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CFD trading is a form of investment made popular by tales of generous profits from trading both sides of the market – all from the comfort of working from home. CFD brokers provide the trading software needed to connect traders with the CFD market, so the first step for a new trader will be to choose from a long list of potential brokers.

To start our review process, we evaluated the broker’s financial regulation, trading platforms, educational material, minimum deposit requirements, and fee structure. To test these CFD brokers further, we created live trading accounts, depositing the minimum required amount, and started researching the trading conditions and functionality offered to emulate a beginner trader’s experience. These are the best CFD brokers in India for 2021, according to our testing and our research

These are best CFD brokers for 2021

  • AvaTrade - Best Mobile CFD Trading Experience
  • FXTM - Best CFD Broker for Beginners in SA
  • BDSwiss - Best CFD Market Research Provider
  • CM Trading - Largest South African CFD Broker by Client Volume
  • XM - Best CFD Education
  • HotForex - Best FSCA-Regulated CFD Broker
  • FxPro - Best MT5 CFD Broker
  • Plus500 - Best Mobile CFD Trading Account
  • FP Markets - Widest Variety of CFDs
  • XTB - Best Proprietary CFD Trading Platform

Best CFD Trading Brokers 2021

Last updated on 26 Oct 2021
Updated 26 Oct 2021
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
AvaTrade
Min. Deposit
USD 100
4.484.48
Min. Spread
0.90 pips
Fx Pairs
55
Deposit & Withdrawal Methods
Overall Rating
11110.54.48/ 5
AlertAccepts Indian Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.
2
FXTM
Min. Deposit
USD 10
4.334.33
Min. Spread
0 pips
Fx Pairs
62
Deposit & Withdrawal Methods
Overall Rating
11110.54.33/ 5
AlertAccepts Indian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.
3
BDSwiss
Min. Deposit
USD 100
4.324.32
Min. Spread
0.30 pips
Fx Pairs
50
Deposit & Withdrawal Methods
Overall Rating
11110.54.32/ 5
AlertAccepts Indian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. BDSwiss is regulated by CySEC, FSC, and the FSA-Seychelles.
4
CM Trading
Min. Deposit
USD 250
3.243.24
Min. Spread
1.50 pips
Fx Pairs
47
Deposit & Withdrawal Methods
Overall Rating
1110.503.24/ 5
AlertAccepts Indian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4 & Sirix platforms supported. CM Trading is regulated by the FSCA.
5
XM
Min. Deposit
USD 5
4.254.25
Min. Spread
0.60 pips
Fx Pairs
57
Deposit & Withdrawal Methods
Overall Rating
11110.54.25/ 5
AlertAccepts Indian Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC.
6
HotForex
Min. Deposit
USD 5
4.494.49
Min. Spread
0 pips
Fx Pairs
53
Deposit & Withdrawal Methods
Overall Rating
11110.54.49/ 5
AlertAccepts Indian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.
7
FxPro
Min. Deposit
USD 100
4.294.29
Min. Spread
0.60 pips
Fx Pairs
70
Deposit & Withdrawal Methods
Overall Rating
11110.54.29/ 5
AlertAccepts Indian Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA
8
Plus500
Min. Deposit
USD 100
4.094.09
Min. Spread
0 pips
Fx Pairs
70
Deposit & Withdrawal Methods
Overall Rating
11110.54.09/ 5
AlertAccepts Indian Clients. Plus500 does not publish their spreads, and thus a cost of trading can not be established. Max leverage 30:1. Islamic account available. Only Plus500 proprietary trading platform supported. Plus500 is regulated by FCA, CySEC, ASIC, and MAS.All information presented is verified as of the date of the review.Most retail CFD accounts lose money. Your capital is at risk.
9
FP Markets
Min. Deposit
USD 100
4.284.28
Min. Spread
0 pips
Fx Pairs
60
Deposit & Withdrawal Methods
Overall Rating
11110.54.28/ 5
AlertAccepts Indian Clients. Average spread EUR/USD 0.10 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC and ASIC.
10
XTB
Min. Deposit
USD 5
4.144.14
Min. Spread
0.80 pips
Fx Pairs
48
Deposit & Withdrawal Methods
Overall Rating
11110.54.14/ 5
AlertAccepts Indian Clients. Average spread EUR/USD 1.40 pips on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & xStation platforms supported. XTB Group is regulated by CySEC, FCA and the IFSC

AvaTrade – Best Mobile Trading Experience

AvaTrade is an internationally and FSCA regulated beginner-friendly CFD broker offering trading on Forex, cryptocurrencies, commodities, indices, stocks, bonds, vanilla options, and ETFs. The AvaTradeGO app provides one of the best mobile trading experiences and, unlike many European brokers, AvaTrade has a local South African customer support team. All 1000+ CFDs instruments offered by AvaTrade are available in the app, as is the AvaProtect tool, which protects traders from losses for a limited time. Other highlights of the app include a market trends monitor, zoom function and seamless synchronisation with AvaTrade’s webtrader.

