Best CFD Brokers 2020

Here you will find our best CFD brokers in 2020, based on thousands of hours of extensive research, testing and analysis across hundreds of online CFD brokers. Upon conclusion of each of our CFD broker reviews, the trading brokers team has assigned each CFD broker with a rating, and displayed our best CFD brokers on this page. Some of the most important factors that contribute towards a good CFD broker have been considered including the regulatory authority, trading instruments offered, online trading platforms, trading tools, fees, spreads, execution speeds, account types, funding options, leverage, minimum deposit, educational materials, customer service and more. Having the best CFD brokers based on our findings listed in one place can help CFD traders save time when identifying the best CFD brokerages according to their individual online trading needs.

Top 6 CFD Brokers 2020

1.

FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF

Min $250 Deposit

1974

1:200

Review Open Account Open Account

2.

ASIC, CySEC, IFSC

Min $5 Deposit

2009

1:880

Review Open Account Open Account

3.

ASIC, BVI, CBI, FFAJ, FSA, FSCA

Min $100 Deposit

2006

1:400

Review Open Account Open Account

4.

ASIC, FCA

Min $200 Deposit

2010

1:500

Review Open Account Open Account

5.

ASIC, FCA, MAS

Min $100 Deposit

1983

1:500

Review Open Account Open Account

6.

ASIC, CFTC, FCA, FSA, IIROC, JFSA, NFA

Min $50 Deposit

2001

1:50

Review Open Account Open Account

Each of our chosen best CFD brokers have undergone and passed our stringent CFD broker reviews with flying colours, based on what the trading brokers team consider to be amongst the most important considerations. These CFD brokers are under strict regulation from some of the most respectable online broker regulatory authorities and are well-established within the online brokerage industry, providing top CFD trading services to CFD traders across the globe.

1. IG

IG make it as our best CFD broker for trading online CFDs. They are amongst the largest online brokerages in the world offering an impressive 16,000+ trading instruments to traders all over the globe, including global stocks, indices and forex. IG offer online trading with tight spreads, low commissions and fast trade execution speeds due to the brokers deep liquidity pools. This CFD broker accepts traders from the United States, United Kingdom, Australia, South Africa and most countries from around the globe.

IG have a great choice of easy to use yet very powerful trading platforms that can be used on desktop, web browsers and mobile devices. This includes the brokers own proprietary trading platform and the very popular MetaTrader 4 platform.

Best CFD Brokers: IG Review

IG also provide traders with a large variety of trading tools to help you find trading opportunities quickly and easily. There is an IG academy that has an abundance of educational resources to help improve your trading skills and knowledge.

Perhaps most impressively, IG are regulated in multiple jurisdictions spanning across the globe. The brokers regulation includes the widely respected FCA, ASIC and NFA. Having such strict regulation in place can help to give traders the peace of mind that they are using a trusted, reliable and established online brokerage, such as IG.

You can read our detailed IG Review to find out more about why we consider them to be one of the best CFD brokers for trading CFDs online with.

IG Pros/Cons
Pros	Cons
16,000+ markets	Limited online payment processors for account funding
US clients allowed
Strict regulation in multiple countries
IG training academy
Tight spreads, fast execution speeds & low commissions
User friendly & powerful trading platforms
Plenty of trading tools

IG are one of our best trading brokers offering traders around the globe over 16,000+ markets including Forex & CFDs. They have a great selection of trading platforms, tools & educational resources. Spreads are tight, commission is low & execution speeds are fast. IG are also regulated in many countries including FCA, ASIC & NFA regulation.

Open Account Open Account

2. XM Group

XM Group are one of our best CFD brokers for 2020. This CFD brokerage offers a staggering 1,000+ CFD instruments so there is something for every type of trader. The CFDs they offer include forex, indices, commodities, stocks, cryptocurrencies (including popular choices such as Bitcoin, Litecoin, and Ripple XRP). This is a vast amount of CFD trading instruments compare to any other online broker.

XM Group offer online CFD trading through the most popular online trading platforms including MetaTrader. They implement a no-requote policy to ensure that trades have minimal slippage and are executed at the best possible prices. The XM Zero account has the tightest spreads starting from just zero pips which can help to bring down overall CFD trading costs.

Best CFD Brokers: XM Group Review

XM Group claim to have over 2.5 million clients from 196 countries across the globe. This makes them one of the largest CFD brokers in the world. They have strict regulation from 3 of the top regulatory authorities XM Group are authorised and regulated by the Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC).

XM Group is well known as a transparent and client focused online CFD broker with trading conditions being of primary importance to them. They provide clients with an abundance of additional trading tools for efficient analysis of different CFD charts. They also have many convenient methods for account deposit and withdrawal including online payment processors such as Skrill and PayPal.

There are many more reasons why we consider XM Group as one of our best CFD brokers. You can read our full XM Group Review to find out more and to discover if they are a CFD broker that you would like to open a trading account with.

XM Group Pros/Cons
Pros	Cons
No-requotes policy, tight spreads, low fees	No US clients
1,000+ CFD instruments	No fixed spread accounts
Strict regulation
Sophisticated trading tools
Multiple account funding options
Min $5 deposit

XM Group is a multi-award winning globally established and regulated trading broker with over 2.5m clients from 196 countries offering no-requotes, low spreads, fast execution and negative balance protection.

Open Account Open Account

3. AvaTrade

AvaTrade is included in our best CFD brokers of 2020. They offer award winning online trading services on a large variety of CFD instruments including forex, commodities, indices, ETFs, stocks, bonds, cryptocurrencies and more. Customer service is offered 24/5 with multi-lingual live support and a dedicated account manager.

AvaTrade give traders access to multiple free trading platforms including the most popular and widely used MetaTrader 4 platform. This is a very user-friendly platform thus making online CFD trading easily accessible to traders of all experience levels. In addition to various online trading platforms, they also offer a good selection of trading tools and educational materials to assist with trading online.

Best CFD Brokers: AvaTrade Review

AvaTrade have licenses from 6 regulatory authorities spanning 5 continents. Amongst these, they are authorised and regulated by the Australian Securities and Investment Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC). This strict regulation across multiple jurisdictions can give clients peace of mind that they are using a safe and secure CFD broker.

AvaTrade are one of the largest CFD brokers in the world providing online CFD trading to over 200,000 clients across the globe. There is a demo account option should you wish to practice before opening a real account. You can read our full AvaTrade Review to find out more about why we consider them to be one of our best CFD brokers for online trading.

AvaTrade Pros/Cons
Pros	Cons
Large range of CFD instruments for trading online	No US clients
Award winning brokerage	Min $100 deposit
Multiple trading platforms
Educational materials
Free trading tools for analysing charts
Regulation by 6 authorities

AvaTrade is an award-winning trading broker with regulation in 6 jurisdictions offering 250+ trading instruments across multiple markets and trading platforms.

Open Account Open Account

4. Pepperstone

Australian based Pepperstone makes it into our best CFD brokers of 2020. They offer CFD trading on two of the best online trading platforms, MetaTrader 4 and cTrader. You can trade CFDs through one account on multiple platforms should you wish. This makes it useful should you wish to trade on the go using the web and mobile applications.

Despite primary focus on being a forex broker, Pepperstone offer a selection of CFDs for trading online via their multi award winning trading accounts with no dealing desk execution. They offer tight spreads, low fees and fast execution speeds. They are well known for providing innovative technology to traders around the world.

Pepperstone developed their CFD trading technology specifically for traders looking to execute large CFD orders with minimal slippage. They offer ultra-low latency execution from a deep pool of liquidity providers and no dealing desk interference. This makes them highly desirable to clients who need to trade large sizes on single ticket orders. They can handle multiple fills for sweeping large orders through multiple levels within their liquidity aggregator.

Best CFD Brokers: Pepperstone Review

They provide online traders with 24-hour customer support and funding through multiple different methods including bank transfer, credit/debit card and online payment processors. Pepperstone are authorised and regulated by the Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC). This strict regulation helps to reassure client that they are using an established and respectable CFD broker.

We are proud to include the highly respected Pepperstone broker in our best CFD brokers list. You can read our detailed Pepperstone Review to find out more about the reasons as thy we consider them one of the best CFD brokers available to traders across the globe.

Pepperstone Pros/Cons
Pros	Cons
Large order sizes	No US clients
Ultra-low latency execution	No fixed spread accounts
Deep pool of liquidity providers	$200 minimum deposit
No dealing desk
Tight spreads & low fees
Strict regulation

Pepperstone is one of the largest trading brokers providing traders worldwide access to trade across all markets with cutting edge technology, low cost spreads, low-latency high speed execution and award-winning customer service.

Open Account Open Account

5. City Index

City Index has easily made it into our best CFD brokers list. They are widely regarded as one of the most respected online brokers, providing trading services to clients across the globe for more than 35 years. The parent company of City Index is GAIN Capital Holdings Inc (NYSE:GCAP), who are a publicly traded company listed on the New York Stock Exchange and one of the largest retail and institutional trading service providers globally.

Through City Index, you can trade CFDs online in over 12,000+ global markets, including over 80+ FX currency pairs, 20+ Indices, 4,500+ Global Shares, 25+ Global Commodities and Cryptocurrencies including Bitcoin. They also offer other markets such as Bonds, Options, etc. This is a very large selection of trading instruments compared to any other online broker.

Not only do City Index offer a wide range of CFD assets, they have tight spreads, low fees and fast execution speeds. This helps to save on overall trading costs whilst they also deliver some of the best possible CFD trading platforms, including the ever popular MetaTrader 4 (MT4). This platform is well known for its intuitive interface and quick learning curve, whilst it is accessible to traders of all skill levels. Users also get access to a vast selection of trading tools for conducting technical and fundamental chart analysis to find potential trading opportunities.

Best CFD Brokers: City Index Review

In addition to offering top CFD brokerage services to clients, they also offer peace of mind as City Index are authorised and regulated in an impressive 8 jurisdictions globally. This ensures that must comply with strict regulations and helps to give traders that extra protection.

Overall, City Index deserve their place amongst our best CFD brokers. They have a proven track record of providing superior trading services, backed by a huge brand and an excellent customer support team.

You can read our detailed City Index Review to find out more of the reasons why we included them within our list of the best CFD brokers.

City Index Pros/Cons
Pros	Cons
12,000+ global markets	No US clients
Strict regulation in 8 jurisdictions	No fixed spread accounts
Tight spreads, fast execution speeds & low fees	No funding via online payment processors such as Skrill, PayPal, Neteller, etc
User friendly trading platforms
Sophisticated tools for conducting chart analysis
Negative balance protection

City Index is a one of the world’s leading trading brokers offering over 12,000 markets to over 150,000 traders worldwide. They have over 35 years of experience with fast and reliable trade execution speeds, award winning platforms and technology on multiple devices.

Open Account Open Account

6. Forex.com

Forex.com is one of our best CFD brokers for US traders. It can be hard for traders located in the US to find an established and reliable onine broker but Forex.com certainly fits that bill. They have provided industry leading online trading brokerage services to clients across the globe since way back in 2001.

Not only that, but like City Index, their parent company is also GAIN Capital Holdings, Inc. (NYSE:GCAP). They have great financial strength (GAIN Capital have over $1 billion in total assets according to GCAP financial data) with a proven track record of delivering superior trading conditions to traders worldwide.

Forex.com provides online CFD trading across an impressive selection of 300+ global markets including Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals and Energies. This makes them one of the top CFD brokerage firms serving US traders.

In addition to a huge product range, they offer very competitive spreads, low fees and fast trade execution speeds. They are a very transparent broker, providing an execution scorecard which shows that 99.96% of trades are executed in less than one second, with the average trade execution speed at a very impressive 0.03 seconds. In fact, it is possible for a large percentage of trades to actually end up being executed at better prices than anticipated.

Best CFD Brokers: Forex.com Review

Forex.com have a selection of professional trading platforms available for desktop and mobile devices. The platforms are designed to meet the different needs of all traders, whatever your experience level, you can choose a trading platform suitable for you. Each platform is designed to provide exceptional speed and performance, whilst ensuring that you maintain full control over your trading experience.

Overall, Forex.com is our top CFD broker choice for US traders. Not only do they have a solid trading infrastructure, they are also regulated in multiple jurisdictions which gives clients extra peace of mind and protection. Furthermore, Forex.com are committed to support traders through their journey and offer exceptional customer services to new and existing clients via email, online chat and phone. Support is globally available 24 hours a day, 5 days a week.

You can read our detailed Forex.com Review to find out more of the reasons why we included them within our list of the best CFD brokers.

Forex.com Pros/Cons
Pros	Cons
300+ global markets	No online payment processors for funding such as PayPal, Skrill, etc
Strict regulation in multiple jurisdictions	No fixed spread accounts
Tight spreads, low fees & fast execution
Trading tools for indepth chart analysis
Flexible CFD trading platforms
US Clients accepted

Since 2001, Forex.com has been offering over 200,000 traders across the globe access to trade 300+ global markets with a proven track record of consistently providing exceptional trading conditions with fast execution speeds and competitively low trading costs.

Open Account Open Account

How did Trading Brokers choose our best CFD brokers?

Following on from our best CFD brokers of 2020, we will now look at what CFDs are and the most important factors to consider when looking for an online CFD broker.

What is a CFD?

CFD means Contract For Difference which is a financial instrument that allows you to trade and try to benefit from the movement in price of stocks, commodities (e.g. Gold, silver & oil), indices, stocks (e.g. Facebook, Barclays, Vodafone, Tesla), fx currencies, cryptocurrencies (e.g. Bitcoin, Ripple, Ethereum), ETFs, options, bonds and more. The introduction of CFDs made it possible for online traders to have access to a wide range of markets that were not previously available to them.

When trading CFDs, you do not actually purchase or own the underlying asset, you are speculating on the price movement, up or down. A CFD is a contract to between two parties to pay the difference between the value of the current price and future price

CFD is similar to forex trading in many aspects and are traded through an online brokers trading platform. You simply select the trading instrument that you wish to trade and place your orders. If you believe an instrument will increase in price, you would look to enter a buy (long) position. If you thought the instrument would decline in value then you would look to enter a sell (short) position. The profit or loss is realised depending on the difference between the entry and exit prices when you close the trade. CFDs can be bought or sold at any time that you deem suitable as they do not have an expiry date.

CFDs have become very popular in recent years, especially for day traders. The high leverage and low costs associated with trading CFDs online make them an attractive proposition to retail and institutional traders.

What makes a good CFD broker?

CFD broker regulation

It is vitally important to ensure that you are using a trusted and established online CFD broker. Many online brokers come and go over the years so it is considered a wise idea to use a regulated broker that has been in business for a long time. The most respected regulatory authorities to look for include the Australian Securities and Investment Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA). A regulated broker has to conduct business according to strict rules and investors are more protected.

If a broker is listed on an exchange they have to abide by stricter regulations with frequent audits. Furthermore, if the broker is part of a banking group then they must meet specific capital requirements with the upmost transparency.

CFD broker trading instruments

Each online CFD broker will provide a wide range of different instruments, so make sure that the broker you are considering offers the instruments that you wish to trade. If you want to invest in Facebook CFDs or Tesla CFDs, make sure they are offered. It is also worth considering if you will branch out into other markets in the future. If a broker offers multiple markets then it would make the transition in the future more convenient. As there are so many markets to trade, CFD trading hours run 24 hours a day. You will therefore want to make sure your brokers trading hours cover as many of these hours as possible, if not all.

CFD broker trading fees

When trading CFDs online, there are three main fees you need to factor in. This is the spread, commission and overnight holding fee (swap). Not all brokers will charge all fees but it is important to factor these fees into your trading costs. Fees can vary significantly on each broker so it is a good idea to consider them when choosing a suitable broker.

CFD broker spreads

The spread is the difference between the buy and sell (bid/ask) price which can vary depending on the current liquidity and brokers mark-up if applicable. Generally, the more liquidity, the more competitive the spreads will be. Be aware that some brokers use dealing desks and will add a mark-up to the spread to cover operational costs.

CFD broker commissions

The commission is a fee you pay to the broker for each trade that you place. This is the primary way in which brokers make their money. Commission is usually charged as a percentage of the trade or a fixed amount, sometimes a combination of both. The lower the commission fee, the lower your overall trading costs are likely to be.

CFD broker swaps

If you hold a position overnight you will need to pay a swap fee. This is an interest fee for the procedure of moving open positions from one day to another, also known as the rollover. Many CFD traders are day trading so they do not hold positions overnight but if you plan to do so, this is another cost to consider. Some brokers offer swap free Islamic trading accounts which allow Muslims to engage in online trading that conforms with Sharia law

Other CFD broker fees

Some brokers will charge additional fees which are worth considering such as withdrawal and inactivity fees.

CFD broker trading platforms

Each onine CFD broker will offer a range of free online trading platforms. You should ensure that they offer a trading platform that you are familiar with. If you have no previous experience using a trading platform, MetaTrader 4 is one of the most popular due to its user friendliness and advanced features. Some brokers provide their very own proprietary platforms such as eToro, Plus500 and AvaTrade. If you plan to trade on the go, then you should check that they offer web and mobile version of your desired trading platform.

Trading platforms can vary in features, some will offer advanced charting tools for detailed market analysis whilst others can incorporate news feeds and other features to assist with your trading. Depending on your individual trading requirements, make sure the platform offers all of the tools you need to trade with efficiency. It could be a good idea to open demo accounts on multiple platforms to compare them and see which you deem more suitable for your own needs.

CFD broker leverage

CFD brokers allow you to trade on leverage which means that you can open a position larger than your account size would allow without it. With an account balance of just $100, you could open a position of $1,000 using 1:10 leverage. Whilst leverage can increase profits, it also increases risk and can lead to large losses. It is of upmost importance that that you have a thorough understanding of what leverage is and the risks involved before you start trading CFDs. Check the broker offers a leverage that you require for your trading strategies.

