6 Best CFD Brokers in the UK for Beginners 2024

The UK is the leading market for CFD trading, which primarily involves speculating on the future direction of an asset’s price. This type of derivative product allows traders to engage with the price movement of various assets—including stocks, commodities, forex, and cryptocurrencies—without actually owning them outright.

To make the most out of CFD trading, selecting a reliable broker is key. A good CFD broker provides global market access, leverage, fast trade execution, advanced tools, and security, all of which contribute to an enriching and profitable trading experience. In this article, we’ll help you find the best platform to trade CFDs and share the best practices you should follow. Let’s get started!

Best CFD Brokers UK Reviewed

Now, let’s explore each of these UK CFD brokers in detail to help you make a more informed decision.

1. XTB – Overall Best CFD Broker in the UK

This leading European CFD trading platform, with nearly two decades of experience, is regulated by the UK’s Financial Conduct Authority, KNF, CySEC, and FSC. As one of the largest stock exchange-listed CFD brokers in the world, XTB is recognized as one of the best CFD brokers UK, offering retail traders instant access to hundreds of global markets covering forex, indices, crypto, commodities, stocks, and ETFs. In total, XTB boasts over 5,800 trading instruments. 

For trading, XTB offers its award-winning xStation 5, which is pretty easy to use for both beginners and experienced traders. The platform is available as a desktop and mobile app and is fully compatible with popular browser extensions, such as Chrome, Firefox, Safari, and Opera. xStation 5 also offers total trade transparency, real-time market commentary, live performance statistics, and a comprehensive charting package.

At XTB, account opening is free, and there is no minimum balance requirement. Deposits are free of charge, allowing you to begin trading with any amount that suits you. Withdrawals, too, will incur no fees as long as they exceed £60.

XTB does not charge any commissions and offers competitive spreads starting from 0.5 points. The platform also provides swap-free accounts for certain trading instruments.

In terms of inactivity fees, it imposes £10 monthly if there are no trades on your account for more than 12 months and no cash deposits within the previous 90 days. However, this fee ceases as soon as you resume trading. 

Deposits at XTB can be made using cards, bank transfers, and online payments, including Skrill and Neteller. Withdrawals, meanwhile, are only supported via bank account and are processed within the same or the next business day. 

To offer its clients the best possible trading experience, XTB is constantly improving its trading application and providing 24/5 customer support via live chat, phone, and email. The platform also offers an extensive range of educational materials, including videos, webinars, market analyses, calendars, and courses, along with a demo account for practice.

76% of retail CFD accounts lose money.

2. AvaTrade – One of the UK’s Most Advanced CFD Brokers, Offering Fixed Spreads and Automation 

Founded in 2006, AvaTrade is a regulated broker that enables UK traders to access 1250+ instruments in forex, stocks, commodities, bonds, cryptos, and indices. Trading is supported via desktop, tablet, mobile, and web with MT 4 & 5 and AvaTradeGO, positioning it among the Best CFD trading platforms UK. Clients can also choose from a variety of automated trading platforms, including ZuluTrade.

AvaTrade offers a range of automated trading platforms and EA compatibility, as well as fixed and competitive spread accounts. For tools, you can use a calculator to determine margin, pip, swap, and profit/loss. 

The exclusive AvaProtect risk management tool offers a unique feature that allows traders to recover funds from losing trades. Additionally, trading signals, market insights and intelligence, economic calendars, and earning releases are available to aid trading decisions. 

AvaTrade’s fee structure is designed to accommodate both active and less active traders. For inactive accounts, AvaTrade imposes a £50 fee for every three months of non-use, escalating to a £100 annual administration fee after 12 months of inactivity. 

Trading fees are competitive with no exchange fees and tight spreads on open positions. Regarding transactional fees, AvaTrade does not charge for deposits or withdrawals; however, the withdrawal process can take 24-48 hours once an account is verified. 

The minimum deposit required to open an account is £100, and it applies to both credit card and wire transfer methods.

 Customer support is available 24/7 in 14 languages through email, phone, live chat, and social media. With a minimum deposit of $1,000, traders are assigned a dedicated Account Manager to assist with the platform, trading, and markets. For educational purposes, AvaTrade provides free videos, articles, e-books, daily market analysis, and webinars in several languages.

3. FP Markets – A Premier UK CFD Broker Offering Diverse Platform Choices

At FP Markets, you can access global markets 24/5 and trade a wide range of instruments, including forex, indices, shares, commodities, metals, digital currencies, bonds, and ETFs via your mobile apps. However, the most attractive feature of FP Markets is the variety of available trading platforms, such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5), TradingView, IRESS, cTrader, and WebTrader.

