Best CFD Brokers for Forex

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Contributor, Benzinga
March 21, 2024

Looking for a reliable CFD broker to trade forex with? CFD brokers offer a convenient way to trade forex without actually owning the underlying asset. However, not all brokers are created equal and some may not provide the best services for forex trading.

Benzinga carefully analyzed and selected the best CFD brokers that cater to different trading requirements. This article compares spreads, trading platforms, customer service and more. Providing practical tips to help you make an informed decision.

Quick Look: Best CFD Brokers

Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Best Contract For Difference Forex Brokers

CFD trading is risky, so give yourself the best chance of success and partner with the best CFD broker.

1. Best for Experienced CFD Traders: Plus500

  • Plus500 CFD
    Best For:
    CFD Service for Mobile Users
    securely through Plus500 CFD's website

    82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Plus500 is a global multi-asset fintech group operating trading platforms globally, along with offering a wide range of trading products including CFDs, Share dealing, and Futures trading (US).

Plus500 has a proprietary web trading platform called WebTrader as well as iPhone/iPad, Android and Windows apps.

The firm does not charge a commission but makes money from spreads. It charges an overnight funding fee and a $10 inactivity fee. Plus500 will charge a currency conversion fee of up to 0.7% for all trades on instruments you hold in a currency that is different from your account's currency. The following fee can be also applied to the trader's account: Guaranteed Stop Order.

Plus500 offers leverage of up to 1:30 for retail accounts and up to 1:300 for professional accounts. Negative balance protection is available for account types following EU requirements.

Plus500 is authorized and regulated by the following regulatory agencies:

  • Plus500CY Ltd is authorized & regulated by CySEC (#250/14)
  • Plus500UK Ltd is authorized & regulated by the FCA (#509909)
  • Plus500S Pte Ltd, licensed by the MAS (#CMSI00648-1) and IE Singapore (#PLUS/CBL/2018)
  • PlusS0OSEY Ltd is authorized and regulated by the Seychelles Financial Services Authority (Licence No. SD039)
  • Plus500AU Pty Ltd (ACN 153301681), licensed by ASIC in Australia ASL #417727
  • FMA in New Zealand FSP #486026, Authorised Financial Services Provider in South Africa PSP #47546.

You do not own or have any rights to the underlying assets. Consider if you fall within our Target Market Distribution. Please refer to the Disclosure documents available on their website.

Plus500 allows funding through wire transfer, Visa/Mastercard, Skrill and PayPal. The platform also supports a demo account. Withdrawals and deposits can be managed from the Funds Management tab on the platform where you input details regarding the mode of withdrawal or deposit.

The firm offers customer support in 32 languages. It has a webpage dedicated to answers for some FAQs with an online form for entering questions that are not answered by the FAQ section. The firm also has a 24/7 online support team.

Pros

  •  Low spreads, no commissions
  •  Authorized to operate by six regulatory bodies
  •  24/7 customer support in 32 languages
  •  Intuitive, responsive trading app

Cons

  • Only for derivative trading
  • Sparse educational resources

2. Best for Ease-of-Use: FOREX.com

  • Forex.com
    Best For:
    Forex Trading in and Outside the U.S.
    securely through Forex.com's website

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account

The highly regulated firm FOREX.com offers 220 CFDs across major asset classes through its FOREX.com brand. That information, plus a quick test drive of FOREX.com’s platforms is all you need to confirm that you’re in good hands. Exceptional platform speed and performance drive the FOREX.com experience, and you’ll get CFD trading on stocks, commodities and indexes.

No matter what you trade, you’ll gain access to FOREX.com’s Advanced Trading Platform, the MetaTrader 4 platform and a web-based platform and mobile trading option. All accessibility options ensure that you won’t miss a thing.

To fund your account, the minimum initial deposit required is at least $50 of your selected base currency. However, FOREX.com recommends you deposit at least $2,500 to allow for more flexibility and better risk management when trading your account.

Forex markets are open 24 hours a day, Sunday to Friday. FOREX.com makes itself available 24/5 during open market hours. Note that FOREX.com offers CFDs only in FCA and Cayman Islands Monetary Authority (CIMA)-regulated regions.

Pros

  • Comprehensive currency trading platform with more than 80 currencies
  • Excellent range of educational resources and research tools
  • Regulated in four tier-1 jurisdictions
  • MT4 trading platform

Cons

  •  Stocks and bonds not available to trade

3. Best for Long Term Traders: Vantage Markets

Vantage Markets is a high-liquidity broker that allows investors to buy into the forex and CFD markets with ease. The platform offers a wide range of assets that include indices, oil, gas, gold, and much more. With over 200 CFDs to choose from, you can begin building your portfolio right away, and you also get:

  • Low fees
  • A 50% welcome bonus
  • Negative balance protection
  • Simple deposits and withdrawals

24 hour customer support, Islamic accounts and educational tools simply make this platform even more attractive, allowing anyone to begin investing right away and with confidence.

Pros

  • CFDs can help you diversify your portfolio
  • You can choose from hundreds of CFDs and even try forex trading
  • The platform offers support at all times, no matter where you are located

Cons

  • CFDs can be very risky for any investor

4. Best for Canadian and Asia Traders: IFC Markets

IFC Markets brings you a unique take on CFD trading. With IFC Markets, you can invest in:

  • Continuous index CFDs
  • Stock CFDs
  • Cryptocurrency CFDs
  • Continuous CFDs on commodities
  • CFDs on commodity futures
  • CFDs on ETFs
  • CFDs on crypto futures

With IFC Markets, you benefit from the 15 years of experience the platform brings to the table. Clients from over 80 countries can establish an account, trade on several platforms and diversify their investments as much as possible.

Crypto CFDs are available for Bitcoin and Ethereum, with more coming soon. You can also avail yourself of 1:8 leverage, low minimums and low spreads.

Best-suited for intraday, mid-day and small-volume traders, you can use MetaTrader ⅘ or NetTradeX to trade or try the GeWorko Portfolio Quoting Method to build synthetic assets.

Pros 

  • Proprietary GeWorko Portfolio Quoting Method
  • MetaTrader 4 and 5 and NetTradeX
  • Ongoing technical and fundamental analysis from experts
  • Extensive educational resources
  • Customer service excellence

Cons

  •  Unavailable in the U.S., Japan and Russia
  •  Regulated by two minor agencies

5. Best for User Friendly Platform: AvaTrade

AvaTrade is known for its user-friendly forex and CFD trading platform. They provide a range of educational resources and tools to help traders improve their skills and knowledge. This makes it a great platform for both beginners and experienced traders looking to enhance their trading strategies. They offer a diverse range of currency pairs, commodities, stocks, and indices, giving traders plenty of options to choose from. This allows traders to diversify their portfolios and take advantage of different market opportunities.

Pros

  • Wide range of tradable assets, including forex, stocks, commodities, and cryptocurrencies
  • Access to advanced trading tools and feature
  • Ability to analyze the market and execute trades efficiently 
  • Competitive spreads and low fees
  • User-friendly platform
  • Educational resources, including webinars and tutorials, for beginners to learn and improve their trading skills

Cons

  • Limited account types
  • Inactivity fees
  • Customer support may not always be responsive or efficient in addressing user queries or concerns
  • Technical issues have been reported by users, including occasional delays or glitches during trades

6. Best for Quality Trading Conditions: FxPro

  • FxPro International
    Best For:
    Excellent Trading Conditions
    securely through FxPro International's website

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FxPro offers traders like you the opportunity to trade in forex and contracts for difference (CFD) markets where you can access hundreds of assets, including forex, metals, indices, shares and cryptocurrencies.

You can work with 1 of 8 base currencies and save because there are no account or transaction fees. Inactivity fees will apply after 6 months if your account is not in active status.

There’s no commission charged and the spreads are very tight. Trade on MT4 or MT5 to get fast execution and reach out to the multilingual customer support team 24/5 for assistance.

Pros

  •  More than 2100 instruments
  •  Leverage of up to 500:1 
  •  Access to multiple platforms
  •  Fast transaction execution  
  •  Multilingual customer service 24/5
  • Demo accounts available
  • Exclusive trading tools, news and analysis

Cons

  •  Limited to forex and CFDs
  •  Inactivity fee

7. Best for Fast Execution Speed: BlackBull Markets

BlackBull Markets is an online forex and CFD broker that has been operating since 2014. As a relatively newer player in the industry, they have quickly made a name for themselves by offering competitive trading conditions and innovative products. But the question on everyone's mind is, "Is BlackBull Markets a good CFD forex broker?"

One of the standout features of BlackBull Markets is their commitment to transparency and regulation. They are regulated by the Financial Service Providers Register (FSPR), a well-respected regulatory authority based in New Zealand. Additionally, they are a member of the Financial Dispute Resolution (FDR) service, which adds an extra layer of protection for their clients. This level of regulatory oversight is reassuring for traders, as it ensures that the broker is operating within a certain set of standards and guidelines.

When it comes to trading conditions, BlackBull Markets offers low spreads and competitive pricing, making them a popular choice for experienced traders. They also offer high leverage, up to 1:500, giving traders the opportunity to make larger trades with a smaller investment. They have a wide range of forex and CFD products available for trading, making them a versatile option for traders who want to diversify their portfolios. Overall, BlackBull Markets is a reputable and reliable forex and CFD broker with attractive trading conditions and a solid track record.

Pros

  • $0 Minimum deposit required
  • Low spreads
  • Competitive pricing

Cons

  • Lack of educational resources

8. Best for Forex Execution: IG Markets

  • IG Markets
    Best For:
    Forex Execution
    securely through IG Markets's website

    Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

IG Markets is more than a leading forex broker that allows you to delve into trading pairs preferred by investors worldwide. The broker is based in the UK, part of the IG Group and allows you to invest in CFDs, if you so choose. US clients can invest in forex, but CFDs are reserved for approved accounts throughout the rest of the world.

When you use IG Markets to invest in Contracts for Difference, you will pay less, gain access to high leverage and 24/5 customer care. Spreads are competitive, and the dashboard is quite easy to manage.

Investors can more easily manage risk, invest in more than 17,000 markets, set up customized price alerts and teach themselves about CFDs through the site. Therefore, novices and experts alike can use this platform to buy into the CFD market, tie in forex investments and grow their portfolios at their own pace.

Pros

  • Investing in CFDs can be a good way to diversify if you know the forex, commodities and additional markets very well
  • A larger parent company gives financial backing and surety that investors require

Cons

  • A lack of weekend customer care could be problematic for traders who have little time during the week to attend to their accounts

9. Best for Advanced Features: Capital.com

  • Capital.com
    Best For:
    Market-Leading Spreads
    Disclaimer: 84% of retail CFD accounts lose money.

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.84% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

When you use Capital.com, you can trade CFDs on the NASDAQ 100, gold, oil and about 3,000+ other assets or markets. With Capital.com, you get:

  • Competitive spreads
  • No commissions (other fees may apply)
  • Fast order execution
  • High privacy and security standards
  • Educational tools
  • Current news items

As you investigate investing in CFDs, you can do more than throw your money into the markets and wait for a result. You can make informed decisions and grow your portfolio naturally, understanding the risks that also come with these investments.

With an easy-to-use interface and intuitive platform, you benefit from Capital.com learning about your trading habits and informing you of best practices that can help you grow your portfolio.

10. Best for Comprehensive Trading Options: Interactive Brokers

Clients can add quotes to the exchange book in the same way they would trading stocks because Interactive Brokers (IBKR) immediately matches all CFD orders with a hedge order so that a non-marketable CFD order creates a matching non-marketable order for the underlying share on the exchange. Additional benefits include:

  • Transparent, low commissions and financing rates
  • Margin efficiency
  • Efficient CFD reference pricing
  • Trade CFDs alongside the underlying shares

Commissions start at 0.05% on all share CFDs, with lower rates available for active traders. Overnight financing charges start at benchmark +/-1.5%, with lower spreads available for larger balances.

Pros

  • Access to 135 global markets
  • Tradable assets include securities, forex, futures contracts, options and mutual funds
  • Comprehensive and responsive platform
  • A range of educational resources
  • Advanced analysis and research tools

Cons

  •  Potentially daunting trading platform for new investors 

What is Contract for Differences Trading?

A Contract for Differences (CFD) is a financial agreement between an investor and a CFD broker. It involves exchanging the difference in the value of a financial product from the time the contract is opened to when it is closed. No physical exchange of assets (which could be a physical share, currency pairs or commodity) takes place between the buyer and the seller, and neither party can claim physical ownership of the asset. CFD trading is illegal in the U.S., although European brokers allow CFD trading in U.S. assets.

Make Decisions and Trade

To trade CFDs, first decide on which underlying asset you want to trade. CFD instruments could be shares, treasuries, forex pairs, commodities and stock indices such as the U.K. 100, which aggregates the price movements of all the stocks listed on the FTSE 100.

Then, open a position and then enter details such as whether you want to buy or sell the CFD, the amount intended for investment, leverage and other considerations.

Leverage is available for a margin account. Leverage refers to a loan extended by a broker, and the securities and cash in your trading account serve as collateral. It allows you to enter into a larger deal than what your account funding permits.

You and the CFD broker then enter into a contractual agreement that covers details such as the opening price for the position and the fees involved.

Determine Profit/Loss

If the position closes in a profit, the broker is liable to pay the trader. If it closes in a loss, the brokerage charges the trader the difference. Assume you wish to go long on a CFD based on the shares of XYZ company, currently priced at $400, on the premise that the shares are undervalued and will likely go up. You would log into your brokerage account and place an order for, say 100 XYZ CFD.

If the value of the shares rises by $10, in line with your expectations, you gain $1,000 (100 x $10). On the other hand, if the value falls by $10, you owe your broker $1,000. Because of the leverage allowed, a trader needs to pay only $4,000 if the margin requirement is 10%. In the first case when you made the right bet. Your profit percent will be $1,000/$4,000 *100 = 25%.

In the second case, your loss percent will be $1,000/$4,000*100, which will be 25%. Meanwhile, if you had chosen to invest in the shares trading in a stock market, your loss percentage would have been 1,000/40,000*100, or 2.5%.

What to Look for in a CFD Broker

As you zero in on the right CFD broker, it’s important to consider a slew of factors, including regulation, costs, tradable asset classes and the trading platforms available.

Regulation

Regulation ensures the safety of your funds from internal company fraud or bankruptcy. Make sure the broker you’re considering is regulated by the regulatory agency of that particular location. For example, in the U.K., the FCA is the regulatory agency and in Australia, it is the ASIC.

Cost of Trading

CFD trading involves costs such as spread, holding costs and commission and possibly more, depending on the broker you choose.

  • The spread is the difference between the buy and sell prices in the order book. The narrower the spread, the less the price needs to move in your favor before you start to make a profit, or if the price moves against you, a loss.
  • At the end of each trading day, positions open in your account may be subject to a charge called a holding cost, and you’ll also pay a separate commission charge when you trade CFDs.

Also, how complicated is it to deposit and withdraw funds? The more funding options your broker offers, the better.

Broad Tradable Asset Classes and Markets

Broad tradable asset classes and markets give you wider choice availability. Some underlying assets you can trade include stocks, indexes, commodities, currencies, cryptocurrencies and ETFs.

Easy-to-Use Platform

Look for a CFD trading platform that offers intuitive trading software and CFD software, fast execution, high-quality trading tools, a positive trading experience and an order management system. You may lose out on profits if the user interface is poor and navigation difficult. The platform should be secure and give you the flexibility to place different types of orders.

Find the Best CFD Broker and Start Trading 

First traded in the 1990s, CFDs are a derivatives product that is supported by a vast market of brokers. If you’re looking for the best CFD broker, find one with the services to fit your strategy. Understand the costs to maximize your profits. Make sure the trading platform is easy to navigate and contains the educational resources and analysis tools you need. Once you find a suitable platform, you can start trading forex quickly.

Frequently Asked Questions

Q

What is the largest CFD provider?

A

Two of the largest CFD providers include IG Markets and Plus500.

Q

Which forex broker is best for professionals?

A

The best forex brokers for professionals offer reduced spreads and fast execution. It is also crucial that the broker you choose offers advanced charting and analysis tools. Professional traders often choose Interactive Brokers.

Q

Why is CFD not allowed in US?

A

CFDs are not allowed in the U.S. due to strict regulations by regulatory bodies such as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). These regulations are in place to protect retail traders from potential risks associated with CFD trading, such as high leverage ratios that can result in significant losses. Additionally, CFDs are considered complex financial instruments that may not be suitable for all retail traders, leading to restrictions on their availability in the US market.

Get a Forex Pro on Your Side

FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets with low pricing and fast, quality execution on every trade. 

You can also tap into:

  • EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
  • Powerful, purpose-built currency trading platforms
  • Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program

Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.