You can click on any of the links below to go straight to the broker and register a trading account or go to one of our detailed reviews to learn more about the broker. Below are a few of the top brokers, looking for all brokers?
How to Find a Good CFD Broker:
There are several factors that you need to check before deciding on a broker to use. Some of these aspects are crucial and some are more about personal taste. Below you’ll find the most important criteria that all brokers should live up to.
We have already evaluated and reviewed all the brokers that we recommend so you don’t actually have to go through this time-consuming process. But we still thought it would be helpful to explain how the process works in case you would want to do your own research.
If you prefer to do your own research, you need to be focused and systematic and you have to make sure that the services you use are safe and reliable. Keep in mind that most available brokers are not good enough to even consider and that only a few select options meet all the necessary criteria.
License and regulation – The first and most important thing to check is if the broker is regulated and if they have all the licenses they need to operate. An unlicensed broker can easily rip you off and walk away with your money without any consequences.
In order to receive a license from one of the leading authorities in the industry, a broker needs to follow strict guidelines, volunteer to get audited on a regular basis, and offer certain services and protection to their customers. Because of this, most brokers are proud of their licenses and they never try to hide this information. Usually, you’ll find a broker’s license further down on the website or under the “About Us” tab.
The leading regulatory bodies in Europe are the Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA, Great Britain).
Available Assets – After you confirmed that the broker is licensed and regulated you need to have a look at the selection and you have to make sure that the instruments that you want to trade with are available. CFDs can be traded on pretty much any market and asset which means that many CFD brokers offer thousands of assets. In our opinion, the best CFD brokers have many assets in several markets because it gives you the freedom to invest in what you want as well as the option to switch things up.
Many of the CFD brokers we recommend offer some of the most popular asset classes like forex trading, stocks and indices, commodities such as energy and metals, and cryptocurrencies. That being said, not all brokers offer all of the markets but most offer at least a few of them. No matter what market you are looking to trade on you can rest assured that we have recommended the best CFD broker for that specific market.
Many of the leading CFD brokers today provide access to MetaTrader’s products, and if you start trading CFDs professionally, you will run into this software sooner or later. The most common CFD trading platform is the MetaTrader 4 but the MetaTrader 5 is steadily growing in popularity. Also, the MetaTrader Webtrader is offered by a consistently growing selection of the best CFD brokers.
Platform – The third and final of the crucial selection steps is to make sure you like the broker’s platform. There is a multitude of different platforms that can either be developed by the broker or by third-party companies. It is important to take a close look at the different features and tools and see if they are beneficial for you. Trust us, using a broker with a platform you don’t like will quickly get miserable. The best way to test a trading platform is by opening a CFD demo account that lets you trade without risk.
Why use a CFD broker?
What is the main difference between a CFD-broker and the more traditional way of buying stocks? There are both pros and cons to using a CFD-broker. We are going to list some of the positives with using a CFD broker.
Leverage is something that most brokers offers and one of the main benefits of using contracts for difference broker. Leverage gives you the ability to enter trades that are bigger than the amount you physically invest by using credit. Lets say that you invest $100 dollar buying a stock with 10 x leverage. You will then have invested $1000. Leverage works both ways. It will increase probability if you have done successful investments but it will also increases losses It’s a way to increase your potential profit from a certain investment, and it makes it possible to experience gains from speculating on even the smallest market movements. Essentially, leverage provides you with increased buying power. Leverage is excellent if you know how to use it and can be dangerous if you have no clue what you are doing. Read our full introduction to leverage trading here.
A margin is essentially a loan that you broker provides to you. Depending on what asset you are trading the brokers offers different margins. It can be double your investment but it can also be several times higher than the funds in your account. Margins, like leverages, can be genius if used in the right way. Needless to say, margins also comes with risks. Make sure you know what you are doing.
There are so many markets and so many localized rules to trading that applies to taxes, stamp duty and so on. CFD-trading is in many markets a cost-efficient way to trade.
Going short? Then you should for sure use a CFD-broker. Short trading is generally considered pretty hard to do when doing more traditional stock investments. CFD-brokers offers excellent tools for short trading.
Advanced trading platforms
It is no secret that CFD brokers are years ahead when it comes to their platforms. Are you looking for helpful features and easy to use platforms that makes trading both more fun and more profitable? Then you should pick a CFD broker.
