CFD Brokers & Platforms – Top CFD Brokers in 2024
When it comes to choosing the best CFD brokers and platforms, it can be difficult to pick from the almost overwhelming list. Fortunately, this CFD brokers guide will detail the most important considerations, including market access, swing trading platforms, payment methods, fees and regulation. We have also compiled a list ranking the top CFD platforms directly below.
CFD Brokers for United States
How to Compare CFD Brokers
Markets & Assets
CFDs are available on a range of popular financial markets. Forex, stocks, indices, commodities and cryptocurrencies are all available with contracts for difference at online brokers. The largest firms offer a variety of assets that cover most of these categories, though some may specialise in certain markets. Ensure that a broker offers CFDs in the areas that you wish to speculate on before opening a live account.
Forex
CFDs are a popular medium for forex speculation, with many platforms specialising in FX trading. The best international CFD brokers will offer all seven major currency pairs with competitive spreads. The significant differences will likely lie with minor and exotic pairs, both in terms of asset range and pricing.
Commodities
Individuals have been speculating on the price of commodities for thousands of years. Importantly, using derivatives like CFDs allows retail traders to invest without needing to take delivery of thousands of barrels of crude oil, for example.
CFD brokers usually provide assets on the futures markets for London and New York precious metal exchanges, as well as crude oil and natural gas. However, a number of UK, European and international firms are expanding their ranges to include soft commodities like cotton and orange juice, semi-precious metals plus other energy products.
Shares
Perhaps the most well-known asset class, no brokerage is complete without offering some range of stocks and shares products. CFDs on equities allow speculation on global stock markets at low cost over short periods.
The best CFD brokers for shares provide access to a range of companies from the US, UK, Europe, Asia and Australia. Some platforms may also offer a narrower range of stocks but at better prices.
Indices
The top CFD brokers also tend to offer contracts on major global indices, such as the S&P 500, FTSE 100 and Nikkei 225. These allow you to speculate on entire economies, industry sectors and even market measurements, such as the volatility VIX 75 index.
Cryptocurrencies
Crypto is one of the fastest-growing areas of financial speculation, with people trading billions of dollars each day. As a result, many CFD brokers have begun adopting and offering access to popular tokens like Bitcoin, Ethereum and Cardano. However, the range of digital currencies available at most CFD providers is still relatively narrow, with platforms often focussing on major coins versus newer, emerging tokens that could offer profit potential for switched-on swing traders.
It’s also worth remembering that regulations in certain jurisdictions, such as the UK, prevent the sale of crypto CFDs to retail clients.
Market Access
Not all CFD brokers offer market access via the same mechanisms. Consider which of the models outlined below will best suit your investment objectives and swing trading strategies.
Dealing Desk Brokers
Commonly referred to as market makers, dealing desk brokers fill their clients’ orders, presenting their own bid and ask prices. Generally, these firms make money from the spread between the two values, though some predatory organisations may alter the presented prices from the market levels to reduce client success and profit from your losses.
Importantly, CFD market makers can be advantageous for swing trading in exotic, low-volume markets that have an inherent lack of liquidity.
Direct Market Access (DMA) Brokers
Non-dealing desk CFD brokers typically employ either an STP or ECN model, providing traders with direct access to pricing from liquidity pools and financial institutions. Several of the biggest DMA brokers offer separate STP and ECN accounts or even a hybrid system that takes the best elements from each.
These CFD brokers benefit from profitable client trading, where dealing desk firms often make money from client losses.
STP Brokers
Similar to market makers, STP brokers typically mark up spreads to generate profits. However, these brokers act as middlemen rather than resellers, connecting traders directly with liquidity pools and interbank market institutions without human intervention. The benefit of STP brokers is usually a zero-commission policy.
ECN Brokers
With ECN CFD brokers, traders are connected directly to an electronic communication network with no spread markup. This allows traders to purchase contracts at the raw prices offered by other traders and institutions in the network. Brokerages will often levy a commission to earn money.
Fees, Spreads & Commissions
Minimising trading fees is often a priority when selecting an online broker. CFD brokerage charges typically take the form of spreads or commissions, depending on the method of market access.
Fortunately, with increasing competition among CFD providers, many of the top firms have abolished account charges and non-trading fees altogether. These include deposit and withdrawal charges, inactivity fees, platform costs and currency conversion charges. With that said, some global CFD brokers still incorporate some additional charges.
Overnight swap fees should be a major consideration when comparing CFD brokers for swing trading. Platforms often charge financing interest fees for positions held open overnight while markets are closed. The standard pricing system is a daily interest calculation that includes the LIBOR interest rate in the UK, for example.
Trading Platforms
While a broker can have great spreads and a variety of assets, if the trading platform is unresponsive, unintuitive or prone to crashes, profits could be compromised. CFD trading platforms tend to vary in terms of charting tools, accessibility and automation capabilities.
Both proprietary platforms and third-party applications such as MetaTrader 4 (MT4), MetaTrader 5 (MT5) and ProTrader are common at the top CFD brokers in 2024. You may prefer the familiarity of the industry-standard MT4 and MT5 platforms, while others might find the bespoke offerings from some brokers more intuitive, useful or effective.
