Top Cfd Fees Contract for Difference (CFD) Brokers for 2020

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

Best Cfd Fees Guide

CFD Fees

CFD fees are important to understand before starting a CFD trade. We discuss the costs incurred when trading CFD products.

The CFD fees include a commission, financing cost and spread for trading stocks, buying shares difference between the bid and offer, respectively. The charges are collected at the time of trading and based on the products. If a trader sells a CFD based on shares, he receives interest. If buying as well as selling is done immediately, the spread is the difference between what is paid for buying and what is received for selling. However, there is no commission incurred in Forex pair trading. No commission is also charged in trading commodities. The brokerage offers the bid-offer spread. But sometimes interest received and funding cost may exist in some cases.

Lets talk about a £100,000 trade of ABC Company to understand the CFD fees better. It is assumed the price may go up to 415p within a couple of weeks. The current bid-offer spread is 388.4 – 388.6.

A trader pays a commission of 0.1% to open an online CFD position and again 0.1% to close it. More to this, holding the position for long interest is charged overnight. This is called a financing charge and is based on LIBOR plus 2.5%. A CFD provider also makes money from an overnight charge.

Suppose a trader buys 25,733 CFDs at 388.6p = £0. His margin is £10,000. In 25 days, the value goes up to 420p.

The initial trade value for the investor was £100,000 and his final trade value is £108,079. His profit stands at £8,079.

The opening commission was £100. The interest charges for 25 days were £513.75. The closing commission is £100 pounds. So, the final return for the investor is 73.65%.

How CFD Providers Make Money

The capital of an investor is £10,000. If the margin is 10%, he can buy CFD shares worth £100k.

Now, if the trader looks for buying shares of ABC Company at £20 per share, he will buy 5,000 units. Also, he holds his place for 90 days.

The investor needs to pay margin interest to the CFD provider. It is an interest rate and 'hair cut'. Let us say the hair cut is 3%. If so, he will be paying 9.5%, which is clubbing 6.5% with 3 percent. This will be paid for 90 days.

This means 9.5% x £100,000 and not £90k as interest is paid on the full position.

So, 9.5% x $100,000 x 90/365 - £2342.

The CFD provider passes on the dividend to its clients.

The above is for long position and the upturn is expected. The below example is for a short position and here a downturn is expected. The position will be the same for 90 days.

The investor here will get interest rate - hair cut. The calculation will be (9.5% - 3%) x £100,000 x 90/365 = £1602. The dividend is passed on to the investor on ex-date.

CFD Fees or Free Trade Index

Several brokers offer a free trade index and they earn from the spread. In FTSE 100 the spread could be 1 or 2 points for instance the first buyer be at 5200 and the first seller could be at 5202. So the spread is 2 points. If the share is traded at £1 pound per point, the earning of the broker would be £2. However, the trader will make a loss as the earning is charged by the broker.

The investor here needs to understand that brokers charge for overnight holdings. If the number of days in holding the position increases, the earning would become less.

Hidden CFD Fees

Several brokers offer free CFD fees. They mean no commission or fee is charged for trading, but it is important to know that no brokerage can work without making money. There are some hidden charges incurred and it is to be understood by the investors.

Many new traders are unaware of the concept of spread and this is the factor that turns into an earning for a broker.

CFD Fees Verdict

While discussing CFD fees we tried to understand the fee and commission structure and what a spread is. Before striking a deal with a broker or a CFD provider, it is suggested to understand the route of charges. Some brokerage houses may directly reveal CFD fees or commissions will be charged, but currently many advertise no CFD fees are incurred.

Investors are suggested to understand the CFD, the CFD fees, the CFD spread and other related terms deeply before opening a position. A slice of experience or exposure to the financial market is required to become successful and build up wealth.

The movement of price is 49 points and the profit made by closing the position for 1,000 units is £490.

If the commission is 0.10%, the total fees paid would be 31.49p for the 1,000 units. Hence, the net profit is £458.51 pounds after deducting the commission.

Outcome A

If the prediction is unfavorable within the same time frame and the price rises to 1,649/1,650, the trader believes closing the position to cut losses and buys at 1,650.

The movement of unfavorable price is 51 points and for 1,000 units the gross loss turns to be £510.

The commission of 0.10% is added and the net loss turns to be £542.49.

The CFD example 1 is different from CFD example 2 and it is understood how profits and losses are made in the trading.

How to Calculate Profits and Losses

The CFD example 1 and 2 explains profits and losses. Both examples are valid for

When learning CFD trading and how CFD works. These examples are helpful to both newcomers and seasoned traders.

Always do remember that the profits and losses are determined by the differences in the price between entry and exit positions. The commission or fee should not be opted out when calculating profit or loss.

Commission/Fee Explained

In the United Kingdom, the commissions are applicable only on CFD shares and it is 10 basis points, which is 0.01% and £9 is the minimum per trade.

A trader can determine the total commission by multiplying the position size with the rate.

Holding Cost

Holding a position after 5pm or after the business hour will cost extra to a trader. It is called the holding cost. The holding cost differs in different financial markets.

Trading CFD

The first factor is to open a live CFD account to start trading CFD. Next, choose a CFD instrument across Global markets like indices, commodities, Forex and shares.

Once completed, it is time to choose to buy or sell. Buy means long term whilst Sell means short term. Buying is done when the price rises and selling takes place when the price drops.

