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68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

7 Best CFD Brokers in the UK [2022 Review]

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68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

The Top 7 CFD Brokers in the UK

When it comes to your money, you want it to be in reliable hands. Having introduced important aspects for you to consider, here is a summary guide to the top CFD brokers in the UK:

1. Plus500

Pros

  • Regulated by the Financial Conduct Authority
  • Over 2,500 significant financial instruments
  • Negative balance protection
  • 24/7 customer support

Cons

  • Not currently available to US clients
  • No API integrations
  • CFDs only
  • No social copy trading

Best for: Experienced traiders

With over 2,000 stocks, Plus500 is an easy-to-use platform with lots of educational material, a demo account and customer service 24/7.

There is a £100 minimum deposit but no fees for:

  • Deposits
  • Real-time quotes
  • Dynamic charts and graphs
  • Live share CFD prices
  • Opening and closing of trades
  • Rolling position

Plus500 uses its own platform that comes with an app.

Though Plus500 is very user-friendly, CFDs are 'complex financial products', thus the platform is not suitable for beginners/inexperienced traders.

It is regulated by the FCA and listed on the London Stock Exchange.

Visit Plus500

77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Pepperstone

Pros

  • Extensively regulated
  • No minimum deposit
  • Low fees and mostly free withdrawals
  • Good customer service

Cons

  • No investor protection for clients outside UK, EU and EEA
  • Withdrawal fee for clients outside EU and Australia
  • CFDs only

Best for: Tight spreads and low fees

Pepperstone requires no minimum deposit and offers low trading fees.

It offers fantastic market analysis and trading ideas.

While the educational tools are adequate, the news flow is basic.

Customer service is available via phone, email and live chat, and all queries are answered promptly.

It is regulated by the FCA, ASIC, CySEC, BaFin, DFSA, CMA, SCB.

Pepperstone uses MetaTrader 4, MetaTrader 5 and cTrader platforms. MetaTrader is considered one of the best CFD platforms.

It provides access to 25 major stock indices, more than 60 shared CFDs, 21 cryptocurrencies and 17 top commodities.

Visit Pepperstone

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.7% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

3. Vantage FX

Pros

  • Regulated by FCA and ASIC
  • Low forex fees
  • No inactivity fee
  • No withdrawal or deposit fee
  • Good MetaTrader add-ons
  • Social trading

Cons

  • Not available to US clients
  • High CFD fees
  • No investor protection

Vantage FX was founded in 2008 to be a transparent forex broker and has grown to include 44 forex pairs and 290 CFDs (including cryptocurrency, shares, commodities and indices).

As a broker, Vantage FX is well-regarded and considered safe thanks to regulation by ASIC and the FCA.

Vantage FX offers access to the markets through the popular MT4 and MT5 platforms, and a feature-stuffed mobile app.

There are three account types:

  • Standard STP. Perfect for novices, this is a no-commission account that works across all trading instruments, with a minimum spread of 1.4 pips. The minimum deposit is $200.
  • Raw ECN. Designed for more experienced traders, this account charges commission at $3 per lot per side but the spreads start at 0.0 pips. The minimum deposit is $500.
  • Pro ECN. This is for professional, high volume traders, and offers commission at $2 per lot per side, with spreads from 0.0 pips. The minimum deposit is $20,000.

Vantage FX is seen as a good, reliable broker that offers social and copy trading – without being prohibitively expensive in terms of non-trading costs or commission.

The CFDs offered by Vantage FX are largely based around blue chip companies in the EU, UK and US.

There are more than 70 EU/UK company shares available as CFDs, with a minimum trade of 10 Euros (For UK/EU Shares CFD) and a minimum trade commission of 6 USD (for US shares CFD), and these can be traded on the MetaTrader 5 platform.

VantageFX offers 1:20 leverage for all shares CFDs

There are more than 50 US companies available as share CFDs, which can be traded on MetaTrader 4 and 5.

Deposits are free, and withdrawals are too (for withdrawals to electronic wallets or credit/debit cards).

Visit Vantage FX

Trading Forex and CFDs involves significant risk of losing of your invested capital and is not suitable for all investors. 64.86% of retail investor accounts lose money when trading CFDs with this provider. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

4. XTB

Pros

  • Regulated by the FCA
  • Low forex fees
  • Fast withdrawal and deposit with no fee
  • Live chat customer service

Cons

  • No US clients
  • Limited product portfolio
  • High fees for stock CFDs

Best for: International trading

XTB is a trusted all-around broker, established in 2002. It is regulated by the FCA and listed on the Warsaw Stock Exchange.

There is no minimum deposit for opening an account.

XTB uses its xStation 5 platform, which offers good customisation, search functions and modern design.

As a platform, it has all the standard educational resources and research tools.

It has over 2,000 stocks, though all cryptocurrency trading is paused on weekends.

Overall, the only negatives of XTB are that its fundamental data is limited, and there are high fees for some CFD trades.

Visit XTB

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

5. City Index

Pros

  • Regulated by FCA
  • Low forex fees
  • Low minimum deposit
  • Good trading and research tools
  • Social and copy trading

Cons

  • No customer service during weekends
  • Inactivity fee
  • High commission for shares CFD trading

Best for: Spread betting

City Index is an award-winning broker that offers low forex and stock index CFD trading.