Avatrade single account features some of the tightest spreads for a commission-free account with a 100 USD minimum deposit – as low as 0.7 pips on the EUR/USD. Maximum leverage is set at 1:400 on MT4 and MT5, which include EA’s, indicators, scalping, hedging, and provides free access to the integrated Trading Central dashboard for both platforms. 

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited market analysis
AlertAccepts Indian Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

FXTM – Best CFD Broker for Beginners in SA

FXTM is an award-winning CFD broker offering trading on 250+ instruments including Forex, commodities, metals, stocks, and indices. While FXTM’s Advantage Account Account has a minimum deposit of 500 USD, spreads starting at 0 pips, and a 4 USD commission, FXTM also offers a Micro Account with a 50 USD minimum deposit and spreads starting at 1.5 pips which could be more appealing to the beginner. For beginners looking to copy professional traders, the FXTM Invest CopyTrading scheme is one of the best in the industry, where traders can copy Strategy Managers whose risk profile matches their own.

FXTM has a large volume of training material, including videos, webinars, and a searchable glossary of new vocabulary to help new traders get started. An additional set of videos covering analysis topics and more detail on chart reading techniques is available for experienced traders. FXTM are one of the few CFD brokers with weekend support, allowing new traders to get set up outside of the working week.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
  • Copy trading accounts
Cons
  • Expensive withdrawals
AlertAccepts Indian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.

BDSwiss – Best CFD Market Research Provider

BDSwiss is a European CFD broker offering trading 1000+ asset including Forex pairs, stocks, commodities, shares, indices, ETFs and cryptocurrencies, with no strategy restrictions. Of special note is the range of 20 crypto pairs and cross pairs, including exotics such as LTC/USD and ETH/JPY. Winner of the award for the Best Market Research Provider of 2020, BDSwiss’s financial commentary is frequently published by numerous global news agencies, and BDSwiss’ clients benefit from exceptionally detailed and accurate market analysis for traders of all experience levels. Analysis includes daily webinars, market insights, weekly outlook and daily briefings – all from BDSwiss’ team of industry experts. 

BDSwiss offers account types suitable for both beginners and more experienced traders, including a Raw Account with spreads down to 0 pips. All accounts benefit from fast execution speeds, with 97.5% of all trades executed in less than 0.2 seconds. Accounts are available on both MT4 and MT5 and the BDSwiss webtrader, which has an intuitive and user-friendly trading interface. Limited share trading is available on all account with a commission of 0.15%, but for the full range of shares and ETFs, traders will want to open an InvesPLUS account offering direct market access and a commission of 0.1%.

Pros
  • Tight spreads
  • Good for beginners
  • Wide range of assets
Cons
  • Expensive withdrawals
AlertAccepts Indian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. BDSwiss is regulated by CySEC, FSC, and the FSA-Seychelles.

CM Trading – Largest South African CFD Broker by Client Volume

With over 1 million clients across Africa, CM Trading is the largest South African CFD broker. CM Trading offers trading on multiple instruments, including Forex, indices, 4 cryptocurrencies, 10 commodities, 100 global shares, oil, and metals. It offers four live commission-free accounts in addition to an ECN account.  The minimum deposit requirements are relatively high – starting at 250 USD on its entry-level account – but full support is offered for the MT4 platform.

A minimum deposit of 250 USD, negative balance protection, personalised customer service, and fixed spreads on a range of assets with EURUSD spreads from 1.50 pips. Winning awards for its innovation, CM Trading has developed the CopyKat copy trading system, and the Guardian Angel automated feedback tool. The Guardian Angel system provides traders with market trends and automated feedback on a trader’s behaviour, optimising strategies and assisting in preventing errors.

