The Best CFD Trading Platforms in the UK: A 2024 Guide & Tips
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.
Best CFD Trading Platforms in the UK:
1. Plus500 – Dedicated CFD platform and unique trading tools
2. eToro – Zero commission and great social trading
3. Pepperstone – No minimum deposit and over 1,000 tradable instruments
4. IG – Excellent long-standing reputation and excellent educational tools
5. Vantage Markets – Favourable non-trading fees and easy account opening
6. CMC Markets – Excellent research tools and selection of products
7. AvaTrade – Range of platforms, great research tools and excellent educational materials
8. Saxo Markets – Excellent range of CFD products
List of the Top Contract for Difference Trading Platforms in the UK
Below is a selection of the best CFD trading platforms in the UK.
Before committing to one platform, take the time to evaluate your needs and budget and explore each platform thoroughly.
1. Plus500
Dedicated CFD platform and unique trading tools
Pros
Regulated by the FCA
No commissions
Tight spread
Cons
Customer service could be better
$100 minimum deposit
Average educational materials
Plus500 is a popular CFD platform known for its user-friendly interface, wide range of tradable assets, and competitive spreads.
However, what makes it one of the best UK CFD trading platforms is its own analytical tool ‘Insight’.
This tool scans millions of trades from other Plus500 users and provides information about trader sentiment and high-yielding trades.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.
2. eToro
Zero commission and great social trading
Pros
Regulated by the FCA
No minimum deposit is required
Demo account
Excellent social copy trading
Commission-free trading
Cons
Only one account base currency
Inactivity fee
Withdrawal fees
Overnight fees
eToro's social trading features and low fees make it an attractive option, particularly for beginners or those who prefer a more passive investment approach.
It provides access to over 3,000 CFD markets, excellent research tools and a host of educational materials.
The platform can be accessed via the web and mobile app. Both of which are well-designed and easy to use.
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.
3. Pepperstone
No minimum deposit and over 1,000 tradable instruments
Pros
Excellent customer service
No withdrawal fees
No inactivity fees
FCA regulated
Excellent customer service
Excellent educational tools
Demo account
Social trading
Cons
Overnight fees
Average research tools
Pepperstone is one of the most popular forex and CFD trading platforms in the UK.
The broker supports multiple trading platforms, including MT4, MT5, and cTrader. Many traders favour these platforms for their advanced charting and analysis tools.
Trading fees are fairly competitive and there is no minimum deposit.
Pepperstone's CFD trading accounts offer a minimum trading size of 0.01 lots and a maximum of 100 lots, providing flexibility for traders.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.6% 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.
4. IG
Excellent long-standing reputation and excellent educational tools
Pros
A comprehensive range of markets
Advanced trading tools
Some of the best education resources
FCA regulated
More than 18,000 financial markets
Custom price alerts
Cons
High stock CFD trading fees
Customer service could be much better and Live Chat is often offline
IG is one of the oldest and largest CFD providers in the world. Despite being founded in 1974, the platform has never been involved in any major scandals.
It offers one of the best CFD trading apps in the UK and an industry-leading web platform.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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.
5. Vantage Markets
Favourable non-trading fees and easy account opening
Pros
Regulated by the FCA
Quick and easy account opening
No withdrawal fee
Well-designed platforms
Excellent educational tools
Cons
High stock CFD fees
Need a minimum portfolio value of $1,000 for the best tools
$50 minimum deposit – several competitors offer $0
Vantage Markets primarily offers CFDs based on prominent blue chip companies in the EU, UK, and US.
The selection includes over 70 EU/UK company shares as online CFDs, with a minimum trade of €10 for UK/EU shares CFD and a minimum trade commission of $6 for US shares CFD.
These CFDs can be traded on the MT5 platform.
Vantage Markets provides a leverage ratio of 1:20 for all shares CFDs.
Additionally, they offer CFDs for over 50 US companies, which are available for trading on both MT4 and MT5.
Trading derivatives carries significant risks. It is not suitable for all investors and if you are a professional client, you could lose substantially more than your initial investment.
6. CMC Markets
Excellent research tools and selection of products
Pros
Low forex fees
Well-designed web and mobile platforms
Third-party add-ons
Excellent educational resources and a demo account
Cons
High stock CFD fees
Average customer support
CMC Markets is a well-established CFD and forex broker with a wide selection of assets, competitive pricing, and powerful trading platforms.
The platform gives you access to more than 12,000 instruments, including indices, commodities, shares and ETFs.
Helping CMC Markets stand out is its charting experience. This tool helps traders choose from the following:
Over 115 technical indicators and drawing tools
More than 70 patterns
12 in-build chart types
The market spread is from 1 point for stock and ETF CFDs and 0.7 pips for forex.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or 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.
