia. It also operates in Singapore, Bulgaria, and South Africa.

Features

  1. Regulations: Plus500UK Ltd is authorized and regulated by the Financial Conduct Authority (FRN 509909). Plus500CY Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission under Licence No. 250/14. Plus500AU Pty Ltd is regulated by the ASIC under License No. 417727, New Zealand it is regulated by the FMA under FSP No. 486026, and in South Africa, it is regulated and registered with the FSCA under License number 47546.
  2. Broker Type: Market Maker
  3. Maximum Leverage: 1:30
  4. Minimum Deposit: $100 for credit/debit cards and $500 for bank transfers
  5. Trading Platforms: mobile trading and web trading (Webtrader) platforms
  6. Deposit/Withdrawal options: Credit/Debit Card, PayPal, Skrill, and Bank Transfer
  7. Trading Accounts: Standard Trading Account and Professional Account
  8. Base currency: EUR, USD, GBP, and AUD
  9. Fixed and dynamic spreads
  10. Commission: No
  11. Demo Account: Yes
  12. US Customers: No
  13. Types of CFDs: CFDs on Shares, ETFs, Indices, Forex, and Cryptocurrencies
  14. Bonus: None

Pros of trading with Plus500 broker

  1. It offers free ‘email & push’ notifications on market events to its clients
  2. It offers alerts on price movements, Change % & Traders’ Sentiments to its clients.

Cons of trading with Plus500 broker

  1. It charges an inactivity fee of $10 per month for accounts that remain inactive for 3 months.
  2. It offers a small library of educational materials.
  3. I do not have a desktop trading platform

80.5% 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.

Capital.com: a no commission CFD broker

Capital.com is the trading name of Capital Com Limited, which is a UK registered company. Be-sides the UK, where it operates under the name Capital Com UK Limited, the broker also has a sub-sidiary in Cyprus under the name Capital Com SV Investments Limited.

It also has a subsidiary in Belarus where it operates under the name Capital Com Bel which is a closed joint-stock company.

The company was founded in 2016.

Features

  1. Regulations: Financial Conduct Authority (FCA) in the UK, Cyprus Security and Exchange Commission (CySEC) in Cyprus, National Bank of the Republic of Belarus (NBRB), and registered by Minsk city executive committee in Belarus.
  2. Broker Type: Market Maker
  3. Maximum Leverage: 500:1 for Professional accounts and 30:1 for Retail accounts (Standard, plus and premier)
  4. Minimum Deposit: $3,000
  5. Trading Platforms: web trading application and Android and iOS mobile trading apps.
  6. Deposit/Withdrawal options: bank transfer, credit/debit card, iDeal, Giropay, QIWI, Webmoney, Neteller, Skrill, WorldPay, Security Standards Council, RBS, and Apple Pay.
  7. Trading Accounts: Standard account, Plus Account, Premier Account, and Professional Account.
  8. Base currency: USD, GBP, Euros, and Zlotys.
  9. Minimum Spreads: 8 pips
  10. Commission: No
  11. Demo Account: Yes (But available after registering)
  12. US Customers: No
  13. Types of CFDs: CFDs Indices, Forex, Commodities, Cryptocurrencies, and Shares
  14. Bonus: The broker has a ‘Refer a Friend plan’ where clients can earn up to £250

Pros of trading with Capital.com broker

  1. It offers negative balance account protection for its clients.
  2. Allows hedging.
  3. It is regulated by a top tier regulatory authority, the FCA, thus making it a secure CFD trading platform

Cons of trading with Capital.com broker

  1. It does not offer a desktop trading platform.
  2. The initial deposit amount is too high, especially for beginners.
  3. Its spreads are relatively high compared to other CFD brokers.

Frequently Asked Questions (FAQ)

What does CFD stand for?

CFDs are leveraged products that allow traders to speculate the rising and falling of market prices of the global financial market and open short (sell) or long (buy) contracts. CFD trading does not, however, involve the buying and selling of the actual underlying financial assets.

What are the key features of CFDs?

  1. They allow trading in smaller contract sizes, compared to other trade options like futures, making it more accessible for small traders.
  2. Its pricing is more transparent.
  3. It does not involve buying and selling of the actual underlying assets.
  4. They are exempt from stamp duties since they don’t involve the underlying assets.
  5. CFD contracts do not have expiry dates.
  6. It is easy for CFD trading platforms to create CFD trading instruments, thus giving the traders a wide selection of underlying instruments to trade.
  7. They allow hedging
  8. They allow traders to leverage their trades through margin trading
  9. Some of the costs of trading CFDs include commissions and overnight charges.

Differences between CFDs and Spread betting?

  1. Tax efficiencyCFDs traders pay capital gain taxes but they are exempted from paying stamp duties. However, Spread betting traders do not pay both the stump duties and capital gains taxes in the UK.
  2. AvailabilitySpread betting is usually available to a limited number of countries like the UK and Ireland while CFDs are available for trading by traders around the world.
  3. CommissionsSpread betting does not include trading commissions. However, CFDs may include commissions depending on the trading platform.

What to look for in CFDs trading platforms?

When looking for a good CFDs trading platform, you should look for the following:

  1. The reputation of the CFD platform,
  2. The regulation of the platform – which regulatory authorities have licensed it,
  3. The minimum deposit amount required to open an account,
  4. The availability of a demo account,
  5. Type of tradable assets,
  6. Types of trading accounts available and their features,
  7. The base currencies of the trading accounts,
  8. Available trading platforms,
  9. The maximum leverage that the broker offers,
  10. Available deposit and withdrawal options, and
  11. The spreads and commissions charged by the platform

Conclusion

Despite the risks involved in trading CFDs, it is still a worthy investment opportunity that can give high Returns. However, you should ensure that you choose your CFD trading platform wisely to ensure that you get a good trading experience.

There are very many CFDs trading platforms available online and you should do thorough research before settling on one. Hope this review will help you in reviewing the best CFD trading platforms and choosing the best among them.

Above all, you should ensure that you use all the risk management strategies at your disposal to help mitigate the risks involved in CFD trading.

Last Updated on by Daren Wilson