Best CFD Trading Platform 2023

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For those unaware, CFDs (Contracts for Difference) enable you to speculate on the future value of an underlying asset, without taking ownership of it. As such, this is a more flexible way to enter your desired market – than say traditional stocks.

Whether you want the ability to go long or short on oil, gold, stocks, forex, cryptocurrencies, or sugar – you will need to sign up with a great brokerage.

Today we review 5 of the best CFD trading platforms, offer a detailed guideline to choosing one for your future trading adventures, and a simple 5 step sign-up at the end.

 

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CFD Trading Platform: Sign up Now in 4 Steps

Below you will see a quick 4 step sign-up, for those who lack the time to read this page in full.

• Step 1: Decide on a suitable CFD trading platform and sign up – Capital.com takes less than 10 minutes and has heaps of CFD markets
• Step 2: Upload proof of your identification with a passport, etc
• Step 3: Use your preferred payment type to add funds to your account
• Step 4: Find a market you would like to trade, and place a buy or sell order

As you can see, all you have to do is tell the broker who you are, deposit your account, and then you can get started right away. First, you need to make sure you are signing up with the right platform!

CFD Trading Platform: 5 In-depth Reviews

When you are researching brokers, you will probably notice that there is some disparity between companies. For instance, when reviewing the best CFD platforms, just some of the things we look for are regulation, the lowest fees, a high volume of quality markets, and more.

We cover these key considerations next, to give you a clearer indication of what to expect from a provider. First, for those who still have the daunting task of deciding on a CFD trading platform – we have reviewed the best in the space.

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Guideline for Choosing the Best CFD Trading Platform

So far we have divulged the top 5 CFD trading platforms of 2023. We have covered what markets are available, regulatory standing, accepted payment types and everything in between.

Still deliberating on the best place to carry out your CFD trading endeavours? See below a list outlining the key characteristics of a good platform.

A CFD Trading Platform With a Licence

Regulation and licensing carries weight when you want to feel secure CFD trading. These organizations make sure that online brokers stick to a multitude of strict rules and standards. The obvious benefit of choosing a regulated broker over an unregulated one is the giant safety net they provide.

Some of the most well known regulatory bodies are ASIC, CySEC, and FCA. There are others, including but not limited to – FSCA, Mifid, and FSA. A rule that carries across most jurisdictions is KYC (Know Your Customer). This is to prevent money laundering and such, so the broker must obtain your ID and learn a bit about you.

Whilst this differs, depending on the jurisdiction, you could be entitled to financial compensation. For instance, if the CFD trading platform becomes bankrupt. Many regulators also insist that online brokers keep your trading capital safe in a separate tier 1 or 2 bank account.

Low CFD Trading Platform Fees

The fewer fees you have to pay a CFD trading platform, the better it will be for your take home profit. No two are the same, so always check what is expected of you.

• Spread: The spread is a fee charged by most CFD trading platforms. This is based on the differentiation between the buy and sell price of the asset you are looking to trade. For instance, if you are trading British pounds against US dollars with sell price of 1.4126 and a buy price of 1.4128. This is a spread of 2 pips. If you make 2 pips – you break even.
• Overnight Financing Fees: This is charged for each and every CFD position you keep open overnight. It is sometimes referred to as a ‘swap’ or ‘rollover’ fee. The amount you pay depends on the value of your position, the amount of leverage added and the market you are trading. If you were trading the aforementioned GBP/USD FX pair at eToro, with a $200 sell order and 1:30 leverage, you would be charged around $0.14 daily and $0.42 at the weekend.
• Commission: Commission fees vary. One CFD trading platform might require $3 off you for every trade. Another may stipulate 0.9% for the opening of your position and the same again when cashing out. The best CFD trading platforms charge low or no commission, this frees up your capital for the next potential win.

Let’s say that you plan on scalping forex throughout the day, on a regular basis. You will be better off financially avoiding CFD trading platforms that charge commissions to enter and exit the market.

If you must pay say 3% on every position, you will soon see your gains drain away. AvaTrade and Capital.com are both ZERO commission CFD trading platforms we reviewed positively earlier on.

Wide Range of CFD Markets

Having a wide ranger of markets should be a key consideration when looking for the best CFD trading platforms. You may be focussing all of your attention on one asset class right now but want try new markets later on.

The best CFD trading platforms will provide you with access to everything from stocks and indices – to commodities, forex and crypto. This way you can broaden your horizons without having to go to another broker.

Note that UK traders cannot access leveraged CFDs for any market other than cryptocurrencies. If you live in the US – CFTC and SEC prohibit you from this type of financial instrument. With that said, you can add leverage to forex positions up to 1:50.

CFD Platform Features and Tools

Some CFD trading platforms come with all the bells and whistles needed to predict markets, copy seasoned traders, and even trade 100% passively via autotrading robots. Others are basic but might be just what you need.

At the end of the day, the tools and features you want from your chosen CFD trading platform will depend on your own goals.

CFD Copy Trading

We briefly touched on the Copy Trader in our eToro review. You can choose up to 100 skilled investors, from over a million – based on preferred market, risk score, number of copiers, and much more.

See how this works below with an example:

• You invest $1,000 in a Copy Trader called MrCFD13
• MrCFD13 creates a short position using 3% of his equity on Tesla stocks
• Consequently, you now have a sell order on Tesla of $30 (1,000 * 3%)
• MrCFD13 places a buy order to close the earlier trade and makes a profit of 21%
• You made $6.30 without having to lift a finger

This can also be a great way to learn based on the failures and successes of others. You can check the Copy Traders stats and view a plethora of trading information whenever you like.

Automated CFD Trading

Automated CFD trading comes in many forms – most notably ‘robots’ (or EAs) and ‘signals’. Robots are based on algorithms and scour the markets – automatically placing orders for you at your brokerage. If the provider in question is partnered with MT4/5, the chances are you will be able to let an EA do your bidding.

Another option when considering how to trade CFDs is ‘trading signals’. This will suit you better if you prefer to have a say in where your trading capital is spent. For those unaware, this service is offered across a few different markets. Here at Learn 2 Trade we offer forex signals, stock signals and cryptocurrency signals.

Trading signal subscriptions range from free to premium annual plans. We offer a money back guarantee within 30 days on the 1 month offering. This service is compatible with each of the 5 CFD trading platforms we have reviewed today.

All you have to do is head over to your account and place an order -using each element of the signal we send. For those new to this phenomenon, this includes the market to trade, long or short, entry price, and stop loss and take profit values.

Free CFD Trading Facility

If this is your first time at a CFD trading platform, you may wish to try it for free until you find your way around. With that said, even the most experienced CFD traders see value in strategizing using virtual equity – it’s 100% risk-free!

Many CFD trading platforms offer clients a free demo trading facility when signing up. This usually includes atleast $10,000 paper funds, if not more. For instance, AvaTrade and eToro will give you a virtual trading balance of $100k to get you started!

The vast majority of demo accounts reflect the real-world conditions and prices of the markets. Furthermore, you will still be able to add leverage, play around with stop loss and take profit orders and practice technical analysis to your heart’s content.

Join a CFD Trading Platform: 5 Step How-To Guide

For those who have no experience in this field – see a simple 5 step how-to guide below. We are using Capital.com as the CFD trading platform is extremely easy to use.

Step 1: Sign Up With a CFD Trading Platform

When arriving at Capital.com, click ‘Join Now’ and enter your name, username, password and other information – as and when you are prompted.

Once you have finished, hit ‘Create Account’. Capital.com will send you an email. Click the link within it. Next, you will be taken to your account page to complete the profile set up.

Step 2: Validate Your Personal Details

This CFD trading platform is regulated by FCA, CySEC, ASIC, and NBRB – so must follow KYC to the letter and that means making sure you are legitimately who you say you are. In order to finish setting up your account the broker will require you to upload some ID, like your passport.

If you want to do this later, you will still be able to trade at Capital.com However, this and your proof of address will need to be validated before the CFD provider will let you withdraw funds or deposit over $2,250.

Step 3: Make a Deposit

Next, choose from the various options available and enter an amount to fund your account with.

When you have checked all is correct, you can click ‘Deposit’.

Step 4: Find a CFD Market

Now you can find the CFD market you are interested in, or look under ‘Trade Markets’ if you need inspiration.

Here, we are looking for Netflix stocks using the search facility – as you can see, this couldn’t be easier. When you are happy with your choice – click ‘Trade’ place an order.

Step 5: Place a CFD Trading Order

Once you see the order box appear you can choose between buy and sell, depending on your prediction.

Newbies may be more comfortable entering the trading signal ‘tips’ at this point. Notably you can also do this via the virtual portfolio. When you are satisfied you can click ‘Open Trade’ to execute it.

Best CFD Trading Platform: To Summarize

Today we thoroughly reviewed the best CFD trading platforms of 2023. Hopefully, this helped you along with your decision. It makes sense to sign up with a provider who can give you access to multiple markets for when you want to try something different.

Regulation should also be a priority – otherwise you don’t know if you are trusting a shady broker until it’s too late. The best CFD trading platforms in the space include AvaTrade, Capital.com and LonghornFX.

All of which offer a plethora of different CFD markets with leverage, low or zero commission fees, tight spreads and standout trading features such as Copy Trading or MT4 compatibility.

FAQs

What is the best CFD trading platform?

After taking each for a test drive and weighing up a plethora of information, we found AvaTrade to be the best CFD trading platform. This broker provides access to heaps of top-quality stocks, forex pairs, cryptocurrencies, indices, and commodities and will not charge you any commission. We found the spread to be tight in most cases and the broker is regulated by 6 different jurisdictions.

Is CFD trading profitable?

Whether or not CFD trading can be profitable will depend on many factors. This includes how much time you take getting to know the market you are interested in, whether you understand technical analysis, how you use leverage, and more. Of course, every trader has their losses, so it's important to start with realistic expectations. You might also try trading signals - comparable to tips on order

Is CFD trading banned in the US?

Yes. According to CFTC and SEC CFDs are strictly prohibited for US citizens. If you fall into this category and would like to access leverage - you can still do so when trading forex.

Do day traders use CFD trading platforms?

Yes, they certainly do. CFDs are perfectly suited to this type of trader as they usually close their position before the end of the trading day. This means that you can add leverage to boost your stake (and hopefully profit) and won't have to pay the overnight financing fees usually associated with CFDs

Can I lose more than I invest in CFDs?

Yes, you can lose more than your initial stake. For instance, if you add a high amount of leverage that your trading account balance can't cover. If the underlying asset goes in the wrong direction, you could face account liquidation. When using leverage you are essentially getting a loan from the CFD trading platform. As such, this can boost your gains, but also your losses if things don't go to plan.