To help choose a broker that offers CFD trading in the United Kingdom, we compared the spreads of UK CFD Brokers, trading platforms and features. All 2023 CFD brokers listed are FCA-regulated, with offices in the UK.
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The December 2023 best UK CFD trading platform list is:
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
9.33 |
FCA CySEC |
1.12 | 1.69 | 1.22 | 0.1 | 0.6 | 0.3 | $3.50 |
|
|
|
77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
|
|
5.83 |
FCA CySEC |
1.70 | 2.3 | 1.4 | - | - | - | - |
|
|
|
140ms | $100 | 71+ | 15+ | 30:1 | 300:1 |
|
|
7.17 |
FCA CySEC |
1.0 | 2.0 | 1.0 | - | - | - | - |
|
|
|
130ms | $200 (Australia), $50-$100 (EU) | 49+ | 46+ | 30:1 | 400:1 |
|
|
6.83 |
FCA ASIC, MAS |
0.70 | 1.1 | 2.2 | - | - | - | - |
|
|
|
95ms | $150 | 84+ | 25+ | 30:1 | 500:1 |
|
|
7.17 |
FCA BaFin |
1.12 | 1.30 | 1.64 | 0.5 | 0.9 | 0.6 | $2.50 |
|
|
|
138ms | $0 | 338+ | 19+ | 30:1 | 500:1 |
|
|
5.42 |
FCA CySEC, BaFin |
0.9 | 1.4 | 1.3 | 0.9 | 0.14 | 0.13 | - |
|
|
|
160ms | $250 | 49+ | 16+ | 30:1 | 500:1 |
|
|
8.33 |
CySEC CBI, KNF |
- | - | - | - | - | - | - |
|
|
|
160ms | $100 | 55+ | 15+ | 30:1 | 400:1 |
|
|
8.17 |
FCA CBI |
- | - | - | - | 0.08%-0.2% |
|
|
|
110ms | $0 | 100+ | - | 30:1 | 500:1 |
|
Forex Panel Score
Average Spread
EUR/USD = 1.12
GBP/USD = 1.69
AUD/USD = 1.22
Trading Platforms
MT4, MT5, cTrader,
TradingView, Capitalise.ai
Minimum Deposit
$0
Why We Recommend Pepperstone
Due to its superior software and competitive spreads, we recommend Pepperstone as the top choice for CFD trading in the UK. Funding an account is straightforward, offering numerous cost-free deposit and withdrawal options, including credit cards and e-wallets. Additionally, their 24/5 customer support is top-notch, ensuring traders receive timely assistance whenever needed.
Pros & Cons
Broker Details
Pepperstone Had Advanced Software And Tight Spreads
In 2023, Pepperstone hit some major home runs at the Investment Trends Awards, winning 5 main categories. We agree. As such, our top UK CFD broker in 2023 was Pepperstone. This was based on several criteria for CFD providers in the United Kingdom, with Pepperstone having superior:
The tight spreads offered by Pepperstone for a large range of asset classes (+700 CFD instruments) result from the deep price competition among different liquidity providers.
According to our group of analysts, presented below are some of the main characteristics of this online broker.
Pepperstone Trading Accounts
Before we move onto Pepperstone’s diverse range of CFDs, it’s worth noting the broker’s competitiveness concerning forex trading via the broker’s two account types: a Standard Account or Razor Account.
The Standard Account is a great choice for beginners, thanks to its commission-free pricing structure. Minimum spreads are also as low as 0.6 pips for major currency pairs, very competitive for a no-commission account.
As shown in the table below, this is some of the best commission-free pricing currently available to retail traders.
|
No Commission Spreads: Standard Accounts
|
|||||
|---|---|---|---|---|---|
|
1.10 | 1.20 | 1.40 | 2.00 | 1.50 |
|
0.70 | 2.20 | 1.10 | 1.60 | 1.60 |
|
1.90 | 2.00 | 2.40 | 2.30 | 2.50 |
|
1.40 | 2.50 | 2.50 | 2.60 | 2.60 |
|
1.20 | 1.80 | 1.90 | 2.30 | 2.30 |
|
1.32 | 1.95 | 1.37 | 1.87 | 1.73 |
|
1.30 | 1.70 | 2.10 | 1.70 | 2.10 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/12/2023
Standard Account Forex Broker Spreads
You can use this account with MetaTrader 4, MetaTrader 5, and Capitalise.ai.
The second option is Pepperstone’s ECN-style pricing structure via its Razor Account type. This account allows you to trade institutional-grade spreads from 0.0 pips plus commission and is ideal for algorithmic traders using Expert Advisors (MetaTrader) or cBots (cTrader).
There are two types of Razor Accounts, one for MetaTrader and Capitalise.ai trading platforms and one for cTrader and TradingView platforms.
If you use MetaTrader or Capitalise.ai, commission fees are $3.50 (£2.25) per side per 100k traded. cTrader and TradingView commission is a USD $6.00 (round-turn) converted to your base currency for each lot.
When compared to other top forex brokers below, Pepperstone’s average spreads are ultra-competitive for spread-based accounts.
|
Raw Spread comparison
|
|||||
|---|---|---|---|---|---|
|
|
0.10 | 0.20 | 0.40 | 1.00 | 0.60 |
|
0.10 | 0.20 | 0.30 | 0.50 | 0.30 |
|
0.20 | 0.20 | 0.40 | N/A | 0.30 |
|
0.44 | 0.42 | 0.40 | 0.30 | 0.83 |
|
0.17 | 0.30 | 0.54 | 0.68 | N/A |
|
0.20 | 0.40 | 0.50 | 0.70 | 0.70 |
|
0.10 | 0.50 | 0.60 | 0.80 | 1.10 |
|
|
n/a | 0.50 | 0.60 | 0.40 | 0.30 |
|
0.44 | 1.23 | 1.13 | 1.23 | 1.41 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/12/2023
Compare Lowest Spread Forex Brokers
Minimum Deposit and Funding Methods
There is no minimum deposit requirement for Standard or Razor accounts, although the broker recommends at least $200 to get started.
When opening an account, funding methods include standard bank transfer, credit card options, and popular online payment methods such as BPay, PayPal, Skrill, and Neteller.
Pepperstone Trading Platforms
Integrated with high standards of security and fast order execution, Pepperstone offers leading CFD trading platforms, including:
In addition to trading platforms, you can social trade with DupliTrade, Pelican, and MetaTrader Signals.
MetaTrader 4 and 5 Trading Platforms
Most traders with Pepperstone are likely to use one of the MetaTrader trading platforms.
MetaTrader 4 is the most popular trading platform in the Pepperstone platform suite and is, in fact, the most popular platform worldwide. This platform has all the essential features to trade successfully, including a huge library of expert advisors to automate your trading.
MetaTrader 5, while not (yet) as popular as MetaTrader 4, is much the same but with more features. So if you want greater trading analysis, MT5 can be a better choice. MT5 is also better for trading centralised products such as stocks and certain ETFs, Indices, and Cryptos.
Both MT4 and MT5 can be accessed through your phone, tablet, or PC.
Some of the main MT4 features include:
While less popular, cTrader is a worthy competitor and alternative to MetaTrader. Users of cTrader appreciate its user-friendly interface, fast entry and execution, Depth of Market pricing, and extra charting feature. Automation is available through the use of cBots with cTrader Automate.
Pepperstone also offers a range of additional trading alternatives, including Capitalise.ai, for algorithmic trading. This platform is excellent for traders who need to learn to code since you can create algorithms without writing your own scripts.
With over 100 types of charts that you can trade directions within, TradingView, as an advanced charting tool, is one of the best choices for deep trading analysis.
A range of social trading platforms is also available, including Pelican. It is an innovative, all-in-one mobile app exclusive to UK clients and DupliTrade.
Pepperstone Trading Products
Pepperstone’s retail investor accounts allow UK-based traders to trade on Contracts for Difference (CFD) on 4 financial markets (not including spot Forex currency pairs). These 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 retail UK traders. Professional traders, however, will be able to trade Cryptos.
Our Pepperstone CFD Broker Verdict
Overall, the advanced software solution coupled with 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. Pepperstone also offers great 24/5 customer support.
Forex Panel Score
Average Spread
EUR/USD = 1.7
GBP/USD = 2.3
AUD/USD = 1.4
Trading Platforms
Plus500 Trading Platform
Minimum Deposit
$0
Why We Recommend Plus500
We recommend Plus500 for UK traders just starting their journey in the CFD market. This provider stands out with its user-friendly trading platform, demo accounts for practice, round-the-clock support, and valuable educational resources. Furthermore, they offer more accessible entry costs than other UK forex brokers.