With almost two decades of experience in the market, this regulated CFD broker ensures fast execution through Equinix servers. Features include advanced trading, copy trading, scalping, auto-trading, and Virtual Private Servers (VPS) solutions for Expert Advisors (EAs), 

FP Markets offers two account types: Standard, where your spread starts from 1.0 pips and involves zero commission, and Raw, where the spread starts from 0.0 pips but involves $3 per side commission. Both accounts support 500:1 leverage.

In terms of fees, FP Markets does not charge anything for deposits or withdrawals. However, clients should be aware that intermediary banks may impose fees for international transfers. Additionally, FP Markets does not impose dormancy or inactivity fees.

The broker stands out for its wide funding options, which cover everything from bank transfer to debit/credit cards, Neteller, Skrill, Stickpay, Rapid, Broker to Broker, Apple Pay, and Google Pay. Crypto deposits, meanwhile, are supported via LetKnowPay, B2Binpay, Coinspaid, and Finrax.

In terms of educational resources, FP Markets offers trading courses, webinars, podcasts, events, video tutorials, eBooks, a glossary, and a newsletter. Its Traders Hub provides trading knowledge, technical and fundamental analysis, an economic calendar, and a forex calculator. Additionally, the platform features a 30-day free demo and 24/7 multilingual customer support through phone, email, live chat, callback request form, and personal account managers.

4. Pepperstone – Top UK CFD Broker for Low Spreads and Flexible Trading

At Pepperstone, you can trade CFDs on forex, commodities, indices, cryptocurrencies, shares, and ETFs, along with CFD Forwards, which derive their pricing from the front-month futures contract. 

Some of the things that traders can enjoy at Pepperstone include high leverage up to 30:1 in the UK, no minimum account opening balance, scalping, hedging, and expert advisors on all account types.

Widely acclaimed as one of the best regulated CFD brokers UK as well as a popular commodities broker UK, Pepperstone offers two account types: Standard and Razor. The main difference lies in the supported trading platforms; Standard accounts use cTrader/MetaTrader 4 and 5, while Razor also has access to TradingView.  

Also, in both accounts, fees are primarily based on spreads rather than commissions, which is particularly beneficial for forex and CFD trading. As for account maintenance or inactivity fees, Pepperstone charges none. 

Spreads at Pepperstone vary by asset, ranging from as low as 0.5 to as high as 8. Commissions, meanwhile, are only charged on Razor accounts when trading CFDs on Forex, but raw spreads start from 0.

Funding options include Visa, Mastercard, bank transfer, PayPal, Neteller, Skrill, Union Pay, and USDT. Withdrawals, however, can only be made to a bank account in the same name as your Pepperstone trading account. 

Trading guides and webinars, meanwhile, are the only available educational materials. Market analysis is provided via Navigating Markets, The Daily Fix, charts, economic calendar, and weekly debate “The Trade Off.” As for customer service, it is provided through email, phone, and live chat.

75.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

5. PrimeXBT – A Rapidly Growing UK CFD Broker with Extensive Market Access and Low Fees

This best platform for CFD trading, PrimeXBT, provides access to 100+ CFD markets, including crypto, forex, indices, and commodities, all from a single account. In addition to CFDs, PrimeXBT also offers copy trading and the ability to buy cryptocurrency. These features are available on both the PrimeXBT App and the PrimeXBT WebTrader.

Although PrimeXBT is a relatively new platform—only about six years old—it has attracted over a million users so far and caters to over 150 countries. This rapid expansion can be attributed to its zero fees, spreads starting from 0.1, and 24/7 support accessible via email or live chat. 

However, PrimeXBT’s tools are somewhat limited to price charts and economic calendars. Its educational offering is also somewhat underwhelming compared to its competitors. As for fees, crypto trades incur a 0.05% trading fee, while overnight fees, starting from 0.0017%, apply to all products.

Opening an account is free and can be completed in under two minutes, and there are no charges for account maintenance or demo accounts, allowing users to test strategies risk-free. For trading activities, PrimeXBT boasts zero commission fees and offers low spreads starting from 0.1 pips.

When it comes to deposits and withdrawals, the platform requires a minimum deposit of just $1 and does not charge any fees for depositing funds. However, withdrawal fees may start from $0.5, depending on the chosen vendor or blockchain.

Deposits can be made through e-wallets and bank cards. Withdrawals, on the other hand, are restricted to the payment methods used for deposits and are facilitated through Volet, Perfect Money, and Bank Cards.

