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

CFD trading in the UK has continued to grow, especially after the market volatility seen in 2023 to 2024. When I first started trading CFDs right around the time Nvidia’s price jumped from about £250 to over £600 I realised quickly how much cheaper it felt compared to buying the actual shares. Since CFDs don’t involve owning the underlying asset, you avoid the 0.5% UK stamp duty charged on share purchases. On larger positions, that can be a big saving. For example, buying £10,000 worth of actual shares would normally cost £50 in stamp duty, whereas a CFD position avoids that entirely.
However, profits from CFDs are still subject to UK Capital Gains Tax (CGT). As someone who files trading taxes every year, I’ve learned that understanding UK CFD tax rules is not optional it’s essential. In this updated guide, I break down how CFD tax works, how gains are reported, and how the UK compares to countries like Australia based on both my experience and recent HMRC updates.
In the UK, CFD profits are generally treated as capital gains. You pay tax only on net profits above your annual CGT allowance, which for the 2024/2025 tax year is £3,000. Under Labour’s new fiscal direction, Chancellor Rachel Reeves has signalled tighter tax policy, including a review of wealth-related taxes and investment income rules. While CGT rates for now remain at 10% for basic-rate taxpayers and 20% for higher and additional rate taxpayers, Reeves has not ruled out future CGT reforms as part of her broader plan to increase revenue and stabilise public finances. Many analysts now expect capital gains to come under closer scrutiny, especially gains made through financial instruments like CFDs.
Let’s look at a practical example. Imagine you made £18,000 in CFD profits trading assets like Gold CFDs (which recently moved between £1,550 and £1,750 per ounce). After subtracting the £3,000 CGT allowance, £15,000 becomes taxable. If you also had £3,000 in losses from GBP/USD trades during volatility earlier this year, your taxable gain drops to £12,000. Under the current rules, a higher-rate taxpayer would owe 20% on that amount, but Reeves’ team has already suggested that the next Budget may include adjustments to CGT bands and allowances. For instance, reducing the annual CGT allowance further or aligning CGT rates more closely with income tax bands are both ideas that have been openly discussed. These types of changes would make keeping accurate trading records even more important. Personally, I keep a detailed Google Sheets log of every CFD trade entry price, exit price, margin used, fees, and even screenshots of positions because it makes end-of-year reporting painless - especially if future budgets become stricter.
Remember that CFD profits are not gambling winnings. I still meet traders who confuse CFDs with spread betting. Spread betting is tax free in the UK, but CFDs are treated as investments. With Labour’s renewed focus on tightening high income and investment based tax rules, HMRC may also become more active in reviewing traders whose CFD income looks like a full time business. If CFD trading becomes your main income source, HMRC could classify you as a fulltime trader, meaning your profits could instead fall under income tax rules a shift that may become more common under Rachel Reeves’ tax policy direction.

Start by keeping organised records of every CFD trade timestamps, ticker symbols, instrument type, profit/loss values, funding charges, and brokerage statements. These details are vital when calculating your annual CGT liability.
One approach I’ve used personally is allocating part of my trading capital to my spouse, who is in a lower tax bracket. For example, last year I transferred £5,000 into a separate account under her name before closing a profitable FTSE 100 CFD position worth around £2,200 in gains. Because of her lower tax band, the CGT owed on her side was smaller. But always speak with a qualified UK tax adviser before applying this strategy HMRC rules can get strict when transfers appear artificial.
Some traders also navigate the UK’s “Bed and Breakfasting” rule. This rule prevents selling and repurchasing shares within 30 days just to create tax benefits. Because CFDs do not involve physical share ownership, some traders temporarily switch into CFDs to maintain market exposure during the 30 day window. I’ve seen this used effectively during recent dips in Tesla and Meta shares, but it must be executed carefully to stay within HMRC guidelines.
When comparing CFD taxation between the UK and Australia, the differences are significant. In Australia, CFD profits can be taxed either as capital gains or as business income depending on trading frequency. For example, during the 2024 commodity rally, several Australian traders I know who actively traded Oil and Iron Ore CFDs were taxed at full income rates because they were considered “trading businesses.”
In the UK, most CFD traders fall under CGT unless they operate like full time day traders. A major advantage in the UK is that CFD losses can reduce gains from other investments. Earlier this year, I offset a £1,500 CFD loss on USD/JPY against equity gains in my ISA exempt portfolio something Australian traders don’t always get the flexibility to do.
Dividend treatment also varies. In Australia, dividends received through CFDs are taxed as ordinary income. In the UK, tax treatment depends on your broker’s structure and whether they pass through dividend adjustments. For example, some platforms give you a “dividend adjustment” on CFD positions for companies like BP or Shell, and this may be taxable differently from standard dividends check with your broker and tax adviser to stay compliant.
Keep detailed records: Log every CFD trade, both open and closed. Last year’s volatility from Bitcoin’s drop below £20,000 to its bounce above £50,000 showed how fast P/L can move. Detailed logs simplify CGT calculations and ensure accuracy.
Consult a certified tax professional: A qualified accountant can review your trading activity and help reduce your tax liability legally. With recent HMRC crackdowns on crypto CFD misreporting, professional guidance is more important than ever.
Test strategies safely: Use demo accounts or very small position sizes when experimenting with new CFD markets especially volatile ones like NASDAQ tech stocks or Natural Gas.
Reinvest profits wisely: Make the most of your annual CGT allowance to grow your capital. For example, closing a portion of profitable positions at year end can lock in gains while keeping tax low.
Submit tax returns on time: Filing promptly avoids penalties and keeps your financial records clean and organised. HMRC’s online system has improved recently, making submissions faster.
Use broker reporting tools: Platforms like eToro, XTB, Pepperstone, and Plus500 now offer improved tax summary reports for the 2024/2025 financial year, which save hours of manual work during tax season.

