Best CFD accounts

A CFD is also known as a Contract for Difference, what separates this from owning normal stocks is that you do not actually own the underlying asset or security.

They are beneficial if you are planning on holding the investment for only a short time, this is due to the higher leverage that they provide and due to the high fees that are associated with the product. If you only have a small amount of cash they are also a great option, as it can give you up to 30 times the value of your deposit (The difference), so your £100 deposit would be the equivalent of owning 3000 of whatever asset you choose to buy or sell.

It’s great when things go the direction you want them to as this accelerates your profits however when they go the opposite way to your positions this can result in very fast losses, the only accounts we will display offer account balance protection, so this means you can only lose what you deposit in your account and no more.

There are so many types of CFD accounts available now and their popularity has risen sharply in recent times, especially driven by new investors looking to increase their potential profit and for those who do not want to expose as much capital to the markets. CFDs, however, do have their downside and they are a very high-risk product and you could lose all your investment very quickly, each CFD account is required to display a risk warning stating the percentage of retail investors that lose money, this is often in excess of 60%. You should only really trade in CFDs if you have experience in them and fully understand the risks involved, it is recommended to try our a practice account for a significant time before going straight into this type of trading.

What to look for when opening an account

  • Is the broker regulated by the FCA
  • What kind of fees are associated with trades
  • Do they offer a wide range of tradeable assets
  • Is the platform easy to use
  • How reliable are they
  • Do they offer a practice account

Our top 3 CFD picks are listed below, we always recommend doing extra research before investing in such products and ensure you understand the risks associated.

Platform Benefits Drawbacks
eToro Very easy platform to use
Low CFD trading fees
Allows you to select desired leverage
Customer service is slow
Sometimes a delay in executing trades
FxPro Low CFD fees
Great selection of assets to trade
Allows you to select the desired leverage
Ability to open multiple accounts
Quite complicated to use for new traders
Trading 212 Low CFD trading fees
Great selection of indexes and forex markets
Good educational tools available to help
Limited amount of stocks and forex pairs available
Always do your research before investing in CFD accounts, remember the value of your investment can go down as well as up.