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CompareForexBrokers

Best CFD Brokers

A CFD, a contract for difference, is a derivative you trade with a broker, and the best CFD broker in our ratings, recomputed on September 27, 2026, is Pepperstone at 93.5 out of 100. I recommend checking the entity and the regulator named on the account agreement before you fund an account, because that regulator decides which leverage caps and protections apply to your account.

Justin Grossbard, Co-Founder of CompareForexBrokers Written by Justin Grossbard Last updated:

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Trading Forex and CFDs with leverage poses significant risk of loss to your capital.

The table below lists the ten CFD brokers ranked on this page, in the same rating order, with columns for rating, regulators, advertised EUR/USD raw spread, raw commission per standard lot round turn, minimum deposit, limit order fill time, and platforms. Sorting a column reorders the rows and leaves each broker’s rank as published, and the comparison table on our homepage, Compare Forex Brokers, lists 57 brokers.

10 forex and CFD brokers compared across every market this site covers on the published rating out of 100, the advertised EUR/USD raw spread in pips, commission in US dollars per standard lot round turn, minimum deposit in US dollars and order execution in milliseconds. Most recent broker data verification in this table: September 28, 2026.

Forex brokers compared, ordered by our published rating
Broker Regulators Platforms Review Visit broker
Pepperstone Razor: EUR/USD 0.1 pips average (August 2026) 93.5/100
  • FCA (United Kingdom)
  • ASIC
  • BaFin (Germany)
  • CySEC
  • DFSA (Dubai)
  • CMA (UAE)
  • CMA (Kenya)
  • SCB
0.10 pipsadvertised US$7.00per lot, round turn US$0 77 ms MT4, MT5, cTrader, TradingView Pepperstone review Visit Pepperstone
IC Markets Raw Spread: US$3.50 per side on MT4 89/100
  • ASIC
  • CySEC
  • FSA
  • SCB
  • CMA
0.01 pipsadvertised US$7.00per lot, round turn US$200 134 ms MT4, MT5, cTrader, TradingView IC Markets review Visit IC Markets
OANDA GSLO guarantee (with OANDA Trade) 88.3/100
  • CIRO (Canada)
  • ASIC
  • CFTC
  • NFA
  • FCA (United Kingdom)
  • MAS
  • JFSA
  • KNF
  • FSC-BVI
from 0.10 pipsadvertised minimum US$7.00per lot, round turn US$0 86 ms MT4, TradingView, Proprietary OANDA review Visit OANDA
Fusion Markets Zero account: US$2.25 per side commission 85/100
  • ASIC
  • VFSC
  • FSA (Seychelles)
0.03 pipsadvertised US$4.50per lot, round turn US$0 79 ms MT4, MT5, cTrader, TradingView Fusion Markets review Visit Fusion Markets
BlackBull Markets Fastest limit order fills of the 36 brokers in our MT4 test 84.5/100
  • FMA (New Zealand)
  • FSA (Seychelles)
from 0.00 pipsadvertised minimum US$6.00per lot, round turn US$0 72 ms MT4, MT5, cTrader, TradingView, Proprietary BlackBull Markets review Visit BlackBull Markets
MultiBank Group Regulated across five continents by 17+ authorities 80.3/100
  • ASIC
  • BaFin (Germany)
  • MAS
  • CySEC
  • CMA
  • FSC-BVI
  • VFSC
  • CIMA
  • FSC-M
  • FSA (Seychelles)
  • VARA
  • TFG
  • FIU
0.10 pipsadvertised US$6.00per lot, round turn US$50 Not tested MT4, MT5, Proprietary MultiBank Group review Visit MultiBank Group
Exness MT4, MT5 and Exness Terminal 80/100
  • FCA (United Kingdom)
  • CySEC (institutional clients only)
  • FSCA (South Africa)
  • CMA
  • JSC
  • FSC-BZ
  • FSA (Seychelles)
  • FSC-M
  • FSC-BVI
  • CBCS
about 0.2 pipsMyfxbook average US$7.00per lot, round turn US$200 (Raw Spread) 92 ms MT4, MT5, Proprietary Exness review Visit Exness
FP Markets MT4, MT5, cTrader and TradingView 78.4/100
  • ASIC
  • FSA (Seychelles)
  • FSC-M
  • FSCA (South Africa)
  • CMA
0.10 pipsadvertised US$6.00per lot, round turn US$100 225 ms MT4, MT5, cTrader, TradingView FP Markets review Visit FP Markets
Eightcap Raw: US$3.50 per side commission 77.5/100
  • ASIC
  • FCA (United Kingdom)
  • CySEC
  • SCB
  • FSA (Seychelles)
  • FSC-M
from 0.00 pipsadvertised minimum US$7.00per lot, round turn US$100 143 ms MT4, MT5, TradingView Eightcap review Visit Eightcap
Tickmill Raw: US$3.00 per side commission 75.8/100
  • FCA (United Kingdom)
  • CySEC
  • FSCA (South Africa)
  • FSA (Seychelles)
0.10 pipsadvertised US$6.00per lot, round turn US$100 91 ms MT4, MT5, TradingView, Proprietary Tickmill review Visit Tickmill

