Capital is at risk. 80-90% of retail CFD accounts lose money.
Summary: The United Kingdom's Contract for Difference (CFD) trading environment is a robust and well-regulated space, closely monitored by the Financial Conduct Authority (FCA). With rigorous oversight, the FCA ensures that the CFD market in the UK operates with full transparency and security, accommodating a range of payment options like bank transfers, debit cards, and electronic wallets like PayPal.
To assist you in navigating the UK's CFD trading landscape, our financial experts have carefully reviewed and ranked the top five CFD brokers. These platforms excel in user-friendliness, diverse asset offerings, and reliable performance. Each is vetted to guide you towards success in the dynamic UK CFD market.
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Best CFD Brokers in the UK
In our mission to highlight the UK's top CFD brokers, we've crafted a detailed evaluation process focusing on each broker's strengths and weaknesses. Our approach considers key factors such as FCA compliance, the variety of CFD assets, user interface, GBP deposit options, and fee structures. Read on for a concise review of the top five UK CFD brokers who excel in these critical areas, setting the bar for reliability and functionality.
In the competitive landscape of CFD trading in the UK, eToro emerges as the premier choice, offering an expansive asset portfolio that includes currencies, commodities, and market indices. What sets eToro apart are innovative features like its CopyTrader™ system, enabling traders to emulate successful strategies in real-time, as well as a £100,000 demo account for a risk-free trading experience. These tools are particularly beneficial for traders keen on mastering complex strategies like leverage and short selling.
Beyond standard asset classes, eToro stands out with a wide array of trading options, complemented by competitive low spreads that begin at just 1 pip for major currency pairs like GBP/USD and USD/JPY. The platform further enhances traders' confidence through robust risk management tools that include real-time alerts and customizable stop-loss settings. With its multifaceted features and stellar customer support, eToro offers a comprehensive and user-friendly trading experience tailor-made for the UK market.
- Fees: Spreads as low as 0.15% with no initial trading commissions. Additional fees may be applicable.
- Assets: Over 3,000 choices, including stocks, ETFs, commodities like gold and oil, currencies, and other market indices.
- Regulation: Strictly regulated by the Financial Conduct Authority (FCA) and other tier-1 financial authorities.
- GBP Deposit Methods: Options include Bank Transfer, Debit Cards, Credit Cards and digital wallets like PayPal.
2. Trading 212
Trading 212 stands out as the second-best platform and a formidable option for CFD trading in the UK, offering the ability to trade both long and short with leverage across a wide range of asset classes, including stocks, forex, and indices. For stock enthusiasts, the platform allows trading on many popular names like Tesla, GameStop, and AMC.
When it comes to market indices, traders can speculate on globally recognized ones like the S&P 500, Dow Jones, and FTSE 100. Commodities are not left out, as Trading 212 features precious metals, oils, and specialized agricultural goods like lumber and cattle. Forex traders will find an extensive selection of more than 180 currency pairs, available for trading around the clock, 24/5.
- Fees: Zero commissions and variable spreads that average at 1%.
- Assets: Extensive range, including thousands of stocks, major indices, a variety of commodities, and over 180 forex pairs.
- Regulation: Licensed by the Financial Conduct Authority in the UK under the trading name Trading 212 Markets Ltd.
- GBP Deposit Methods: Bank Transfer, Debit Card and Credit Card.
Holding a significant position as a top CFD trading platform in the United Kingdom, AvaTrade is renowned for its feature-rich platform catering to traders of all experience levels. The broker is regulated stringently, providing traders with the flexibility to navigate over 1,250 assets via advanced platforms like MT4/MT5 and WebTrader. A standout feature is its provision for leveraged trading, amplifying market exposure and increasing risk.
AvaTrade has been instrumental in democratizing CFD trading, enabling both long and short positions across diverse markets. The platform boasts tight spreads, particularly advantageous in fluid markets, along with a dependable contract rollover system. Supplementary offerings such as an extensive library of educational resources and hedging capabilities make it an attractive choice for those seeking a holistic yet user-centric trading experience.
- Fees: No commissions, with variable spreads averaging around 1.2%.
- Assets: Broad range, including over 1,250 stocks, ETFs, forex, commodities, and more.
- Regulation: Overseen by regulatory authorities like the Central Bank of Ireland, the FCA and ASIC.
