The world’s best regulated CFD brokers for beginners and experienced traders. Scroll down to read our full review of their services and compare their online CFD trading platforms to find the best choice for your money.
What is CFD?
CFD stands for “Contract for Difference”. CFD trading means you buy and sell CFDs, speculating on the price of various assets, e.g. shares, forex, commodities, without actually buying the underlying assets. When you trade CFDs, you only pay a fraction of the cost of the underlying asset and leverage allows you to still gain exposure to a large position. So, in terms of initial capital, it seems cheaper, but the risk is much higher as your profit or loss is calculated based on the full size of your position and you may lose more than what you put in.
What is leverage?
Leverage is a form of borrowed capital, so effectively it’s debt. CFD trading is leveraged, which means you can gain exposure to a large position without paying the full cost. E.g., let’s say you want to invest in 100 shares of company x, with the expectation that their price will increase. You can either pay to purchase these 100 shares or pay a fraction of the cost for CFD trading and, through leverage, still open a position equivalent to 100 shares. It sounds great as your profit will be calculated on the full position but the problem is that so will any loss.
How does a CFD work?
When you trade Contracts for Difference (CFDs), you speculate on the price of an asset, e.g. share, currency, commodity, without purchasing the actual asset. Effectively, the buyer agrees to pay the seller the asset’s price difference between the contract’s opening and closing time. CFD has nothing to do with the asset’s value, it’s all about the difference in value. As this is a complex financial product, we strongly encourage you to use Brokerage Compare’s reviews to find the best CFD trading platforms.
Is CFD trading safe?
All trading comes with some risk but CFD trading is particularly risky because it’s leveraged. Effectively, leverage allows you to gain exposure to a large position with limited capital. Profits or losses are calculated based on the value of your entire position, which means that both profits and losses are magnified and you can end up losing more than your capital.
What are the best CFD trading platforms?
To begin with, it’s important to choose a regulated broker. Brokerage Compare reviews the best online trading platforms and provides comparison tables so you can choose the right service for your money.
Best CFD Trading Platforms
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Tradable Assets: 2,000+ Max Leverage: 30:1, 400:1 Pro clients
Tradable Assets: 2,000+ Max Leverage: 30:1, 300:1 Pro clients
Tradable Assets: 1,250+ Max Leverage: 400:1
Tradable Assets: 200+ Max Leverage: 30:1, 600:1 Pro clients
Tradable Assets: 1,500+ Max Leverage: 30:1, 200:1 Pro clients
Tradable Assets: 1,000+ Max Leverage: 30:1 CySec, 500:1 ASIC, 888:1 IFSC
Tradable Assets: 250+ Max Leverage: 500:1
Tradable Assets: 180+ Max Leverage: 30:1, 500:1 Pro clients
Tradable Assets: 120+ Max Leverage: 30:1
Tradable Assets: 300+ Max Leverage: 30:1 EU clients, 1000:1 non-EU Pro clients