6. Trade Nation – A Trusted UK CFD Broker with Fixed Spreads and Comprehensive Trading Tools

One of the leading FCA-regulated UK CFD trading platforms, Trade Nation, was established a decade ago. It specializes in CFD trading across forex, indices, equities, and commodities, offering narrow fixed spreads that remain consistent under various market conditions. The broker also offers negative balance protection, although this does not extend to professional traders.

Trade Nation features a web-based proprietary platform, TN Trader, which allows users to trade their favorite markets with zero commission. In addition to the spread trade on the proprietary platform, users can also engage in CFD trading on MT4. When it comes to tools, Trade Nation offers charts, drawing tools, and a wide range of indicators to identify opportunities and strategize accordingly. TradeCopier is Trade Nation’s copy trading app, and signalDP serves as its proprietary signal monitoring and distribution platform, with plans to integrate TradingView soon.

The platform’s Insights Hub covers trading-related topics, including technical analysis, fundamental analysis, and trading times. It also offers a curated news feed, daily esports, and updates on the most heavily traded shares. Customer support, meanwhile, is provided via email, phone, live chat, and a FAQ section.

Comparing the Top CFD Brokers in the UK

Here’s a clear and concise view of how each of these top CFD brokers UK fare against each other:

What are CFDs?

CFD or ​​a contract for difference (CFD) pays the difference between the opening and closing price of a trade.

This financial derivative product allows traders and investors to benefit from price changes without actually owning the underlying asset, eliminating the need for physical delivery of goods or securities. Additionally, the value of a CFD is determined by the price change between the entry and exit of a trade, not the asset’s actual value. This is achieved through a contract between the broker and the client. 

Over the past decade, the popularity of CFDs has grown significantly due to their ability to offer a tax-efficient way to gain exposure to an asset’s price movements and speculate on the financial markets in the UK. 

As an advanced trading strategy, experienced traders use CFDs to bet on whether the price of the underlying asset will go up or down. Besides the flexibility to go both long or short, CFDs can be traded on leverage, which means enhanced market exposure for a small deposit. This leverage allows for greater market exposure from a smaller initial deposit, effectively boosting both potential gains and potential losses. 

CFDs are legal to trade in many parts of the world, including the UK, Switzerland, Singapore, Germany, France, Spain, Thailand, South Africa, Canada, Australia, New Zealand, and more. Meanwhile, countries like the US prohibit CFD trading.

While CFDs have substantial benefits, they also carry risks, such as paying the spread on entries and exits, potential lack of liquidity, counterparty risk, market risk, maintaining adequate margins, overnight fees, and weak industry regulation. This makes it extremely important to pick the right CFD broker.

How to Choose the Right CFD Broker To Suit Your Needs

Selecting the right CFD broker is critical to successful trading, but how can you find one that suits your needs, expertise, and trading style among the various UK CFD trading platforms? To make this decision easy for you, we have outlined key factors that you should consider.

Regulation & Safety

While not a highly regulated industry, choosing a regulated broker is essential to having a secure trading experience. It not only gives you peace of mind but also provides you with an option to pursue legal means in case of wrongdoing, such as manipulation and fraud by the platform.

In the UK, the Financial Conduct Authority (FCA) requires adherence to stringent standards. Following the guidelines set by a reputable financial authority like the FCA ensures that the broker operates within legal boundaries and safeguards your investments.

Moreover, as a legal entity, a broker is required to segregate client funds from their operational funds, maintain transparency and fairness in pricing and execution, and follow strict privacy policies.

You must also look into the security measures taken by a broker. This includes SSL encryption to protect your personal and financial information, regular third-party audits, and implementing risk management tools.

Fees 

Fees are the costs charged by the broker and can add up quickly. Trading fees, which include commissions, spreads, and overnight financing charges, are crucial to consider when calculating trading costs.

Some brokers impose commissions on stocks, whereas commodities and other assets might not incur such fees. The spread, meanwhile, refers to the difference between the bid price and the price at the time of trade. 

There is also the financing charge, which is levied on leveraged positions held overnight. Traders pay an interest rate for each day they maintain their position. 

However, trading fees are not the only expenses to watch for; non-trading fees also significantly impact your costs. These can include charges to open an account, deposit and withdraw funds, and maintain account activity, all of which can eat into your profits. 

Choosing the best broker can make a massive difference here. After all, they offer competitive and transparent pricing, ensuring you are aware of all potential charges to avoid any surprises.