- GBP Deposit Methods: Options include bank transfers, debit cards, and e-wallets like Skrill and Neteller.
As a FTSE 250 company listing on the London Stock Exchange, Plus500 is a testament to reliability in the UK's CFD trading landscape. With a global user base exceeding 25 million and an impressive traded value surpassing $800 billion since its inception, the platform undeniably merits its spot among the top CFD brokers in the UK. Plus500 offers an extensive selection of CFDs across various in-demand financial instruments, complemented by fast and trustworthy order execution.
The platform sets itself apart by waiving commissions and offering tight spreads, making it an attractive choice for cost-conscious traders. Leveraging opportunities are abundant, with a ratio of up to 1:30 available, enhanced by real-time market quotes. A unique feature, '+INSIGHTS,' provides exclusive data analytics and crowd-sourced market sentiment, empowering traders to fine-tune their investment strategies.
- Fees: Absolutely no commissions and competitive spreads (1%).
- Assets: A robust offering of over 2800 instruments, covering diverse markets like stocks, commodities, forex, and indices.
- Regulation: Under the oversight of leading the Financial Conduct Authority (FCA) and other tier-1 regulators.
- GBP Deposit Methods: Multiple options including Visa, MasterCard, PayPal, bank transfers, Skrill, and Apple Pay.
Established in 1974, IG rounds out our list of top CFD brokers in the UK, offering an expansive reach into more than 17,000 markets. From forex to commodities, the platform accommodates traders looking to capitalize on market volatility. With competitive spreads that start as low as 0.6 points for vital forex pairs, along with robust risk management options such as stop and limit orders, IG stands as a dependable trading platform.
The platform’s dedication to trader education is exemplary. Through its IG Academy, it offers complimentary courses and boasts a 24/7 customer support team. For traders who are keen on continuous learning and growth, IG’s custom price alerts and extensive educational content make it an ideal choice. The platform further enhances its appeal with intuitive web and mobile interfaces that enable seamless trading on-the-go.
- Fees: Pricing varies based on trading volume and the specific asset involved.
- Assets: An impressive range of over 17,000 markets, encompassing various sectors, including bonds and treasuries.
- Regulation: Overseen by the Financial Conduct Authority (FCA) and other top-tier financial regulators.
- GBP Deposit Methods: A diverse array of options, including bank transfers, debit cards, and other region-specific methods.
What are the CFD Trading Fees?
Understanding the fee structure in CFD (Contract for Difference) trading is crucial for effective cost management and profit optimization. Different types of fees can affect your bottom line, so it's vital to be familiar with them. Here’s a breakdown of the most common types of fees you might encounter:
- Spreads: Spreads are the gap between the buying and selling price of the asset you're trading. Low spreads reduce trading costs, especially for high-volume traders.
- Commissions: Commissions may be charged as a fixed amount or a percentage of the trade value. Check if your broker charges these, as they affect overall trading costs.
- Overnight Financing: If you hold a position open overnight, you may incur overnight financing charges, also called swap rates or rollover fees. These can accumulate over time, so consider them when holding extended positions.
- Account Maintenance Fees: Some brokers may charge for account inactivity or use of premium services. Always read the fine print to avoid surprises.
Being aware of these fees is crucial for financial planning in CFD trading. Review your chosen broker's fee structure to manage costs effectively and maximize returns.
Who Regulates CFDs in the United Kingdom?
In the United Kingdom, the chief regulatory authority for Contracts for Differences (CFDs) is the Financial Conduct Authority (FCA). Operating independently, the FCA aims to safeguard the integrity of the UK's financial markets, protect consumers, and promote competition. By doing so, it helps maintain a stable financial system within the country.
The FCA sets the guidelines and rules that CFD brokers must adhere to, ensuring a secure and transparent trading environment. For traders based in the UK, selecting a CFD broker registered with the FCA is strongly recommended. This registration offers protection against fraud and ensures that the broker operates under stringent standards.
In the quest for success within the UK's CFD trading landscape, choosing the right broker is crucial. Our comprehensive ranking, based on stringent criteria such as FCA compliance and asset diversity, highlights eToro, Trading 212, AvaTrade, Plus500, and IG as top platforms. These brokers offer a balance of reliability, expansive asset options, and user-friendly experiences, equipping you with the tools needed for a successful trading journey.