Some of the abbreviations on this page are expanded to the regulator's full name: a broker regulated by ASIC is regulated by the Australian Securities and Investments Commission; by FCA, the Financial Conduct Authority; by CIRO, the Canadian Investment Regulatory Organization.

Every EUR/USD spread in this table is the figure the broker itself publishes for its raw (commission) account, so each cell reads "advertised", and where a broker publishes only a minimum, the cell reads "advertised minimum" and we leave that broker out when you sort by spread, because a minimum is not an average. Exness is the one exception: on September 27, 2026, CompareForexBrokers decided that Exness's own published EUR/USD raw spread is inaccurate and stopped using it, so its cell shows Myfxbook's EUR/USD session averages instead, about 0.2 pips (0.19 and 0.26 pips over September 24 to 26, 2026, commission excluded), and reads "Myfxbook average". Where no raw spread is published, the cell reads "Not published". Because each broker measures its own figure over its own period and method, two advertised spreads are not a like-for-like comparison, and none of them are our measurements. Where a broker's minimum deposit differs by account, the deposit cell names the account the figure belongs to, for example "US$200 (Raw Spread)". The limit order fill column is carried over from global testing, and a broker not on that test reads "Not tested".

CFDs are leveraged products, and most retail accounts lose money trading them. Pepperstone states on pepperstone.com/en/ that 79.6% of its retail CFD accounts lose money, and Tickmill states 69% on tickmill.com/uk, both read September 28, 2026.

Which is the best CFD broker?

The best CFD broker is Pepperstone at 93.5 out of 100. Pepperstone scores 10 of 10 for Trading Experience, Trading Platform, and Customer Service, charges US$3.50 per side (US$7 round turn) per standard lot, and has no minimum deposit.

Ordered by our overall rating, highest first.

  1. Pepperstone: highest-rated CFD broker
  2. IC Markets: four platforms with raw pricing
  3. OANDA: highest trust score
  4. Fusion Markets: lowest raw commission
  5. BlackBull Markets: five platforms including copy trading
  6. MultiBank Group: most regulators on this list
  7. Exness: own terminal plus MT4 and MT5
  8. FP Markets: large share CFD range
  9. Eightcap: widest market range score
  10. Tickmill: low-cost forex-focused CFDs

The 10 Best CFD Brokers Reviewed

The cards below sit in our rating order, highest first. Each card also shows the entity a client outside the UK, the EU, and Australia is usually onboarded to, because that entity decides which rules protect you.

Highest-Rated CFD Broker

1. Pepperstone

93.5/100
Global score
#1 of 10 in this ranking

Platforms

MT4, MT5, cTrader, TradingView

Minimum deposit

US$0

Regulators

FCA, ASIC, BaFin, CySEC + 4 more

Raw commission (round turn, per lot)

US$7.00

Why We Recommend Pepperstone

I recommend Pepperstone to traders who want every major platform in one place and no barrier to starting. It earns our highest published rating at 93.5/100. If you trade across MT4, MT5, cTrader, and TradingView, you get all four with no minimum deposit. The trade-off is a limited crypto range and an education suite that could do with a refresh.

Pros & cons
  • Four major platforms including cTrader
  • No minimum deposit
  • Full marks for trading experience
  • Limited crypto range
  • Education suite needs a refresh
  • Copy trading runs through offshore entities
Which Entity You Trade With

If you live outside the UK, the EU, Australia, and the UAE, you are served by Pepperstone's offshore entity regulated by the Securities Commission of The Bahamas, where retail leverage rises to 200:1. That is far above the 30:1 cap the FCA and ASIC arms apply to retail accounts. Its standalone copy platforms also run through the CMA (Kenya) and SCB entities rather than the ASIC, FCA, or CySEC ones.

Four Platforms, Raw Pricing

2. IC Markets

89/100
Global score
#2 of 10 in this ranking

Platforms

MT4, MT5, cTrader, TradingView

Minimum deposit

US$200

Regulators

ASIC, CySEC, FSA, SCB + 1 more

Raw commission (round turn, per lot)

US$7.00

Why We Recommend IC Markets

IC Markets is my pick for platform choice at a low cost, with MT4, MT5, cTrader, and TradingView and a US$200 minimum deposit. If you want a raw account at a US$7.00 round-turn commission, it is one of several brokers here at that price. Its education material is thin and there is no proprietary mobile app, which I think matters more if you are starting out.

Pros & cons
  • Four major platforms including cTrader
  • Raw account commission of US$7.00 round turn
  • Regulated by ASIC and CySEC
  • No FCA licence
  • No proprietary mobile app
  • Thin education material
Which Entity You Trade With

EU clients are served by IC Markets (EU) Ltd, regulated by CySEC. If you are in Canada, Singapore, Malaysia, New Zealand, or the UK, you are onboarded through IC Trading, IC Markets' Mauritius entity regulated by the FSC. The Seychelles division offers leverage up to 1000:1 while the Bahamas entity caps it at 200:1, so the two offshore divisions are not equivalent.

Highest Trust Score

3. OANDA

88.3/100
Global score
#3 of 10 in this ranking

Platforms

OANDA Trade, MT4, TradingView

Minimum deposit

US$0

Regulators

CIRO, ASIC, CFTC, NFA + 5 more

Raw commission (round turn, per lot)

US$7.00

Why We Recommend OANDA

OANDA is the broker I would point you to if trust comes first. It holds our highest Trust score at 10 of 10, with regulators including the FCA, MAS, CIRO, and the CFTC, and no minimum deposit. If you want guaranteed stop-loss orders on OANDA Trade, this is your broker. You give up copy trading and a swap-free account.

Pros & cons
  • Highest Trust score on our list
  • Guaranteed stop-loss orders on OANDA Trade
  • No minimum deposit
  • No copy trading
  • No swap-free account
Which Entity You Trade With

Clients outside its regulated regions are served by the entity regulated by the BVI Financial Services Commission. That arm sits outside the FCA, MAS, and CIRO rule sets, so the negative balance protection and leverage caps of those regimes do not apply to it.

Lowest Raw Commission

4. Fusion Markets

85/100
Global score
#4 of 10 in this ranking

Platforms

MT4, MT5, cTrader, TradingView

Minimum deposit

US$0

Regulators

ASIC, VFSC, FSA

Raw commission (round turn, per lot)

US$4.50

Why We Recommend Fusion Markets

Fusion Markets is my choice if low costs are your priority. Its US$4.50 round-turn commission on the raw account is the lowest of the ten, it scores 10 of 10 for Trading Costs, and there is no minimum deposit. The trade-off is a limited product range and a Trust score of 5 of 10, which I would weigh carefully.

Pros & cons
  • Lowest raw commission of the ten
  • 10 of 10 for trading costs
  • No minimum deposit
  • Trust score of 5 of 10
  • Limited product range
  • No advanced education tools
Which Entity You Trade With

Clients outside the United States may be onboarded under Gleneagle Securities Pty Limited trading as Fusion Markets, a Vanuatu company regulated by the VFSC, or Fusion Markets International Ltd, regulated by the Seychelles FSA. Both sit outside the main retail rule sets, so check which entity your account agreement names and what that means for your protections.

Five Platforms Including Copy Trading

5. BlackBull Markets

84.5/100
Global score
#5 of 10 in this ranking

Platforms

MT4, MT5, cTrader, TradingView, BlackBull CopyTrader

Minimum deposit

US$0

Regulators

FMA, FSA

Raw commission (round turn, per lot)

US$6.00

Why We Recommend BlackBull Markets

BlackBull Markets suits experienced traders more than beginners, in my view, with MT4, MT5, cTrader, TradingView, and BlackBull CopyTrader and no minimum deposit. Across the ten brokers here, raw commission runs from US$4.50 to US$7.00 round turn, so its US$6.00 sits in the middle of that range. Against that, count a Trust score of 5 of 10, a flat US$5 withdrawal fee, and higher spreads on the standard account.