Tools & Analysis

Tools offered by a CFD broker are crucial in providing a successful trading experience. They allow traders to understand how markets interact, identify trends, and predict future developments. 

Some important tools include real-time quotes, charts, price alerts, trading signals, historical data, customizable dashboards, a margin calculator, social trading, and a demo account. Different order types like stop-loss and take-profit, along with leverage, can help you manage risk and maximize your potential profits. As for analysis, it can be of a portfolio, fundamental, volatility, sentiment, or technical nature. Market news, economic calendar, studies, statistics, and other educational resources meanwhile are other things you can look for in a broker.

The different types and volumes of analytical tools offered by a platform can really up your trading game by helping you time your market entries and exits and book profits.

Account Types

When selecting a CFD broker, it’s important to evaluate the types of trading accounts available and their respective features.

Most CFD brokers provide a variety of account types to suit different trader profiles. The most common is the simple standard account, which offers access to a wide range of financial instruments and usually has a low minimum deposit requirement. However, this minimum can vary between brokers. 

For those new to trading, there are accounts with smaller contract sizes, which help new traders learn the ropes and manage risk more effectively. For professional or high-volume traders, premium accounts are available that offer features such as low commissions or spreads, advanced trading tools, and a dedicated account manager, among other perks. Additionally, Islamic accounts that comply with Islamic law are available, prohibiting the earning or payment of interest. 

Moreover, many brokers offer demo accounts, where traders use virtual funds to practice, test their skills, and get a better idea of the broker before they risk their real hard-earned money. 

Leverage

Leverage is a key feature of CFD trading, offered by nearly all brokers, though the available levels of leverage can vary significantly. Some platforms provide very low levels, while others may offer extremely high leverage. Typically, these platforms assign different levels of leverage to retail and professional traders, with the lower levels generally available to retail traders.

CFDs are inherently high-risk instruments, and the use of leverage increases this risk. When using leverage, you have to put up a percentage of your position as margin, which essentially means borrowing funds. You have the flexibility to choose the amount of leverage based on the size of the trade you plan to execute.

While leverage is a great way to enhance profits, it also magnifies losses. So, it is important to be mindful of your risk appetite and use tools like stop-loss orders and take-profit orders to manage your risk and avoid losing all your capital.

Let’s say you’re trading an S&P 500 CFD with leverage of 1:30 and decide to invest £1,000. This leverage would allow you to control a position worth £30,000.  Now, suppose the S&P 500 index increases by 1%. The value of your £30,000 position would rise to £30,300, resulting in a profit of £300, minus any applicable fees or interest on the borrowed amount.

However, on the downside, if the S&P 500 declines by 1%, the value of the position would decrease to £29,700, reflecting a loss of £300. This loss represents 30% of your initial £1,000 investment.

Minimum Deposit

Some CFD brokers allow you to start trading with no initial deposit, while others may require $1,000 or more. Choosing an optimal CFD broker often involves selecting a platform that demands zero or low minimum deposit. This approach ensures you don’t have to commit a huge initial amount before you even have a chance to understand the market or the platform. 

A reasonably priced broker will have minimal funding requirements, making it accessible for smaller investors to enter the market and start trading. AvaTrade, for example, requires a minimum deposit of £100, whereas XTB and Pepperstone impose no minimum deposit requirements.

Payment Methods

Besides a low minimum, you should look into the methods the platform supports to fund accounts. Different payment methods offer varying transaction speeds and support for fiat currencies. The best CFD brokers support popular and reliable payment gateways to enhance efficiency and safety in the trading environment.

Acting as intermediaries between a trader and the complex financial system, most CFD brokerages provide a range of payment options, including e-wallets, credit cards, and wire transfers for both deposits and withdrawals, enabling seamless access to trading. 

Furthermore, it is crucial to look into any deposit and withdrawal restrictions, such as daily limits and fees that the broker imposes on its clients. Given the market’s volatility, fast transaction processing supported by CFD brokers is essential for enabling traders to smoothly capitalize on market opportunities. 

Mobile App

In today’s age, where everyone is using mobile phones, CFD brokers must support mobile devices and offer specialized apps that enable trading on the go. This allows you to trade anytime without being tethered to your computer.

So, you must choose a high-quality, user-friendly, and reliable trading platform available on both desktop and mobile. This way, you can choose according to your preference. However, merely having a mobile app isn’t sufficient. It should ensure trading efficiency and comfort, provide speedy order execution, and offer customization options to allow traders to tailor their trading experience to their specific needs.

