Before you start CFD trading the first thing you will need is a CFD broker.
Here is a summary guide to the top CFD brokers in the UK.
Top 5 CFD Brokers UK
- eToro
- Pepperstone
- XTB
- XM
- Skilling
1) eToro — Best Social Copy Trading Platform
eToro has been a trusted CFD broker for trading since 2007. It is backed by regulations and strong protection for UK citizens. Opening an account is easy and fast to do when you have all the tools you need to jump into CFD trading.
Trading Features
- Copy trading feature
- 47 forex pairs
- FCA regulation for UK citizens
- Negative balance protection
Pros
- Copy popular investors. If you want to trade more passively and skip the extensive research and predicting, you can copy other portfolios of people you trust to make good bets.
- Easy-to-use interface. Easily switch between CFD and underlying asset investments with ease.
- Educational resources are available. New to the world of CFD trading platforms in the UK? Use the educational tools available to learn the ins and outs of the market quickly.
Cons
- Higher price. Watch out for higher spreads, inactivity fees, and deposit/withdrawal fees. However, VIP accounts are available that will discount your deposit and withdrawal fees.
- High minimums for copy trading. If copy-trading draws you to the platform, be aware that you’ll likely need to place higher deposits.
Our Verdict
If you’re looking for a reliable and easy-to-use platform, you can’t go wrong with eToro. It is one of the most popular CFD trading platforms in the UK. Enjoy excellent investor and negative balance protection from the UK based CFD broker.
76% of retail investor accounts lose money when trading CFDs with this provider.
2) Pepperstone – Best CFD Trading Platform UK for Beginners
Pepperstone has been founded in 2010. Pepperstone belongs among the best UK cfd brokers. Broker specialises in CFDs, with few underlying asset investments available. For those passionate about CFDs with little interest in other forms of trading, this is a great plus.
Trading Features
- Access to over 3000 CFDs on Shares, Indices, Commodities and Crypto
- Over 70 forex pairs
- Ultra Low Forex Spreads
- FCA regulation for UK citizens
- Negative balance protection
Pros
- No extra fees—No inactivity, deposit, or withdrawal fees. You can make the best decisions for your portfolio without worrying about paying for them.
- No minimum deposit. Deposit what you can and start contracts immediately.
- Easily contact customer service. If you ever do have a problem, the customer support team has several communication channels you can use, such as phone, live chat, and email.
Cons
- Data is limited. Although Pepperstone has excellent education materials, the raw, up-to-date data is limited. You may need to use 3rd party recommendations and rely on copy trading if you’re not familiar with the market.
Our Verdict
Pepperstone is one of the best CFD trading platforms in the UK for traders seeking a low-cost platform. That said, it’s also bare-bones. If you’re looking to add CFD trading to your portfolio and want a platform that also does non-CFD trading, this may not be right for you. However, for those who want to commit to the fast pace of the CFD world, you’ll love working without expensive fees while getting the most options for CFD trading.
77,6% of retail investor accounts lose money when trading CFDs with this provider.
3) XTB — Best UK CFD Broker for Stocks Trading
Similarly to Pepperstone, XTB specialises in CFD. However, it has more comprehensive offerings than many other competitors. Quickly switch between contracts for differences and underlying asset investments with ease. With the educational materials available, you’ll still learn everything you need to know to become an expert in your chosen niche.
Trading Features
- 57 forex pairs
- FCA regulation for UK citizens
- Negative balance protection
Pros
- Best educational materials. Learn everything you need to know about the market with handy tutorials, webinars, a demo account, and complete tutorials. If you’ve never traded in the market, this could be your one-stop shop for your market education.
- Low CFD fees. Some other platforms will have low fees for crypto, then charge an arm and a leg for CFDs. Not with XTB.
- Price alerts. Stay up-to-date on everything happening on the market and be notified about any assets.
Cons
- No guaranteed stop-loss. Most platforms offer this to UK citizens, but not XTB. With other platforms, you’ll immediately sell if your losses reach a set low. This protection isn’t included with the XTB platform.
- No physical crypto. Fall in love with cryptocurrency through CFD and want some of your own? You’ll need to move to another platform.
Our Verdict
While there may be a bit more risk due to the lack of guaranteed stop-loss, you’ll quickly know why XTB is one of the best CFD trading platforms in the UK. It’s one of the easiest apps to use, features great resources and copy trading available, and has low fees. Make a demo account and see for yourself without spending any money.
82% of retail investor accounts lose money when trading CFDs with this provider.
4) XM.COM – Best User Experience
If you need an online CFD trading platform that’s easy-to-use and great to look at, you’ll like XM broker. In addition to the design, it has many Forex pairs for trading and all the financial protection we’ve come to expect from the top CFD trading platforms in the UK. This platform is regulated by FCA and listed on the London stock exchange.