Pros & cons
  • Five platforms including CopyTrader
  • No minimum deposit
  • US$6.00 round-turn raw commission
  • Trust score of 5 of 10
  • Flat US$5 withdrawal fee
  • Standard account spreads are higher
Which Entity You Trade With

International clients are served by BBG Limited, regulated by the Seychelles FSA, with leverage up to 500:1 on forex. That is far above what regulated retail regimes allow, and the lighter rule set means fewer protections on your account.

Most Regulators On This List

6. MultiBank Group

80.3/100
Global score
#6 of 10 in this ranking

Platforms

MT4, MT5, MultiBank-Plus

Minimum deposit

US$50

Regulators

ASIC, BaFin, MAS, CySEC + 9 more

Raw commission (round turn, per lot)

US$6.00

Why We Recommend MultiBank Group

MultiBank Group is the pick if you want a wide regulator footprint and a proprietary platform with social and copy trading tools. Its Trust score of 9.5 of 10 is among the highest here, and the minimum deposit is US$50. The trade-off is that the Pro account needs US$1,000, the ECN account US$10,000, and a US$60 monthly inactivity fee applies after three months.

Pros & cons
  • Trust score of 9.5 of 10
  • Copy trading tools built in
  • Low US$50 minimum deposit
  • US$60 monthly inactivity fee
  • No demo account in our dataset
  • ECN account needs US$10,000
Which Entity You Trade With

In the UAE, MultiBank Group is regulated by the CMA as MEX Global Financial Services LLC. Our review does not name the entity for other countries, so you should check the entity on your own account agreement. The group holds licences from ASIC, BaFin, MAS, CySEC, and others, but the entity you sign with decides which rules protect you.

Own Terminal Plus MT4 And MT5

7. Exness

80/100
Global score
#7 of 10 in this ranking

Platforms

Exness Terminal, Exness Trade App, MT4, MT5

Minimum deposit

US$200

Regulators

FCA, CySEC, FSCA, CMA + 6 more

Raw commission (round turn, per lot)

US$7.00

Why We Recommend Exness

Exness appeals to traders who want no fees on deposits or withdrawals, with a US$200 minimum deposit. The platform line-up covers Exness Terminal, the Exness Trade app, MT4, and MT5. I would note it is not available to residents of Canada, the USA, most of Europe, Australia, or New Zealand, and its spreads are not especially competitive.

Pros & cons
  • Own terminal plus MT4 and MT5
  • FCA licence in the group
  • Unavailable in several major markets
  • Spreads not especially competitive
Which Entity You Trade With

The retail offshore product is provided by Exness (SC) Ltd under the Seychelles FSA, Exness B.V. under the Central Bank of Curacao and Sint Maarten, and Exness (VG) Ltd under the BVI FSC. Those entities sit outside the FCA rule set, and the unlimited leverage they allow carries none of the retail protections that regime requires.

Large Share CFD Range

8. FP Markets

78.4/100
Global score
#8 of 10 in this ranking

Platforms

MT4, MT5, cTrader, TradingView

Minimum deposit

US$100

Regulators

ASIC, FSA, FSC-M, FSCA + 1 more

Raw commission (round turn, per lot)

US$6.00

Why We Recommend FP Markets

FP Markets is worth your attention if share CFDs matter to you, since the range is large, and the raw commission is US$6.00 round turn with a US$100 minimum deposit. The crypto selection is limited, and the product range differs between countries, so check what your entity offers.

Pros & cons
  • Large range of share CFDs
  • US$6.00 round-turn raw commission
  • Up to 500:1 on offshore entities
  • Limited crypto selection
  • Product range differs between countries
  • Minimum deposit of US$100
Which Entity You Trade With

Residents of the UAE, Malaysia, and Chile are onboarded under First Prudential Markets Limited, regulated by the Seychelles FSA. Clients of the offshore entities, in Seychelles or Saint Lucia, can use up to 500:1 on forex and metals. Those entities sit outside the ASIC rule set, so the retail leverage caps and negative balance protection of that regime do not apply there.

Widest Market Range Score

9. Eightcap

77.5/100
Global score
#9 of 10 in this ranking

Platforms

MT4, MT5, TradingView

Minimum deposit

US$100

Regulators

ASIC, FCA, CySEC, SCB + 2 more

Raw commission (round turn, per lot)

US$7.00

Why We Recommend Eightcap

Eightcap suits you if range matters as much as cost. It scores 10 of 10 for Range of Markets, the only 10 in that category on this list, with exotic currency pairs, shares, and a wide crypto CFD range, plus 10 of 10 for Trading Platform. The trade-offs I would weigh are Customer Service, which scores 5 of 10, and a high currency conversion fee, though deposits and withdrawals carry no fee.