CFD trade example

If you wanted to trade a stock with an asking price of $20 and buy 100 shares, this would traditionally have cost $2,000 ($20 x 100). With a CFD broker who requires 5% margin, you could open this position with just $100 ($2,000 / 100 * 5). Leverage will vary between brokers and you will need to factor the spread, commission, swap and any other fees into each trade.

Most reputable CFD brokers will offer negative balance protection, which ensures that you will not end up owing your broker more than your initial account balance. They will close out your trades once your margin is used up to prevent further losses.

CFD broker education

Many CFD brokers will provide their own educational materials such as CFD trading guides, webinars and seminars. This can help beginner traders learn more whilst honing their trading skills. Even the more advanced traders can benefit from further education.

CFD broker trading tools

Some CFD brokers will offer clients trading tools that can assist with trading. These tools range from technical chart analysis and economic calendars. If you would like additional tools, see what a broker has to offer and if these come and an extra cost or are free to existing clients.

CFD broker account opening

Each CFD broker will have its own minimum deposit policy so check that you can meet this requirement.

CFD broker account funding

Methods of funding and withdrawing from your online trading account can vary from one CFD broker to another. Check what methods they offer and ensure that it is suitable and convenient for you. Some brokers will offer online payment processors such as PayPal and Skrill which and be processed faster than other methods which can take up to 5 days.

CFD broker customer service

As the CFD market contains so many different instruments and runs 24 hours a day, you will need to ensure that the broker has adequate customer support to answer your questions as and when necessary. Consider the location of the broker and what days/time they offer their support. Ideally, the broker should provide support in multiple languages, at least 24 hours a day and 5 days a week. Check that they have a method of contacting support that is most convenient for you. Online chat can be quick and easy, but some traders may prefer to speak to someone over the phone.

ESMA Regulations

New regulations and measures are constantly being put in place to protect retail CFD traders. European regulators want to clamp down on how CFD brokers conduct their business and how products are offered to clients. Research from European Securities and Markets Authority (ESMA) shows that around 80 to 95% of investors are losing their investment which is not always through fault of their own.

Specifically, when a broker uses a dealing desk there can be a conflict of interest. Instead of executing a trade directly to the liquidity providers, it goes through a dealing desk which can lead to delays (slippage) and spread mark-ups. This makes it even more difficult for retail traders which is another reason why it is so important to choose a reliable broker.

Amongst the new rules introduced in 2018 by ESMA for European traders are:

Leverage Limits

The maximum amount of leverage offered to European CFD traders has been capped. Some brokers will lift this limit if you meet certain requirements and qualify as a professional trader. To qualify you would usually have needed to have conducted a large amount of transactions, have a significant portfolio and experience in the financial industry.

30:1 for major currency pairs
20:1 for non-major currency pairs, gold and major stock indices
10:1 for commodities other than gold and non-major stock indices;
5:1 for single stocks and any underlying not otherwise mentioned
2:1 for cryptocurrencies

Margin Limit

A margin close out rule on a per account basis. This will standardise the percentage of margin (at 50% of minimum required margin) at which providers are required to close out one or more retail client’s open CFDs.

Negative balance protection

Negative balance protection on a per account basis. This will provide an overall guaranteed limit on retail client losses.

Restriction on marketing and incentives

Brokers must clearly state the percentage of clients who are losing money and not offer any incentives to attract new clients to trade CFDs.

How to start trading CFDs online?

Now that you have had a brief overview of what CFDs are, you may be considering opening an online trading account which is a quick and easy process. Simply choose an online CFD broker, follow the account opening process and you will be able to start trading CFDs online through one of their trading platforms.

Need help choosing from the best CFD brokers in 2020?

If you are still unsure which is the best CFD broker for you then you can use our free online broker comparison tool to quickly compare online brokers based on trading platforms, trading instruments, minimum deposit, regulations, leverage, funding options and more. You can also read our broker reviews and choose from our best brokers that we have conveniently categorised into the best online brokers, best forex brokers, best stock brokers, best CFD brokers, best crypto brokers, best trading platforms, best social trading platforms and best trading apps. If you would like to look for the best trading brokers in a particular country, we have pages dedicated to our best forex brokers USA, best forex brokers UK, best forex brokers Australia, best forex brokers South Africa and best forex brokers Canada. There are also pages for our best stock brokers USA, best stock brokers UK, best stock brokers Australia, best stock brokers South Africa and best stock brokers Canada.