We found 11 online brokers that are appropriate for Trading CFD.
CFD trading is very popular in the UK and is one of the much-talked topics in the financial markets. CFDs most useful feature is leveraged trades. In the United Kingdom, trading CFDs also benefit from savings in UK stamp duty as no ownership is taken of any underlying assets when CFD trading. In this article we explain CFDs and UK taxation.
When checking the UK tax implications when trading it is advised to check one's personal situation and tax libilities with a certified UK tax professional.. This can be accomplished through the contacting your local tax office or a qualified accountant.
The UK government increased capital gains tax lately, in the latest budget. Earlier it was 18% and now it is 28%. The annual exemption limit here is £10,000. CFD trading in the UK attracts capital gains tax. It is calculated on the net gains made from a CFD that is more than the annual exception allowance.
Traders in the UK should keep a track of all the transactions when CFD trading. These transactions are required at the end of year to estimate any tax that must be paid to the UK government.
Following the raise in capital gains tax, several financial advisers have started advising clients and traders to act tax-efficiently. One of the best ways to do is to transfer the asset to a lower earning partner before selling. This is being done among spouses and has proved to be a good strategy. Check with a tax professional if this is possible in the UK.
The first feature in the Australian tax system is that the CFD gains might be considered as capital gains or regular income. In the accounting terms this is called revenue and capital accounts.
This means, the tax burden in Australia basically depends on the voluntary decision of a trader. The decision need to be favorable.
If a trader in Australia earns mostly from trading, his tax would be based on income and not on capital gains. However, if the trading income is less, the CFD profit is considered a capital gain.
If the trading is considered as a capital gain or loss, a trader finds himself placed in an advantageous position as other capital losses are seen to get offset against the gains.
It can be considered the opposite way too. If a trader loses his trades, this can offset other gains. It is carried out via the selling of shares.
In the UK some traders realize capital gains for meeting allowances. They looks for selling shares when the prices rise but keeps the position open believing the value may further go up. The country has a rule named Bed and Breakfasting and this does not allow selling and buying within 30 days. According to the Inland Revenue, the shares are not sold for tax purposes.
However, traders here can use CFDs. They can sell the shares and simultaneously take an equal position using the instrument for 31 days. This means the gains are locked during the period. Then, Bed and Breakfasting is avoided by selling the CFDs and again repurchasing the shares.
Sometimes it is treated as revenue losses instead of capital losses. But again, this may offset other income such as salary, while the capital losses offset just the capital gains.
Those receiving dividends after holding the CFDs are not taxed as dividends. These are treated as regular income and hence the tax rate is marginal.
A smart trader is one who considers several things to get an optimal tax position. But understanding this in detail is not easy and hence the advice of experts is required.
The tax structure is different in the UK if compared to other countries like Australia with respect to CFDs. It is a little complex to know how to receive the optimal tax position. Lately, the government has hiked capital gains tax significantly and you shouldnot forget that CFD attracts UK tax.
It is important to know that taking the advice of a certified financial expert can help to save on your UK tax liabilities. With tax make sure you do everything legally and pay any tax you are required too.
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 Tax Uk 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.
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
Broker |
eToro
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IC Markets
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XTB
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FP Markets
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Roboforex
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Trading212
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Plus500
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Pepperstone
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EasyMarkets
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XM
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FXPrimus
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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) | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | 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 | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), 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 | 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) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) |
Min Deposit | 200 | 200 | No minimum deposit | 100 | 1 | 1 | 100 | 200 | 100 | 5 | 100 |
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Used By | 17,000,000+ | 60,000+ | 250,000+ | 10,000+ | 10,000+ | 14,000,000+ | 15,500+ | 10,000+ | 142,500+ | 70,000+ | 10,000+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps | 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 | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps |
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Up with fxprimus |
Risk Warning | 71% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 82% 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. | 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 | Losses can exceed deposits |
Demo |
eToro Demo |
IC Markets Demo |
XTB Demo |
FP Markets Demo |
Roboforex Demo |
Trading 212 Demo |
Plus500 Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus 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, JP, NZ | US, JP | US | 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 | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. |
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 2021 article further below. You can see it now by clicking here
We have listed top CFD brokers below.