Pros & cons
  • Highest market range score on our list
  • No deposit or withdrawal fees
  • Wide crypto CFD range
  • High currency conversion fee
  • Narrower platform access in the UK and Europe
  • Minimum deposit of US$100
Which Entity You Trade With

Clients outside Australia, the UK, and Europe register with Eightcap's global branch regulated by the Securities Commission of The Bahamas, where leverage goes up to 200:1. That branch sits outside the FCA and ASIC rule sets, so the negative balance protection and leverage caps of those regimes do not follow you there.

Low-Cost Forex-Focused CFDs

10. Tickmill

75.8/100
Global score
#10 of 10 in this ranking

Platforms

MT4, MT5, TradingView, Tickmill Trader, Tickmill Mobile App

Minimum deposit

US$100

Regulators

FCA, CySEC, FSCA, FSA + 1 more

Raw commission (round turn, per lot)

US$6.00

Why We Recommend Tickmill

Tickmill suits forex-focused traders who put low costs first, with a US$6.00 round-turn raw commission and a US$100 minimum deposit. I recommend it if your trading lives in MT4, MT5, and TradingView. Beyond forex and indices the range narrows, and some CFDs carry low leverage.

Pros & cons
  • US$6.00 round-turn raw commission
  • FCA and CySEC licences
  • Wide platform line-up on the Seychelles entity
  • Narrow range beyond forex and indices
  • Some CFDs carry low leverage
  • UK and EU clients get fewer platforms
Which Entity You Trade With

Clients from countries not covered by the FCA, CySEC, or FSCA entities are typically onboarded under Tickmill Limited, regulated by the Seychelles FSA. Seychelles clients get the wider platform line-up, including Tickmill Social Trading, while UK and EU clients get MT4, MT5, and the app only. The FCA and CySEC entities carry the retail caps and protections. The Seychelles entity does not.

How To Choose A CFD Broker

Before you commit money, I suggest you check five things in this order: the regulator named on your account agreement and the entity behind it, the platform you will actually trade on, the full cost of your typical trade, whether a demo account is available, and the risk controls such as negative balance protection and guaranteed stops.

1

Check the entity

The regulator on your account agreement.

2

Match the platform

MT4, MT5, cTrader, TradingView or proprietary.

3

Price the full cost

Spread + commission + overnight financing.

4

Test on a demo

Virtual funds, same platform.

5

Confirm risk controls

Stops and negative balance protection.

How We Rated The CFD Brokers

Our rating is out of 100 and combines eight categories, each scored 0 to 10, using our standard weights, which we apply to every broker we rate: Trading Costs 2.5, Trading Experience 2, Trust 1.5, Trading Platform 1.5, Customer Service 1, Range of Markets 0.5, Education 0.5, and Funding 0.5. For you as a trader, that weighting means a cheap broker with a clunky platform will not beat a slightly dearer one that gets execution and service right, because costs alone carry only a quarter of the score.

When two brokers publish the same rating, the higher Trading Costs score ranks first, then Trading Experience, Trust, Trading Platform, Customer Service, Range of Markets, Education, and Funding, in that order. CompareForexBrokers rates Pepperstone the top CFD broker at 93.5 out of 100 across eight categories. This page is written by Justin Grossbard with Noam Korbl and David Levy. You can read the full methodology in our methodology.

What is a CFD?

A CFD (contract for difference) is an agreement between a trader and a broker to exchange the difference in an asset’s price between the moment the position opens and the moment it closes. The trader never owns the underlying asset. That single feature drives everything else on this page, from the costs paid to the risks carried.

Because nothing is owned, direction is all that matters. You can go long, and gain if the price rises, or go short, and gain if the price falls. CFDs are also traded on margin: at 30:1 leverage the margin is about 3.33% of the position’s value, and at 500:1 it is 0.2%, so a 0.2% move against the position equals the whole margin. Most CFDs trade over the counter, which means the broker, not an exchange, is the counterparty to the trade, so the broker’s reliability matters as much as the price. Brokers offer CFDs on forex, stock indices, commodities such as gold and oil, individual shares, cryptocurrencies, and ETFs, though the range differs by broker and by the entity you open the account with.

Ownership is the question that separates a CFD from buying the stock itself, and our CFD vs stock trading guide covers it in more detail. How your broker prices the contract matters just as much, so the next subsection explains market maker and ECN pricing.

Market Maker Vs ECN And DMA Pricing

A market maker quotes its own prices and can take the other side of client trades, which usually means you pay no commission and the broker sets the spread. An ECN or STP broker passes your orders to outside liquidity providers and usually charges a commission on raw spreads. Direct market access (DMA) goes further and sends share CFD orders to the underlying exchange’s order book. As of September 28, 2026, our broker dataset lists seven of the ten brokers on this page as ECN brokers (Pepperstone, IC Markets, Fusion Markets, BlackBull Markets, FP Markets, Eightcap, and Tickmill), OANDA and Exness as market makers, and MultiBank Group with no type listed. The difference for you is where the cost sits, in the spread with a market maker or in the commission on top of raw spreads with an ECN, and our ECN brokers page breaks the ECN model down in detail.

CFD Leverage Limits By Regulator

Regulators cap retail CFD leverage, and the cap you get depends on who regulates your account, with the table below listing the limits. Brokers also serve clients from outside the UK, the EU, and Australia through offshore entities, in places such as the Bahamas, Seychelles, Mauritius, Vanuatu, or the British Virgin Islands, and those entities often allow much higher leverage because these caps do not apply to them. If you want that kind of leverage, our highest leverage forex brokers page goes deeper. Your protection comes from the regulator named on your own account agreement, and that name decides which row of the table applies to you, so check the entity and the regulator on that agreement before you fund the account, even when the broker’s group holds a stronger licence elsewhere. The crypto column varies most between regulators: crypto CFDs are banned for UK retail clients under FCA Handbook COBS 22.6.5R, capped at 2:1 under CySEC PS-04-2019 and ASIC Instrument 2020/986, and not offered to US retail traders under the CFTC and NFA regime (sources read September 28, 2026), and our best crypto CFD brokers page covers where you can still trade them.

The table compares retail leverage by regulator, with the MAS figures shown as minimum margins converted to leverage. Each figure comes from the regulator's own documents, read September 28, 2026: FCA COBS 22.5 and 22.6, CySEC PS-04-2019, ASIC Instrument 2020/986, MAS Table 18 of the Fourth Schedule to the margin regulations, MAS FAQs on the Licensing and Business Conduct Requirements, answer A71C (reissued December 11, 2025), for the crypto figure of 2:1, and, for the United States, 17 CFR 5.9 and NFA Financial Requirements Section 12.
RegulatorMajor currency pairsMinor currency pairsGold and major indicesOther commodities and minor indicesIndividual sharesCrypto
FCA (United Kingdom)30:120:120:110:15:1Banned for retail
ESMA rules, applied by EU regulators such as CySEC30:120:120:110:15:12:1
ASIC (Australia)30:120:120:110:15:12:1
MAS (Singapore)20:120:1Indices 20:1, gold 5:1Commodities 5:1Index stocks 10:1, non-index stocks 5:12:1
CFTC and NFA (United States)50:1 (retail forex)20:1 (retail forex)No retail CFDsNo retail CFDsNo retail CFDsNo retail CFDs

These caps are the retail limits set by the regulators named above. Professional clients and offshore entities sit outside them, and a broker may set lower limits than its regulator requires. The MAS row shows the minimum margins Table 18 of the Fourth Schedule to the margin regulations sets for CFDs without stop-loss features, converted to leverage, as read on September 28, 2026. Under those regulations, the MAS index figure applies to the Straits Times Index, the MSCI Singapore Index, or a market index of a recognised group A exchange, and the index, share, and other-CFD minimums apply to every customer, while the foreign exchange minimum of 5% is the retail figure. The MAS crypto figure comes from answer A71C of the MAS FAQs on the Licensing and Business Conduct Requirements (reissued December 11, 2025, read September 28, 2026), which requires a minimum margin from retail investors on payment token derivatives of at least 1.5 times the margin an approved exchange sets for a comparable contract, subject to a floor of 50%, so leverage is at most 2:1. “No retail CFDs” in the US row refers to the over-the-counter CFDs this page compares. The ASIC order remains in force until the end of the day on May 23, 2027, unless it is revoked earlier (Instrument 2022/259, read September 28, 2026).

CFD Margin And Leverage Calculator

This calculator shows your maximum leverage, initial margin, and the move against you that uses it up: 3.33% at 30:1, 5% at 20:1. It assumes no overnight financing, spread, or commission, and that under FCA, ESMA, and ASIC rules, your broker closes the position at 50% of the required margin.

