We found 11 online brokers that are appropriate for Trading CFD.

I still remember my first experience with Contract for Difference (CFD) trading it was both fascinating and challenging. Understanding how CFDs work can make all the difference between profit and confusion. Since CFD trading involves predicting price movements without owning the underlying asset, gaining a clear understanding through practical examples becomes essential. For newcomers, the best way to learn is to combine theory with real world illustrations. So, before diving deeper, let’s explore a few CFD examples that can help clarify how this dynamic trading instrument truly operates.
Let’s say the current sell price of ABC plc is 1,599p and the buy price is 1,600p. A trader believes the price will rise and decides to go long by buying 1,000 share units at 1,600p. Since CFDs are leveraged products, the trader only needs to deposit a small portion of the full value as margin. If the leverage is 95%, the margin requirement is 5% of the trade value.
To open the position, the trader pays a margin of £800 (5% of the total value of £16,000). This means the trader controls £16,000 worth of shares with just £800. However, it’s important to note that potential losses are not limited to the margin a small movement against the trade could result in a loss greater than the initial deposit.
The trader’s prediction proves correct, and within a few hours, the price of ABC plc rises to 1,625p/1,626p. The trader decides to close the position at 1,625p. The difference between the buy and sell prices is 25 points (1,625 1,600). For 1,000 units, the gross profit is £250 (25 x £10 per point for 1,000 shares).
If the broker charges a commission of 0.10%, that would be approximately £32.25 on the transaction. After deducting the commission, the net profit becomes £217.75. This demonstrates how leverage can amplify returns when the market moves in the trader’s favor.
If the market moves in the opposite direction, say to 1,549p/1,550p, the trader would have to sell at 1,549p to close the position. The price has dropped 51 points from the entry level, resulting in a gross loss of £510. Including the commission of 0.10%, the total net loss comes to approximately £541.49. This example highlights how quickly losses can escalate when trading with leverage.
Now, let’s reverse the scenario. Suppose the same ABC plc shares are trading at 1,599p/1,600p, and the trader believes the price will fall. This time, the trader decides to go short by selling 1,000 share units at 1,599p. With a margin requirement of 5%, the trader only needs to deposit £799.50 to open the position. Just like before, if the price moves unfavorably, the trader could lose more than the margin amount.
The trader’s prediction turns out to be right, and within a few hours, the price drops to 1,549p/1,550p. The trader closes the trade by buying back the 1,000 shares at 1,550p. The difference between the opening and closing price is 49 points (1,599 – 1,550), leading to a gross profit of £490. After accounting for commission and other trading costs, the trader still secures a solid profit.
Through these examples, it becomes clear how CFD trading magnifies both potential profits and losses. By understanding the impact of leverage, margin, and price movement, traders can manage their risks more effectively and make smarter decisions when entering the CFD market.
When trading Contracts for Difference (CFDs), your profit and loss calc is the opening - closing price difference multiplied by your position size, minus any trading costs such as commissions, spread costs and overnight financing. In formula form: Profit / Loss = (Close price - Open price) x Position size - Costs.
Using the ABC plc example: you buy 1,000 units at an entry buy price of 1,600p (which is £16.00 per unit x 1,000 = £16,000 notional exposure). If the price later rises to 1,625p and you close at that price, the point movement is 1,625 - 1,600 = 25 points. One point = 1p = £0.01, so 25 points = £0.25 per unit. For 1,000 units the gross profit is calculated as:
Gross profit = 25 points x £0.01/point x 1,000 units = £250.
Now add trading costs. If the broker charges a commission of 0.10% per side on the trade value, then:
Transaction value at entry = £16,000. Commission per side = 0.001 x £16,000 = £16.00. If the commission is charged both when opening and closing, total commission = £16.00 x 2 = £32.00. So the net profit after commission is:
Net profit = £250 - £32.00 = £218.00.
Remember the spread is also an implicit cost: in this example the quoted sell/buy was 1,599/1,600p, so you start effectively 1 point (1p) underwater when opening a long position because you buy at the higher side of the spread. That single point spread equates to a cost of 1p x 1,000 units = £10, which is already embedded in the entry/exit prices if you compare to mid market levels. If you want a fully conservative net calculation, subtract spread costs as well.