Pros
  • Good for beginners
  • Great customer support
  • Copy trading accounts
Cons
  • Expensive withdrawals
  • Local regulation only
AlertAccepts Indian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4 & Sirix platforms supported. CM Trading is regulated by the FSCA.

XM – Best CFD Education

An FCA regulated CFD broker with tight spreads over three simple account types, XM offers trading on Forex, shares, commodities, indices, precious metals, and energies. XM stands out for its educational support and market research. XM’s research team provide frequent market updates across all CFD classes in an easy-to-understand manner, highlighting trading opportunities and technical insight. Webinars are available 7 days a week in 19 languages and educational videos cover basic, intermediate, and advanced trading concepts.

All XM accounts have a max leverage 1:30, negative balance protection, and minimum deposits start from 5 GBP. XM also has a strict no-requotes/rejection policy, which means that all trades are always filled at the price expected. Platform support is offered for MT4 and MT5 but MT4 users will only be able to trade Forex, stock indices, precious metals, and energies.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • Dealing desk
AlertAccepts Indian Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC.

HotForex – Best FSCA-Regulated CFD Broker

HotForex is a global CFD broker with FSCA regulation providing a variety of CFDs including Forex pairs, commodities, indices, shares and crypto. HotForex offers lightning-fast STP execution and access to 1000+ CFD instruments on all six different accounts that it offers. HotForex has also introduced symbols listed on the JSE to its portfolio, ideal for South African traders who want to trade local shares. The minimum deposit on the Micro Account is exceptionally low, at 70 ZAR (5 USD) and spreads start at 1.2 pips on the EUR/USD. For beginners, HotForex offers unlimited demo versions of all its account types. For more experienced traders, the HotForex Zero Spread Account offers spreads down to 0 pips for a 200 USD minimum deposit.

HotForex supports MT4 and MT5 via every method, including the MT4 MultiTerminal, which allows traders to manage multiple MT4 accounts from a single platform. MT4 and MT5 are also available via web, desktop, and Android and iOS apps. Trading tools available include free Autochartist, VPS services and the HFCopy copy trading service.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
AlertAccepts Indian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

FxPro – Best MT5 CFD Broker

FxPro is a respected and well-regulated CFD broker, offering NDD execution on MT5, MT4, cTrader and its own browser-based trading platform. The MT5 account offers a 100 USD opening deposit combined with competitive spreads on 70+ Forex pairs, futures, indices, shares, metals, and energies. Most trades are executed in less than 10 milliseconds and only 9% of orders receive negative slippage. These execution statistics are ideal for traders who want to take advantage of MT5’s algorithmic trading capabilities across a range of assets.

The MT5 account at FxPro offers market execution, variable spreads, no requotes and will allow for partial fills for orders that lack liquidity.  The MT5 account is commission-free with spreads sometimes down to 0.6 pips, though traders will find that the average spread on the EUR/USD is closer to 1.2 pips. FxPro offers a range of technical analysis indicators from Trading Central for MT5 as well as a free VPS service. 

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
AlertAccepts Indian Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA

Plus500 – Best Mobile CFD Trading Account

Plus500 is a leading CFD provider mainly due to the intuitive nature of its mobile platform, appealing trading conditions and range of 2000+ non-Forex CFDs, including Shares, Indices, Cryptocurrencies, Commodities, ETFs, and Options. Spreads are fixed at Plus500 but are reasonably tight with a 0.8 pip spread on the EUR/USD (April 16th, 2021) and no commission. Deposits and withdrawals are free, and there are no fees for rolling over your position. Plus500’s customer service team is available 24/7 via WhatsApp and Live Chat for traders who need customer service on weekends and evenings.

The Plus500 app has the same functionality as the web platform, and traders will find it intuitive to grasp and feature-rich. Traders can use the app’s advanced order types, sentiment indicators and price alerts to stay on top of the market, even when on the move. 

Pros
  • Well regulated
  • Wide range of assets
Cons
  • Limited education
  • Limited account options
AlertAccepts Indian Clients. Plus500 does not publish their spreads, and thus a cost of trading can not be established. Max leverage 30:1. Islamic account available. Only Plus500 proprietary trading platform supported. Plus500 is regulated by FCA, CySEC, ASIC, and MAS.All information presented is verified as of the date of the review.Most retail CFD accounts lose money. Your capital is at risk.