We, the team working at BullMarketz.com, have many years of combined experience from several markets and all types of trading and thus during our years in the business we have tried many brokers. Due to our extensive experience, we know what should be required from a good broker and we are more than willing to share that information.
We have listed some of our absolute favorite brokers below. You can consider this list the icing on the cake, the creme de la creme, and the elite of CFD brokers.
Note that the CFD market is constantly changing with new brokers being added on a daily basis, which means that the list of the best CFD brokers is constantly being updated. We work hard to keep our list of recommended CFD brokers as up to date as possible, and we add and remove brokers from our list as needed. The above-mentioned brokers are the single best brokers right now. However, we also provide a complete list of all the CFD brokers we recommend at any given time.
We have also recommended a few other services and you can find them in the top menu. However, if you are looking for a great broker the following list will have at least one that will fit your needs. Again, click the link to read a full review or use one of the buttons above to be redirected to the broker’s sign up page.
- Markets.com has been our first-hand choice for CFD trading for many years. They offer over 2,000 assets, have an industry-leading customer support service, a modern platform, and provide one of the best investment experiences on the market. They also offer a very practical Markets.com demo account.
- Trade.com is another top broker that we’ve used a lot over the years. Similar to Markets, Trade.com offers 2,000 assets and their product is solid. In addition, their customer service is available in more than 25 languages and they offer the well-known MetaTrader 4 platform.
- Plus500 is an Israeli broker based in Tel Aviv and they are publicly traded on the London Exchange. Over the years, Plus500 has attracted a large number of loyal customers and have made a name for themselves for being trustworthy. The Plus500 demo account is unlimited and it does not require any deposit.
- 24Option was one of the best brokers for many years but after some controversies and legal issues (that they have been cleared from), they decided to re-brand as a CFD and forex broker. Today they offer a great product and are the official sponsors of the Italian football team Juventus.
- IQ Option We have used to use IQ Option for trading for many years, now that are really taking their product to the next level and we are very excited about that since the new platform since it has helped strengthen the broker’s brand even more.
- FXTM offers a really good trading platform and a free demo account which lets you test out their platform. In fact, FXTM has won several prices for their platform.
- LiberTex is another great option if you are looking for a great CFD-broker. Libertex is active in over 27 countries, is fully regulated and offers a really interesting trading platform.
- XM is a good pick, they offer a great product with over 700 tradable assets. They are also fully regulated and completely safe to trade on. Make sure to read our review first.
Legal Status of CFD Trading and CFD Brokers Around the World
The legal status of CFD trading is a subject that’s often discussed and riddled with unclarity, which is why we decided to clear things out. So what’s actually going on and how do the laws look around the world?
CFD Brokers in the US
CFD trading is banned in the United States meaning no one is allowed to offer or participate in CFD trading within the country. The US is, in fact, the only country in Europe and North America, with the exception of Belgium, where CFD trading isn’t allowed.
CFD Brokers in the UK
In Great Britain, CFD trading is flourishing in a safe and well-regulated market. Many of the world’s best brokers are based in England and the Financial Conduct Authority (FCA) is considered one of the most trustworthy authorities in the world. Several of the largest brokers, for example, Plus500 and Markets.com, are even listed on the London Stock Exchange.
CFD Brokers in Canada
Contracts for difference trading has become more and more regulated in Canada over the last few years and there is a high probability that they will join the US and introduce a complete ban soon. It’s very hard for brokers outside of Canada to offer CFDs to customers in the country and the brokers that are allowed are being tightly regulated and forced to be very clary with the risks involved in speculative trading.
CFD Brokers in Europe
At the moment, Europe has one of the strongest CFD markets in the world with most of the world’s brokers offering their services to European clients. For a broker to offer CFDs in Europe they have to either be regulated by the Cyprus Securities and Exchange Commission (CySEC) or the FCA. This means all the brokers that we recommend on BullMarketz.com are authorized by at least one of them. Note that in early 2018, laws for CFD trading in Europa was updated with stricter regulation on margin and leverage, affecting all asset classes.