Pros & Cons
Broker Details
Plus500 Offers A Trading Platform With Risk Management Tools
When it comes to CFD trading, Plus500 is our top CFD provider for beginners. It is because Plus500 offers a tremendous proprietary trading platform with helpful risk management tools such as guaranteed stop loss. The provider also has access to various financial markets (+2000 CFD contracts) and instruments from different sectors.
Beginner traders will also appreciate the free demo account, which gives new UK clients the opportunity to practice trading without risking their own money:
Plus500 Trading Accounts
UK-based traders can open CFD accounts with an FCA regulated broker by depositing only GBP 100. Plus500 offers most of its CFDs with the following advantages:
Plus500 Trading Platforms
We’ve found that Plus500 only offers one trading platform, which is their proprietary platform. That said, this platform has an abundance of selling points that are particularly suitable for beginners.
It is easy to use and performs well on both mobile and as a WebTrader. There are also great charting features, with 110 indicators and 20 drawing tools.
Elsewhere, there are great order customisation tools. These include stop limits, stop losses, and guaranteed stop losses. It will help control your risk and provide negative balance protection, which safeguards against market volatility in case a position hits negative territory.
Plus500 Trading Products
Plus500’s product list is solid, with 71 Forex pairs and over 1100 stocks as highlights for UK traders.
While there is a smaller range of indices, commodities, and ETFs, what caught our attention was the 308 options they offer as an alternative investment avenue. This certainly sets their product range apart from many other brokers we’ve come across.
As with other UK brokers on this list, cryptocurrency trading is prohibited (unless you qualify as a professional trader) due to FCA regulations.
Plus500 Broker Verdict
In summary, Plus500 is a great option for UK and London traders new to trading. The CFD provider offers an easy-to-use trading platform, demo accounts, 24/7 support, educational resources, and lower entry costs in comparison to the other forex brokers in the UK industry.
View Plus500 ReviewVisit Plus500
*Your capital is at risk ‘72% of retail CFD accounts lose money’
Forex Panel Score
Average Spread
EUR/USD = 1.0
GBP/USD = 2.0
AUD/USD = 1.0
Trading Platforms
eToro Trading Platform
Minimum Deposit
$50
Why We Recommend eToro
We recommend eToro as the premier choice for social trading in the UK. Their reputation in this arena is well-earned. eToro boasts an intuitive proprietary platform that’s particularly suited for beginners. Moreover, traders have access to a comprehensive range of stock CFDs and ETFs to diversify their portfolios.
Pros & Cons
Broker Details
eToro Provides Great Tools For Social Trading
We’ve found eToro to be a top-tier social trading CFD broker in the UK, boasting a massive community of over 20 million investors spanning over 100 countries. Traders like us can use their award-winning CopyTrader platform to trade alongside some of the world’s best.
Some of the main advantages include:
eToro Trading Accounts
Much like our experience with Plus500, eToro offers just one primary account type for UK clients – the Standard account. This comes with no commissions and features a minimum variable spread of 1 pip for EUR/USD, an aspect we considered when calculating trading costs.
All you require to open this account is $50, with no funding costs. This keeps costs low and easier to manage, particularly suited for beginner CFD traders.
A swap-free Islamic account is also available, which complies with Sharia Law. You will need $1000 to open an Islamic account to get started. Unlike other brokers we’ve encountered, eToro does not replace the swap by widening the spread or charging an administration fee.
eToro Trading Platforms
eToro stands out for its range of in-house platforms, from the flagship eToro trading platform to its social trading, CopyTrader platform.
With their proprietary platform, eToro seamlessly merges regular, self-directed trading and copy trading. Charting is also a highlight, especially if you utilise ProCharts, which gives you access to 66 indicators and 13 drawing tools. We’ve accessed the eToro platform both via WebTrader and their mobile app.
As additional social trading tools, eToro offers their CopyTrader and Smart Portfolios for individual CFD traders (CopyTrader) and those who prefer a fund manager style approach (CopyPortfolios) to copy successful, expert trader strategies worldwide.
eToro Trading Products
Through CFDs, UK traders have market access to different instruments. Although they don’t own the underlying asset, they can participate in the movement of the tool. 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:
eToro Broker Verdict
It’s undeniable that eToro has cemented its reputation as a premier social trading broker. But that’s not its sole strength. eToro’s user-friendly proprietary platform and an expansive range of stock CFDs and ETFs make it an excellent choice. Their tools, like the CopyTrader for individual traders and Smart Portfolios for a more collective approach, further enhance the trading experience.