7. AvaTrade
Range of platforms, great research tools and excellent educational materials
Pros
Choice of MT4, MT5, and three proprietary platforms AvaTrade Go, AvaOptions, and AvaSocial
Fast and easy account opening
No withdrawal fee
Cons
High inactivity fees
Slow withdrawal process
Customer service is not available 24/7
AvaTrade offers a diverse selection of CFDs, forex, and crypto and is one of the best UK CFD platforms for beginners because of its educational resources.
In addition to a demo account, there are also well-executed webinars, eBooks, courses and tutorials.
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.
8. Saxo Markets
Excellent range of CFD products and trading platforms
Pros
Well-designed platforms
Extensive range of instruments
Some of the best research tools on the market
Low fund and forex fees
No withdrawal fees
Good educational materials
Cons
Inactivity fees
High options and futures fees
Customer service could be much better
Overnight fees
£500 minimum deposit
SaxoMarkets is a reputable multi-asset broker offering CFDs, forex, and other investment products. It is known for its professional-grade trading platforms and regulatory oversight by the FCA.
The market spread is from 0.10% on UK stock and ETF CFDs, 0.05 points for commodity CFDs, 0.25 points for index CFDs and 0.4 pips for forex.
The SaxoTraderGo platform provides traders with extensive charting, including 50+ technical indicators, integrated trade signals, news feeds and risk management.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money. Losses can exceed deposits on some products.
What Is a Contract for Difference Trading Platform?
A Contract for Difference (CFD) trading platform is an online platform that allows traders to speculate on the price movements of various financial instruments without actually owning the underlying assets.
Tradable instruments include:
Stocks
Indices
Currencies
Commodities
Cryptocurrencies
Essentially, a CFD trading account enables traders to profit from both rising and falling markets by taking long (buy) or short (sell) positions.
Here's how it works:
Contract Agreement – When you trade a CFD, you enter into a contract with the CFD provider (the platform or broker). The contract reflects the price movements of the underlying asset.
Price Speculation – As a trader, you speculate on the price movement of the underlying asset. If you think the price will go up, you go long (buy); if you believe the price will go down, you go short (sell).
Leverage – CFD trading often involves leverage, which means you only need to put up a fraction of the total trade value as a margin. While leverage can amplify profits, it also increases the risk of losses.
The best CFD trading platform in the UK typically offers various tools and features to help traders:
Analyse the markets
Manage their positions
Set risk management strategies
It is worth noting that CFD trading carries significant risks due to leverage and price volatility.
You should have a good understanding of the markets and risk management practices before engaging in CFD trading.
As with any form of trading or investment, it's advisable to only trade with funds you can afford to lose.
The Advantages of Trading on a CFD Platform
Trading on a CFD online trading platform offers several advantages for traders, such as:
Diverse Market Access – CFD platforms provide access to a wide range of financial markets. Traders can easily diversify their portfolios and take advantage of various trading opportunities across different asset classes.
Leverage – CFD trading often involves leverage, which means traders can control larger positions with a smaller amount of capital. While this magnifies potential profits, it's important to use leverage cautiously, as it also increases the risk of significant losses.
Long and Short Positions – Traders can profit from both rising and falling markets. You can take a long position if you expect the asset's price to rise or a short position if you anticipate a price decline. This flexibility allows for more strategic trading in different market conditions.
No Ownership – CFD trading allows traders to speculate on price movements without owning the underlying asset. This means you don't have to deal with physical delivery, storage, or any other logistics associated with owning the actual asset.
Trading Accessibility – The best CFD platform (UK) options available are usually online and accessible 24 hours, five days a week, providing traders with the ability to enter and exit positions quickly. This makes it convenient for traders to react to market news and changes promptly.
Hedging – CFDs can be used as hedging tools to protect existing investment positions in the physical markets. For example, if you own a particular stock, you can open a short CFD position on the same stock to hedge against potential losses.
Global Markets – CFD trading platforms often offer access to international markets, enabling traders to take advantage of global economic developments and diversify their trading strategies across different regions.
Lower Costs – Compared to traditional stock trading, CFD trading typically involves lower transaction costs since there are no fees associated with owning the actual asset. However, traders should be aware of other costs, such as spreads and overnight financing charges.
Range of Trading Tools – Many CFD platforms offer advanced charting tools, technical indicators, and analysis resources to help traders make informed decisions and conduct thorough market research.
How to Choose a Good Trading Platform
Choosing the best UK CFD platform is crucial for your success as a trader. Here are some key factors to consider when selecting a trading platform:
Regulation and Security
Ensure that a reputable financial authority regulates the trading platform.
Regulation helps protect your funds and ensures that the platform adheres to industry standards and guidelines. Look for platforms with strong security measures to safeguard your personal and financial information.
The regulation body in the UK is the FCA.
Asset Selection
Check if the platform offers a wide range of assets that you are interested in trading.
A diverse selection of instruments allows you to build a well-rounded portfolio and take advantage of various market opportunities.
