CFD
5 “Best” CFD Brokers (September 2023)
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Trading in CFDs (Contracts for Difference) allows you huge flexibility in terms of how you wish to trade. This derivative type allows you to buy or sell a contract on the underlying asset without ever taking physical ownership. As a trader, this means you can potentially profit even if the price of an asset falls.
We have conducted extensive research and selected the top 5 CFD brokers that offer a safe and regulated environment for investors to choose from.
1. eToro
eToro is one of most popular trading platforms in the world with over 20 million registered users. They offer low fees and minimum deposits, combined with a user-friendly platform.
eToro platform gives traders and investors access to more than 3,000 different financial assets, including stocks, cryptocurrencies, ETFs, indices, currencies (forex) and commodities which can be invested in both with and without leverage, giving almost anyone access to short-, mid- and long-term investment options.
Enjoy spreads from as low as 1 pip, and access leverage and diversify with 40+ global currency pairs. They offer unique trading tools such as stop loss, short (without leverage), price alerts, and pro charts.
Read our eToro Review or visit eToro to open your account.
Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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.
2. XM
XM was founded in 2009. They have been providing top-level service to traders in the forex market and beyond since that time. XM is also one of the most comprehensively well-regulated brokers in the industry with top-tier regulation in place from multiple respected bodies including CySEC in Europe, and ASIC in Australia.
XM offers a huge range of CFDs for you to choose from. Every asset they make available for trading is tradable as a CFD. In total there are more than 1,200 CFDs available for trading with the broker.
The categories of assets that you will have at your disposal here include a total of 57 forex currency pairs if you are into forex trading as well as CFDs in more than a dozen commodity markets including gold, silver, and other precious metals trading. More than 30 global indices can also be traded as CFDs though the huge bulk of assets on offer comes from the more than 1,000 global stock trading CFDs that you can choose from.
This huge CFD offering is just one area in which XM excels as a top broker choice. Read our full XM review to find out more.
Warning: Trading Forex and Leveraged Financial Instruments involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Trading non-leveraged products such as stocks also involves risk as the value of a stock can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.
3. AvaTrade
AvaTrade is another top forex broker that has been around the industry for many years. They started in 2006 and are headquartered in Ireland but have since expanded to become a top global CFD broker.
Particularly if you are into forex trading then AvaTrade makes perfects sense for you. Here there are more than 60 major, minor, and exotic currency pairs to choose from, all traded as CFDs. You will also find a great range of choice in trading commodities as CFDs including metals and energies.
ETFs in several categories including emerging markets ETFs can also be traded through AvaTrade as well as CFDs on 20 of the major indices from countries around the world. Japanese and Euro bond markets are also available to be traded as are more than 100 stock CFDs from major companies listed across the globe. More than a dozen crypto CFDs are also available on all the major cryptocurrencies including Bitcoin, Ethereum, and Ripple.
AvaTrade has a hugely diverse offering of CFDs to suit all your needs. Check out these and much more in our full AvaTrade review.
Warning: Trading Forex/CFD & Options on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite.
4. Pepperstone
Pepperstone makes the list as one of the best forex and CFD brokers thanks to more than 10 years in the industry prioritizing traders through their transparent, good value broker services. Well-regulated by the FCA in the UK, and others around the world, the broker has become a popular choice for many types of traders.
Through their proprietary and easy to use trading platform which is also available on mobile, you can engage in trading CFDs, Spread Betting, and more on all of the assets they have to offer. As a copy trader though they they are powered by Zulutrade enabling you to fully take advantage of copying other traders.
You can also always take a look at our Pepperstone review for an in-depth rundown on everything this top forex broker choice has to offer or visit Pepperstone .
Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% 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. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.
5. BDSwiss
BDSwiss is our next choice as one of the top CFD brokers you can choose to trade with. They have also been around the industry for almost a decade since starting in 2012. Here you will find not only one of the best CFD brokers but also one that is extremely well-regulated around the world by CySEC and a number of other top bodies.
There are more than 200 CFDs to trade in at BDSwiss. This number includes over 50 forex currency pairs which is an impressive selection for any broker. Commodities such as gold, and silver as well as oil and natural gas CFDs can also be found here. 10 major indices from around the world as well as more than 20 cryptoassets are also available from BD Swiss. Their largest selection of CFDs though comes from stocks. With well over 100 major stocks to choose from, there should be something for everyone.
BDSwiss is a very strong competitor in the industry when it comes to CFD brokers. You can find out more about what else they have to offer by taking a look at our in-depth BDSwiss review.
Warning: Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose.
