To help choose a broker that offers CFD trading in the United Kindom we compared the spreads of UK CFD Brokers, trading platforms and features. All 2021 CFD brokers listed are FCA regulated with offices in the UK.
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Here are our best UK CFD brokers list for trader in the United Kingdom.
The top UK CFD broker in 2021 was Pepperstone. This was based on several criteria for United Kingdom CFD providers with Pepperstone having superior”
The tight spreads offered by Pepperstone are a result of the deep price competition among different liquidity providers. Pepperstone offers a tight spread across several asset classes (+150 CFD instruments) offering UK CFD traders the chance for more trading opportunities.
Below are presented some of the main characteristics of this online broker that have been meticulously studied by our group of analysts.
Pepperstone is a regulated broker holding licenses issued by two financial authorities, which ensure high standards of security for the London traders such as segregated accounts:
Pepperstone offers leading CFD trading platforms that are integrated with high standards of security and fast order execution. UK clients can trade CFDs and speculate on the price movement of over 150 financial instruments on the following CFD trading platforms:
The MetaTrader 4 is the most popular trading platform with access through your phone, tablet or PC. Some of the main MT4 features include:
The MetaTrader 5 trading platform provides faster execution, new analysis tools and the ability to hedge your positions. Some of the main MT5 advantages include:
The cTrader platform offers a user-friendly interface, fast entry and execution. You can start trading on the cTrader trading platform and enjoy:
Pepperstone retail investor accounts give UK-based traders the chance to trade on Contracts for Difference (CFD) on 4 financial markets (not including spot Forex currency pairs). The available CFD instruments include:
Please note, although Pepperstone has offered Cryptocurrency CFDs (i.e. Bitcoin and Bitcoin Cash) to UK traders in the past, recent changes to FCA regulation mean cryptos are no longer available to UK traders.
Online trading with complex instruments like CFDs, especially during volatile market conditions, comes with a high risk. Make sure you understand how CFDs work before trading any of the Contracts for Difference instruments listed below.
Pepperstone offers 14 major stock indices from across 4 continents:
Additionally, Pepperstone is one of the few UK brokers that offer extended trading hours. London traders have the opportunity to trade with a fixed spread despite the fact of high volatility, especially at the time when the markets open.
The Pepperstone CFD trading account can give UK traders access to 60+ stocks from the US market. Pepperstone offers the following advantages for trading CFDs on US shares:
Pepperstone offers some of the lowest spreads in the industry because they source the prices from different liquidity providers. Some of the commodities offered by Pepperstone come with the following spreads:
Overall, the advanced technological software solution coupled with the tight spreads makes Pepperstone the best broker for CFD trading platforms. Funding your account is easy, with various fee-free deposit and withdrawal methods such as credit cards and e-wallet options. You can claim your FREE demo account by clicking the link below.
View Pepperstone Review >>Visit Pepperstone >>
The overall rating is based on review by our experts
Compare Forex Brokers top selection for the beginner CFD traders is Plus500. Plus500 offers a demo account with access to several financial markets (+2000 CFD contracts) and instruments from different sectors. As a newcomer, you have unlimited access to test your trading strategies and hone your skills before risking real money with online trading.
Some of the financial instruments offered by Plus500 include:
Plus500 demo account gives the new UK clients the opportunity to start trading in a safe environment, with different asset classes and diversity of financial instruments. Furthermore, Plus500 has scored the maximum points in this category because it caters precisely to newbies in several ways:
Plus500 representatives are available to help you with your needs 24-hours a day during forex trading hours and when the market is closed. Over-the-weekend customer support is a unique feature offered only by a handful of UK CFD providers.
Within the financial markets industry, we’ve identified only a few brokers that provide full technical support, in the case, Plus500 offer support 24/7 through different ways and also have a robust FAQ (Frequent Answers and Questions) to accommodate the needs of retail investor accounts.
UK-based traders can open CFD accounts with an FCA regulated broker by depositing only GBP 100. Plus500 offers most of its Contract for Difference with the following advantages:
In conclusion, Plus500 is a great option for UK and London traders who are new to the trading. The CFD provider offers demo accounts, support 24/7, educational resources, easy-to-use trading platform and lower entry costs in comparison to the other forex brokers in the UK industry.
View Plus500 Review >>Visit Plus500 >>
*Your capital is at risk ‘76.4% of retail CFD accounts lose money’
Our group of analysts has identified eToro as one of the best CFDs brokers to trade in the UK. eToro stands out from the rest of the social trading brokers, primarily because their social trading feature is considered a game-changer in the financial markets.
Below, our team of experts will outline the main features that come with eToro’s copy trading system.
eToro is a well-known broker that has an award-winning CopyTrader technology that allows anyone to trade at the same level as the top traders in the world. The main idea behind this technology is the ability to copy top-performing traders and replicate their trading.