If the market moves against you and the price falls to 1,549p and you close, the movement is 1,600 - 1,549 = 51 points, which is £0.51 per unit. For 1,000 units the gross loss is:
Gross loss = 51 points x £0.01 x 1,000 = £510.
With the same commission structure (0.10% per side), total commissions would be £32.00, so the net loss becomes:
Net loss = £510 + £32.00 = £542.00.
These calculations show why it’s essential to include commissions, spreads and any other fees when estimating potential outcomes they meaningfully affect small profits and magnify losses.

Leverage allows a trader to control a large notional position with a relatively small amount of capital. The capital you must deposit to open and maintain that position is called the margin. Margin is usually expressed as a percentage of the full position value (for example, 5% margin equals 20:1 leverage).
Using the same ABC plc trade: notional exposure = £16,000 (1,000 units x £16.00). With a 5% margin requirement the trader posts:
Initial margin = 5% x £16,000 = £800.
Controlling £16,000 with £800 means a relatively small adverse price move can wipe out a large portion of your margin. A loss of £800 on this position equals a price movement of:
Price move = £800 / 1,000 units = £0.80 = 80p.
So an adverse move of 80 points from the entry price would eliminate the initial margin entirely. That demonstrates how leverage magnifies both gains and losses.
Most brokers impose a maintenance margin (a minimum equity level) and will issue a margin call or automatically liquidate positions (a stop out) if your account equity falls below that level. Maintenance margin and margin call thresholds vary by broker; common maintenance levels might be expressed as a percentage of the initial margin (for example, 30%–50% of initial margin).
Illustration: with an initial margin of £800 and a broker maintenance margin set at 50%, the maintenance margin equals 50% x £800 = £400. Your account equity is initial margin + unrealised P/L. If unrealised losses reach £401, equity becomes £800 - £401 = £399, which is below the £400 maintenance level and would trigger a margin call or automatic close. The price move that corresponds to a £401 loss on a 1,000 unit position is:
£401 / 1,000 = £0.401 per unit = 40.1p.
Thus, in this setup, an adverse movement of roughly 40.1 points from the entry price would trigger intervention from the broker. The exact thresholds and actions depend on the broker’s rules, so traders must read the margin policy carefully.
To reduce the chance of margin calls, traders should size positions conservatively relative to their account balance, use stop loss orders, avoid excessive leverage and keep a buffer of free margin in the account. Regularly monitoring open positions and understanding how overnight financing and other charges affect equity will help prevent sudden liquidations.

After breaking down these CFD trading examples, it becomes clear how every element from margin and leverage to spreads, commissions, and market movement affects the final outcome of a trade. What might seem like a small shift in price can translate into a substantial gain or loss because CFDs magnify both through the use of leverage. This is what makes them powerful but also potentially dangerous for those who don’t fully grasp the mechanics.
Personally, I find that understanding these mathematical relationships transforms CFD trading from something intimidating into a structured process. Once you can calculate your potential profit and loss before entering a position, you trade with far greater confidence. The arithmetic might appear simple, but the discipline to apply it consistently is what separates successful CFD traders from those who rely on luck.
Another key takeaway from these examples is that risk management should never be treated as an afterthought. Proper stop loss placement, adequate margin levels, and a realistic understanding of exposure protect traders from emotional decisions when prices move quickly. Leverage can be your greatest ally or your worst enemy it depends entirely on how you use it.
CFDs are not just about speculation but about strategy and precision. A trader who takes time to understand how profit and loss are calculated, how margin works, and how quickly capital can be affected will be in a much stronger position to succeed. These examples serve as a reminder that in CFD trading, knowledge is the most effective form of leverage you can ever have.
When I started trading CFDs, learning the basics made a big difference. Reading CFD Terminology helped me understand spreads and overnight fees, which once cost me £40 on a gold CFD trade.
I tested several approaches from CFD Trading Strategies and found short term index trading worked best for me. On volatile days, S&P 500 CFDs brought in £100 to £300 per trade.
My returns matched what is explained in Average CFD Return. Some months I gained 5 percent, while others were flat or negative, which is normal with CFDs.
Books listed under Best CFD Trading Books helped me control risk. Limiting losses to 1 percent per trade improved my consistency.
Trading in the UK made resources like CFD UK and CFD Tax UK essential, especially for understanding regulation and taxes.