FP Markets – Widest Variety of CFDs

FP Markets is an Australian CFD broker offering thousands of CFDs to trade, including 60+ Forex pairs, shares, metals, indices, commodities, and cryptocurrencies (Bitcoin, Etherium, Ripple, Bitcoin Cash and Litecoin). Both MT4 and MT5 are available with ECN pricing, ensuring low spreads and fast execution. But for the full range of FP Market’s CFDs the IRESS trading platform offers direct exchange access and leverage of 20:1 on 10,000 global stocks.

MT4 and MT5 trading accounts can be opened with a minimum deposit of 100 AUD. Average spreads on the RAW Account are 0.1 pips (EUR/USD) and commission on this account is 6 USD round turn, making the total trading costs at the low end for the industry. IRESS trading accounts require higher minimum deposits, starting at 1000 AUD for the Standard Account. IRESS trading accounts also attract a brokerage rate, IRESS platform fee and an ASX Live Data fee unless a minimum monthly commission is reached.

FP Markets also offers a range of trading tools including VPS, Autochartist and copy-trading via Myfxbook AutoTrade. For beginners, the Traders Hub gives beginner CFD traders the education they need to get started and includes video tutorials and trading courses.

Pros
  • Well regulated
  • Tight spreads
  • Good range of accounts
  • Great customer support
Cons
  • Expensive withdrawals
AlertAccepts Indian Clients. Average spread EUR/USD 0.10 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC and ASIC.

XTB – Best Proprietary CFD Trading Platform

A well-regulated STP broker, XTB offers trading on multiple assets, including Forex, indices, commodities, stock CFDs, ETFs, and cryptocurrencies.  XTB offers trading on two live accounts with competitive trading conditions, including tight spreads, high leverage, and no minimum deposit requirements. The main draw at XTB is the award-winning xStation 5 trading platform. Intuitive, powerful, and fast, xStation 5 shows XTB sentiment data in the platform and offers powerful charting tools, one-click trading, and real-time performance statistics so traders can identify areas for improvement.

While xStation 5 is a multiple award-winning platform, some traders may be disappointed that XTB recently removed its support for MT4 – severely limiting platform choice. It’s important to note that as xStation 5 is a proprietary platform it can not be used at other brokers, so traders may feel tied to XTB. For beginners, XTB has some of the best Forex education available. Its Trading Academy is structured into topics and experience levels; it is clear and concise and structured like a course. Market analysis is less detailed but will assist new traders looking for trading opportunities.

Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts Indian Clients. Average spread EUR/USD 1.40 pips on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & xStation platforms supported. XTB Group is regulated by CySEC, FCA and the IFSC

What are CFDs?

What is CFD Trading?

A CFD is a Contract For Difference. It is an agreement between you and a CFD broker to pay the difference in the price of an asset (like gold, or oil, or Tesla stock) after it increases or decreases.

Trading CFDs is speculating on the price movement of an asset without ever owning it.

CFDs are usually traded with leverage (money borrowed from the CFD broker) and neither the trader nor the broker ever owns the underlying asset.

What is a CFD Broker?

CFD brokers are the companies that provide access to a CFD market and provide a trading platform to open and close trades. To trade CFDs, you will need to open an account with a CFD broker. Once you open an account you will need to fund it with the minimum deposit required by the CFD broker.

CFD brokers usually require a minimum deposit to open an account

All CFD brokers offer the same basic services – like a trading platform and access to a market – but they can be quite different in other ways.

Types of CFD Brokers

CFD brokers come in two main forms: Market Makers or Direct Market Access (DMA)

Market Makers

Market makers are CFD brokers who create an artificial market for traders. When you trade with a market maker, you are not trading with real market prices. Instead, you are trading with prices that a market maker thinks are fair.

Market makers are always counterparty to your trade

Because a market maker is the market, it will always take the other side of your trade. This is called being the counterparty. So, when you lose money the market maker will profit – and when you profit the market maker will lose money.

Market makers will often require low minimum deposits to open an account and offer instant execution of trades.

