In the United Kingdom, CFD (Contract For Difference) trading is widely used by investors and is regulated by the Financial Conduct Authority (FCA).
In this top ten we have chosen and studied some of the best UK CFD brokers.
In forming this listing, we have considered the following:
- Regulation and offices in the UK
- Number of CFD assets
- Spreads offered
- Leverage provided
Round-Up
| UK CFD Brokers | Number of CFD assets | UK regulation |
|---|---|---|
| Pepperstone | 200+ | 684312 |
| XM | 1000+ | 120/10 (CySEC) |
| XTB | 2100+ | 522157 |
| FxPro | 400+ | 509956 |
| IG Markets | 17000+ | 195355 |
| Admirals | 4000+ | 595450 |
| ActivTrades | 500+ | 434413 |
| CMC Markets | 11500+ | 173730 |
| ThinkMarkets | 3600+ | 629628 |
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
What are the best UK CFD brokers?
Below our curated list of the best UK brokers for CFD trading, with details of features and characteristics.
Pepperstone
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
- Pepperstone has a strong presence in the UK with a registered office and FCA regulation (n° 684312).
- 200+ CFD assets, including forex, indices, stocks, ETFs, commodities, and crypto.
- Spreads on forex start from 0 pips on 60+ forex pairs depending on the account type chosen by UK Pepperstone traders.
- Pepperstone offers UK clients retail leverage up to 30:1 and professional leverage up to 500:1 on major forex.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,09 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
XM
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About XM
XM is a global forex and CFD broker founded in 2009, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. XM provides MetaTrader 4, MetaTrader 5, and proprietary platforms. XM is regulated by multiple authorities including CySEC, ASIC, and IFSC. XM is known for competitive spreads, extensive educational resources, and multilingual customer support. XM serves over 5 million clients from 196 countries. XM offers various account types and a no-requote policy.
XM Features
The features of XM are listed below.
- XM is available in the UK and has top regulatory oversight in place, including from CySEC (n° 120/10).
- XM has in its offer over 1000 CFD assets, including forex, indices, commodities, and 1150+ stocks.
- XM spreads in the UK start from 0 pips depending on the account on 50+ forex pairs.
- UK retail clients find leverage on major forex up to 30:1.
XM Pros and Cons
Advantages of XM
The advantages of XM are listed below.
- There’s a wide range of account types
- The demo account at XM is unlimited
- Wide range of educational resources
Disadvantages of XM
The disadvantages of XM are listed below.
- No social trading features available
- The account availability changes depending on the location of the trader
- High minimum deposit to invest in securities ($10000 for the XM Shares account)
XTB
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About XTB
XTB is a global forex and CFD broker founded in 2002 and headquartered in Poland. XTB offers trading on over 2,000 instruments including currencies, stocks, indices, commodities, and cryptocurrencies. XTB provides the proprietary xStation platform and is regulated by multiple authorities including FCA, CySEC, and KNF. XTB is listed on the Warsaw Stock Exchange and serves over 897,500 clients worldwide. The XTB CEO is Omar Arnaout since March 2017.
XTB Features
The features of XTB are listed below.
- XTB Limited is regulated by FCA (n° 522157) with a registered office in London.
- XTB clients in the UK can choose from 2100+ CFD assets. These include forex, stocks, indices, commodities, and crypto.
- XTB UK clients find spreads starting from 0.3 pips on forex.
- In the UK, the leverage provided on major forex is up to 30:1 (retail) and up to 200:1 (professional).
XTB Pros and Cons
Advantages of XTB
The advantages of XTB are listed below.
- No minimum deposit
- Wide selection of assets
- Competitive trading costs
Disadvantages of XTB
The disadvantages of XTB are listed below.
- Small withdrawal fee
- No social or copy trading
- XTB demo account is limited to 30 days
FxPro
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About FxPro
FxPro is a global online broker founded in 2006, offering trading on forex, CFDs, stocks, indices, commodities, and cryptocurrencies. FxPro provides multiple trading platforms including MetaTrader 4, MetaTrader 5, cTrader, and its proprietary FxPro Platform. FxPro is regulated by multiple authorities including FCA, CySEC, SCB, FSC and KNN. FxPro serves clients in over 170 countries and has won numerous industry awards. The FxPro CEO is Charalambos Psimolophitis.
FxPro Features
The features of FxPro are listed below.
- FxPro UK Limited is regulated by the FCA regulator (n° 509956), with a registered office in London.
- FxPro UK clients find over 400+ CFD instruments to invest in, including forex, shares, futures, indices, commodities, and crypto.