The next factor is deciding on the trade size and managing the risk like using a stop loss. Next to all these is monitoring the position and thereafter closing the position based on the trading skill.

We've collected thousands of datapoints and written a guide to help you find the best Cfd Fees Contract for Difference (CFD) Brokers for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best CFD brokers below. You can go straight to the broker list here.

Reputable Cfd Fees Checklist

There are a number of important factors to consider when picking an online CFD trading brokerage.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering CFD Brokers.

We compare these features to make it easier for you to make a more informed choice.

Top 15 CFD Brokers of 2020 compared

Here are the top CFD Brokers.

Compare CFD Brokers min deposits, regulation, headquarters, benefits, funding methods and fees 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

Broker eToro IC Markets XTB City Index Trading212 Roboforex FP Markets Plus500 Pepperstone EasyMarkets XM
Rating
Regulation Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Monetary Authority of Singapore (MAS) Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) Cyprus Securities and Exchange Commission (CySEC) Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), 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 Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC)
Min Deposit 200 200 No minimum deposit 25 1 1 100 100 200 100 5
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 12,000,000+ 60,000+ 250,000+ 14,000+ 14,000,000+ 10,000+ 10,000+ 15,500+ 10,000+ 142,500+ 70,000+
Benefits
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
Accounts
  • Demo account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Zero spread account
  • Raw Spread account
  • Islamic account
  • Pro account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Managed account
  • Demo account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Zero spread account
  • ECN account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Zero spread account
  • ECN account
  • Managed account
  • Islamic account
  • Demo account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Standard account
  • Zero spread account
  • Islamic account
Spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
Platforms Web Trader, Tablet & Mobile apps MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac MT4, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps MT4, Web Trader, Tablet & Mobile apps MT4, MT5, Mac, Web Trader, Tablet & Mobile apps
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
etoro
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icmarkets
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xtb
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cityindex
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trading212
Sign Up with
roboforex
Sign Up with
fpmarkets
Sign Up with
plus500
Sign Up with
pepperstone
Sign Up with
easymarkets
Sign Up with
xm
Risk Warning 71% of retail investor accounts lose money when trading CFDs with this provider. Losses can exceed deposits 79% 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. 75% of retail investor accounts lose money when trading CFDs with this provider CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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. Losses can exceed deposits Losses can exceed deposits 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider 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. 79.3% 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 Your capital is at risk Your capital is at risk
Demo eToro
Demo
IC Markets
Demo
XTB
Demo
City Index
Demo
Trading 212
Demo
Roboforex
Demo
FP Markets
Demo
Plus500
Demo
Pepperstone
Demo
easyMarkets
Demo
XM
Demo
Excluded Countries IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, 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, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA US, IN, PK, BD, NG , ID, BE US, CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW US US, JP US, JP, NZ MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE BR, KR, IR, IQ, SY, JP, US US US, CA, IL, KR, IR, MM, CU, SD, SY

All CFD brokers in more detail

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 2020 article further below. You can see it now by clicking here

We have listed top CFD brokers below.

Cfd Fees List

eToro
(4/5)
Min deposit : 200
eToro was established in 2006 and is used by over 12000000+ traders. 71% of retail investor accounts lose money when trading CFDs with this provider. eToro offers Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency, Index Based Funds, Exchange Traded Funds (ETF)

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC)
IC Markets
(4/5)
Min deposit : 200
IC Markets was established in 2007 and is used by over 60000+ traders. Losses can exceed deposits IC Markets offers Forex, CFDs, Spread Betting, Share dealing, Cryptocurrencies

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC)
XTB
(4/5)
Min deposit : 0
XTB was established in 2002 and is used by over 250000+ traders. 79% 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. XTB offers Forex, CFDs, Cryptocurrency

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG)
City Index
(4/5)
Min deposit : 25
City Index was established in 1983 and is used by over 14000+ traders. 75% of retail investor accounts lose money when trading CFDs with this provider City Index offers Forex, CFDs, Spread Betting

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Monetary Authority of Singapore (MAS)
Trading212
(4/5)
Min deposit : 1
Trading 212 was established in 2006 and is used by over 14000000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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. Trading 212 offers Stocks, Forex, Commodities, Indices

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Financial Supervision Commission (FSC)
Roboforex
(4/5)
Min deposit : 1
Roboforex was established in 2009 and is used by over 10000+ traders. Losses can exceed deposits Roboforex offers Forex, CFDs

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
FP Markets
(4/5)
Min deposit : 100
FP Markets was established in 2005 and is used by over 10000+ traders. Losses can exceed deposits FP Markets offers Forex, CFDs

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC)
Plus500
(4/5)
Min deposit : 100
Plus500 was established in 2008 and is used by over 15500+ traders. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Plus500 offers CFDs


Plus500 offer a 100% Free and Unlimited Demo account 0 Commissions Tight Spreads

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546
Pepperstone
(4/5)
Min deposit : 200
Pepperstone was established in 2010 and is used by over 10000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% 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 Pepperstone offers Forex, CFDs, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), 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
EasyMarkets
(4/5)
Min deposit : 100
easyMarkets was established in 2001 and is used by over 142500+ traders. Your capital is at risk easyMarkets offers CFD, Forex, Commodities, Indices, Shares, Crypto

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC)
XM
(4/5)
Min deposit : 5
XM was established in 2009 and is used by over 70000+ traders. Your capital is at risk XM offers Forex, CFDs

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC)