This guide presents an overview of the finest CFD trading platforms available in the UK.
Selecting the right CFD brokerage is of paramount importance for UK traders. Our selection criteria encompass various aspects, including CFD fees, security measures, user-friendliness, charting and tools, educational resources, research capabilities, and more. We have compiled a list of top-notch CFD brokers that offer competitive pricing, adhere to high security standards, and provide an extensive array of tradable assets.
Without further delay, here are our top recommendations for the best CFD trading platforms in the UK.
Top CFD Trading Platforms in the UK for 2023
Our evaluation and research involved a comprehensive analysis of numerous CFD brokers, considering a diverse range of data points. To make it onto our list, brokers had to meet specific criteria. Here are the standout CFD brokers in the UK for 2023:
- eToro – Leading Copy Trading CFD Broker in the UK
- AvaTrade – Premier Forex CFD Trading Platform in the UK
- Plus500 – Top Pick for CFD Trading Platform in the UK
- XTB – Best Choice for Low Forex Fees in the UK
- XM – Outstanding Low Spread CFD Broker
- Interactive Brokers – Exceptional CFD Trading Software in the UK
- City Index – Ideal for Spread Betting in the UK
- Pepperstone – High-Quality CFD Online Trading Platform with Tight Spreads in the UK
- Admiral Markets – Best MetaTrader CFD Broker in the UK
- CMC Markets – Low-Cost CFD Trading Platform in the UK
- IG – Reputed CFD Platform Offering Excellent Educational Resources
- FxPro – Superb CFD Trading Platform in the UK Known for Rapid Execution Speed
PFI Rating: 4.9/5
eToro – Best CFD Copy Trading Platform in the UK
eToro, established in 2007, is a multi-assets brokerage that operates under stringent regulations, including the FCA in the UK. It excels as the top CFD broker for beginners in the UK, primarily due to its exceptional copy trading feature. Their user-friendly web-based trading platform and mobile app cater to both novice and intermediate traders. For advanced users seeking a more sophisticated solution, Interactive Brokers is a noteworthy option. eToro provides a diverse range of products, including real stocks with zero commissions. This diversity makes it an excellent choice for UK traders interested in expanding beyond CFD trading.
In the UK, eToro has a minimum deposit requirement of $10 and $500 for Bank Transfers.
CFD trading costs are incorporated into the spreads, while cryptocurrencies carry a flat 1% fee.
PFI Rating: 4.9/5
AvaTrade – Best Forex CFD Trading Platform in the UK
AvaTrade stands as an excellent choice for Forex CFD trading in the UK. Established in 2006 and under the regulation of top-tier authorities, this CFD broker offers a compelling option for traders.
While they do provide copy trading, it's done through platforms like ZuluTrade or DupliTrade. We recommend AvaTrade to UK traders seeking a regulated and secure CFD broker. Their offering includes Forex, Spread Betting, Shares, Commodities, Bonds, Treasuries, ETFs, Cryptocurrencies, and Indices.
CFD trading costs align with the industry average, and the minimum deposit required by AvaTrade is $100.
It's worth noting that their inactivity fee is slightly above the industry average, amounting to £50 per quarter after 3 months of inactivity.
For more you can read our AvaTrade review here.
Plus500 – Ideal for CFD Traders in the UK
For CFD trading in the UK, Plus500 stands out as an excellent choice. Founded in 2008, Plus500 has risen to prominence as a global leader in the CFD industry. They are under the regulation of top-tier authorities, including the Financial Conduct Authority (FCA) in the UK. Their trading platform, available both on the web and as a mobile app, offers an intuitive experience. Plus500 requires a minimum deposit of £100, and for bank transfers, it's £500. Remarkably, there are no withdrawal fees. In terms of CFD trading fees, Plus500's rates are in line with the industry average. They feature 0% commissions but do charge for overnight funding, currency conversion, inactivity, and guaranteed stop order fees. One notable aspect is their support for over 15 different base currencies, with a continuous effort to expand this offering.
Compare CFD Trading Platforms in the UK
Below, you can compare UK CFD Brokers to see how they stack up against each other.
XTB
XTB is an online CFD and Forex broker with offices in London and Warsaw. XTB is the best CFD Trading Platform for some commission-free stocks and ETFs. They are regulated by the FCA. As part of their long track record of reliability, XTB regularly publishes financial statements.
Commission charges are some of the lowest available. XTB has no minimum deposit amount.
| Pros | Cons |
|---|---|
| Forex Fees | High Shares CFD Fees |
| Deposit And Withdrawal | Inactivity Fees |
| Account Opening |
XM
XM is regulated by CySEC and is the best CFD trading platform for their responsive and attentive customer service. XM is a social trading platform that allows users to copy the trading strategies of leading investors. Their platform has over 1 million users so there are a lot of options.