These are the best market maker CFD brokers in 2021:

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Overall Rating
Regulators
Min. Deposit
Cost of Trading
Trading Commission
No. of FX Pairs
Compare
Official Site
4.69 /5
Read Review
ASIC Regulated Forex Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Dubai Financial Services Authority
Commodity Futures Trading Association
USD 250
USD 6
Fees Included in Spread
80
Visit Broker >
Your capital is at risk
4.68 /5
Read Review
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
USD 20
USD 6
Fees Included in Spread
137
Visit Broker >
Your capital is at risk
4.49 /5
Read Review
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
FSCA Regulated Forex Brokers
USD 100
USD 7
Fees Included in Spread
67
Visit Broker >
Your capital is at risk
4.48 /5
Read Review
ASIC Regulated Forex Brokers
British Virgin Islands Financial Services Commission
CySEC Regulated Brokers
Central Bank of Ireland
USD 100
USD 9
Fees Included in Spread
55
Visit Broker >
Your capital is at risk
4.33 /5
Read Review
CySEC Regulated Brokers
FCA Regulated Brokers
FSCA Regulated Forex Brokers
Financial Services Commission
USD 10
USD 15
From 4 USD / ECN Accounts
62
Visit Broker >
Your capital is at risk

Direct Market Access (DMA)

ECN-Network

Unlike market makers, DMA brokers provide access to the CFD market. The most common form of DMA broker is called an ECN (Electronic Communication Network) broker. When you trade with an ECN broker, it will pass your trade to a member of its network to take the other side of your trade.

DMA brokers pass your trade to other members of the CFD market

ECN brokers and other DMA brokers usually require high minimum deposits to open an account and trade execution is never instant.

These are the best ECN CFD brokers in 2021:

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Overall Rating
Regulators
Min. Deposit
Cost of Trading
Trading Commission
No. of FX Pairs
Compare
Official Site
4.61 /5
Read Review
FCA Regulated Brokers
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
Dubai Financial Services Authority
USD 5
USD 6.90
From 7 USD / lot - Razor Account
60
Visit Broker >
Your capital is at risk
4.46 /5
Read Review
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
The Seychelles Financial Services Authority
USD 200
USD 8
7 USD / lot - Raw Spread Account
64
Visit Broker >
Your capital is at risk
4.34 /5
Read Review
FCA Regulated Brokers
ASIC Regulated Forex Brokers
Dubai Financial Services Authority
USD 5
USD 12
7 USD / lot - PRO account
70
Visit Broker >
Your capital is at risk
4.33 /5
Read Review
CySEC Regulated Brokers
FCA Regulated Brokers
FSCA Regulated Forex Brokers
Financial Services Commission
USD 10
USD 15
From 4 USD / ECN Accounts
62
Visit Broker >
Your capital is at risk
4.28 /5
Read Review
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
USD 100
USD 7
6 USD / lot - RAW Accounts
60
Visit Broker >
Your capital is at risk

What is a CFD Trading Account?

CFD trading accounts are accounts opened with a CFD broker. Many CFD brokers will offer different accounts with different costs and benefits.

Unless it is a CFD demo account, traders have to transfer money into the trading account to start trading.

Types of CFD Trading Accounts

Forex Charts

Accounts with CFD brokers can be split into two main groups: Demo Accounts and Live (or Real) Accounts.

Demo Accounts

Demo accounts are the best way to practice CFD trading with zero risk. All CFD brokers will offer a demo account for beginners to practice trading and get used to the broker’s trading platform. They are free to open, and the broker will load them with virtual money.

Demo accounts have fake money, but real market conditions

Even though there is no real money involved, demo accounts have real market conditions; traders with a demo account are seeing exactly the same thing as traders with a real account. Demo accounts are indispensable for new traders who want to understand how it feels to trade CFDs.

Some CFD brokers will put a time limit on their demo accounts, usually 2 or 3 weeks, forcing new traders to switch to a real account. The best CFD brokers have demo accounts that never expire, so traders can continue to practice as long as they want.

These are the CFD brokers with the best demo accounts in 2021:

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Overall Rating
Regulators
Min. Deposit
Cost of Trading
Trading Commission
No. of FX Pairs
Compare
Official Site
4.48 /5
Read Review
CySEC Regulated Brokers
FCA Regulated Brokers
Labuan Financial Services Authority
FSCA Regulated Forex Brokers
USD 100
USD 4
4 USD / lot - Pro Account
62
Visit Broker >
Your capital is at risk
4.68 /5
Read Review
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
USD 20
USD 6
Fees Included in Spread
137
Visit Broker >
Your capital is at risk
4.69 /5
Read Review
ASIC Regulated Forex Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Dubai Financial Services Authority
Commodity Futures Trading Association
USD 250
USD 6
Fees Included in Spread
80
Visit Broker >
Your capital is at risk
4.49 /5
Read Review
CySEC Regulated Brokers
FCA Regulated Brokers
Dubai Financial Services Authority
Financial Services Commission
USD 5
USD 10
6 USD / lot - Zero Account
53
Visit Broker >
Your capital is at risk
4.14 /5
Read Review
CySEC Regulated Brokers
FCA Regulated Brokers
Dubai Financial Services Authority
International Financial Services Commission
USD 5
USD 14
Fees Included in Spread
48
Visit Broker >
Your capital is at risk