Trading Features
- 71 forex pairs
- FCA regulation for UK citizens
- Negative balance protection
- Stop-loss guaranteed
Pros
- 24/7 customer support. No 48-hour wait to get the help you need. Speak to a customer service agent from Capital.com fast and take care of your portfolio as you need.
- Easily avoid inactivity fees. There are times you may need to take a step away from CFDs. When you do, simply logging into your account each month will keep you from paying pesky inactivity fees.
- Excellent mobile trading app. Seamlessly transition from your desktop to your phone and take your CFD trading on the go.
Cons
- No copy trading. Not having access to copy trading could be a significant loss for those new to the market. You’ll need to rely on 3rd party resources to get ideas for choosing your CFDs.
- No webinars. While the platform provides educational materials, they don’t offer webinars, which can help you learn even more about the market and make predictions.
Our Verdict
The lack of interactive training materials and copy trading could be a dealbreaker for newcomers. But with XM, you certainly feel taken care of: customer support is always available; the desktop and mobile app user interface are easy to use, and you can start with a low minimum deposit.
What to Consider When Choosing a CFD Broker in the UK
There are many platforms available, but how do you know which CFD trading platforms in the UK are the right choice for you?
Here are some things you should consider:
- Payment options: For depositing and withdrawing, make sure it offers support for your choice of payment — direct bank transfers, credit cards, PayPal, etc.
- You want two forms of protection: proper regulation and investor protection. For UK citizens, we look for the FCA (Financial Conduct Authority). You’ll also want to consider negative balance protection, stop-loss guarantees, and other guarantees they may offer.
- Fee Structure: A reliable platform will share its fee structure upfront. Look at if there’s a commission fee, if they only charge the spread, fees for inactivity, deposits, withdrawals, or holding a position overnight. If it’s too difficult to find the fee structure, or they charge too high a price, look for better CFD trading platforms in the UK.
- Educational resources: Get insights, analysis, and guidance to strengthen your predictions and profits.
When you find the platform that meets all your needs, try a demo account and see for yourself if you like it. If it passes the demo test, it’s time to invest.
What is a CFD Broker ?
CFD Broker is an intermediary between a trader and the financial markets. CFD Broker provides the software called CFD trading platform. CFD or Contract for Difference is a derivative, where a trader doesn’t physically own the underlying asset, but a contract that is tracking the price of the asset for example underlying stocks. CFDs require a small deposit thanks to leverage used in CFD trading. Mainly thanks to its complexity and risk involved, CFD Trading strategy is recommended only to advanced traders. Some countries like UK have banned CFD contracts for difference for retails traders.
How does CFD trading work?
CFD trading involves the speculation of the future direction of prices of financial instruments, such as shares, commodities, indices, currencies, and treasuries.
When trading CFDs, traders do not actually purchase the underlying asset, but instead open a contract with the broker. The value of the contract is the difference between the price of the asset at the time the contract is opened and the price when it is closed. If the price of the asset increases, the trader will make a profit, and if the price falls, the trader will incur a loss.
CFD trading is a popular way to speculate on financial markets as it allows professional traders to take advantage of leverage. Leverage is the ability to control a larger amount of capital than what is actually invested. For example, if a trader has $1,000 in their account and uses the leverage of 10:1, they can control $10,000 worth of the underlying asset.
While leverage can amplify profits, it can also magnify losses. Therefore, it is important that traders understand the risks involved before entering into a CFD trade.
How to Sign Up with a CFD Broker
To get started on CFD trading in the UK, you’ll first need to make an account with the site. It will ask you to confirm your identity and set up a payment method for deposits and withdrawals. Once you make your first deposit, you can pick a CFD.
Perhaps you have a Forex pair or asset in mind. Maybe you want first to do some research on the educational reference tools. Once you select, decide how much you want to put down and at what price and follow the instructions. Voilà, you’re trading!
Ready to see if your market insights earn you money? Sign up with one of these top CFD trading platforms in the UK, and start working the market like a pro.
Is CFD trading legal in the UK?
Yes, CFD trading is legal in the UK. The UK has a well-developed financial services sector and a favourable regulatory environment for financial services firms. This means that there are a number of reputable CFD providers operating in the UK.
CFD trading is a speculative activity and carries a high level of risk. You could lose all or more of your investment. Therefore, you should only trade with money that you can afford to lose.
Before you start trading, you should research the market and understand the risks involved. You should also make sure you use a reputable CFD provider.
Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Maximum retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand trading spread bets, how CFDs work, and whether you can afford to take the high risk of losing your money.
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