Best CFD Broker in the UK [Updated 2024]
Trading is risky and you might lose part, or all, of your capital invested. The information provided is for informational and educational purposes only and does not represent any type of financial advice and/or investment recommendation.
Contracts for difference (CFDs) are a type of trading instrument where traders can trade the direction of the securities rather than buying and selling the underlying asset.
Trading CFDs is a short-term trading strategy that can be used with forex, commodities, stocks, EFTs and indices – and to make the most of CFD trading you need a broker that allows for this strategy.
UK traders can trade CFDs on many different platforms, unlike traders in the USA, who cannot access CFDs as trading instruments.
In this article, we will discuss the best CFD brokers in the UK, which are as follows:
Plus500 – Unbeatable customer support
Pepperstone – High-trust and well regulated
eToro – CFD focus makes this a great choice
AvaTrade – Traders can calculate their costs before making a trade
XTB – Brilliant proprietary trading platform
Vantage Markets – You can open an account in just five minutes
CMC Markets – Easily customisable trading platform
City Index – Long trading history and excellent reputation
We will also look at what a CFD broker does and the different ways to find a good CFD broker that suits your needs as a trader.
The Best CFD Brokers UK: Top 8 CFD Broker Review
Here are our top picks to help you compare the top CFD brokers in the UK:
1. Plus500
Advantages
Excellent customer service offering
Lots of base currencies available
Brilliant charting options
Disadvantages
Poor educational offering for new traders
High minimum deposit
Can only make five withdrawals a year
Plus500 was founded in 2008 and not only is it well regulated by the FCA and ASIC, but it is also listed on the London Stock Exchange, which makes it more trustworthy.
The Retail Account, which is suitable for most users, can be opened completely online with a minimum deposit of £100 (card or eWallet) or £500 (bank transfer).
The trading fees for CFDs are low, built into the spread.
There are no account management fees and there are no fees for deposits or withdrawals, but there is an inactivity fee after three months of non-use – charged at £10 per quarter.
There is a minimum withdrawal of £50 for eWallets, and £100 for cards or to a bank account.
The Plus500 proprietary CFD trading platform is clean and easy to use, and although the views are not customisable, there is a good range of order types and you can set price alerts and other notifications.
The mobile platform works in the same way as the web platform, but it is completely optimised for a seamless experience on either Android or iOS.
Plus500 offers a huge number of CFDs, including:
Stock indices
Stocks
Commodities
Bonds
ETFs
You can also trade 70 currency pairs, cryptocurrency and real stocks.
Plus500 offers one of the biggest collections of technical indicators for research and charting, as well as news, market insights and expert analyses.
There is a demo account available and a selection of articles and videos to help the beginner trader, but these are not very well structured or easy to find.
80% 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.
2. Pepperstone
Advantages
Low trading and non-trading fees
Allows for copy trading through Myfxbook, DupliTrade and MetaTrader
Great range of CFDs available
Disadvantages
Not a wide range of other trading instruments available
Only access to CFDs through MetaTrader 5 rather than a proprietary platform
Pepperstone was founded in Australia in 2010, and there is now a London office that was opened in 2015. Regulated by ASIC and FCA, among others, Pepperstone is a well-regarded CFD and forex broker.
Accounts can be opened completely online with no minimum deposit, and there are no trading fees like account management, deposit, withdrawal or for inactivity.
There are two main types of accounts:
The Standard Account, which charges zero commission (the trading fees are in the spread)
The Razor Account, which has a typically smaller spread but charges a commission per trade
Pepperstone also operates an Active Trader account, where high-volume trading is rewarded with rebates that are based on the number of trades and can offset the costs of the commission.
You can fund your CFD account and make withdrawals using your bank account, credit and debit cards and some eWallets.
Pepperstone offers access to the markets through MetaTrader 4 and 5 as well as cTrader, and you can use a desktop or mobile app as well as a web-based trading dashboard.
Alongside cryptocurrency and 62 forex pairs, you can trade the following types of CFD:
Stock
Stock indices
Commodity
ETF
Bond
Traders can make use of an extensive range of trading tools like AutoChartist and technical indicators, and there is a free Smart Trader Tools package that boosts the research methods and tools with things like a trade simulator and expert analysis.
Beginner CFD traders can learn more through a series of educational articles and webinars. There is also a detailed glossary as well as a demo account.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.6% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
3. eToro
Advantages
Excellent mobile trading app
Wide range of trading instruments
Excellent education
Disadvantages
Some higher-than-average non-trading fees
Customer service that needs to be improved
Only USD as base currency – must consider currency conversion costs
eToro is an Israeli broker that was founded in 2007. It is a highly regulated broker that offers seamless and fast account opening, with a focus on mobile operability.
The simple account opening is backed up with a single live account type.
The minimum deposit is $10, and it is worth mentioning that the base currency for eToro is only USD, so all transactions must take place in dollars.
While the trading fees for CFDs and forex are considered quite low, eToro does have some non-trading fees to bear in mind – you’ll be charged $5 for every withdrawal, with a minimum withdrawal amount of $30.
Also, if you do not log in to your account at least once a month, you’ll have to pay a $10 a month inactivity fee. However, you can deposit and withdraw using eWallets as well as cards and bank accounts, which is useful.
You can access eToro via a well-designed web platform, and this is user-friendly and intuitive to use, so it is great for beginner traders.
Of course, the mobile platform is outstanding, with the same basic functionality as the web platform but completely optimised for either Android or iOS.
Alongside a range of CFDs, traders can diversify using forex, real stocks, ETFs and cryptocurrency.
CopyTrader and SmartPortfolios are available for traders who want to get involved with social trading and follow the trading movements of popular and successful traders.
You will need to fund these parts of the eToro account with higher amounts – £200 for CopyTrader and at least $5,000 for SmartPortfolios.
There is a good selection of research tools, including 70 technical indicators and basic fundamental data.
Beginner traders can get involved with the eToro Academy, which is a resource containing videos, articles and guides all aimed at the new investor, and there is also a demo account.
74% of retail investor accounts lose money when trading CFDs with this provider. Don’t invest in unless you’re prepared to lose all the money you invest.
4. AvaTrade
Advantages
Transparent fee structure – a calculator shows exactly how much each trade will cost you
Proprietary platform is well designed
AvaProtect offers traders the opportunity to insure their trades and protect against losses for an extra cost
Disadvantages
Very expensive inactivity fees in comparison to other traders
High minimum deposit
Withdrawals can take up to three business days
AvaTrade was founded in 2006 and is regulated by ASIC, among others. As a broker that provides access to the markets for traders in the UK in CFDs, forex and cryptocurrencies, AvaTrade offers simple and fast account opening.
There are no deposit or withdrawal fees and no account management fees. You will be charged an inactivity fee of £50 per quarter after three months and if you do not make a trade in a 12-month period, you will be charged £100 as an admin fee.
The minimum deposit to open an account at AvaTrade is £100 and there are several accounts available depending on what you want to do with your account.
Most people will want to open a Retail Account, but there are corporate, professional, Islamic and spread betting accounts available, as well as AvaOptions for traders who want to access options.
The AvaTrade proprietary platform is available (alongside the MetaTrader suite) as a web platform that is user-friendly and intuitive, with easy search functions.
The mobile app, available on Apple devices and android, is called AvaTradeGo and it is modern and easy to use, with built-in customer service and education. If you want a desktop app, you are limited to just MetaTrader or AvaOptions.
There are many different types of CFDs available, including:
ETFs
Commodities
Stock
Stock indices
Bonds
You can also trade options, cryptocurrency and forex.
Customer service is not available 24/7 but is responsive and can be accessed via live chat, email and phone.
The research comes from Trading Central trading ideas, fundamental data and a news feed with good charting and 90 technical indicators. The education is a bit sparse, but there is a video library and articles, as well as webinars and a demo account.
5. XTB
Advantages
No minimum deposit
Proprietary platform is well-designed and optimised for web, desktop and mobile
Trader calculator is a useful tool
Disadvantages
Minimum withdrawal amount is £60 for free withdrawals
Only basic order types are available
XTB was founded in 2002 and is regulated by the FCA, among other top-tier institutions.
Account opening is fast and fully digital, and there is no minimum deposit for opening an individual account.
The non-trading fees are low, with free deposits and withdrawals and there are no account maintenance costs. There is a small fee for inactivity, which kicks in after one year of non-use.
The trading costs at XTB are also low, whether you are trading CFDs, forex, cryptocurrency, or EFTs – and XTB offers commission-free stocks too.
The proprietary platform is called xStation 5 and it can look quite complicated, but once you get to grips with it, you’ll find it user-friendly and easy to customise.
It is well-designed with a great search function and features a trader calculator to help you work out the overall costs of the trades you want to make.
The mobile app is just as user-friendly, and there is a desktop app too.
There is a range of CFDs available to trade on XTB, including:
Stocks
ETFs
Commodities
Stock Indices
You can also trade forex, cryptocurrency, ETFs and real stocks.
Research tools include a news feed and trading ideas alongside fundamental data and the heatmap is a useful way to get an idea of trader sentiment.
The education provision is excellent, with lessons on every aspect of trading followed by a quiz to test your learning, and there are articles, videos and webinars, as well as a demo account available.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.
6. Vantage Markets
Advantages
Super-fast account opening
No non-trading fees
Mobile app is well optimised and easy to use
Disadvantages
High minimum deposit
Research only available to VIP clients
Small choice of CFDs available.
The Australian company Vantage Markets is regulated by the FCA and ASIC and it was founded in 2009.
Account opening is really fast; you can get up and running within about five minutes. There are several different account types available, with different fee structures and capabilities, depending on the type of trading that you want to do.
STP Account – Minimum deposit of $200, with an average spread 1.4 pips and no commission
Raw ECN Account – Minimum deposit of $500, with an average spread of 0.0 pips and $3 per side commission
Pro ECN Account – Minimum deposit of $20,000, with an average spread of 0.0 pips and $2 per side commission
When you trade with Vantage Markets, there are no account, deposit, withdrawal, or inactivity fees which makes it better than some other brokers in terms of non-trading costs.
Vantage Markets does not have a proprietary platform, so you can access the markets through the MetaTrader suite via the web and on your desktop.
There is a mobile platform that is functional and user-friendly with built-in analysis and research.
With Vantage Markets, you can trade stock, stock index and commodity CFDs, as well as 45 currency pairs and some cryptocurrencies.
Vantage Markets has much of their research tools assigned to VIP accounts, those who have an account balance of more than $1,000, which is not all that helpful for traders who are only making small profits.
The education provision is adequate, with a range of different articles, videos and webinars, as well as a selection of lessons.
Trading Forex and CFDs involves significant risk of losing your invested capital and is not suitable for all investors. 64.86% of retail investor accounts lose money when trading CFDs with this provider. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
7. CMC Markets
Advantages
No minimum deposit
Excellent customisation of the trading platform
Lots of trading instruments, especially CFDs and forex
Disadvantages
Account opening can be slow
Can’t change leverage – 30:1 might be too much of a high risk for some traders
CMC Markets was founded in 1989 and not only is it well-regulated, but it is also listed on the London Stock Exchange.
The account opening at CMC Markets is fully digital, but it can take a couple of days for the account to be authorised, so it isn’t as fast as some of the other brokers, but you can open an account with no minimum deposit.
The non-trading fees are reasonably low, with no account, deposit, or withdrawal fees. There is a monthly inactivity fee of £10 unless there are no funds held in the account.
CMC Markets has an excellent proprietary web trading platform called ‘Next Generation’, which offers the most customisation opportunities of any of the providers on this list – great for experienced traders who have their strategies mapped out.
The mobile app is the same but optimised to make the most of the iOS/Android operating systems, but if you want a desktop app, you will have to use MetaTrader.
There is a huge range of CFDs available at CMC Markets, including:
Stocks
Stock indices
ETFs
Bonds
Commodities
Alongside CFDs, traders can also use cryptocurrencies and up to 338 currency pairs.
The research at CMC Markets is top-notch, with trading ideas, expert insights, technical analyses and fundamental data, as well as an economic calendar and 80 technical indicators.
The education offering at CMC Markets is good enough – with a range of articles, videos, webinars and a comprehensive glossary.
77% of Retail CFD or Spread Betting Accounts Lose Money.
8. City Index
Advantages
Long history, listed on an exchange and well-regulated – this is a high-trust broker
Easy-to-use trading platform
Choice of trading instruments
Disadvantages
Can’t change leverage – Trader Account is set to 30:1
Can’t withdraw to some credit cards
Customer service is slow
Another broker with a long history, City Index was founded in 1983 and is the trading brand of StoneX Group which is listed on NASDAQ. It is also regulated by the FCA and ASIC.
Opening an account is fully digital and can take about a day, and there is no minimum deposit. Most traders will open a simple Trader Account, but there is a Premium and a Pro account available for those who have more experience or who are holding a higher account balance.
There are no non-trading fees except for a £12 monthly inactivity fee that kicks in after 12 months.
The City Index proprietary platform is easy to use and intuitive and available on both the web and on mobile – and with the mobile app, you can take advantage of platform tips and an embedded economic calendar.
The desktop app has the same features, but it is not as smooth and easy to use.
Many different CFDs are available with City Index, including:
Stocks
Indices
Commodities
ETFs
Bonds
There are also 84 currency pairs and cryptocurrencies available for those who want to expand their portfolios.
Research comes mainly from Trading Central, where you will find trading ideas and technical analysis.
There are 90 technical indicators that can be used for charting, plus a news feed and an economic calculator.
There is a demo account available, as well as a typical selection of articles, webinars and videos to help you learn.
A unique asset is the performance analysis tool, which looks at the way you trade in terms of psychology, strategy and timing so you can find new ways to maximise your returns.
CFD Brokers Explained
Trading CFDs is a bit different from other types of trading that you might have already done with a broker – and that is why you want to look for a broker that specialises in offering contracts for difference.
In basic terms, this is a short-term strategy that is all about betting on the direction of the market, making the most of price movements without actually buying or selling the underlying asset. The
CFD itself is a financial contract between you and the broker, where the trader can buy a CFD, hold it until the market is favourable and then sell it, with the net value difference between the buy and sell price as the profit (or loss).
CFDs are less regulated than some other securities, which is why traders in the US are not permitted to use them – but this also means that there are typically lower fees involved and margin trading allows for higher leverage options.
CFDs are usually traded by more experienced clients because when they are at their most volatile, the steep changes in price can reduce the opportunity for a winning trade, and the added leverage can magnify losses as well as profits, making your investment 100% at risk.
You can choose to trade with a brokerage firm and a physical broker, but there are costs involved that might be too steep for the casual trader, or you can choose an online broker (sometimes known as a discount broker).
With an online broker, you won’t get the same level of personalised service that you would if you had a brokerage firm working for you, but you will also pay a considerable amount less.
Choosing a regulated CFD broker – who also provides other brokerage services like access to different trading instruments and strategies – is the best way to get started.
Signs of the Best CFD Broker in the UK
Regulations and Security
Regulation will not protect you from making bad trades, but it does show you that the broker has met the conditions of the regulatory body to offer brokerage services, which means you should be able to trust them to protect your financial information from hackers – and your investment should be protected if their business fails.
Brokers will display their connection to a regulatory body prominently on the website, usually somewhere in the footer.
Security is also important, with many brokers opting for password-protected accounts – but 2FA (two-factor authorisation) or biometric security measures are better for the safety of your details.
Fee Structure
Fees cover both trading and non-trading costs and it is important to understand how the fees work before you get started, so you don’t have unexpected charges eating away at your profits.
Brokers must make their money from somewhere – and they can do this in two ways:
Non-trading fees – Account management, withdrawal, deposit and inactivity fees, as well as custody fees (usually for holding positions overnight)
Trading fees – These can be built into the trade as part of the spread or taken as a fixed commission fee, depending on the type of account that you have
Most brokers are upfront about the charges and fees included and the best ones offer trade calculators so you can have an idea of what it will cost before you execute.
Customer Service
When things go wrong, whether with your account, some tech issue, or you just need some help, you want to be able to make fast contact with the customer service team.
There are many ways you can make contact, from email, phone and live chat to things like WhatsApp, and customer service availability should be available 24/5 at the very least, if not 24/7.