MetaTrader 5
Note, using a free demo account is a great way to test a platform before committing to a broker.
Margin & Leverage
One major benefit of CFDs is the ability to use leverage. This means that you can open positions greater than you have the capital for, making larger profits or losses from price movements.
Many CFD brokers compete by offering significant leverage rates, even up to 1:2000. Unfortunately though, leverage brings added risk and several regulatory agencies, such as those in the EU and UK, impose limits on the rates that retail traders can access, typically 1:30.
Regulation & Safety
Whether you are looking for the best CFD brokers in Nigeria, Japan, Hong Kong, Germany, Dubai, New Zealand, Canada or the UAE, one of the most important considerations is safety. This refers to the security of your funds and personal information plus the fairness of the services you receive.
One of the best ways to limit your risk is to stick to brokers that operate under the oversight of trusted regulatory bodies. Almost all countries have financial agencies that license and oversee the CFD platforms operating in their respective regions. With that said, not all financial watchdogs are created equal and some apply more stringent measures than others. The UK’s FCA, America’s SEC & FINRA, Cyprus’ CySEC and Australia’s ASIC, sit amongst the most reputable agencies.
It is also worth looking out for CFD trading accounts with features like segregated client funds, negative balance protection, traffic encryption, two-factor authentication (2FA) and a wide range of payment methods. These are all good signs of a reliable and trustworthy CFD provider.
Payments
CFD brokers can offer a variety of deposit and withdrawal methods. The most common options include bank wire transfers and debit/credit card payments. Electronic methods are also becoming more popular, with lots of firms accepting e-wallets like Skrill, Neteller, PayPal and POLi.
Regional factors may influence the payment solutions that a broker offers, with some systems limited in certain countries. Additionally, international bank transfers and any currency conversions will generally incur additional costs.
It is also worth considering the limits on minimum deposits and free monthly transactions some CFD brokers enforce. This will help ensure that your funds remain liquid and that you don’t miss trading opportunities.
Additional Features
Demo Account
Many CFD brokers offer free paper trading accounts. These solutions are funded with digital capital and operate in a risk-free, simulated trading environment. These are great to test a broker, explore new markets or trial swing trading strategies. You can then upgrade to a real-money account when you feel ready.
Educational Content
It can also be useful to explore the educational resources that CFD platforms offer, especially as a beginner. This is how many of the better firms differentiate their offering, providing a range of articles, guides, books, PDFs, videos, tutorials and webinars, exploring anything from what a CFD is through to advanced multi-asset risk management principles.
Islamic Account
Many international CFD brokers offer specific Islamic accounts that abide by Sharia law. These remove overnight swaps and interest charges. Of course, the broker’s revenue may be made up for with added commissions, spread markups or account management fees.
Bonuses & Promotions
Many of the largest CFD brokers use promotions to incentivise new clients. These can take the form of a no deposit bonus, a deposit match bonus or an alternative welcome promo. Some brokerages run demo competitions and trading tournaments, offering real cash prizes or trading credits to the winners. You may also come across incentive programs that reward active traders with lower fees and commissions.
Importantly, always read bonus terms and conditions before signing up as some offers come with strict wagering requirements before you can withdraw funds, for example.
Note, not all countries and regulatory agencies allow CFD brokers to offer retail trading bonuses and financial incentives. Instead, they require that firms distinguish themselves through more competitive features and services.
Final Thoughts on Choosing CFD Brokers
Finding the best CFD broker will depend on individual requirements. But while each trader has different goals, strategies and limitations, the most important factors are generally asset range, trading tools, safety, pricing and leverage. Of course, these do not always go hand in hand. For example, the most competitive leverage rates often come with a lack of robust regulation.
If you want to get started today, see our list of the top ten recommended CFD brokers.
FAQ
Are There Any CFD Brokers That Accept US Citizens?
Unfortunately, the USA does not allow the sale of CFDs to retail clients. However, German, Swiss, UK and most other international traders can open accounts with popular online CFD providers.
Are Regulated CFD Brokers Better?
CFD brokers that operate under oversight from regulatory authorities are often more trustworthy and transparent. Some firms take advantage of regulatory freedom to offer high-risk, high-reward services like substantial leverage rates or exotic instruments.
What Are The Best CFD Brokers For Shares?
There is no one-size-fits-all for CFD brokers offering stocks and shares products. The best option will likely provide access to the companies that you are interested in at the lowest price point for your strategy. These could be mid-cap US stocks or large-cap Australian shares.
How Do CFD Brokers Make Money?
Most CFD providers make money by marking up spreads or charging commissions on trades. Other avenues for revenue include transaction charges, overnight swaps and platform fees. Do a review and comparison of trading and non-trading fees before registering for a live account. Also be wary of companies that don’t publish a transparent pricing schedule on their website.
What Is A CFD Prime Broker?
A CFD prime broker is a financial institution or bank that can deal with significant trades, often from hedge funds or large companies. These brokerages will have access to high amounts of capital and provide extensive leverage rates, hedging and risk management solutions.