XM has a wide variety of educational material and research tools to help you. They have resources that are aimed at both novice and veteran clients.
| Pros | Cons |
|---|---|
| Copy Trading | Customer Support |
| In-House Research | |
| Demo Account |
Interactive Brokers
Interactive Brokers was founded in 1978 and is heavily regulated worldwide. Originally based in the UK under the FCA, they have expanded across the globe.
Their platform is highly reliable and experiences next to no down-time.
Their platform is the best CFD broker for advanced clients.
Interactive Brokers collect and compile lots of market information, but they do not present it clearly. It can be overwhelming to newer users who aren’t accustomed to reading financial data yet.
| Pros | Cons |
|---|---|
| Research Tools | Trading Platform Interface |
| No Minimum Deposit | Account Opening |
| Long Track Record |
City Index
City Index is part of the GAIN Capital brand listed on the NYSE. They are regulated by the FCA as well as other highly-respected bodies globally.
On top of offering CFDs, they provide access to Forex and Crypto markets.
They are one of the most affordable brokers on this list. Their spreads and commissions are very low. Although they do charge inactivity fees, they are relatively low and only begin after a year of inactivity.
| Pros | Cons |
|---|---|
| No withdrawal fee | No fundamental data |
| Easy to use platform | Trading Tools |
| Plenty of tutorials on CFD trading |
Pepperstone
PepperStone is based in Australia but is also regulated by the FCA.
They have a wide variety of account types on offer, including popular ECN and STP types. Accounts with Sharia-friendly investing are available if requested.
PepperStone offers CFD trading with Forex, Crypto, and shares. They support MT4 and MT5 platforms as well as a host of other options.
| Pros | Cons |
|---|---|
| Low inactivity fees | Research |
| Zero charge deposits and withdrawals | CFD Commissions |
| Risk Management Tools |
Admiral Markets
Admiral Markets is based in Estonia and offers CFDs and Forex. They are regulated by the FCA in the UK and other authoritative agencies.
AM has thousands of assets available. Their system supports MT4 and MT5 as well as WebTrader.
| Pros | Cons |
|---|---|
| Segregated Funds | Minimum Deposit |
| Wide Selection of 3rd party Trading Platforms | No Fixed Spreads |
| “Zero to Hero” 21-day training course |
CMC Markets
CMC Markets is a long-trusted publicly-listed forex broker. They are based in the UK and regulated by the FCA as well as other agencies. CMC offers one of the widest selection of tradable instruments at over 10,000 instruments. Unlike most other firms, their customer support is open 24/7. This attention to detail when it comes to customer service is what sets them apart from their competitors.
CMC Markets has hours of educational content on their website which is great to get beginners right into the swing of things.
| Pros | Cons |
|---|---|
| Research Tools | CFD Commissions |
| Well Regulated | Spreads |
| Customer Service |
IG
IG is one of the largest retail brokers in the world. They are regulated by trusted authorities in many regions, including the UK’s FCA and BaFin in Germany.
IG uses a proprietary trading platform. The UI is customizable and quick to learn.
| Pros | Cons |
|---|---|
| Trading Platform | Fees |
| Company History | Account Opening |
| Release Financial Statements |
FxPro
FxPro is a No Dealing Desk (NDD) broker regulated by many industry authorities globally. They have been operating since 2011 and have a positive track record of reliability.
They have options for Islamic-friendly accounts, although these exclude CFD options.
The FxPro platform offers copy-trading, which allows users to mimic the trading strategies of traders portfolios. Their platform is best for beginners looking to start.
| Pros | Cons |
|---|---|
| Account Opening | Customer Support |
| Allows Hedging and Scalping | Education and Research |
Compare UK CFD Trading Platforms
Compare UK CFD Brokers below based to see how they compare to each other.
| Trading Platform | eToro | AvaTrade | Plus500 | XTB |
|---|---|---|---|---|
| Founded | 2007 | 2006 | 2008 | 2002 |
| Regulation | FCA, CySEC, ASIC, FSAS | FCA, ASIC, FSCA, FRSA, Israel Securities Authority, Financial Services Agency, Financial Futures Association of Japan | FCA, CySec, MAS, ASIC, FSA, FMA | FCA, CySEC, Fincancial Services Commission in Belize |
| Offering Of Investments | Stocks, ETFs, Forex, Crypto, Indices, Commodities | Forex, Stocks, Commodities, FXOptions, Cryptocurrencies, Indices, ETFs, Bonds | Shares, Forex, Commodities, Indices, Crypto, Options, ETFs | Forex, Indices, Commodities, Stock CFDs, ETF CFDs, Crypto |
| Minimum Deposit | $50 - $100 | $100 | $100 | $0 |
| Demo Account | Yes | Yes | Yes | Yes |
| Withdrawal Fee | $5 | $0 | $0 | 20 USD for withdrawals under 100 USD |
| Inactivity Fee | $10/month | $50/month After 3 Months | Yes | $10 monthly after 12 months |
| Deposit Methods | PayPal, Skrill, Neteller, Credit Card, Debit Card, Rapid Transfer,iDEAL, Klarna / Sofort Banking, Bank Transfer, Online Banking - Trustly, POLi | Credit and Debit Cards, Wire Transfer, e-payments | PayPal, Skrill, Credit Card, Debit Card, Bank Transfer | Bank Transfers, Credit and Debit Cards, Skrill |
Compare CFD Fees in the UK
We compared the fees of CFD trading in the UK below:
| Trading Fee | eToro | AvaTrade | Plus500 | XTB | Interactive Brokers |
|---|---|---|---|---|---|
| EURUSD | Varied Spread | Spread: 0.9 | Spread: 0.01% | 0.1 - 0.5 | Spreads |
| GBPUSD | Varied Spread | Spread: 1.5 | Spread: 0.02% | 0.1 - 0.5 | Spreads |
| Bitcoin | 1% | 0.13% | Spread: 0.30% | 3.5 USD | 0.12% - 0.18% of trade value |
| Apple Fees | $0 | 0.13% | Spread: 0.74% | 0.30% | $0 commissions |
| Tesla Fees | $0 | 0.13% | Spread: 0.75% | 0.30% | $0 commissions |
| Amazon Fees | $0 | 0.25 over market | Spread: 0.75% | 0.30% | $0 commissions |
| S&P 500 Fees | Varied Spread | N/A | Spread: 0.02% | N/A | N/A |
| Options Fee | N/A | N/A | Spread | N/A | N/A |
| Mutal Fund Fees | N/A | 0.13% - 0.15% | N/A | N/A | N/A |
| ETF Fee | $0 | 0.13% | Spread | 0.30% | $0 commissions |
What is CFD Trading?
CFDs (Contract for Differences) are contracts between investors and financial institutions based on the future value of a financial product. These contracts can be bought or sold and are tied to an underlying instrument. Traders using CFDs do not actually own the underlying asset but speculate on whether its value will rise or fall over a specific period.
You can watch a video from Capital.com that provides an explanation of how CFDs operate.
Regulation and Specifics in the UK:
CFD trading is legal in the UK but is subject to region-specific regulations. These regulations cover tax treatment of CFD earnings and rules regarding maximum leverage. In the UK, brokers are regulated by the Financial Conduct Authority (FCA), which sets limits on leverage and stop-losses and enforces regulatory compliance.
In the UK, leverage is limited to a maximum of 30:1. The FCA requires positions to automatically close if funds fall below half the initial margin amount, and losses cannot exceed the total funds in the account.
Legislation introduced in 2018 mandates reporting on the percentage of retail clients' accounts that incur losses, revealing that a majority of retail clients lose money.
Profits from CFD trading are subject to capital gains tax, while losses can be tax-deductible.
Pros and Cons of CFD Trading in the UK:
Pros
- Leverage can lead to substantial profits with a relatively small capital
- It's possible to profit from both upward and downward movements in the underlying asset.
- Commission on CFDs is generally lower than traditional trading vehicles.
Cons
- Overnight fees for contracts held overnight.
- Increased potential for loss when using leverage.
- Traders do not own the underlying instrument.
How to Start CFD Trading in the UK:
- Open an Account with a UK CFD Broker – Visit the broker's official website, click "open account," and complete the digital account opening process.
- Verify Your Identity – Provide identification and a utility bill or bank statement for identity verification.
- Deposit Funds: – Once verified, deposit funds into your account using various methods such as bank transfers, credit/debit cards, e-wallets, or cryptocurrencies. Check the minimum deposit requirements.
- Start Trading – After verification and funding, you can begin trading.
Factors to Consider When Choosing a CFD Broker in the UK:
Regulation ⚖️
Ensure the broker is regulated by reputable authorities and adheres to regulatory requirements, including fund segregation.
Fees & Commissions 💲
Compare fees, including spreads, subscription fees, and overnight fees.
Securities Available 📈
Confirm that the broker offers the securities you want to trade.
Account Types 🧾
Explore different account types, including demo accounts for practicing strategies..
Trading Platforms 🖥️
Consider the trading platform's ease of use and available tools.
Customer Support 📝
Evaluate the quality and availability of customer support
Leverage and Margin ⚙️
Understand the broker's leverage limits and margin requirements.
A downside is that, while you can earn larger profits, you can also lose more than your initial investment.
Trading Tools 🔧
Check for useful tools like an economic calendar.
Minimum Deposits 💰
Review the minimum deposit requirements.
Negative Balance Protection 📉
Look for brokers offering this risk management feature.
FAQ
Are CFDs Legal In the UK?
Yes, CFD trading is legal in the UK, subject to FCA regulations, including leverage limits and other guidelines.
How to Open an Account?
The steps vary by broker but typically involve verifying your email and personal details, linking your payment method, and confirming your identity before trading.
Do CFD Traders Pay Tax in the UK?
Profits exceeding the annual CGT threshold are subject to Capital Gains Tax, but CFD traders do not pay Stamp Duty. Losses can be tax-deductible.