Check customer reviews (using a search engine rather than the ones that the brokers share themselves) to see how others rate the customer service that they have received.
Tradable Assets
Choice is important when it comes to trading and even if you are a CFD trader, you might want the opportunity to branch out and diversify your portfolio by trading some other assets.
Other instruments include real stocks and ETFs as well as forex, crypto, commodities, bonds and futures – the more the better for the savvy trader who wants to ensure that their portfolio keeps performing.
Trading Platform
The platform is almost as important as the fees and the instruments – there is no point in having a huge range of instruments to trade at a good price if access to the market through the platform is slow or limited.
The best trading platforms should allow you to customise your views, use different technical indicators and provide you with research tools and education to make the best trades that you can according to the current market conditions.
You want to look for instant execution even on CFDs, as a delay or hesitation could affect your profit margin.
Education and Research
Online brokers tend to allow you to make your own trades – which means you are in charge of when to buy and sell.
Learning more about CFDs and the markets, in general, will help you become a better trader, even if you already have some experience – so look for a broker with a solid educational section.
Performing due diligence on a stock, commodity, or any other asset that you plan on trading a CFD on, is just common sense and you can achieve that with the right research tools available – look for charting and insights, technical analyses and fundamental data.
Frequently Asked Questions
What does ‘CFD’ stand for?
‘CFD’ stands for ‘contract for difference’ and it is a trading instrument that is used for trading on the direction of price movement for an asset without directly owning the underlying asset.
What is the best CFD broker online in the UK?
There are several excellent brokers offering CFDs to traders in the United Kingdom, including Pepperstone, eToro and Plus500 among others.
How can I start trading CFDs in the UK?
To start trading CFDs in the UK, you need to open an account with a CFD broker.
Are the CFD brokers regulated in the UK?
Brokers in the UK who offer CFDs and other trading instruments should be regulated for the safety of your investments.
Professional traders should look for brokers that are regulated by the top-tier Financial Conduct Authority for peace of mind about investor protection should something happen to the finances of the broker.
What CFD brokers offer demo accounts?
Almost every CFD broker in the UK offers demo accounts, which is a good way for inexperienced traders to practice making trades and using the platform, but it is also useful for more experienced traders to try out new things.
What are the main factors to consider when picking a CFD broker?
When you are picking a CFD broker, the main factors to consider are:
Regulation
Fees
Available instruments
Research and education
What CFD broker is best for beginners?
eToro and XTB offer excellent educational resources, which make them excellent brokers for traders who are just getting started with CFDs.
Do I need a broker to trade CFD in the UK?
To get access to the markets in the UK, you need to use a broker. You can choose from a brick-and-mortar broker if you have the money for fees and commissions, or choose an online broker for a discounted option.
Do I have to pay taxes for CFD trading in the UK?
Unlike forex, CFDs are not subject to stamp duty in the UK, but you might be liable to pay capital gains tax on your profits from CFD trading if it goes above your tax-free allowance.
What is the most popular CFD broker in the UK?
There are many CFD brokers that are popular with users in the UK, including eToro, Pepperstone and Plus500 because they offer simple and hassle-free access to the CFD markets.
What is the average income of CFD traders?
Professional CFD traders make around the same as forex traders, which is somewhere around £47,000 per year according to Indeed, but as a casual trader, it would be presumptuous to assume that you would make a similar return.
What online CFD brokers have the best service fees?
When you are looking at CFD brokers, there are two types of fees – the charges for making the trades (usually from commission or as part of the spread) and non-trading fees that are related to managing your account.
The best service fees might not be from the cheapest provider – you need to consider what else the broker is offering you first.
Final Thoughts
Finding the best forex brokers for CFD trading can be tricky. Among other things, it means looking for a regulated entity that allows you to trade CFDs in the way you want to, with minimal fees.
Our CFD trading brokers review will set you on the right path but every circumstance is different and you must ensure you choose the right broker for you.
CFDs are a great short-term trading strategy, although they can be complicated, so they are usually only used by more experienced traders – but with the right education provided by the broker, even a beginner can have success trading CFDs.
Remember that your investment is 100% at risk when trading CFDs and extra leverage might improve your profits, but it can also amplify losses.