Customer Service 

Last but not least, quick and efficient customer service is critical to a successful trading experience, especially for beginners. Considering your hard-earned money is at stake here, it’s essential to have your issues resolved with minimal complications. The support should also be available around the clock, regardless of the market trading hours or the trader’s time zones.

A CFD broker should offer a wide variety of channels, including phone, email, and live chat, allowing traders to reach out via the channel they are most comfortable with. However, quick responses across these channels aren’t enough; the support team must provide quality assistance that genuinely helps the customer. Additionally, individualized assistance, multilingual client service, and tailored advice further help investors navigate the financial markets with confidence.

Advanced Features for Experienced Traders

As you progress in your journey and gain more experience, you’ll want some advanced features to support your proficiency and help you improve.

• Algo trading is a cost-effective way of strategizing, automating, and making multiple trades daily.
• Advanced order types, such as One-Cancels-The-Other (OCO), trailing stops, and limit orders, are more refined and complex and trigger when certain conditions are met.
• Advanced charting software enables you to use data more effectively, make more precise decisions, and become better informed.
• Custom indicators and scripts enhance your trading strategy and execution while also allowing you to have better control over your trading activities.
• Negative balance protection ensures you can’t lose more money than what you have in your account.

In addition to these features, one-click trading, the ability to backtest strategies, integration with external tools like TradingView, support for high-frequency trading, and a dedicated account manager can be immensely helpful to experienced traders.

Common Mistakes to Look Out For When Selecting a CFD Broker

Now, let’s take a look at a few crucial factors to consider when choosing a CFD broker:

Overlooking regulation and security

For starters, never overlook the regulatory aspect of a platform. Given the popularity of CFD trading, fraudulent platforms may pose risks to your funds. It’s crucial to choose a broker that protects your rights, information, and privacy. Regulations ensure that the broker adheres to best practices, maintains sufficient funds separate from their accounts, and upholds fair trading practices.

Ignoring hidden fees

You also need to ensure that the platform does not charge any hidden fees, as these can accumulate and diminish your profits. A CFD broker may impose various fees, including spread, commission, overnight fees, inactivity fees, withdrawal fees, deposit fees, conversion fees, data feed fees, guaranteed stop loss fees, and trading platform fees. The specifics depend on the platform, so the fewer fees you have to pay, the better for you.

Not considering customer support

Customer service may not seem important until you run into an issue involving money, such as deposits, withdrawals, or trade execution. At that point, prompt and professional customer support becomes essential. Good customer support will ensure there’s always someone to assist you with any queries you may have in your language and through various means.

Finally, remember that the CFD market is very risky. It’s pretty easy to make common mistakes, such as overleveraging, becoming emotionally attached to your trades, and lacking a trading plan. Knowing how to avoid these pitfalls will significantly enhance your chances of success.

Our Methodology for Ranking the Best CFD Brokers UK

Our list of the best UK CFD brokers is based on in-depth analysis and robust data from trading platform providers. We thoroughly review each broker based on certain factors, including trading technology, costs, features, usability, account benefits, educational material, customer service, and security.

Our team of independent researchers and editors evaluated each product and its offerings to help our readers find the best CFD brokers in the UK, tailored to their individual needs and experiences.

Conclusion

Millions of people in the UK trade CFDs, attracted by the ability of this financial derivatives product to leverage their capital and trade a wide range of markets. These traders appreciate the flexibility to go both long or short and the potential to save on tax bills. With the vast majority of CFD traders being beginner or intermediate investors, it’s crucial to make an informed decision when selecting a broker to ensure efficient trading, maintain profitability, and safeguard your funds. 

Choosing the best CFD broker depends on several factors, including regulation, leverage, market access, fees, tools, payment methods, and customer support.  We recommend XTB, as it is the best platform for CFD trading.  The platform is beginner-friendly and feature-rich, offering the proprietary platform xStation 5, comprehensive trading tools, various funding methods, and the potential to earn high interest on uninvested funds.

76% of retail CFD accounts lose money.

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Gaurav Roy

Editor

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Gaurav Roy

Editor

Gaurav is a seasoned content specialist and researcher with over 5 years of remote work experience, engaging with clients across the US, UK, Australia, Israel, Germany, Netherlands, Canada, India, New Zealand, Singapore, and more. His expertise spans email outreach, in-depth research, and versatile content creation. He boasts over 600 research projects completed with AskWonder and has successfully led a team of research analysts for two years. He has a diverse portfolio, having supported companies like Casino Tops Online, Sweep Stakes Casino, PayGamble, Odds Scanner US, and Sambafoot UK, demonstrating his proficiency in the iGaming sector. He has contributed as a…

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