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Below is the Best10 Team’s choice of the best CFD Brokers available in the UK. We have narrowed the selection for you based on ease of use, reliability, available choice and fees.
Best10 selectsMore Choice?
eToro has an established reputation. Set up an account in minutes & start trading with as little as $200 deposit.
Plus500 offers a powerful CFD trading platform that adheres to the highest standards.
Founded in 2016, Capital.com allows customers to place complicated CFD and derivative trades painlessly.
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CFDs, or contracts for difference, are an exotic investment instrument that investors trade to make returns by buying and selling contracts when they do not actually own the underlying asset. Given their complexity, and the potential to make both large gains and losses, it is imperative to choose a broker that is capable of making CFD trades in the most competent and efficient way possible.
Here, we look at defining exactly what is CFD trading, how CFD brokers make money to help you to decide how to choose the best CFD broker that is suitable for your purposes. We ultimately list our top 5 CFD brokers that are capable of providing a robust and thorough service for customers who wish to invest in the CFD market.
CFDs are a form of derivative. This is because investors never actually own an asset. They simply own a contract on the price variation that an underlying asset will see in a set amount of time. So, in essence, buying and selling a CFD (or contract for difference) means that investors make their gains by the price difference they believe will occur in an asset. So if they believe that a stock price will go up, they enter into a contract with a broker who believes that stock price will go down. The person who makes the money is the person who was right, and they make the amount that the price did eventually change.
CFDs, though complex, are a way of accessing markets that ordinarily investors would struggle to invest in. This is because you do not have to buy the actual underlying asset, you just bet on the price going up or down. It means that you can do so on any asset you believe has the ability to make you money. So, if you cannot access certain forex pairs or particular international stocks, CFDs are a means by which you still make money on the price increase or decrease.
There are a number of factors for you to consider when choosing the best CFD trading platforms in UK and CFD broker for you. Make sure before you start working with a prospective CFD broker that all of the below requirements are ones that are met as standard. Without them, your broker could be more hassle than trading with them is worth. They are:
Fees are where brokers make their money. For that reason, some CFD brokers set their fees much higher and structure them differently, to help them make a profit. However, it doesn’t necessarily follow that high fees reflect a good service. Plus you may simply not be able to afford the fees that they do charge.
Ensure that the best CFD trading platform that a CFD broker provides is one that you can use competently. CFD trading can be a complex task that does not need to be made more difficult by a clunky piece of software that hinders your ability to run your portfolio efficiently.
Being able to make deposits and withdrawals seamlessly is an easily overlooked practicality that is of the utmost importance when choosing a the best CFD broker in Germany. If you cannot withdraw or deposit cash easily, you will seriously have your abilities to trade effectively hindered.
Much like withdrawing cash easily and depositing funds quickly, opening an account with a CFD broker must be a painless experience. If it isn’t, it can take so long for your account to open that you lose out on all the gains you could have made in the time it took for your chosen CFD broker to verify your account information.
CFD brokers are not as common as other forms of brokers out there. This is down to the complexity of the instrument as well as the large losses that can be made from this derivative style financial product. It is key to ensure that your broker is regulated as well as capable of providing you with a service that allows you to stay on top of your portfolio. In doing so, you are giving yourself the best chance of making those hefty returns that CFDs can offer.
Risk Disclosure: Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Before deciding to trade in financial instruments you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Best10Stockbrokers would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Best10Stockbrokers and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Best10Stockbrokers and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. Best10Stockbrokers may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.