*Your capital is at risk ‘68% of retail CFD accounts lose money’
Forex Panel Score
Average Spread
EUR/USD = 0.7
GBP/USD = 1.1
AUD/USD = 2.2
Trading Platforms
MT4, TradingView, Web Trader
Minimum Deposit
$150
Why We Recommend City Index
We recommend City Index for traders seeking a reliable CFD and spread betting broker in the UK. Their multi-award-winning status and top-tier proprietary platform sets them apart in their suitability for spread betting. Importantly, for many traders, there’s no tax on capital gains when using their platform for this purpose.
Pros & Cons
Broker Details
City Index Offers Tight Spreads And Competitive Commissions For Spread Betting
City Index has the best UK spread betting platform and is an award-winning broker, winning the 2021 best CFD broker from the Online Personal Wealth Awards.
Our choice to opt for City Index for spread betting was influenced by their competitive spreads, starting at just 1 point for primary indices like the FTSE 100 and an equally appealing 0.5 points for forex pairs such as the EUR/USD. Trading with spread betting is tax-efficient for UK residents because they do not pay capital gains tax (CGT) or stamp duty.
Furthermore, City Index gives UK traders the opportunity to trade with:
City Index Account Type
You can open one of two account types with City Index: a Standard or MT4 account. The main difference between these accounts is the platform offered.
Using the standard account granted us access to the exclusive City Index Trading platform, with features like guaranteed stop-losses and smart signals. On the other hand, the MT4 account brought us to the familiar grounds of MetaTrader 4.
While City Index products are mostly variable, some are fixed at certain times of the day. You can find out which spreads are fixed using their Market360 feature.
We found their spreads competitive, with Forex starting at a mere 0.5 pips and major indices at 1 pip. A significant cost advantage for us was the commission-free Forex trading and a reasonable commission of around 0.08% for share CFDs.
City Index Trading Platforms
City Index offers either the popular MetaTrader 4 or its own award-winning proprietary trading platform, available via the web or on your mobile device.
While MT4 certainly lived up to its reputation, City Index’s platform enhanced our trading experience, offering a comprehensive CFD product range, top-notch trading tools, and several advanced functionalities.
In terms of additional trading tools, the City Index Trading Platform offers Smart Signals, Performance Analytics with PlayMaker, advanced charting with TradingView, and Market Buzz with Trading Central.
Traders using the City Index Platform can also protect their trades with a guaranteed stop-loss. This type of order is not available with MetaTrader 4.
City Index Trading Products
City Index gives UK spread betters 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 traders have the tools to execute 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 market’s movements under competitive conditions.
City Index Broker Verdict
In conclusion, our experience with City Index underscores its reputation as a distinguished CFD broker, further bolstered by an exceptional in-house platform. City Index emerges as a front-runner for those eyeing spread betting, especially given the tax benefits on capital gains. Combining this with their tight spreads, competitive commissions, and extensive market access makes City Index a formidable choice for spread betting.
*Your capital is at risk ‘71% of retail CFD accounts lose money’
Forex Panel Score
Average Spread
EUR/USD = 1.12
GBP/USD = 1.3
AUD/USD = 1.64
Trading Platforms
MT4, CMC NGEN
Minimum Deposit
$0
Why We Recommend CMC Markets
We highly recommend CMC Markets’ Next Generation platform for those looking to access a vast range of CFD and currency pairs. With over 9500 products, this platform stands out, especially for share trading. The broker offers competitive account options and commissions, further sweetened by access to a broad spectrum of markets. For traders seeking diversity and versatility, this is a top choice.
Pros & Cons
Broker Details
CMC Markets Has A Large Array Of Share CFDs And Low Commissions
Having tried out CMC Markets, we can attest to the strengths of their flagship Next Generation trading platform. One of the standout aspects that drew us in was their low commission structure. Further, the sheer volume of share CFDs that CMC Markets made available to us, as UK traders, was impressive.
Major benefits of CMC Markets:
CMC Markets Account Types
At CMC Markets, we were presented with two primary trading account options, catering to either spread betters or CFD traders:
Spread Betting account offers zero-commission trading and spreads starting at 0.3 points. This account is unique to UK traders and CMC Markets as a broker.
CFD account: with this account, you will only pay a commission when trading shares, which starts from 0.10% or 2 cents per share for US and Canadian-listed shares.
Opening either account didn’t demand a minimum deposit, though we’d suggest an initial amount of at least GBP 200. It’s worth noting that using a credit card incurs a 1% fee, while a debit card attracts a 0.6% charge. However, bank transfer incurs no charges.
