Contracts for difference (CFDs) are immensely popular derivatives in the trading community. They provide versatility to traders, as well as democratizing markets for modest capital holders. Moreover, they allow you to make profits regardless of which direction the market takes, with both long and short positions. 

However, CFDs are also largely unregulated. This means that as a CFD trader, you will entirely rely on the broker’s honesty for your trading executions. To avoid risks of scams or low liquidity, you need to choose a trustworthy platform to conduct your CFD trading. 

What Is a CFD Broker, and How Can You Benefit from Their Services?   

CFD brokers act as the middlemen between the market and the traders and provide an online interface that allows you to open and close leveraged positions. In a nutshell, they offer trading terminals that allow you to use technical analysis tools and make your life easier at grasping the markets. 

The services and markets offered by these brokers can greatly differ from each other. Some focus on stocks, while others will offer a wide range of assets, including commodities, government bonds, and cryptocurrencies — from Bitcoin to Shiba Inu

How to Choose a CFD Trader?

Because they can be so different from one another, choosing a CFD trader can be a challenging task. However, here are some factors you should consider before you choose: 

  • Regulatory compliance. The CFD broker should comply with main government regulatory bodies such as the FCA or CYSEC. 
  • Market offering. You should also consider the different markets that the trader lists (commodities, stocks, crypto), depending on what markets you wish to trade. 
  • Margin and limit. The height of the minimal and maximal leverage should be a crucial point when choosing your CFD broker. 
  • Fees. Ensure that you check out the fee schedule for each platform before committing. For example, if you are an intraday trader and wish to place multiple small positions on the same day, it will be essential to choose a platform with lower fees, as they can quickly pile up. 

All in all, there are quite a few things to consider when choosing a broker, and the result might depend on your market choice, trading strategy, and risk appetite. So without further ado, let’s jump into our list of the best CFD brokers.  

Capital.com

Capital.com is a broker that has been around since 2016 and has offices in the UK, Cyprus, Belarus, and Gibraltar. The platform offers a wide choice of CFDs and is compliant with some major and minor regulatory bodies, making it inherently safe to trade on. 

Distinguishing Features

The platform offers some excellent features that both beginners and experienced traders will appreciate: 

  • Low deposit threshold, as you can start trading with just $20. 
  • Incredible range of assets (6,000+) covering almost every possible market available. 
  • Overall premium experience and complete platform that not only facilitates trading but offers additional insight into the markets. 

Markets and Fees

On the platform, you will be able to find CFDs for equity, commodities, cryptocurrencies, market indices, and currency pairs. 

The best thing about Capital.com is its CFD fee schedule. 

  • 0% fees for deposits and withdrawals.
  • Spreads start from 0.7 pips. 
  • The overnight fee depends on the leverage instead of the entire position. 

eToro

Founded in 2007, eToro capitalizes on social trading and offers multiple assets through its user-friendly mobile and desktop apps. It has offices in the UK, Cyprus, Australia, and the United States, although CFDs are not allowed in the US.  

Distinguishing Features

eToro stands out through its user-friendliness and platform that allows beginners to clone their trading activity from more experienced traders. It focuses on providing a streamlined experience, which has proven to be a recipe for success. 

Markets and Fees

The eToro trading platform offers a wide range of markets, including cryptocurrencies, indices, ETFs, stock, commodities, and forex. 

The fees on eToro are also quite good: 

  • Minimum 1 pip spread. 
  • Overnight fees are 0.9% and 2.71% for day and night accordingly.

IG

Part of the IG group founded in 1974, IG is a trading platform that has proven its name over the years with experienced traders. The platform is ranked as the largest CFD provider, with more than 300,000 clients across the globe. 

Distinguishing Features

More than just its name, an additional benefit of trading CFDs on IG is that you will be able to access a robust platform that offers a huge range of assets. The platform also offers some top-of-the-line education for anyone that is getting started on their trading journey. 

Markets and Fees

IG offers cryptocurrencies, forex, stocks, indices, bonds, ETFs, and options, just like most brokers. However, you will be able to find industry sectors CFD as well as interest rates here. 

Here’s a breakdown of the fees on IG: 

  • Minimum 0.3 pips spread. 
  • Overnight fees are charged daily and calculated with a custom formula. 

Libertex

Founded in 1997, Libertex is an established platform that offers a user-friendly platform with instantaneous registration. It offers a wide variety of CFDs that would satisfy even the most demanding traders.  

Distinguishing Features

Libertex is a great beginner trading platform because of its great interface. However, it also caters to advanced traders with a huge range of tools with over 45 indicators for technical analysis. 

Markets and Fees

Libertex’s offering includes CFDs for cryptocurrencies, stocks, commodities, indices, forex, and ETFs. 

The fee structure is a bit different from other platforms as Libertex doesn’t charge on spreads. Instead, it charges commissions, which vary depending on the market that you choose and in time. For example, forex pairs incur fees of around 0.005%, while cryptocurrencies can go up to 0.5% on average. 

Trading 212

Founded in 2004 and with headquarters in London, Trading 212 is a global CFD broker. However, to access the platform without having to go on a waiting list, you will have to reside in the European Economic Area. 

Distinguishing Features

The Trading 212 platform distinguishes itself through the fact that, in addition to CFDs, it offers stock and ETFs as well. What’s more, these are also commission-free and allow access to traders to different trading instruments simultaneously. 

Markets and Fees

The platforms CFD markets include forex, stock, ETF, indices, and commodities. For those looking for cryptocurrencies, Trade 212 doesn’t offer any. 

The fee structure is quite simple, as there are no commissions to be paid whatsoever. However, the fees are also built into the spread.  

  • Minimum spread 1.3 pips.
  • Overnight fee N/A.

Conclusion

There you go, you now have a good idea of the reasons why a reliable broker is essential to your trading journey. You also should have sufficient knowledge on what to look for depending on your needs. Moreover, our list of the best CFD brokers provides a good overview of reliable platforms present on the market today.