Live Accounts

Live accounts come in many different forms depending on the CFD broker. Most CFD brokers have several live accounts, with different required minimum deposits. Generally, live accounts with lower minimum deposits have worse trading conditions (i.e. making trades is more expensive).

Lower minimum deposits = worse trading conditions

As well as lower trading costs, CFD brokers will also offer more perks on accounts with higher minimum deposits. Perks can include one-on-one training and advanced trading tools.

Some CFD brokers will offer both market maker accounts (so you will be trading against the broker) and direct market access accounts (so you will be trading on the market).

What Types of CFDs Can You Trade?

Tradeable CFDs include: Forex (currency pairs), commodities (oil, gold, coffee, grain, etc.), stocks (Tesla, Apple, etc.), indices (like the NASDAQ or FTSE 100) and cryptocurrency pairs (such as BTC/USD). There are other CFDs, but these are the most common.

The most popular form of CFD trading is Forex trading

The most popular form of CFD trading is Forex trading, or the trading of currency pairs such as EUR/USD (Euro/US Dollar) or GBP/JPY (British Pound/Japanese Yen).

How do CFD Brokers Make Money?

Money

CFD brokers make money from traders with:

  • Spreads and commission
  • Overnight interest
  • Hedging
  • Deposit and withdrawal fees
  • Optional services.

Once you understand how these fees work, you will be able to compare CFD brokers by cost.

Spreads and Commission

Most CFD brokers will make money from the spread. The spread is the broker’s fee for their services. It is the difference between the buy and sell price a CFD broker gives traders and the real market price. The lower (or tighter) the spread, the cheaper a broker is to trade with.

The spread is the CFD broker’s fee for their services

Market makers brokers have wider spreads than direct market access brokers. But direct market access brokers usually charge a commission. This commission is paid when you open a trade and when you close a trade and is usually a fixed amount, charged in USD.

Direct market access brokers have tight spreads but usually charge a commission

Overnight Interest

CFD brokers also make money from interest. CFD trading is leveraged, which means that you borrow money from the broker to increase the size of your position. Brokers will charge you interest for borrowing money from them, this is charged on all trading positions that are held overnight.

Hedging

Market maker CFD brokers will also hedge their counterparty trades. If a CFD broker is the counterparty to a trader buying gold, it will also sell gold to protect itself from the trader winning.

Deposit and Withdrawal Fees

Some CFD brokers also charge deposit and withdrawal fees. These can be either a fixed fee or a percentage of the deposit or withdrawal. Always check with the CFD broker first before you make a deposit or withdrawal to avoid being surprised.

Other Fees

CFD brokers also charge other fees. The most common is an inactivity fee for trading accounts that have not been used for many months. But brokers may also charge for optional services such as advanced trading tools, in-depth education, and VPS services.

CFD Broker Ratings and Reviews

It is important to read reviews and check the ratings for CFD brokers when comparing them. CFD brokers tend to be strong in some areas and weaker in others, only a very few are excellent overall.

The best CFD broker for you will depend on your trading experience, educational background, and financial situation.

For instance, the best CFD broker for beginners will have excellent education and trading accounts with low minimum deposits. But the best CFD broker for experienced traders will have advanced trading tools and trading accounts with high minimum deposits and exceptional trading conditions.

Regulated CFD Brokers

Regulators are national authorities that protect citizens from financial scams and unethical businesses. Traders should always use CFD brokers that regulated by at least one national authority. In South Africa, the national regulator is the Financial Sector Conduct Authority (FSCA).