CMC Markets Trading Platform
Much like our experience with City Index, CMC Markets offered us the option of a third-party trading platform and their top-notch proprietary platform, Next Generation.
We found the Next Generation platform among the industry’s finest, boasting a speedy and reliable experience complemented by an array of powerful tools and features. Notably, the comprehensive charting, with its 80 technical indicators, 40 drawing tools, and 60 attachable candlestick patterns, was a highlight for us.
The broker also offers MT4, a solid platform for FX trading. It has its own plugins, including AutoChartist (as a charting algorithmic tool) and FX Blue, a free web-based service for analysing and publishing your trading results.
CMC Markets Trading Products
With CMC Markets, our trading horizons expanded significantly. They offer one of the broadest instrument ranges we’ve encountered, especially in the shares category, boasting over 9,500 global shares (including renowned names like Apple and Rio Tinto). The share distribution across continents was as follows:
There is also a huge range of Forex pairs (338 due to using inverse quotes), 82 indices, 124 commodities, 55 treasuries and a whopping 1000+ ETFs. This gives you plenty of trading choices regardless of your trading preference.
CMC Markets Broker Verdict
To sum up our experience, the Next Generation platform from CMC Markets is a stellar choice, especially for those keen on trading shares, given its vast product range and superior features. Their competitive accounts, commission structure, and extensive market access add to their appeal. CMC Markets doesn’t enforce a minimum deposit policy, but UK traders need funds in their trading accounts to buy and sell CFDs.
Forex Panel Score
Average Spread
EUR/USD = 0.9
GBP/USD = 1.4
AUD/USD = 1.3
Trading Platforms
MT4, xStation 5
Minimum Deposit
$0
Why We Recommend XTB
We recommend XTB’s xStation 5 for traders searching for an extensive range of ETFs and indices. This platform not only offers a diverse array of instruments but also boasts competitive spreads and low commissions. Furthermore, XTB has established itself as a trusted brand globally, ensuring peace of mind for traders venturing into ETF trading.
Pros & Cons
Broker Details
Having engaged with XTB, we can confidently say it’s one of the prominent international forex brokers catering to UK traders, especially those seeking a comprehensive range of ETFs (Exchange Traded Funds). Our trading endeavours were significantly enhanced through XTB’s xStation 5 trading platform, which boasts a user-centric interface, innovative tools, and extensive educational materials.
One of the factors that any UK trader must consider is access to different instruments because it will offer new trading opportunities. On this note, XTB provides a wide variety of markets, especially regarding ETFs, with 138 Exchange Traded Funds available.
Overall, XTB has several benefits:
XTB Trading Accounts
XTB offers 1 type of trading account for UK retail traders: the standard account. Features include:
XTB Trading Platforms
Only one platform is available for UK traders, but it is a good one: XTB’s proprietary, X Station 5, as a WebTrader or on mobile.
X Station 5 combines a minimalist, clean design with advanced trading tools in an easy-to-use platform that will suit any level of trader.
Highlights include 30 drawing tools, 39 technical indicators, economic news releases at the charts’ bottom axis, and colour-coded heat maps to show top-moving assets.
XTB Trading Products
XTB offers a vast array of 1851 share CFDs in the UK, 57 Forex pairs and the largest number of ETFs (138) available to trade on this list.
The only market you will not have access to as a UK retail trader is Crypto CFDs, given FCA regulations, unless you are a Pro Trader in the UK.
XTB Broker Verdict
To wrap up our experience, XTB’s xStation 5 emerged as a premier platform, particularly for those keen on trading ETFs. The platform’s expansive instrument range, competitive spreads, low commission structure, and global reputation make it a top choice for traders worldwide.
Forex Panel Score
Average Spread
EUR/USD = 0.9
GBP/USD = 1.5
AUD/USD = 1.1
Trading Platforms
MT4, MT5,
AvaTradeGo, AvaOptions
Minimum Deposit
$100
Why We Recommend AvaTrade
We recommend AvaTrade for those seeking a fixed spread FCA-regulated CFD broker in the UK. With its cost-effective fixed spreads, AvaTrade presents many advantages, including a broad selection of proprietary and third-party trading platforms. They also offer social trading options and a diverse mix of CFD products, catering to various trading preferences.
