TheGranarySa.com

Best Online Brokers & Tools for Successful Trading

  • Home
  • Brokers Offers
  • Contact Us
You are here: Home / Best CFD Brokers

Best CFD Brokers

Find the best CFD Brokers

The table below shows the main CFD brokers in the market. We have arranged the brokers in a table to compare the most relevant characteristics of each one:

Broker Features Open Account
XTB
XTB Broker
Regulation:
FCA, KNF, CySEC, and IFSC
Trading Platforms:
xStation 5 + MetaTrader 4 + Mobile App
Minimum Deposit:
0 $
Demo Account:
Yes
More Info:
https://www.xtb.com
XTB Open Account
Plus500
Plus500 Broker
Regulation:
FCA, CySEC, ASIC, FSCA, FMA, MAS and FSA
Trading Platforms:
Webtrader + Mobile App
Minimum Deposit:
100 $
Demo Account:
Yes (unlimited)
More Info:
https://www.plus500.com
Plus500 Open Account
XM Group
XM Group Broker
Regulation:
FCA, CySEC, ASIC, DFSA and IFSC
Trading Platforms:
MetaTrader 4 + MetaTrader 5
Minimum Deposit:
5 $
Demo Account:
Yes (unlimited)
More Info:
https://www.xm.com
XM Broker Open Account
eToro
eToro Broker
Regulation:
FCA, CySEC and ASIC
Trading Platforms:
Webtrader + Mobile App
Minimum Deposit:
200 $
Demo Account:
Yes (unlimited)
More Info:
https://www.etoro.com
eToro Open Account
Pepperstone
Pepperstone Broker
Regulation:
FCA, ASIC, DFSA and SCB
Trading Platforms:
MetaTrader 4 + MetaTrader 5 + cTrader
Minimum Deposit:
100 $
Demo Account:
Yes
More Info:
https://pepperstone.com
Pepperstone Open Account
AvaTrade
AvaTrade Broker
Regulation:
Central Bank of Ireland, ASIC, BVI, FSCA, FSA, ADGM and FRSA
Trading Platforms:
MetaTrader 4 + Mobile App
Minimum Deposit:
100 $
Demo Account:
Yes
More Info:
https://www.avatrade.com
AvaTrade Open Account
IQ Option
IQ Option Broker
Regulation:
CySEC
Trading Platforms:
Webtrader + Mobile App
Minimum Deposit:
10 $
Demo Account:
Yes (unlimited)
More Info:
https://iqoption.com
IQ Option Open Account
IC Markets
IC Markets Broker
Regulation:
CySEC, ASIC and FSA
Trading Platforms:
MetaTrader 4 + MetaTrader 5 + cTrader
Minimum Deposit:
200 $
Demo Account:
Yes (unlimited)
More Info:
https://www.icmarkets.com
IC Markets Open Account
FP Markets
FP Markets Broker
Regulation:
CySEC and ASIC
Trading Platforms:
MetaTrader 4 + MetaTrader 5 + IRESS
Minimum Deposit:
100 $
Demo Account:
Yes
More Info:
https://www.fpmarkets.com
FP Markets Open Account
ATFX
ATFX Broker
Regulation:
FCA, CySEC, FSC and FSA
Trading Platforms:
MetaTrader 4
Minimum Deposit:
500 $
Demo Account:
Yes (unlimited)
More Info:
https://www.atfx.com
ATFX Open Account
Axi
Axi Broker
Regulation:
FCA, ASIC and DFSA
Trading Platforms:
MetaTrader 4
Minimum Deposit:
0 $
Demo Account:
Yes
More Info:
https://www.axi.com
Axi Open Account
FBS
FBS Broker
Regulation:
CySEC and IFSC
Trading Platforms:
MetaTrader 4 + MetaTrader 5 + Mobile App
Minimum Deposit:
1 $
Demo Account:
Yes
More Info:
https://fbs.com
FBS Open Account
FXTM
FXTM Broker
Regulation:
FCA, CySEC, FCSA and FSC
Trading Platforms:
MetaTrader 4 + MetaTrader 5
Minimum Deposit:
10 $
Demo Account:
Yes
More Info:
https://www.forextime.com
FXTM Open Account
FXPRIMUS
FXPRIMUS Broker
Regulation:
CySEC, FCSA and VFSC
Trading Platforms:
MetaTrader 4
Minimum Deposit:
100 $
Demo Account:
Yes
More Info:
https://www.fxprimus.com
FXPRIMUS Open Account
Tickmill
Tickmill Broker
Regulation:
FCA, CySEC, FSA, FSCA and LFSA
Trading Platforms:
MetaTrader 4
Minimum Deposit:
25 $
Demo Account:
Yes
More Info:
https://www.tickmill.com
Tickmill Open Account
ActivTrades
ActivTrades Broker
Regulation:
FCA and SCB
Trading Platforms:
Webtrader + MetaTrader 4 + MetaTrader 5 + Mobile App
Minimum Deposit:
0 $
Demo Account:
Yes
More Info:
https://www.activtrades.com
ActivTrades Open Account
Libertex
Libertex Broker
Regulation:
CySEC
Trading Platforms:
Webtrader + MetaTrader 4 + Mobile App
Minimum Deposit:
100 $
Demo Account:
Yes (unlimited)
More Info:
https://libertex.com
Libertex Open Account