Some of the main advantages for newcomers and investors with more trading experience include:
Through the use of CFDs (Contracts for Difference), UK traders have market access to different instruments, although they don’t own the underlying asset they can participate in the movement of the instrument. Of course, there is a risk warning because the position can result in a win or a loss.
eToro clients with CFD accounts can have access to the following markets:
In summary, the regulatory oversight by the FCA and CySEC ensures that the trading activity conducted through eToro’s copy trading platform follows the rules of the game. In the UK, eToro won the biggest number of points, primarily because of their superior CopyTrader technology. You can open a demo account by clicking the button below and start automatically copy more experienced traders.
City Index is considered one of the best brokers for spread betting because they offer tight spreads starting from 1 point in the main indices (such as the FTSE 100) and competitive conditions for forex pairs (0.9 points for GBPUSD and 0.5 points for EURUSD). Additionally, trading with spread betting is tax-efficient for UK residents because they do not pay taxes capital gains tax (CGT) or stamp duty.
Furthermore, City Index gives UK traders the opportunity to trade with:
The spreads and margins (leverage) vary depending on the type of client, which could be retail or professional, for professional traders the spreads have better conditions, but to classify in this category the investor must meet at least two of the 3 listed criteria (see picture below).
For the retail traders some of the spreads and margin conditions are classified based on the market category, for example, the margins start from 3.33% for forex, in terms of spreads, they also vary based on the instrument, for specific information see the tables below.
City Index gives UK spread bettors access to 8000+ CFD instruments from different markets and allows spread betting on:
With access to several markets and the right conditions of leverage, UK investors have the right tools for executing their trading strategies flawlessly. Moreover, with no cost of commissions, given the fact that the only cost is the spread when the order is executed, they can participate in the movements of the market under competitive conditions.
In conclusion, City Index is well suited for UK investors because through spread betting they don’t pay taxes over capital gains, additionally, the tights spread, proper leverage and access to several markets create fair conditions for spread betting. Get your free demo trading account by clicking the button below.
Forex broker, CMC Markets has won the award for offering best trading conditions for share and CFD trading. CMC Markets has several features that make it figure as one of the best brokers for trading shares, the execution is done through the use of instruments such as spread betting and CFDs. Primarily, they offer:
CMC Markets clients can invest in the stock market through the use of:
In each of those products, the client doesn’t own the underlying asset, but it can participate in the price fluctuations of different companies. Additionally, the leverage offered by the CMC Markets provides enough buying power to generate a profit.
Note* CMC Markets offer a maximum leverage of 20:1 for shares trading.
UK-based traders can have market access to over 9,400 global shares (including popular companies such as Apple, BP, Lloyds Banking Group, Tesco, Rio Tinto). CMC Markets offers its list of shares from across 4 continents:
In the case of spread betting the UK traders, most of them in London, don’t have to pay taxes on capital gains when the profit is made by trading through this investment vehicle.
The cost of the commission of shares trading with CMC Markets varies depending on the type of account:
This is a key feature of the broker because it has +9500 global CFD instruments to trade from six different markets. This means their platform provides enough opportunities to fit all ranges of trading strategies.
In conclusion, CMC Markets are well suited for trading with shares because they provide competitive trading accounts, viable commissions for executing a proper trading strategy, and a wide range of markets to choose from. CMC Markets doesn’t enforce a minimum deposit policy but, UK traders need funds in their trading accounts to buy and sell CFDs.
View CMC Markets Review >>Visit CMC Markets>>
XTB is an international forex broker that offers UK-based traders the widest choice of ETFs. Like all top UK forex brokers, XTB’s services are supervised by the FCA in the UK as well as the CySEC in Cyprus.
One of the factors that UK investors must take into account is access to different instruments because it will offer new trading opportunities. On this topic, XTB offers a wide variety of markets, especially when it comes to ETFs, with 106 Exchange Traded Funds available.
Additionally, XBT counts on the prestige that comes by being regulated by the Financial Conduct Authority, CySEC, and CMB. Moreover, the presence in 13 countries around the world, including the UK, provides support to its image as a brand.
XBT provides a wide range of trading possibilities, with competitive spread and leverage conditions, namely:
XTB UK offers 2 types of trading accounts, the standard, and pro, the main differences are:
Below are presented a table with more details on the main differences between the two account types.
In conclusion, XTB is a good choice for trading ETFs because it has a variety of instruments, competitive conditions of spreads, commissions and the brand is well known given its presence in many places around the world.
XTB Review >>Visit XTB >>
With several decades of business history and over 239,000 clients worldwide, IG is among the most reputable online Forex and CFD brokers. An in-depth review by our team of industry experts has concluded that IG offers the best range of trading platforms for UK-based clients, which includes: an intuitive proprietary web platform and trading apps as well as several advanced third-party platforms, all of which deliver speed, full control of order execution, superior risk management tools and top-of-the-range web security.
IG’s in-house trading platforms include:
What UK clients can get by choosing this proprietary platform includes:
The broker’s mobile apps allow for sound technical analysis based on real-time prices and with a range of technical indicators applied on full-screen charts.
Another valuable feature includes the ability to set price movement and change alerts for any trading instrument as well as alerts for important market events, political or central bank announcements. Options to receive those alerts include email, SMS or push notification.
And, last but not least, experienced traders can take advantage of better chances to get their orders filled by using options such as partial fills and points through current. They can also have better control over expiry with the use of “good till cancelled” or “good till date” orders.
A comparison of features between IG’s in-house platforms is presented in the following table.
In addition, UK clients are able to trade Forex, Spot Metals and Stock Indices with very competitive spreads: 0.6 pips on EUR/USD, 0.3 pips on Spot Gold, 1.0 point on FTSE 100.
The platform also allows them to manage the risks of high-volume trading by using smaller minimums (as small as 1 micro lot).
And last but not least, IG grants its clients instant access to 18 free add-ons and indicators, including Order history, Renko, High-low, Chart group indicator, Stealth orders, Correlation matrix, Candle countdown, Sentiment trader etc. The broker also allows free access to the powerful pattern-recognition tool, Autochartist.
Additionally, L2 Dealer allows for professional control or trade orders. It supports native, synthetic and algorithmic order types such as fill or kill target close, executes and eliminate, good for auction, percentage of volume, implementation shortfall, TAP, VWAP among others.
Lastly, the platform’s customizable L2 interface provides access to integrated market alerts and news feeds.
A comparison of features between all third-party platforms is presented in the following table.
In conclusion, IG offers the best range of easy-to-use and fully customizable trading platforms, through which UK clients are able to access over 17,000 markets and take advantage of real-time prices and fast and reliable execution of their trade orders. On this front, IG has been well recognized by the entire industry, as the broker has received multiple awards, including:
View IG Markets Review >>Visit IG Markets >>
With over 40 years of business history, Interactive Brokers Group is a global brokerage providing clients with direct access, trade execution and clearing services for a range of markets. Our review has found that IB offers the best trading conditions and software that may suit UK clients engaged in day trading.
With IB, UK day traders are able to access asset classes such as Stocks, Options, Futures, Foreign Exchange, Bonds, Mutual Funds, ETFs and Spot Commodities through one integrated trading account. Clients can also access some of those asset classes via CFDs.
Day traders have a choice of desktop and web-based trading platforms as well as mobile apps for iOS and Android devices. IB Trader Workstation is the broker’s flagship desktop trading platform, which ensures direct access to comprehensive trading, order management, charting and watchlist tools.
Clients can use more than 100 order types and algos aimed to reduce risk, to accelerate execution, to allow privacy, to ensure price improvement, to time the market or just to simplify the trading process via advanced trading features.
Client Portal is IB’s simple and intuitive web-based platform, which visualizes key account metrics at a glance, grants access to detailed price quotes, advanced charting tools and IB’s live news stream.
Additionally, the IBKR Mobile app allows direct access to account management tools and more than 135 markets while on the go. It features two-factor authentication for greater account security and provides the same market-moving data as the broker’s desktop platform.
Another notable advantage of IB is that UK clients can maximize their returns by taking advantage of the lowest trading commissions. Clients can get ultra-low spreads on Forex pairs, starting from 0.1 pips, as IB aggregates pricing from 16 leading liquidity providers.
InteractiveBrokers uses two pricing commission models:
Shares CFDs and Forex CFDs use the volume-tiered pricing model while Index CFDs and Metal CFDs use the fixed pricing model. Rates start at 0.005% for Index CFDs and from 0.0015% when trading metals.
IB tiered commission model for trading forex ranges from 0.20 basis points to 0.08 basis points based on the monthly traded volume (see figure below).
What is even more, the broker’s SmartRouting technology ensures the best price execution for clients, which can be of huge benefit for day traders.
In conclusion, we consider IB as the best choice for day traders in the UK based on low costs, exceptional trading software capabilities and execution. Let us also not forget the broker’s recognition worldwide, reflected by multiple awards, Best Online Broker in 2020 by Barron’s.
View Interactive Brokers Review >>Visit Interactive Brokers Markets >>
In finance, Contracts for Difference (CFD) are derivative instruments that let you speculate on the price movement of different asset classes without owning the underlying asset. This is completed through a UK CFD trading platform. The underlying asset can be anything from shares, indices, commodities, currencies, ETFs, etc.
CFD trading comes with multiple advantages, and one of them is the ability to trade on margin. Margin trading means that you’re only putting a percentage of the total notional value of a trade. Some share prices are quite high and for retail investors with small accounts, it can be hard to buy, for example, Amazon shares which are quoted above $2,000 per share.
Secondly, with CFD trading, UK investors can even take advantage of falling stock market prices. Other CFD trading advantages include:
On the flip side, forex brokers that offer CFD trading charge the spread or additional commissions.
Risk Warning: CFDs are complex instruments, and they may not be suitable for all types of investors. Make sure you understand how CFD works before risking any of your hard-earned money.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.