Pros & Cons
Broker Details
AvaTrade Has A Wide Range Of Trading Platforms And Social Trading Options
AvaTrade has the best and most diverse range of CFD trading platforms on this list. These include both popular MetaTrader platforms and AvaTrade’s three proprietary platforms: AvaTradeGo, AvaOptions, and AvaSocial.
The broker is unique because it offers fixed spreads, making it different from other brokers that mostly provide variable spreads. This gives it an advantage in the high-risk (and potentially high-cost) world of CFD trading.
Having fixed spreads means spreads remain locked in no matter the circumstances. Typically, a fixed spread is 2-3 pips on average, while variable spreads can be anywhere from 1 and 4 pips, even higher in extreme market volatility.
Indeed, AvaTrade has a lot going for it, including:
AvaTrade Trading Accounts
AvaTrade’s Retail account is intended for retail traders acting as a standard account with zero commissions. While minimum average spreads are slightly wider at just under a pip, having fixed spreads means the prices will not vary in volatile market conditions. As such, this account is well-suited for beginners or risk-averse traders.
To open an account, you need $100, and to fund it, you can use a range of methods, including debit/credit card, PayPal, and Skrill.
AvaTrade Trading Platforms
As mentioned, AvaTrade has an extensive range of proprietary, third-party, and social trading platforms well suited for CFD trading.
It includes the full MetaTrader suite of MT4 and MT5, two of the most popular third-party trading platforms, as the broker’s own AvaTradeGo, AvaOptions, and AvaSocial platforms.
MT4 and MT5 are both designed for CFD trading, although for the full range of products, we recommend using MT5.
AvaTrade Go With AvaTrade Go, you also have access to Trading Central.
There are also two third-party social trading platforms, DupliTrade, which you can integrate with MT4, and ZuluTrade, one of the market’s most popular copy trading platforms.
AvaTrade Trading Products
AvaTrade offers a little of everything, with Forex, stocks, indices, commodities, bonds, ETFs, and options all available to trade.
It includes a good mix of 55 Forex products and 632 stock CFDs. You can also trade 44 options with the AvaOptions platform, 42 of which are Forex instruments.
See below for the full product range, including a disclaimer on cryptocurrency trading, which is prohibited in the UK.
AvaTrade Broker Verdict
In addition to being a low-cost, fixed spread broker, AvaTrade offers UK traders many benefits, including an extensive range of proprietary and third-party trading platforms, social trading options, and a solid mix of CFD products to choose from.
Forex Panel Score
Average Spread
EUR/USD = N/A
GBP/USD = N/A
AUD/USD = N/A
Trading Platforms
Trader Workstation
Minimum Deposit
$0
Why We Recommend Interactive Brokers
We recommend IB for day traders in the UK, given its low costs, outstanding software capabilities, and swift execution. With one of the most varied market ranges, it’s no wonder they’ve gained global recognition. Their accolades, such as the Best Online Broker award in 2020 by Barron’s, further reinforce their leading position in the industry.
Pros & Cons
Broker Details
Having explored the offerings of Interactive Brokers Group, a seasoned global brokerage with a rich 40-year history, we can vouch for its commitment to providing superior trade execution, direct access, and clearing services across diverse markets. Our comprehensive review indicates that IB’s trading conditions and software are top-notch for UK day traders.
A notable feature of IB is the ability for traders like us to delve into many asset classes, such as stocks, options, futures, foreign exchange, bonds, mutual funds, ETFs, and spot commodities, all under one integrated account. Additionally, they offer the option to access several assets via CFDs.
Advantages of signing up with IB:
Interactive Brokers Trading Accounts
IB offers one account for retail traders, their IBKR Lite Account. As you can see from the image below, the account features are complex, so it is suited for more experienced traders.
To break it down, commissions will vary based on your monthly trading volume. Essentially, the more you trade, the cheaper your commissions will be (e.g. if you trade more than USD 5 million a month, you will pay 0.08% of a basis point x the trade value). As such, this account is designed for more sophisticated active day traders.
Spreads are ultra-competitive, starting at 0.1 pips for major Forex pairs.
You can only transfer via bank wire in the UK to fund your account.
Interactive Brokers Trading Platforms
Day traders have a choice of desktop and web-based trading platforms and 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, accelerate execution, allow privacy, ensure price improvement, time the market, or just simplify the trading process via advanced trading features.
Client Portal is IB’s simple and intuitive web-based platform, visualising key account metrics at a glance and granting access to detailed price quotes, advanced charting tools, and IB’s live news stream.