The characteristics we can know the regulation, the minimum deposit necessary to operate and the type of broker that is each one. In the operative we compare the spreads guiding us only for the euro/$, the commission, the leverage, the currency pairs in which they work, as well as the platform and if they work in crypto currencies or not.

What is a CFD?

Contracts for Difference, CFDs, landed three years ago and have become one of the most popular financial derivatives. Their success can be attributed to the possibility of benefiting from both rising and falling markets, the wide range of markets to which they give access (shares, forex, indices, commodities…) or the fact that it is a leveraged product and therefore the initial outlay to open the operation is only a percentage of its market value.

What are the best CFD Brokers

Regulation of CFD brokers

  • CNMV: The Spanish National Securities Market Commission (CNMV).
  • FCA: The FCA (Financial Conduct Authority) is the United Kingdom’s financial services regulatory body.
  • FSCS: The FSCS (Financial Services Compensation Scheme) is authorised by the United Kingdom.
  • Central Bank of Ireland: The Central Bank of Ireland and, as such, part of the European System of Central Banks (ESCB).
  • Asic: The Asic (AustralianSecurities and InvestmentCommission), i.e. the Australian Securities and Investment Committee.
  • CySEC: The CySEC (Cyprus Securities and Exchange Commission) is responsible for the enforcement of all financial orders and regulations established under Cyprus’ financial regulatory laws.
  • FOGAIN: This is the General Investor’s Guarantee Fund, whose purpose is to provide coverage for compensation in the event that any entity is declared bankrupt and published in the CNMV
  • SEC: The primary function of the U.S. Securities and Exchange Commission (SEC) is to protect investors and maintain the integrity of the securities markets.
  • FINRA: Financial Industry Regulatory Authority (FINRA) of the New York Stock Exchange
  • NYSE: New York Stock Exchange
  • MFSA: The Malta Financial Services Authority (MFSA) is the sole regulator of financial services in Malta.
  • NFA: The National Futures Association (NFA), allows for formal complaints from clients to be directed to the companies it regulates.
  • FINMA: FINMA (Swiss Financial Markets Authority) is Switzerland’s financial markets supervisory service and has an impeccable and highly trusted reputation.
  • KNF (PFSA): is the financial regulator in Poland

Types of CFD brokers: Market maker, ECN, DMA,…

Among the different types of brokers we differentiate two main groups, the Dealing Desk and the No Dealing Desk.

  1. DD: Dealing Desk – They are the brokers who give compensation to our operations, they are the ones who allow us to make purchases and sales. They are called Market Makers.
  2. NDD: No Dealing Desk – They are the brokers who are simple intermediaries in the market, they do not give compensation, do not have a money desk and send the operations to the market.

Here we have several sub-types of broker, the STP, Market Market and ECN.