Traders should always use a regulated CFD broker

To protect traders, FSCA-regulated CFD brokers are required to comply with the following rules:

  • Segregated Accounts: The FSCA requires CFD brokers to keep trader’s money in a separate bank account from their own. This means that traders can get their money back if a CFD broker goes bankrupt.
  • Regular Audits and Inspections: ASIC-regulated CFD brokers are subject to audits of their finances and surprise inspections of their trading setup. This prevents brokers from cheating their traders.

There are many other regulators around the world. Apart from the FSCA the best regulators are CySEC (Cyprus Securities and Exchange Commission), the UK’s FCA (Financial Conduct Authority) and the Australian Securities and Investments Commission (ASIC). Some CFD brokers are regulated by more than one national authority.

CFD Trading Platforms

All CFD brokers will offer a trading platform to access the markets. Some brokers have their own platforms, while others use popular independent trading platforms that you can download to your computer.

The most popular CFD trading platform is MetaTrader 4

The most popular trading platform in the world is MetaTrader 4 (MT4). Other popular CFD trading platforms are MetaTrader 5 (MT5) and cTrader. All three platforms provide access to the CFD markets and allow users to make trades.

These are the best CFD brokers with MT4 in 2021 according to our expert’s research:

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Overall Rating
Regulators
Min. Deposit
Cost of Trading
Trading Commission
No. of FX Pairs
Compare
Official Site
4.69 /5
Read Review
ASIC Regulated Forex Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Dubai Financial Services Authority
Commodity Futures Trading Association
USD 250
USD 6
Fees Included in Spread
80
Visit Broker >
Your capital is at risk
4.68 /5
Read Review
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
USD 20
USD 6
Fees Included in Spread
137
Visit Broker >
Your capital is at risk
4.49 /5
Read Review
CySEC Regulated Brokers
FCA Regulated Brokers
Dubai Financial Services Authority
Financial Services Commission
USD 5
USD 10
6 USD / lot - Zero Account
53
Visit Broker >
Your capital is at risk
4.49 /5
Read Review
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
FSCA Regulated Forex Brokers
USD 100
USD 7
Fees Included in Spread
67
Visit Broker >
Your capital is at risk
4.48 /5
Read Review
ASIC Regulated Forex Brokers
British Virgin Islands Financial Services Commission
CySEC Regulated Brokers
Central Bank of Ireland
USD 100
USD 9
Fees Included in Spread
55
Visit Broker >
Your capital is at risk

All three platforms also allow CFD traders to install small software programs called robots and indicators. Robots trade automatically, based on pre-determined signals, and indicators help traders find opportunities in the markets.

Trading robots will trade automatically for you based on pre-set signals

All trading platforms are also available on Android and iOS mobile devices. CFD brokers with their own platforms will often have their own mobile apps too. MT4, MT5 and cTrader are also available as mobile apps.

Deposits and Withdrawals with a CFD Broker

The best CFD brokers offer a range of methods to make deposits and withdrawals. Almost all CFD brokers will accept credit/debit cards, bank wires and ewallets such as Skrill or Neteller.

Deposits can usually be made instantly with credit/debit cards and ewallets, but bank transfers usually take a few days – or longer if you are making an international bank transfer.

Withdrawals tend to take a little longer, but the best CFD brokers will allow you to withdraw to your credit/debit card or ewallet within 24 hours. Again, bank transfers will take a few days and international bank transfers even longer.

The best CFD brokers will not charge for deposits or withdrawals

The best CFD brokers will not charge for deposits or withdrawals, but unfortunately, this is quite rare. Many CFD brokers will allow free deposits but will charge a fee for withdrawals. Some CFD brokers will even charge for both.

International bank transfers will always incur a fee from the banks involved in the transfer and CFD brokers will usually not cover this cost.

Learn How to Trade CFDs

Forex-education

Trading CFDs with a CFD broker (even the best) is risky, and most traders lose money.

The first step to being a profitable CFD trader is to be an educated CFD trader

Most CFD brokers will offer some form of education, but the best CFD brokers excel when it comes to teaching new traders. CFD education should be comprehensive and well-structured. It should be a mix of video and written content, featuring input from market experts and trading professionals.

The best CFD brokers will also have an in-house team of market analysts to provide technical insight and detailed coverage of events that affect the CFD markets.

Final Word

The best CFD brokers will be well-regulated, have low trading costs and will provide excellent education and powerful but easy-to-manage trading platforms. Because there are quite a few brokers who will fit those criteria, it is important to think about what you want from a CFD broker when making your comparison.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

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Featured Brokers

Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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