The IBKR Mobile app also 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.
Interactive Brokers Trading Products
Interactive Brokers offers one of the most diverse product ranges in the industry. As a UK client, you can access 135 international markets in 33 countries.
This includes over 100 currency pairs, stocks, ETDs on over 80 stock exchanges and a whopping 1 million bonds (including municipal securities). Of particular note are the over 40,000 mutual funds available to trade, unique to IB.
No other broker offers the sheer number and range of instruments for UK traders that we’ve come across.
Again, this highlights that IB is targeting more sophisticated traders who want variety and plenty of CFD trading options.
Interactive Brokers Verdict
Based on our hands-on experience, Interactive Brokers emerges as the preferred choice for UK day traders due to its cost-effective structure, unparalleled trading software, and vast market range. Many accolades further endorse its global recognition, including being crowned the Best Online Broker in 2020 by Barron’s.
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Contracts for difference (CFDs) are a financial derivative that allow you to speculate on price movements in the market without actually purchasing the underlying asset. Instead, you’ll sign an agreement with your broker promising to either pay – or be paid – the difference between the opening and closing price of a financial instrument, like a commodity, index, stock or currency.
Let’s say you decide to trade commodity CFDs speculating on changes in the price of gold. You enter into an agreement with your CFD broker betting that the gold market will increase in value by a certain time. If the price goes up before the deadline, you’ll receive the difference as your profit. If, on the other hand, the price goes down, you’ll need to pay the difference to your CFD broker.
In addition to the opportunity to diversify your portfolio or supplement your income, trading CFDs has a number of advantages.
Many CFD brokers will allow you to use leverage to increase the size of your positions, which can lead to higher profits (or bigger losses)
Because you can bet on either upward or downward price movements, CFD trading allows you to profit no matter the market conditions
Unlike other financial instruments, CFDs accommodate a number of trading strategies
Of course, trading any product comes with certain downsides. In the case of trading CFDs, it’s important to understand the risks as well as the benefits.
Top CFD brokers operating in the UK like IC Markets, IG Markets, CMC Markets or Interactive Brokers generally offer two different pricing structures for a retail CFD account: spread-only and commission-based.
With a spread only account, you’ll pay only the cost of difference between the buy and sell price of a CFD. This is called the spread, and it typically represents the broker’s profit. New CFD traders or beginner day traders often prefer spread only accounts for the simplified pricing that makes it easier to calculate a trading budget.
Commission accounts, as the name implies, mean you’ll pay a your CFD provider a small fee to execute your trades. To offset these costs, your CFD broker will usually offer much narrower spreads. you should be aware, however, that the quoted minimums can vary considerably from actual spreads. This can make calculating trading costs complicated, and we typically recommend these accounts for a more experienced trader.
Other direct trading costs you may pay include overnight fees, sometimes called Swaps, and Guaranteed Stop-Loss Order premiums.
Unlike direct trading costs like spreads and commissions, non-trading fees can vary significantly from broker to broker. For example, some CFD brokers will require that you make a minimum deposit in order to begin trading, others will not. Some brokers charge a fee to deposit or withdraw funds from your account, others don’t.
Non-trading fees and other indirect trading costs can significantly impact your profits, and we recommend that you carefully review the terms and conditions of each broker or account type before beginning to trade CFDs.
One of the major benefits of CFDs? The versatility. CFDs allow you to speculate on the price movements of numerous financial instruments, including stocks, commodities, indices, forex and cryptocurrencies.
There are almost as many ways to trade CFDs as there are markets. Some of the most popular strategies include:
Trend Following:
This strategy involves identifying and trading in the direction of a prevailing market trend. Traders may use technical indicators such as moving averages or trendlines to determine the trend’s direction.
Swing Trading:
Swing traders aim to capture price swings or “swings” within a broader trend. They look for opportunities to enter and exit positions based on short to medium-term price movements.
Day Trading:
Day traders open and close CFD positions within the same trading day. They seek to profit from short-term price fluctuations and do not hold positions overnight to avoid overnight financing costs.
Scalping:
Scalpers aim to make quick, small profits by executing numerous trades throughout the day. They focus on capturing very short-term price movements, often using high-frequency trading techniques.
Range Trading:
Range traders look for assets that are trading within a defined price range. They buy near the lower end of the range and sell near the upper end, expecting price reversals at these levels.
Breakout Trading:
Breakout traders seek to profit from significant price movements when an asset’s price breaks out of a defined range or chart pattern, such as a triangle or rectangle.