CFD Margin Calculator

ESMA retail cap: 20:1

ESMA Decision (EU) 2018/796 on CFDs, made permanent in national law by EU regulators including CySEC: initial margin of 3.33% on major currency pairs (30:1), 5% on non-major pairs, gold and major indices (20:1), 10% on other commodities and non-major indices, 20% on shares and other assets (5:1) and 50% on crypto assets (2:1), with a 50% margin close-out rule and negative balance protection.

US$500.00initial margin required

US$10,000.00 of exposure needs US$500.00 of initial margin at the ESMA 20:1 retail cap.

  • Position valueUS$10,000.00
  • ESMA leverage cap for major stock indices20:1
  • Margin rate5%
  • Price move against you that uses the whole margin5%
  • Close-out floor (50% of margin)US$250.00

The caps come from the leverage table above, the rule for your chosen regime is printed with the result, and no exchange rate is used because you enter the position size in your account currency.

Where Retail CFDs Are Restricted

Retail CFDs are restricted in the United States: over-the-counter CFDs are not available to US retail traders. The Commodity Futures Trading Commission (CFTC) states in its final interpretive guidance of June 24, 2020, read September 28, 2026, that certain leveraged retail transactions, such as contracts for difference, are swaps. Section 2(e) of the Commodity Exchange Act bars anyone other than an eligible contract participant from entering into a swap unless it is offered on a designated contract market. A single-share CFD is a security-based swap under section 6(l) of the Securities Exchange Act, which requires a registered national securities exchange. US retail traders can instead trade retail forex, capped at 50:1 on major pairs and 20:1 on others.

If you are a resident of India, the rules that govern your forex trading come from the Reserve Bank of India (RBI). In a press release issued on February 3, 2022 (read September 28, 2026), the RBI states that resident persons can undertake forex transactions only with authorised persons, and only for permitted purposes under the Foreign Exchange Management Act, 1999 (FEMA). Where a permitted transaction is done electronically, the release says it should be undertaken only on an electronic trading platform (ETP) authorised by the RBI, or on a recognised stock exchange: the National Stock Exchange of India, BSE, or the Metropolitan Stock Exchange of India. The same release states that remittances for margins to overseas exchanges or overseas counterparties are not permitted under the Liberalised Remittance Scheme (LRS).

An RBI FAQ on foreign exchange transactions, updated as on August 28, 2024, confirms the point: a resident individual cannot remit margin overseas under the LRS for online forex trading. That is the rule that matters if you have been weighing a margin account with an overseas broker. The press release also warns that residents undertaking forex transactions for purposes other than those permitted under FEMA, or on ETPs not authorised by the RBI, render themselves liable for penal action under FEMA.

The RBI also publishes an Alert List, updated as on November 19, 2025. It names entities that are neither authorised to deal in forex under FEMA nor authorised to operate an ETP for forex transactions, along with entities, platforms, and websites that appear to be promoting unauthorised entities or ETPs. We checked the ten brokers on this page against the list, and seven appear on it by name: Pepperstone, IC Markets, Fusion Markets, BlackBull, Exness, FP Markets, and Tickmill. OANDA, MultiBank Group, and Eightcap do not appear on it. The RBI itself says the list is not exhaustive and that an entity not on it should not be assumed to be authorised.

These RBI documents do not mention CFDs, or the contract for difference, by name. Wherever you trade from, the next question is what each trade will cost you, and our comparison table puts all ten brokers side by side.

How CFD Costs Work

A CFD’s trading cost has three parts: the spread (the gap between buy and sell prices), a commission on raw-spread accounts, and overnight financing (a swap) charged or paid when a position is held past the daily rollover. Among the ten brokers on this page, raw-account commission runs from US$4.50 (Fusion Markets) to US$7.00 per standard lot round turn. If you trade in and out within minutes, the spread and commission dominate your costs, so a raw account with a tight spread usually wins. Our lowest spread forex brokers and lowest commission forex brokers comparisons help you find accounts that keep both low.

In my view, overnight financing is the cost that catches newer traders out. Hold a position for days or weeks and the swap, charged or paid each night, can outweigh the spread chosen so carefully, especially on highly leveraged positions where the value of the trade is large relative to the account. Before opening a longer-held position, I would check the swap rate on the broker’s specification page and use the margin and leverage calculator under the leverage table above to see the margin your position requires. With the costs clear, the next section turns to the risks of trading CFDs.