- UK traders can find both variable and fixed spreads from 0.1 pips depending on the account type.
- The FxPro leverage goes up to 30:1 (retail) and up to 500:1 (professional) on major forex in the UK.
FxPro Pros and Cons
Advantages of FxPro
The advantages of FxPro are listed below.
- Regulated and Trusted Forex broker
- Diverse Trading Platforms
- Wide Range of Instruments
Disadvantages of FxPro
The disadvantages of FxPro are listed below.
- Inactivity Fee
- Limited Educational Resources
- No Guaranteed Stop-Loss Orders
IG Markets
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- IG Markets Ltd (UK) is regulated by FCA (n° 195355) with a registered office in London.
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IG, thanks to its long history, is considered by many the best CFD broker UK.
- UK clients have access to over 17,000 CFD markets to trade on, including forex, indices, commodities, stocks, bonds, ETFs, sectors, options, turbo warrants, and digital100 assets.
- In the UK, IG spreads start from 0.6 pips on 80+ forex pairs.
- Leverage on major forex is up to 30:1 for retail clients and up to 222:1 for professional clients.
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
Admirals
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Admirals
Admirals, formerly Admiral Markets, is a global forex and CFD broker founded in 2001. Admirals offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader platforms. Admirals is regulated by multiple authorities including CySEC and FCA. Admirals is known for competitive spreads and extensive educational resources. Admirals recently halted onboarding of new EU clients to comply with regulatory standards. The co-founder of Admirals and CEO of Admirals Group is Alexander Tsikhilov.
Admirals Features
The features of Admirals are listed below.
- Admiral Markets UK Ltd is regulated by FCA (n° 595450) with a registered office in London.
- Over 4000 markets are offered in the UK by Admirals, including CFDs on energies, metals, indices, stocks, ETFs, bonds, and cryptocurrencies.
- Admirals spreads start from 0 pips on forex depending on the account type.
- In the UK, the leverage provided on Admirals major forex is up to 30:1 (retail) and up to 500:1 (professional).
Admirals Pros and Cons
Advantages of Admirals
The advantages of Admirals are listed below.
- Extensive Forex Options
- Strong Regulatory Framework
- Advanced Educational Resources
Disadvantages of Admirals
The disadvantages of Admirals are listed below.
- Charges Inactivity Fee
- Mobile App Limitations
- Higher Average Spreads for Some Assets
ActivTrades
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About ActivTrades
ActivTrades is a global online broker founded in 2001, offering trading on forex, CFDs, indices, shares, commodities, and ETFs. ActivTrades provides MetaTrader platforms and its proprietary ActivTrader platform. ActivTrades is regulated by multiple authorities including the FCA. ActivTrades serves clients in over 140 countries and is known for competitive spreads and innovative trading tools. ActivTrades recently introduced zero commission on shares and fractional trading. The ActivTrades CEO and founder is Alex Pusco.
ActivTrades Features
The features of ActivTrades are listed below.
- ActivTrades PLC is authorized and regulated by the FCA regulation (n° 434413) with an office in London.
- ActivTrades offers 500+ CFD assets for their UK clients: these include forex, commodities, indices, shares, and crypto.
- Spreads start from 0.5 pips on 45+ ActivTrades forex pairs in the UK.
- UK clients have access to leverage up to 30:1 (ActivTrades retail) and up to 400:1 (ActivTrades professional) on major forex.
ActivTrades Pros and Cons
Advantages of ActivTrades
The advantages of ActivTrades are listed below.
- Low Trading Costs
- User-Friendly Platforms
- Regulatory Compliance
Disadvantages of ActivTrades
The disadvantages of ActivTrades are listed below.
- Limited Product Range
- Withdrawal Fees
CMC Markets
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About CMC Markets
CMC Markets is a global online financial trading company founded in 1989 and headquartered in London. CMC Markets offers trading on forex, indices, commodities, cryptocurrencies, and shares through CFDs and spread betting. CMC Markets provides proprietary and MetaTrader platforms for desktop, web, and mobile. CMC Markets is regulated by multiple authorities including FCA, ASIC, and BaFin. CMC Markets is listed on the London Stock Exchange. The CMC Markets CEO is Lord Peter Cruddas.
CMC Markets Features
The features of CMC Markets are listed below.
- CMC Markets UK Plc has an FCA regulation (n° 173730) with a registered office in London.
- There are 11500+ CMC Markets CFDs assets offered in the UK, including 300+ forex, commodities, indices, stocks, bonds, and crypto.
- The spreads charged by CMC are from 0.3 pips for UK clients.
- The leverage offered by CMC in the UK is up to 30:1 for retail traders and up to 500:1 for professional traders on major forex.
CMC Markets Pros and Cons
Advantages of CMC Markets
The advantages of CMC Markets are listed below.
- Regulatory Trust
- Low Trading Costs
- Extensive Trading Platform
Disadvantages of CMC Markets
The disadvantages of CMC Markets are listed below.
- Complex Fee Structure
- Limited Funding Options
Thinkmarkets
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Thinkmarkets
ThinkMarkets is a global multi-asset broker founded in 2010, offering trading on over 4,000 instruments including forex, stocks, indices, commodities, cryptocurrencies, and ETFs. ThinkMarkets provides the proprietary ThinkTrader platform alongside MetaTrader 4 and 5. ThinkMarkets is regulated by multiple authorities including ASIC, FCA, and CySEC. ThinkMarkets is known for tight spreads, fast execution, and extensive educational resources. ThinkMarkets offers 24/7 customer support in over 20 languages. The ThinkMarkets CEO and co-founder is Nauman Anees.
Thinkmarkets Features
The features of Thinkmarkets are listed below.
- TF Global Markets (UK) Limited is authorized and regulated by the FCA (n° 629628 ) with an office in London.
- ThinkMarkets offers in the UK 3600+ CFDs, of which 3500+ are CFD shares and ETFs.
- ThinkMarkets spreads start from 0 pips depending on the account type chosen.
- The maximum leverage UK clients find is up to 30:1 (retail) and up to 500:1 (professional).
Thinkmarkets Pros and Cons
Advantages of Thinkmarkets
The advantages of Thinkmarkets are listed below.
- Regulatory Compliance
- Diverse Trading Options
- Advanced Trading Tools
Disadvantages of Thinkmarkets
The disadvantages of Thinkmarkets are listed below.
- Average Educational Resources
- Fees on Certain Accounts
Is CFD trading legal in the UK?
Contract for Difference (CFD) trading is legal in the United Kingdom, and also stringently regulated by the FCA to ensure the protection of both the traders and the financial markets.
The Financial Conduct Authority (FCA) is the body responsible for overseeing CFD trading activities. This is to ensure a transparent and secure trading environment.
Any CFD broker who wishes to operate within the UK boundaries must possess a valid license issued by the FCA. The authority doesn’t take the licensing process lightly. It scrutinizes the operations, finances, and systems of brokerages to ensure they meet the necessary standards.
Furthermore, in cases where a British CFD broker commits fraudulent activities or operates without the required FCA license, there are severe consequences. Such brokers may have their websites obscured, thereby making them inaccessible to potential and current clients. In addition, hefty fines can be levied on them. In extreme cases, the heads or primary stakeholders of the offending CFD broker may face jail time, demonstrating the seriousness of the regulatory environment in the UK.
Are there CFD trading limitations in the UK?
While CFD trading is legal and popular in the UK, it doesn’t come without its set of regulations and limitations. These are in place to safeguard the interests of retail traders and prevent potential market manipulations. The main CFD trading limitations in the UK are 2
- Leverage limits to 1:30 depending on the asset class
- Cryptocurrencies cannot be traded with leverage
The maximum leverage allowed for retail traders is in fact 1:30. However, for those classified as professional traders, they might be granted a higher leverage, going up to 1:500. It’s important for traders to understand the risks associated with leverage. While it can amplify gains, it can also magnify losses.
Trading cryptocurrencies as CFDs is permissible in the UK. However, one significant limitation is that no leverage is permitted when trading crypto CFDs. This decision has been made keeping in mind the volatile nature of cryptocurrencies, which can lead to massive losses if traded with high leverage.
Beyond the above-stated rules, there aren’t any other specific restrictions on CFD trading in the UK. However, traders are always advised to stay updated with any new regulations or changes that the FCA might introduce.
Is CFD trading taxable in the UK?
The taxation system in the UK makes a distinction based on the amount gained from CFD trading. The earnings or profits made from trading CFDs are indeed taxable.
A clear threshold has been established at £6000. If a trader’s earnings from CFDs exceed this amount in a tax year, they are liable to pay capital gains tax on the amount exceeding the threshold. However, if the earnings remain below the £6000 mark, traders are not required to pay any taxes on their CFD gains.
Traders should always consult with a tax advisor or accountant to ensure they comply with the current tax regulations and understand any deductions or allowances they might be entitled to.