Trading Tools and Analysis
The best CFD trading platforms provide advanced charting tools, technical indicators, and other analysis resources. These tools can help you make informed trading decisions and conduct thorough market analysis.
Leverage and Margin Requirements
If you plan to use leverage, check the platform's leverage options and margin requirements.
Be cautious with high leverage, as it increases risk.
Fees and Costs
Pay attention to the trading fees, spreads, and commissions charged by the platform.
Low costs can significantly impact your overall trading profitability, especially as a beginner.
Customer Support
A responsive and helpful customer support team is essential, especially if you encounter issues or have questions about the platform's features.
Educational Resources
The best CFD online trading platforms should provide educational materials, webinars, tutorials, and other resources to help you improve your trading skills and knowledge.
It should also offer a demo account.
This allows you to practise trading with virtual funds before using real money.
It's an excellent way to familiarise yourself with the platform and test your trading strategies.
Reputation and Reviews
Research the platform's reputation and read reviews from other traders. Feedback from existing users can give you insights into the platform's performance and reliability.
Frequently Asked Questions
What is CFD trading (UK)?
CFD trading involves speculating on the price movements of various financial assets, such as stocks, commodities, or currencies, without owning the underlying asset.
Traders enter contracts with brokers, and profits or losses are determined by the difference between the opening and closing prices. CFDs offer leverage, allowing traders to magnify their exposure, but they also carry significant risk due to potential losses exceeding initial investments.
How does CFD trading work in the UK?
CFD trading in the UK involves speculating on the price movements of various financial assets, such as stocks, commodities, or currencies, without owning the underlying asset.
Traders enter contracts with brokers, and profits or losses are determined by the difference between the opening and closing prices.
How to do CFD trading in the UK?
To do CFD trading in the UK, you need to choose a reputable CFD broker authorised by the FCA, open an account and deposit funds. You are then able to select the asset you wish to trade. Decide whether to go long or short, monitor the market and manage risk with stop-loss orders. Finally, you close the trade to realise profits or losses.
What are the advantages of CFD trading over normal trading?
The advantages of CFD trading over normal trading include the ability to profit from both rising and falling markets, access to a wide range of financial instruments without owning them, leverage, allowing traders to amplify their exposure, lower costs, as there are no ownership fees or stamp duty and the flexibility to trade in various markets.
However, CFD trading carries higher risks due to leverage and potential losses exceeding the initial investment.
How to profit from CFD trading in the UK?
To profit from CFD trading in the UK, you should conduct thorough market research and analysis and implement a solid trading strategy and risk management plan.
Next, utilise stop-loss and take-profit orders to protect gains and limit losses. Finally, stay updated with market news and trends and practice discipline and avoid emotional trading decisions.
What is the best CFD trading platform in the UK?
The best CFD trading platforms in the UK include eToro, Pepperstone, IG, Vantage Markets, Plus500, CMC Markets, AvaTrade and SaxoMarkets. The best one for you will depend on your needs, goals, budget and skills.
What is the difference between spread betting and CFD trading?
The main difference between spread betting and CFD trading is how profits are taxed. In the UK, spread betting is tax-free, while CFD trading is subject to capital gains tax.
Additionally, with spread betting, traders bet a specific amount per point of price movement. In CFD trading, the profit or loss is determined by the difference between the opening and closing prices of the contract.
What is leverage in CFD trading?
Leverage in CFD trading allows traders to control a larger position with a smaller amount of capital. It magnifies potential profits and losses, as traders only need to deposit a fraction of the total trade value (margin).
What are the main benefits of CFD trading?
The main benefits of CFD trading include the ability to profit from both rising and falling markets, access to a wide range of financial instruments without owning them, leverage, and lower costs.
How to learn CFD trading in the UK?
To learn CFD trading in the UK, you will need to study online resources, courses, and tutorials offered by reputable trading platforms and brokers. You should also read books on CFD trading and financial markets.
Finally, open a demo trading account to practise without risking real money, follow market news and analysis, join online trading communities and forums for insights and discussions and start with small trades, gradually increasing in complexity as you gain experience.
What is the best CFD trading platform (UK) for beginners?
The best CFD trading platforms in the UK for beginners include eToro, Pepperstone, IG, Vantage Markets, Plus500, CMC Markets, AvaTrade and SaxoMarkets. The best one for you will depend on your needs, goals, budget and skills. Some platforms have better educational resources and others have higher minimum deposits.
Are CFD trading platforms in the UK safe?
CFD trading platforms in the UK can be safe if they are regulated by the FCA. Regulation ensures certain standards and safeguards for traders' funds and data.
Final Thoughts
Remember, the best CFD trading platform in the UK for you depends on your individual trading goals, experience level, and preferences.
Take your time to compare different platforms, consider their features and offerings, and opt for one that aligns with your needs and risk tolerance.