I learned why CFDs are restricted in the US through CFD USA and compared leverage rules using Best CFD Trading Platform Australia.
Choosing a broker using CFD Brokers and CFD Brokers List reduced my monthly trading costs.
I mostly trade CFD Gold, CFD Oil, and CFD Indices. One oil CFD trade during high volatility made me £480 in under two hours.
Understanding CFD Leverage and CFD Margin helped me avoid margin calls by using lower leverage.
I compared CFDs with other instruments using CFD Vs ETF and CFD Vs Forex. CFDs suit short term trades, while ETFs fit long term investing.
For safety and ethical concerns, I reviewed Is CFD Trading Safe? and Is CFD Trading Halal? before increasing my position sizes.
I also use tools like CFD Sentiment and tips from CFD Trading Tips, especially when trading UK markets as covered in CFD traders in the UK.
We have conducted extensive research and analysis on over multiple data points on Cfd Example to present you with a comprehensive guide that can help you find the most suitable Cfd Example. Below we shortlist what we think are the best CFD brokers after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Cfd Example.
Selecting a reliable and reputable online CFD trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade CFD more confidently.
Selecting the right online CFD trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for CFD trading, it's essential to compare the different options available to you. Our CFD brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a CFD broker that best suits your needs and preferences for CFD. Our CFD broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top CFD Brokers.
Compare CFD brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a CFD broker, it's crucial to compare several factors to choose the right one for your CFD needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are CFD brokers. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more CFD brokers that accept CFD clients.
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IC Markets
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Roboforex
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eToro
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XTB
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XM
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Pepperstone
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AvaTrade
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FP Markets
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EasyMarkets
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SpreadEx
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FXPro
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| Regulation | International Capital Markets Pty Ltd (Australia) (ASIC) Australian Securities & Investments Commission Licence No. 335692, Seychelles Financial Services Authority (FSA) (SD018), IC Markets (EU) Ltd (CySEC) Cyprus Securities and Exchange Commission with License No. 362/18, Capital Markets Authority(CMA) Kenya IC Markets (KE) Ltd, Securities Commission of The Bahamas (SCB) IC Markets (Bahamas) Ltd | RoboForex Ltd is authorised and regulated by the Financial Services Commission (FSC) of Belize under licence No. 000138/32, under the Securities Industry Act 2021, RoboForex Ltd is an (A category) member of The Financial Commission, also RoboForex Ltd is a participant of the Financial Commission Compensation Fund | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076, eToro (ME) Limited (ADGM) Abu Dhabi (UAE) number 220073, eToro (Europe) Ltd (AMF) Autorité des marchés financiers as a digital assets provider France | FCA (Financial Conduct Authority reference 522157) XTB Limited, CySEC (Cyprus Securities and Exchange Commission reference 169/12), DFSA (Dubai Financial Services Authority XTB MENA Limited licensed 8 July 2021), FSA (Financial Services Authority Seychelles license number SD148), FSCA (Financial Sector Conduct Authority XTB Africa (Pty) Ltd licensed 10 August 2021), KNF (Komisja Nadzoru Finansowego Polish Financial Supervision Authority) | Financial Sector Conduct Authority (FSCA) (49976) XM ZA (Pty) Ltd, Financial Services Commission (FSC) (000261/27) XM Global Limited, Cyprus Securities and Exchange Commission (CySEC) (license 120/10) Trading Point of Financial Instruments Ltd, Australian Securities and Investments Commission (ASIC) (number 443670) Trading Point of Financial Instruments Pty Ltd | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC) Ava Capital Markets Australia Pty Ltd (406684), South African Financial Sector Conduct Authority (FSCA) Ava Capital Markets Pty Ltd (45984), Financial Services Agency (Japan FSA) Ava Trade Japan K.K. (1662), Financial Futures Association of Japan (FFAJ) Ava Trade Japan K.K. (1574), Abu Dhabi Global Markets (ADGM) / Financial Regulatory Services Authority (FRSA) Ava Trade Middle East Ltd (190018), Central Bank of Ireland (C53877) AVA Trade EU Ltd, Polish Financial Supervision Authority (KNF) AVA Trade EU Ltd (branch authorisation), British Virgin Islands Financial Services Commission (BVI) Ava Trade Markets Ltd (SIBA/L/13/1049), Israel Securities Authority (ISA) ATrade Ltd (514666577), Financial Superintendence of Colombia (SFC 0261 of 2024), Investment Industry Regulatory Organization of Canada through Friedberg Direct (IIROC) | CySEC (Cyprus Securities and Exchange Commission) (371/18), ASIC AFS (Australian Securities and Investments Commission) (286354), FSP (Financial Sector Conduct Authority in South Africa) (50926), Financial Services Authority Seychelles (FSA) (SD 130) | Easy Forex Trading Ltd is regulated by CySEC (License Number 079/07). Easy Forex Trading Ltd is the only entity that onboards EU clients, easyMarkets Pty Ltd is regulated by ASIC (AFS License No. 246566), EF Worldwide Ltd in Seychelles is regulated by FSA (License Number SD056), EF Worldwide Ltd in the British Virgin Islands is regulated by FSC (License Number SIBA/L/20/1135) | FCA (Financial Conduct Authority) (190941), Gambling Commission (Great Britain) (8835), licence in Ireland as remote bookmaker for fixed odds betting licence number 1016176 | FCA (Financial Conduct Authority) (509956), CySEC (Cyprus Securities and Exchange Commission) (078/07), FSCA (Financial Sector Conduct Authority) (45052), SCB (Securities Commission of The Bahamas) (SIA-F184), FSA (Financial Services Authority of Seychelles) (SD120) |
| Min Deposit | 200 | 10 | 50 | No minimum deposit | 5 | No minimum deposit | 100 | 100 | 25 | No minimum deposit | 100 |
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| Used By | 200,000+ | 730,000+ | 40,000,000+ | 2,000,000+ | 15,000,000+ | 830,000+ | 400,000+ | 200,000+ | 250,000+ | 60,000+ | 11,200,000+ |
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| Platforms | MT5, MT4, MetaTrader WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), MetaTrader iPhone/iPad, MetaTrader Android Google Play, MetaTrader Mac, cTrader, cTrader Web, cTrader iPhone/iPad, cTrader iMac, cTrader Android Google Play, cTrader Automate, cTrader Copy Trading, TradingView, Virtual Private Server, Trading Servers, MT4 Advanced Trading Tools, IC Insights, Trading Central | MT4, MT5, R Mobile Trader, R StocksTrader, WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), Windows | eToro Trading App, Mobile Apps, iOS (App Store), Android (Google Play), CopyTrading, Web | MT4, Mirror Trader, Web Trader, Tablet, Mobile Apps, iOS (App Store), Android (Google Play) | MT5, MT5 WebTrader, XM Apple App for iPhone, XM App for Android Google Play, Tablet: MT5 for iPad, MT5 for Android Google Play, XM App for iPad, XM App for iOS (App Store), Android (Google Play), Mobile Apps | MT4, MT5, cTrader,WebTrader, TradingView, Windows, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, Web Trading, AvaTrade App, AvaOptions, Mac Trading, AvaSocial, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, TradingView, cTrader, WebTrader, Mobile Trader, Mobile Apps, iOS (App Store), Android (Google Play) | easyMarkets App, Mobile Apps, iOS (App Store), Android (Google Play), Web Platform, TradingView, MT4, MT5 | Web, Mobile Apps, iOS (App Store), Android (Google Play), iPad App, iPhone App, TradingView | MT4, MT5, cTrader, FxPro WebTrader, FxPro Mobile Apps, iOS (App Store), Android (Google Play) |
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| Learn More |
Sign
Up with icmarkets |
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Up with etoro |
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Up with xtb |
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Up with xm |
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Up with pepperstone |
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Up with avatrade |
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Up with fpmarkets |
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Up with easymarkets |
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Up with spreadex |
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Up with fxpro |
| Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 46% of retail investor accounts lose money when trading CFDs with this provider. | 70% - 80% 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. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.48% 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. | 72-95 % of retail investor accounts lose money when trading CFDs | 57% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | 62% of retail CFD accounts lose money | 74% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider |
| Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
| Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, AO, BR, HR, GL, IS, IM, JM, FM, MC, NG, SI, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR |
You can compare CFD Brokers ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top CFD Brokers for 2026 article further below. You can see it now by clicking here
We have listed top CFD brokers below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 46% 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.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
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Losses can exceed deposits