ECN: ECN brokers (Electronic Communication Network) simply give their clients the best prices for buying and selling from the data providers they have contracted. They are good brokers for experienced traders, allowing scaling, hedging, automatic trading operations normally without restrictions.

MARKET MAKER: these are the brokers who give their clients compensation without going through the market, they create their own market where their clients carry out the operations, here is the main problem since a conflict of interest is created between their profit and ours, here we find the famous phrase of the stop sweeps slightly distorting the price.

STP: STP (Straight Through Process) brokers are the brokers who transmit our operations to the liquidity providers (banks, financial institutions, etc). They have no possibility of changing prices. Their benefit is that they charge a small commission or have a very low spread in most cases.

(DMA/STP): DMA brokers provide direct and transparent access to the best bid/ask prices offered by liquidity providers. It accepts all types of trading styles such as scalping, swing trading, etc.

Leverage of CFD brokers

As for the broker’s operations, we define:

  • Leverage: Using leverage is a key advantage of CFD trading, but it is necessary to know it well to avoid problems.
    CFDs offer leverage that can be as high as 1:5 in shares. This means that if you use 1:5 leverage on a stock your profits and losses may be as follows:
  1. 1% variation in your share CFD: you just increase your capital: +5
  2. Variation against the 1% CFD share: -5%, it has lost part of its capital.

Since the latest Esma regulations came into force, CFDs have a leverage limit of up to 30:1 , below we will see the limits broken down by product:

  • Maximum leverage on Index CFDs and 20:1 Gold
  • Maximum Leverage on 2:1 Cryptosystems CFDs
  • Maximum Leverage on Commodity CFDs 10:1
  • Maximum Leverage on Stock CFDs 5:1

What platforms do CFD brokers have available?

  • Platform: The trading platform is the fundamental working tool for any investor operating in the financial markets via the Internet. It is a software designed to be able to analyse the market, receive the prices of the financial instruments available for investment and open, control and close positions according to the decisions taken by the trader.
    • If you are a beginner trader you can rate trading platforms such as MetaTrader, Sirix WebTrader or a broker’s own platform.
    • If you are a more experienced trader, MetaTrader can still be a good option or you can go to more specific platforms such as cTrader, ProRealTime, Visual Chart.

Strategies for trading CFDs

The two most popular trading methods are the short position and the long position, although trading from an intermediate position is also quite common.

  1. Long position. Buying in the middle of a price rise in the market. A participant in the trade buys an asset in anticipation of the growth of its value in the future. Thanks to his short-term forecasting skills, or monthly, annual, or through technical analysis, the trader will make a profit in the end, even if the price fluctuations are insignificant.
  2. Short position. Buying in a moment of crisis. This strategy is appropriate when a trader predicts a decline in the price of assets, selling an asset on the condition of a possible future purchase at the lower price. If the prediction is wrong and the price of the assets rises, traders would lose an amount equal to the difference between the value of the assets at the opening and closing of a transaction. If the forecast is correct, the bidder makes a profit. This method allows for bidding at shorter intervals, even of one minute.

Commissions and fees for CFDs

Commissions, fees, hidden fees, additional services payments, margins, spreads and more; you will find all this in the trading platforms. Many CFD brokers can offer a choice of rates appropriate to your trading strategy.

Services such as guaranteed stop loss (for an additional fee) or other additional services and tools are included as an option. Account inactivity will also be charged in most cases. Therefore, we advise you to carefully study all fees and commissions for a platform before making a final choice.

Let’s take XTB’s “Pro” account as an example. The condition was an asset bought at $2,000 with a 5:1 leverage. On exit, when buying Apple stock CFDs the commission is $18.1 while when buying Vodafone CFDs it is $24.4.

With the “Standard” account, the trader would only pay for higher spreads, without having to pay any other fees.

How are CFD commissions calculated?

There is no single formula for CFD brokers, because while one gives you the opportunity to earn on spreads, additional unscheduled fees and commissions can be charged at the same time. Many brokers provide their own formulas and even calculators to deduct commissions. For example, in the standard AMarkets plan there are no fees, but in the ECN plan they charge a commission of $2.5 for 1 lot.