CFD trading in the UK remains a highly accessible and flexible way to speculate on global markets, but understanding how tax works is essential if you want to trade confidently and stay compliant. While the absence of stamp duty makes CFDs cost effective compared to traditional share trading, profits are still subject to Capital Gains Tax and HMRC takes these reporting requirements seriously.
From my own experience, proper record keeping and a clear tax strategy make a huge difference, especially during volatile periods like the sharp swings in gold, tech stocks, and crypto throughout 2024. Whether you're a beginner making a few trades a month or an experienced trader managing multiple positions daily, taking the time to understand UK tax rules will help you protect your profits and avoid unnecessary penalties.
If you’re unsure about your tax obligations, or if your CFD activity has grown significantly over the past year, always seek advice from a qualified tax professional. You can also review HMRC’s official guidance on derivatives and Capital Gains Tax here:
HMRC official guidance (CFD & derivatives tax rules): Capital gains tax
Being proactive with your CFD trading tax planning not only keeps you on the right side of the law but also helps you maximise your long term returns as a CFD trader in the UK.
Understanding how CFDs are taxed in the UK is essential for anyone trading derivatives. CFDs (Contracts for Difference) allow traders to speculate on price movements without owning the underlying asset, and their tax treatment is very different from traditional investing, spread betting, or futures. The following breakdown explains how HMRC treats CFD profits, what taxes you may owe, and how this differs from similar instruments. For more background, you can explore educational resources such as CFD Terminology, CFD Trading Strategies, and CFD Tax UK.
CFDs are subject to Capital Gains Tax (CGT)
CFD trading profits are treated as capital gains because CFDs are considered financial derivatives rather than gambling instruments. This means:
No Stamp Duty on CFDs
Because CFDs do not involve taking ownership of shares, HMRC does not charge stamp duty. Whether trading shares, indices, commodities, or FX CFDs, there is no stamp duty applied. You can explore related asset-specific pages like CFD Shares, CFD Indices, and CFD Gold.
Income Tax does NOT apply to normal retail CFD traders
CFDs are taxed as capital gains - not income - unless HMRC classifies you as a professional trader running a business. This is extremely rare for retail traders. The average CFD trader is taxed the same way as someone buying and selling shares, though CFDs come with higher risk due to leverage. More details can be explored under CFD Investment and CFD Leverage.
Losses on CFDs can reduce your tax bill
One major advantage of CFD taxation is that HMRC allows you to offset CFD losses against other capital gains. This can reduce—or completely eliminate—your CGT liability. This contrasts with spread betting (which is tax-free but does not allow loss offsets). See Spread Betting vs CFD for the differences.
Dividends on share CFDs are taxed
When you hold a CFD on a dividend-paying stock, the broker typically adjusts your account with a “dividend adjustment.” HMRC views this as part of your trading result, so it falls under CGT. See CFD Dividends for more detail.
Leverage does not change your tax status
Whether you use high or low leverage, the tax treatment is unchanged. However, leverage increases risk and can affect your overall gain or loss for the year. Explore leverage mechanics via CFD Margin and CFD without Leverage.
When do you pay CGT on CFDs?
You only pay tax if your total *taxable* capital gains (CFDs + other assets) exceed your annual allowance. If you make £10,000 profit trading CFDs but have £7,000 in allowable losses elsewhere, your taxable gain is only £3,000 - meaning you owe no CGT for that year.
Summary of UK CFD Tax Rules
For a complete overview of CFD trading in the UK, see CFD UK and resources such as CFD Example, CFD Fees, and CFD traders in the UK.
We have conducted extensive research and analysis on over multiple data points on Cfd Tax Uk to present you with a comprehensive guide that can help you find the most suitable Cfd Tax Uk. 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 Tax Uk.
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) | 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+ | 750,000+ | 400,000+ | 200,000+ | 250,000+ | 60,000+ | 7,800,000+ |
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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 |
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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 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. | 69% - 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. 75.99% 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