Hedging:
Hedging involves using CFDs to offset potential losses in other investments. Traders may hedge their stock portfolio, for example, by going short on CFDs if they anticipate a market downturn.
Social Trading:
Social traders mimic or shadow the strategies and positions of a more experienced trader, usually a professional, to benefit from their knowledge of a particular market or instrument.
Copy Trading:
Copy traders go one better than social traders, directly copying advanced traders position for position.
Now that you’ve identified your preferred trading strategy, it’s time to choose the best CFD broker for your needs.
If you’re on a budget, it’s important to understand what it means when your broker acts as a market maker and why some accounts with competitive spreads carry commissions. You’ll also want to research your trading platform carefully to ensure you have access to any trading tool you need to implement your strategy.
We suggest beginning your search by selecting a regulated broker with a license from the Financial Conduct Authority. Online trading has certain inherent risks and trading with licensed broker can help protect your investments.
After choosing the best CFD broker for your needs, you’ll need to open a trading account.
A spread-only account, sometimes called a Standard account will have a fixed spread and predictable costs. It’s a great choice for a new trader, but remember that the broker will act as a market maker, which means some orders may fill at less-than-favourable prices.
Commission-only accounts usually offer more competitive spreads, but these can vary widely depending on market conditions. You’ll also pay a commission to open and close a position, no matter how wide the spread.
If this is your first experience with online trading, we suggest opening a demo account. Demo accounts allow you to practice trading and acquaint yourself with a cfd trading platform before putting real money on the line.
When you trade CFDs, you don’t own the underlying trading instrument. Trading shares, on the other hand, involves buying and selling portions of an actual company. Traditionally, share trading does not involve the use of leverage.
Be aware that some CFD brokers do allow you to buy or sell a share CFD. Don’t confuse this with share trading.
Trading CFDs and forex trading have more in common than trading shares, such as the use of leverage. you should be aware, however, of some important differences.
Forex traders deal exclusively with the foreign exchange markets, betting that the price of a specific currency pair will rise or fall. A CFD trader, on the other hand, can speculate on price movements of commodities, indices, stocks and cryptocurrencies.
CFD traders and forex traders also work different ‘shifts’. The foreign exchange market operates 24 hours a day, seven days a week. CFD markets often track those of the contract’s underlying asset.
Similar to share CFDs, many brokers will allow you to trade a forex CFD. Be sure you understand the product you’re trading when you open a position.
Yes, trading CFDs is legal in the United Kingdom. For the best trading experience, we recommend always trading with a regulated broker licensed by the Financial Conduct Authority (FCA).
Provided you manage your trading funds appropriately and deploy a sensible risk management strategy, you can profit from trading CFDs.
Like any online trading opportunity, CFDs can be a great way for beginner traders to get started with retail investing. It’s important, however, to manage your trading budget carefully and to test your strategies before opening your first positions.
We also suggest reviewing our international beginner trader page for the overall best CFD brokers across all regions.
The best CFD trading platform for you depends on your specific trading strategy and needs. If, for example, you also trade forex, MetaTrader 4 may be the best bet for you. If, on the other hand, you rely heavily on technical analysis and advanced charting for your trading strategy, TradingView may better suit your needs.
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. These can be traded during forex market open hours from Monday to Friday.
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 it can be hard to buy for retail investors with small accounts. As an example, Amazon shares 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 in the UK that offer CFD trading charge the spread or additional commissions.
Risk Warning: CFDs are complex instruments and may not be suitable for all types of investors. Make sure you understand how CFD works before risking any of your hard-earned money.
Evaluating the top CFD platforms in the UK required an exhaustive, meticulous approach, primarily centred on FCA regulation. We understand that traders place paramount importance on the trustworthiness of their chosen broker. As such, we diligently vetted each platform’s regulatory credentials, ensuring they are in compliance with the Financial Conduct Authority (FCA) here in the United Kingdom. This oversight is critical for ensuring not just legal compliance but also the financial security and ethical conduct of the broker.
Our methodical approach doesn’t end with regulation, however. We also analysed the brokers in terms of fees, trading environment, and platform offerings. The comprehensive assessment ensures that the broker not only complies with stringent regulatory requirements but also offers a competitive trading experience. In doing so, we strive to offer you a list of CFD platforms that not only adhere to the highest regulatory standards but also align with your trading needs. You can view similar comparisons by navigating back to the compare forex brokers UK homepage.
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