CFD Brokers in Australia & New Zealand
In Australia, they have one of them to regulatory bodies for securities trading in the world. CFD brokers in Australia are only allowed to offer their services if they live up to tough requirements. The Australian Securities and Investments Commission (ASIC) is an independent government body that regulated CFD trading in Australia and the rest of the Oceana. Due to their strict regulation, an ASIC license is highly valued in the rest of the world.
CFD Brokers in South Africa
Not many brokers are based in South Africa even though the market is strong and stable. However, the country has one of the most respected regulatory bodies in the world. The Financial Service Board (FSB) regulates CFD trading in South Africa but also in many other African countries.
Using the Best CFD Brokers
As you might already understand, finding the best CFD broker is of utmost importance for everyone looking to trade. We’ve explained that just because a broker has the best CFD trading platform it doesn’t necessarily mean that it’s the best broker. There are, in fact, many other requirements that should be fulfilled for you or anyone else to consider using them.
If you use a broker that’s regulated and safe, and that has been recommended by us, you can rest assured that you will be safe and have a pleasant trading experience. Regulatory agencies are extremely strict when it comes to auditing and checking the brokers they regulate.
The point we’re trying to make is that you need to be careful when trading CFDs online and you should never accept anything less than the best CFD broker. The easiest way to make sure you’re using one of the best is to follow our recommendations. However, if you insist on finding a broker on your own we suggest you also follow the instructions we’ve provided above. There easy to remember: make sure the broker is regulated and safe, double check that they offer all the assets that you are looking to trade with, and lastly make sure that the broker provides access to one of the best trading platforms available.
All kinds of trading are associated with risk but that doesn’t mean you should expose yourself to unnecessary dangers. Always be safe and only settle for the best in the business. And the best way to do so is to use brokers that are recommended by us since they are required to protect their users at all times. They are also subject to audits to make sure the service they provide is fair and safe.
Choosing the best broker
Today you can find a whole bunch of CFD brokers that offer their services globally. There is a large number of really good and trusted brokers for CFD trading, and then there is also equally many bad brokers. How does one separate them? And how does one pick the best one? We suggest that you do your research before you pick a broker. Make use of free demo accounts, read around on forums and read reviews. A quick overview of what you should look at:
- Regulation and License – This is one of the most important things to check out. Normally a broker would be licensed by CySEC or FCA. There are a few other good licenses as well. Make sure the broker is fully regulated.
- Reliability – Can you trust the broker? If a broker has a license it can most often be trusted if the license is legit. Make sure to do your research, read around on forums and check out reviews.
- Assets – Of course, this should be at the top of your list. Does the broker offer the assets you are looking to trade?
- Platform – Most brokers offer a free demo account, make sure you sign up for it and test their platform. It’s free so why not? Many brokers offer the industry standard platform MT4 or MT5. But a few brokers offer custom platforms.
- Commission and fees – All brokers will charge a fee. Make sure you know how much.
- Mobile vs Desktop – What device are you looking to trade on? Mobile or Desktop? Keep in mind different platforms specialises on different devices.
- Analysis and functionality – Do your research here when choosing a broker. They offer different functionalities that will help you trade better. Does the broker that you want to use offer the functionalities you need to execute your trading in a perfect way? Today we have so many platforms that this is a no-brainer. You need to have high expectations of your broker.
- Personal preference – This one should not be underestimated, not at all. Picking a platform that feels right is probably one of the most important aspects. You will spend many hours in front of this screen. Make sure the platform is easy on your eye and that you have fun while trading.
A few final words
We are reaching the end of this article on how to pick the best CFD broker and we hope that we have made your choice a bit easier. A few key takeaways from this article would be to always choose a regulated broker for safety reasons. Also, make sure that the license they have is real and issued by a serious authority in the industry (such as CySEC or FCA or similar). It could also be a good idea to read a bit on forums to hear what people have to say about the broker. Be a bit careful with this one as many people who have lost money tend to leave noncorrect and very subjective comments.
In terms of the platform, there are a few things you need to check out. Make sure the assets you want to trade are available. Also, go through the functionalities offered by the broker, do you need stop loss? Any other functions you are expecting? Lastly, make sure that you like the product you are using and that it’s easy for you to spend several hours per day on the platform without getting bored.
Good luck! We hope that you find the broker that you are looking for.