CFD Risks And How To Manage Them

The first risk to internalise is the base rate: most retail CFD accounts lose money. Pepperstone Markets Limited, the entity licensed and regulated by the Securities Commission of The Bahamas, states on pepperstone.com/en/ (read September 28, 2026) that 79.6% of retail investor accounts lose money when trading CFDs. Tickmill UK Ltd states on tickmill.com/uk (read September 28, 2026) that 69% of retail investor accounts lose money when trading CFDs, and other brokers publish their own figures. Each figure is one firm’s disclosure for one entity, not a basis for choosing between brokers, and two firms’ figures are not a like-for-like comparison. Leverage does the damage, because a small adverse move can consume the margin quickly, and the FCA, ESMA, and ASIC rules limit that damage for retail CFD accounts: negative balance protection means you cannot lose more than the money in the account, and a margin close-out applies at 50% of required margin (FCA COBS 22.5.13R, CySEC PS-04-2019, and ASIC Instrument 2020/986 section 7(4), read September 28, 2026). Accounts held with an offshore entity may not carry that protection, so check the entity and the regulator named on the account agreement before funding, and our forex brokers with negative balance protection page explains which regimes require it.

Tools and practice help too. Some brokers offer guaranteed stop-loss orders, which close a trade at the set price even through a gap, usually for a premium, and OANDA offers them on OANDA Trade. A demo account lets you practise with virtual money, and nine of the ten brokers on this page offer one (all except MultiBank Group, per our dataset). I see little reason to skip that step before trading with real money. If you would rather build your knowledge before you risk any capital, our Best Forex Trading Courses 2026 comparison is a good place to start.

FAQs

Are CFDs Legal In The United States?
No, CFDs are not offered to retail clients in the United States. Retail traders in the US instead trade under the CFTC and NFA regime, which regulates retail forex and caps it at 50:1 on major pairs and 20:1 on other pairs. Check what your own regulator permits before you open any account.
Can You Lose More Than Your Deposit Trading CFDs?
Yes, you can, depending on where your account is regulated. Under the FCA, ESMA, and ASIC rules, retail CFD accounts carry negative balance protection, so you cannot lose more than the money in your account. If your account sits with an offshore entity outside those regimes, that protection may not apply, and a fast market gap could leave you owing the broker money. Check which entity your account agreement names before you fund it.
How Are CFD Profits Taxed?
It depends entirely on the country you are taxed in. Some countries tax CFD gains as capital gains, others tax them as income, and the rules change over time. Nothing on this page is tax advice, so I would confirm your position with a local tax adviser before you assume any treatment applies to you.
What Is The Difference Between CFDs And Forex?
Forex is a market, and a CFD is a type of contract. Forex trading means trading currencies against each other, and brokers commonly offer forex to retail clients through CFDs, where you exchange the difference in a currency pair's price and never own the underlying currency. CFDs are also offered on many other markets, including indices, commodities, shares, cryptocurrencies, and ETFs, so a CFD is the wrapper and forex is one of the things it can wrap.
What Is The Difference Between CFDs And Shares?
When you buy a share, you own part of the company, with shareholder rights such as dividends and votes. With a share CFD you never own the underlying share, so you get no shareholder rights. What you gain is leverage, since you only post a fraction of the position's value as margin, and easy short selling, since going short is the same click as going long. The trade-off is that leverage magnifies losses as well as gains.
Which Entity Will I Open A CFD Account With?
It depends on where you live. Brokers serve clients from outside the UK, the EU, and Australia through offshore entities, for example in the Bahamas, Seychelles, Mauritius, Vanuatu, or the British Virgin Islands. These entities often allow much higher leverage, and the stricter UK, EU, and Australian rules do not apply to them. The regulator that protects you is the one named on your own account agreement, not the strongest licence the broker's group holds.
What Leverage Can I Use On CFDs?
It depends on the regulator named on your account agreement. The FCA, EU regulators applying ESMA measures such as CySEC, and ASIC cap retail CFD leverage at 30:1 on major currency pairs, 20:1 on minor pairs, gold and major indices, 10:1 on other commodities and minor indices, and 5:1 on individual shares, with ESMA and ASIC capping crypto CFDs at 2:1. MAS sets a 5% minimum margin on retail forex in Singapore, which is 20:1. Offshore entities often allow higher leverage, since these caps do not apply.

About the author

Justin Grossbard, Co-Founder of CompareForexBrokers

Justin Grossbard

Justin Grossbard is the Co-Founder and CEO of CompareForexBrokers, which he established with Noam Korbl in 2014. He has over 20 years of professional experience in online marketing and holds a Master's in Marketing from Monash University.

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