📉 Comparison of the best CFD brokers in 2025

A CFD is a financial instrument that allows you to take a position on the rise or fall of an underlying asset without owning it outright. For example, you can use a CFD to speculate on Microsoft stock or a stock market index such as the FTSE 100, without physically holding those assets.

CFDs offer significant flexibility compared to traditional stock investing, which explains their popularity among investors.
Below is a non-exhaustive list of CFD advantages:

• Going long and short: Unlike traditional stock markets, CFDs allow you to profit regardless of whether an asset’s price goes up or down. You can capitalise on price increases by taking a buy (long) position, but you can also profit from falling prices by taking a sell (short) position.
• Reduced commissions and brokerage fees: CFDs usually involve lower transaction costs compared to traditional investment methods. Brokers may charge spreads (the difference between the buy and sell price) and commissions on CFDs, but these fees are often lower than standard brokerage fees on stock markets.
• Stop loss: One of the major risks associated with buying shares through a share dealing account is the possibility of losing your entire investment if the company in which you invested becomes worthless. However, with CFDs, you can automate the closure of your position via a stop loss. This mechanism helps limit potential losses by automatically closing the position if the market hits a certain loss threshold, protecting you from market volatility.
• Leverage: CFDs allow the use of leverage, meaning you can control a larger market exposure with a smaller amount of initial capital. This magnifies potential gains but also increases the risk of losses.
• Access to global markets: CFDs offer the ability to trade a wide range of underlying assets such as currencies, commodities, futures, stock indices, government bonds, and even cryptocurrencies. This gives investors access to various global markets and the opportunity to capitalise on multiple trading prospects.

The answer is no. Before investing in any asset, it is important to understand that CFDs do not grant you ownership of the underlying asset. In other words, you have no voting rights or entitlement to dividends associated with the asset in which you invest using CFDs.

As you can see, CFDs are essentially speculative products designed to help you take advantage of movements in the financial markets. Unlike a long-term investment, however, this may require constant monitoring of the positions you have open.

The difference between buying shares on the stock market and investing in share-based CFDs is straightforward:

• When you buy a company’s shares on the stock market, you own a portion of that company’s capital, which grants you the right to receive dividends. Also, depending on how many shares you own, you may have a say in the company’s strategic decisions.
• However, when you invest in share-based CFDs, you merely speculate on the price movement of the stock—whether it goes up or down. You earn money if you correctly predict which direction the share price will move.

This is THE major advantage of CFD trading: universal access to all markets!
Whether you’re interested in cryptocurrencies such as Bitcoin, in currency pairs like EUR/USD, GBP/USD, USD/JPY, or you’d prefer to invest in commodities such as natural gas or gold, in government bonds, or even ETFs, the opportunities are vast and varied. Your investment universe is virtually unlimited, offering numerous possibilities based on your preferences and trading strategy. It’s worth highlighting that few other financial products match the diversity CFDs provide.

When you trade CFDs as an individual in the UK, your gains may be subject to capital gains tax (CGT) or income tax, depending on your specific circumstances. Factors such as the frequency of your trades and whether CFD trading is your main source of income can influence the tax treatment.

• Capital Gains Tax (CGT): Many retail traders fall under CGT when realising gains from CFD trades, with an annual CGT allowance that can reduce the taxable amount.
• In some cases, if you are classified as a professional or if your trading activity is frequent and structured like a business, your gains might be treated as income, making them subject to income tax.

It’s essential to seek professional tax advice to determine the most appropriate approach for your situation. HM Revenue & Customs (HMRC) provides detailed guidelines, but your individual profile and trading frequency will ultimately determine the tax rules that apply.

With so many brokers offering CFD trading, choosing can quickly become overwhelming. However, not all brokers are created equal. In fact, some brokers clearly stand out from the competition by offering exceptional conditions, whether in terms of variety of CFD instruments, the performance of their trading platform, or their more competitive transaction fees.

Below are the CFD brokers recommended by our site: