Best CFD Trading Platform 2021

Samantha Forlow
11 May 2021 | Updated: 7 June 2021

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.

 

Eightcap - Regulated Platform With Tight Spreads

Our Rating

  • Minimum deposit of just $250
  • 100% commission-free platform with tight spreads
  • Fee-free payments via debit/credit cards and e-wallets
  • Thousands of CFD markets including Forex, Shares, Commodities, and Cryptocurrencies
Start your journey towards reaching all your financial goals right here.

 

Table of Content

     

    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.

    1. AvaTrade – Best CFD Trading Platform With Third-Party Compatibility

    AvaTrade is a top-class CFD platform with approval and licenses from several regulatory bodies. Consequently, it must comply with the rules set out by each jurisdiction. As such, you can trade leveraged CFDs in safe conditions here. There are heaps of options when it comes to markets. We found this to include minor, major, and exotic forex pairs. Exotics include various strong currencies against the South African rand, Chilean peso, Russian ruble, Mexican peso, Swedish krona, and more.

    If you want to take your position on a stock index, you can trade indices such as FTSE MIB, INDIA50, DAX30, Nikkei225, FTSE100, ChinaA50, CAC 40, and Spain 35. By hooking your account up to MT5 you can also trade Green Energy, TSX60, and FAANG. Top-traded stocks include Vodaphone, Proctor and Gamble, Snapchat, Intel, Groupon, Tesla, Mastercard, Microsoft, Apple, Adidas, Alibaba, Twitter, and more.

    The aforementioned MT5 provides access to additional stocks such as Walmart, Starbucks, Cisco Systems, Medtronic, Wells Fargo & Co, Colgate, Kinder, Wells Fargo & Co, Microsoft, Colgate, Netflix, and more. This is also a useful channel for ETFs such as Market Vectors TR Gold Miners, and S&P500 VIX. Cryptocurrencies include Dash, IOS, Ripple, IOTA, Uniswap, Stellar, Chainlink, and others. If you would like to trade the underlying value of commodities without owning or storing them, you will see live cattle and orange juice on MT5.

    At the AvaTrade platform itself, you will find oil products such as cooking and crude, as well as palladium, gasoline, wheat, sugar, coffee, and more. You may have heard of social trading sites such as ZuluTrade and DupliTrade? These allow you to 'like' and 'follow' people - just like at social media outlets. This CFD trading platform will not charge you a cent to trade and the spread is competitive across most assets.

    You may also opt for AvaSocial, which is like the aforementioned third-party platforms. Here you can copy an already experienced trader with similar interests to your own. Another compatible platform option is AvaTradeGO. This is a free application you can use to access your account and place orders on live CFD markets around the world. You can get started from $100. Accepted methods are credit/debit card, bank transfer and e-wallets including WebMoney, Skrill and Neteller.

    Our Rating

    • Minumum deposit only $100
    • Licensed in 6 jurisdictions including Australia, the EU, Japan, and South Africa
    • Trade CFDs with 0% commission on any asset
    • Admin and inactivity fee after 12 months
    75% of retail investors lose money when trading CFDs with this provider

    2. Blueberry Markets – Respected CFD Trading Platform With High Leverage

    CFD Trading platform Blueberry Markets is very easy to navigate, no matter what your level of expertise. ASIC licenses and regulates this brokerage. This CFD trading platform provides access to a variety of indices such as UK100, FRA40, GER30, JPN225, AUS200, SPX500, HK50, NDX100 and more. If you see yourself trading currencies, you can access plenty of forex markets here.

    Aside from the expected highly liquid offerings, you can trade emerging-market currencies such as Polish złoty, Mexican peso, Norwegian krone, Singapore dollar, Turkish lira, Hungarian forint, Danish krone, and more. If you have an interest in metals, you can trade gold, platinum or silver against the US dollar. Blueberry Markets also offers 2 types of Crude oil - Brent and WTI.

    You can also trade both of the aforementioned metals against the euro. Connect your account to either MT4 or 5 to access various instruments, indicators and timeframes. It's easy to trade via the mobile app or desktop version of this popular trading site. You will not pay any commission here. We checked out the spread and found it to be competitive across most marketplaces.

    As this is a CFD trading platform, you can add leverage to your positions - this can be

    up to a whopping 1:500. Blueberry Markets provides access to news, tips, inspiration, charts of the day, ebooks, blogs and more. The Minimum deposit here is $100 and you can add funds using credit and debit cards, bank transfer or e-wallets like Skrill, POLi, Fasapay, and more.

    Our Rating

    • Super user-friendly CFD trading platform
    • Licensed and regulated by ASIC
    • Commission-free and spreads as low as 0.0 pips
    • Too basic for seasoned CFD traders
    Your capital is at risk of loss when trading CFDs at this platform

    3. Capital.com – Best CFD Trading Platform for Newbies - Deposit Just $20

    Capital.com is a top-rated CFD trading platform that was designed with traders of all experience in mind. CySEC and FCA regulate and license this broker so it's a secure place to deposit and trade. When it comes to markets, we found thousands. Starting with share CFDs, this includes Johnson & Johnson, Nintendo, eBay, Toyota, Uber, Fujitsu, Spotify, Lenovo, Easy Jet, and others.

    Indices consist of IT40, US500, HK50, UK100, FR40, EU50 and others. This guide found there to be an abundance of forex pairs here covering all 3 categories. Exotic markets include Romanian leu, Mexican peso, Russian ruble, South African rand, Turkish lira and more. The 70 Cryptocurrency CFDs include NEO, Bitcoin Cash, Ethereum, Ripple, Tron, Bitcoin, Cardano, and XEM (amongst others)

    You will also find some newly added DeFi tokens. We often use commodities as a way to diversify, beyond the realms of traditional financial instruments. Capital.com provides access to a selection, including copper, gold, silver, aluminium, sugar, wheat, and oil - to name a few. This CFD trading platform is partnered with MT4 so you can link your account and make use of the various trading tools.

    This is another commission-free CFD trading platform on our list with tight spreads on the majority of markets and leverage on offer. You can also hook your account up to the previously mentioned MT4 for the technical analysis side of things. You can also use a free demo or automated trading. Accepted deposit types include credit and debit card, bank wire transfer and e-wallets like Apple Pay, iDeal, Trustly, and more. The minimum is $20.

    Our Rating

    • Connect your account to MT4 technical analysis and automated trading
    • Heaps of CFD markets with minimum deposit of just $20
    • Regulated licensed and by the CySEC and FCA
    • Not much in terms of fundamental analysis
    82.61% of retail investors lose money when trading CFDs with this provider

    4. LonghornFX – Top-Rated CFD Trading Broker With High Leverage

    LonghornFX is a CFD trading platform with tons of markets to trade. You can access all this broker has to offer by linking your account to MT4 software. This is where you can trade the future value of minor, major and exotic forex pairs. For the latter we found Czech koruna, Israeli new shekel, Swedish krona, Norwegian krone, Polish złoty, Danish krone, Turkish lira, Mexican peso, Russian ruble and more.

    If you would prefer to trade crypto CFDs, you will find the usual coins such as Bitcoin, Ethereum, and Litecoin. Others include IOTA, dodgecoin, Dash, Eidoo, OMG, Qtum, EOS, and Zcash - to name a few. If stocks are more your cup of tea, you won't be short of options. We found a mixed bag including FRA40, US30, SPX500, ESP35, JPN225, AUSTX50 and more.

    LonghornFX allows you to trade the US dollar and euros against metals such as platinum, gold, and silver. If you would rather trade a commodity on its own you can access UK and US oil markets. There are far too many stock CFDs to mention. To give you an idea, we found Goldman Sachs Group, eBay, Apple, Google, Coca Cola, Air France, Amazon, Boeing, Twitter, Netflix, Volkswagen and more.

    This CFD trading platform does charge commission fees. However, it works out that for every $100k you allocate; you pay $7 in commission. You may be offered up to 1:500 leverage here, depending on your level of experience. LonghornFX is fully compatible with MT4 and you can fund your account with Bitcoin, credit cards, or bank transfer.

    LT2 Rating

    • CFD trading platform with competitive spreads
    • Low commission and high leverage up to1:500
    • Same-day withdrawals and plenty of CFD markets
    • Platform favors Bitcoin deposits
    Your capital is at risk when trading CFDs with this provider

    Guideline for Choosing the Best CFD Trading Platform

    So far we have divulged the top 5 CFD trading platforms of 2021. 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, Blueberry Markets, eToro, and Capital.com are all 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, and ASIC – 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 2021. 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, Blueberry Markets,  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.