There is no minimum deposit for opening an account, but there are fees for non-activity on an account and as such, may not suit those looking to take long term positions.

Considered a leader in spread betting, it offers one point per share and competitive conditions for forex pairings.

It uses its own platform, as well as MetaTrader 4. There are excellent educational tools, including a demo account, and customer service is available via live chat and phone Monday to Friday.

City Index is listed on the stock exchange.

While the portfolio is limited, it is regulated by the UK's FCA and operates in over 8,000 markets.

Visit City Index

The Top 10 CFD Brokers in the UK
The Top 10 CFD Brokers in the UK

What Is a CFD Broker?

A CFD, or contract for difference, differs from stocks as you do not own any physical securities or goods.

They are cash-settled, which means the broker will pay out the difference between the opening and closing prices of an underlying stock (or other instrument) rather than delivering any physical goods.

They're designed to replicate the benefits of owning the underlying instrument, without having to actually own it.

CFDs only require a small deposit when opening a position (to cover potential losses), as opposed to having to pay in full for a share.

This means that CFDs can offer tremendous leverage, which can magnify gains and lossesAny short-term financial rewards may allow you to make bigger long-term investments.

It also gives the investor the ability to speculate the price of movement over a short-term, for stocks, commodities and forex.

CFD trading is an advanced trading strategy that is not allowed in the US.

The advantages of using a CFD broker are that:

  • As you are not classed as a full-time trader, any money you make from a CFD trade is tax-exempt
  • Any short-term financial rewards may allow you to make bigger long-term investments
  • You have the potential to take a position in a market and gain profit regardless of fall or rise

As trading involves your money, you need to make sure that you find a reputable broker that suits all your needs.

Key Points to Consider When Choosing a CFD Broker

So, what should you look for when choosing a CFD broker?

Is the Broker Regulated?

This is the most fundamental piece of information you need. As a UK trader, you want your broker to be regulated by the Financial Conduct Authority (FCA).

Other EU based authorities will also be governed by similar organizations, but as Brexit's full effect is still to take place, it is advisable to find one that is FCA regulated.

Being listed on the stock exchange is also desirable. It suggests that the broker is fully transparent with their financial records. These financials should also be made available for public viewing.

What Are the Trading Fees?

This is the commission charged by the broker when opening your position in the market. However, with many brokers to choose from, services are competitive and financial incentives, such as no minimum deposit or no transfer fees, are common.

While researching, calculate the fees involved in relation to the amount of money you will realistically be trading with. Demo accounts which allow you to trade without using real money should help you with this.

Tradeable Assets

How many and what assets does the broker hold? Are they strictly forex and CFD, or does its portfolio extend beyond that? Do you want a broker that excels in that area as well as providing you with long-term investment options?

The Trading Platform

A good trading platform can make a huge difference.

It should have educational material, research tools, be easy to use and to look at – especially if you are trading on your mobile phone.

How Good Is the Customer Service?

This is especially important while you familiarise yourself with the platform.

Some brokers offer 24/7 help, while some are closed on weekends. Are there certain days when you are more likely to need to support? Do you prefer a call centre or live chat?

Frequently Asked Questions

CFD is illegal in the USA because many of the products are not regulated as they pass through exchanges. This makes them very high risk.

Yes. Plus500 is a CFD broker which is listed on the London Stock Exchange

Yes, AvaTrade is a globally recognized and regulated forex and CFD broker.

More and more brokers are beginning to accept bitcoin deposits to their accounts. Some of the most popular options are:

Different brokers will have different fees. Some will allow for free deposits and withdrawals, others won’t. You should always compare all of the fees associated with a broker before choosing which one is best for your needs.

Any form of trading could be considered gambling and doesn’t come without inherent risks. There is always the potential to lose money and you should always be aware of this before choosing to invest. You should also be careful to never risk more money than you can afford to lose.

Yes, Pepperstone is one of the most widely known and trusted CFD brokers.

It is regulated by the appropriate financial bodies and operates in several countries around the world.

Some of the best NAS100 traders include:

The level of regulation for CFDs varies depending on where you are in the world.

Individual brokers should be regulated by the relevant financial authority for the country that they are operating in, but CFDs themselves aren’t always regulated.

In the UK, for example, CFDs are regulated by the Financial Conduct Authority. However, in the USA, CFDs aren’t allowed as they are unregulated.

Brokers like Plus500 and CityIndex all have professional trading accounts which can be applied for.

To gain access to one of them, you will need to make sure that you fulfill the criteria for that particular broker.

eToro is generally considered to be the broker with the largest number of pairs to trade.

Yes. CFDs don’t expire. You can hold them for as much or as little time as you want as long as you have the finances to maintain your position.

Most people will choose to hold CFDs for less than six weeks, however, after this point, the charges tend to increase.

Final Thoughts

As an experienced trader, you will know what you want from a broker, but for someone new to the industry, the choices available to you can be overwhelming.

Before deciding on a CFD broker, take advantage of any trials or demo accounts so you can get a full feel for the platform. The key points to remember are:

  1. It is regulated
  2. It is transparent with fees and offers good value
  3. It has an excellent trading platform

If you are considering trading as a career or hobby, find a trading course that suits you in our article on the best day trading courses.

WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal capital.

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.


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