Minimum deposit and withdrawal

To start trading CFDs you must first open an account with a broker. You will usually need to make an initial deposit of between $0 and $10,000, depending on the broker; due to high competition in the industry, these initial deposits have been limited to a maximum of $250 with most brokers.

For the deposit, the credit card Visa or MasterCard, the bank transfer, PayPal, and in some cases the cryptography, will be enough. In general, this process does not differ much from buying a product online, only that here you will need to verify your identity.

The funds are withdrawn by a request from the client/operator, often to a credit card or bank account. The amount, method and opportunities for withdrawal also vary from broker to broker, so study your conditions in advance.

How have we selected the best CFD brokers?

When it comes to CFD trading, we come across hundreds (literally) of brokers struggling to get our attention. Among the many offers, which CFD broker should you choose and why? Our experts have analysed and ranked some of the best CFD brokers based on the following criteria:

Trading and operational platform

In such a competitive financial market, it is essential to offer a powerful and intuitive trading platform that suits your objectives as well as your trajectory. Likewise, the broker’s offer must be broad and flexible, allowing simple and user-oriented trading:

  • Number of Underlyings
    As a rule, most brokers offer the option of trading stock CFDs, currencies, indices and commodities. This also includes trading ETFs, funds, rights and options. In terms of the number of underlying assets, the best CFD brokers offer a greater number of assets, which are counted in thousands in some cases (e.g. over 6,000 stocks available, 30 indices, 120 currencies, etc.)
  • Level of leverage
    The maximum leverage of each broker is set according to the underlying asset. While some assets, such as currencies, allow a high degree of leverage(around 1:300), other underlyings, such as equities, do not allow it or offer little or no leverage. The greater the margin of choice in this respect, the better.
  • Trading platform and functionalities:
    Those brokers who offer a usable, fast and powerful trading tool that also has numerous functionalities: signals, different types of orders, live news, analysis, etc., receive a better position in the ranking.
  • Free demo:
    We positively value those CFD brokers that offer a free demo account, with fictitious money and all the functionalities available. This way, you can trade with the trading platform before creating a real account.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Broker Types

  • Best Forex Brokers
  • Best CFD Brokers
  • Best ECN Brokers
  • Best Metatrader 4 Brokers
  • Best Metatrader 5 Brokers

TheGranarySa.com

Contact Us
Advertising

Terms and Conditions:

Legal Notice
Privacy Policy
Cookies Policy

The use of this website implies the acceptance of the following risk warning:

Risk warning: Trading in financial instruments and/or cryptocurrencies involves a high risk of losing some or all of the amount of your investment and may not be suitable for all investors. CFDs are complex instruments and have a high risk of losing money quickly due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford the high risk of losing your money. Your capital is at risk. Before trading any financial instrument you should carefully consider your investment objectives, level of experience and tolerance for risk. Remember that there is a possibility of losing some or all of your initial investment, even exceeding that amount, so you should not invest money that you cannot afford to lose. You should have prior knowledge of all risks associated with trading financial instruments such as Forex, CFDs, cryptocurrencies,... and if in doubt, seek the assistance of an independent financial advisor. The comments and opinions expressed on this website come from independent authors who do not necessarily represent the opinion of TheGranarySa.com or its management team. TheGranarySa.com does not verify the accuracy or truthfulness of the statements or claims of any of the independent authors who collaborate on the website. All published texts are liable to contain errors or omissions. The opinions, news, reports, analyses, quotes or other information contained in TheGranarySa.com, produced by the team of TheGranarySa.com, by its partners or collaborators are for information purposes only and in no case constitute or should be understood as investment advice or recommendation. TheGranarySa.com disclaims any legal responsibility for any loss or damage including, but not limited to, loss or profits that may arise directly or indirectly from the use of this information or from the trust placed in it. TheGranarySa.com may be compensated by advertisers appearing on the website, based on their interaction with the advertisements or advertisers.

© 2023 · All rights reserved · TheGranarySa.com - Best Tools & Tips for Successful Trading.

This website uses cookies to improve the browsing experience. I agree More Info
Cookie Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Are you sure?

Please confirm deletion. There is no undo!