We found 11 online brokers that are appropriate for Trading CFD.
Traders who want to get into trading the US financial markets can take advantage of trading the S&P 500 index as a CFD trade. Many traders are actively trading Contracts for Difference on the S&P 500 due to the leverage a CFD trade offers.
CFDs allow a trader to have greater exposure to the market than there deposited amount.
Why do traders trade S&P 500 CFDs and not the Dow. There is a proper reason for it. The Dow covers only thirty of the major blue-chip companies of the United States. S&P 500 on the other hand compiles the 500 largest US companies. So, this is a good benchmark to understand the US economy.
Hence, traders should consider CFD S&P 500 as it covers about three-fourth of the traded value of the market.
The first step is to purchase a CFD instrument of the S&P 500 Index from a reputable CFD provider.
Once the CFD has been bought, you will see on the trading platform that the CFD price matches the live S&P 500 Index. However, there is difference. The brokerage will increase the spread without charging commission. The active CFD trader saves a considerable amount of money by not paying commissions.
Leveraged trades can hold risk so make sure you learn all aspects of CFDs before trading. You make lose more than your deposited amount if a trade does not go in your favour.
Trading a CFD S&P 500 is a good tool for traders to build up wealth. The primary reason is a CFDs leverage feature, it can be as much as 100 to 1. It is suggested when trading to keep a close eye on the S&P 500 Index to ensure you can react to market volatility, news and events.
CFD S&P 500 consists of a index of stocks and hence one needs to keep a watch on the economy as a whole and not on any individual company.
If a trader believes the market may go down, he can go short and sell contracts. If not, he may hold it overnight and gain some interest, but it is very minimal as the base rate is low due to high leverage.
Assume that the index further drops the next day, the trader needs to buy at a higher price from the broker.
In another case if a trader believes the market could go up, he loses most of his margin money. Suppose 100 contracts are bought at $1146.75, the controlling value of which is $114,675. The margin money here is $1146.75. The position is long and hence interest is charged for overnight holding and that is around $15-$20.
Next, if the trader thinks of closing the position the next day, he sells the 100 units of CFDs at $1136.25, which is for the value of $113,625. He makes a loss of $1050. Moreover, the interest charged is also added to the loss, which is $15. So the total loss amounts to $1065.
This means the leverage impact on profits as well as losses is huge and significant. This is the primary concept a trader needs to understand before investing money.
Careful research is required. Hence, CFD S&P 500 is safe compared to the Dow or other CFDs. The S&P 500 Index covers about 70% of the market and it is easy to understand in which direction the economy is moving. Here the shares of individual companies never impact the overall performance of the index, unlike other CFDs.
We just discussed the CFD S&P 500 with an example and explained why newcomers should always consider starting to trade with this. It is a good instrument to gain experience with and learn the pros and cons of CFDs. It helps in understanding how profits are magnified and why losses can sometimes go beyond the margin or the deposited money.
Considering the pros and cons separately, one of the biggest advantages of CFDs is that just a fraction of capital is required to start trading because of leverage. If the leverage ratio is 1:100, a trader needs to pay just 1% of the entire volume he wants to control. This is one of the best ways to build up wealth faster and with a tiny investment.
However, before wrapping up, it is important to suggest that financial instruments are risky products and no one can guarantee a profit.
Experienced traders use risk-management tools to minimize the risk of losing. Traders need to learn the techniques of using these tools so that profit is not hampered while minimizing the risks. Furthermore, one should plan risk according to capacity. It differs from one trader to another. Risking beyond capacity is never suggested and is not a good investment strategy.
If you are researching CFDs make sure to read through the below CFD related guides. You will find something useful.
We've collected thousands of datapoints and written a guide to help you find the best Cfd Sp 500 for you. Our aim is that this information helps you choose a trustworthy, reputable and professional broker who can satisfy your trading needs online. We have compiled a list of what we consider the best CFD brokers below.
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.
We compare these features to make it easier for you to make a more informed choice.
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
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IC Markets
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eToro
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Roboforex
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AvaTrade
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XTB
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Pepperstone
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XM
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NordFX
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FP Markets
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Trading212
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Plus500
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049) | 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), Dubai Financial Services Authority (DFSA), Dubai International Financial Center (DIFC),Financial Sector Conduct Authority (FSCA), XTB AFRICA (PTY) LTD licensed to operate in South Africa | 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 | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), License No: 209/13, VFSC registration number 15008 | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | 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, Plus500SEY Ltd is authorised and regulated by the Seychelles Financial Services Authority (Licence No. SD039), Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore (MAS) for dealing in capital markets products (License No. CMS100648-1), PLUS500AU (PTY) LTD is regulated by the FSCA (Financial Sector Conduct Authority), Plus500 adheres to MiFID rules |
Min Deposit | 200 | 10 | 1 | 100 | No minimum deposit | 200 | 5 | 1 | 100 | 1 | 100 |
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Used By | 180,000+ | 27,000,000+ | 10,000+ | 300,000+ | 250,000+ | 89,000+ | 3,500,000+ | 10,000+ | 10,000+ | 15,000,000+ | 15,500+ |
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Platforms | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
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Risk Warning | Losses can exceed deposits | 68% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 71% of retail investor accounts lose money when trading CFDs with this provider | 74% 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. | 74-89 % of retail investor accounts lose money when trading CFDs | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.59% 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 | 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. | 73% 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. |
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IC Markets Demo |
eToro Demo |
Roboforex Demo |
AvaTrade Demo |
XTB Demo |
Pepperstone Demo |
XM Demo |
NordFX Demo |
FP Markets Demo |
Trading 212 Demo |
Plus500 Demo |
Excluded Countries | 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 | 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, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, PY, HN, GT, PR, NI, VG, AN, | US, JP | BE, BR, KP, NZ, TR, US, CA, SG | US, IN, PK, BD, NG , ID, BE, AU | AF, AS, AQ, AR, 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, UY, VU, VG, EH, YE, ZW | US, CA, IL, KR, IR, MM, CU, SD, SY | US, CA, EU, RU, SY, KP, CU | US, JP, NZ | US, CA | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE |
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 2022 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. 67% 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.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.