We found 11 online brokers that are appropriate for Trading CFD.
Contract for Difference (CFD) trading is gaining traction globally, offering a flexible way for traders to speculate on the price movements of financial instruments. However, in the USA, CFD trading remains a controversial subject, and it is currently illegal for both residents and citizens to engage in CFD trades.
While the popularity of CFDs has soared in many other financial markets, particularly in Europe and Asia, the US regulatory environment has firmly kept this trading instrument out. For example, a trader in the UK might open a CFD position on a tech stock priced at $200, with only a 10% margin requirement, needing just $20 to open the trade. This restriction in the US has sparked debates on whether the US financial system should allow such trades, especially considering the flexibility and leverage that CFDs offer traders globally.
Let us delve into why CFD trading is prohibited in the USA and examine the legal, regulatory, and market protection reasons behind this ban. Understanding these aspects is essential for any trader looking to understand the dynamics of CFD trading in the context of the US financial landscape.
CFD, or Contract for Difference is speculation on up or down price movements only (no physical assets) against your CFD broker.
CFDs are banned in the United States because they do not comply with the regulations set forth by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). These regulatory bodies prohibit CFDs due to concerns over their highly leveraged nature, the potential for significant losses by retail traders, and a lack of transparency in pricing. Learn more about CFTC regulations here.
For example, in other markets where CFDs are permitted, a trader might speculate on gold prices, currently around $1,950 per ounce in 2024. A CFD trade allows them to open a position with a margin of just $195 (10%). If gold rises to $2,000, they profit by $50 per ounce. However, if it drops to $1,900, they incur a $50 loss per ounce. Such leverage amplifies potential profits but also risks significant losses, one of the key reasons for their prohibition in the US.
In countries where CFDs are legal, another example involves NVIDIA stock, priced at $450 per share in 2024. Using 5:1 leverage, a trader only needs $90 per share to open a position. If the price increases to $470, the trader makes $20 per share. However, a drop to $430 results in a $20 loss per share. This demonstrates how leverage can work both for and against traders. Check current NVIDIA stock prices here.
The SEC and CFTC also highlight that CFD brokers often operate offshore, outside of US jurisdiction, raising concerns about legal recourse and regulatory oversight for American traders. This lack of protection for retail traders is a significant factor behind the ban. Read more about SEC rules on derivatives here.
Another factor is the availability of alternative trading instruments for US traders, such as futures, options, and ETFs, which are regulated and offer similar speculative opportunities without the same level of risk associated with CFDs. For instance, instead of trading a CFD on the S&P 500 index, US traders can trade highly liquid and regulated index futures.
Leverage, a defining feature of CFDs, is another reason for concern. While leverage allows traders to control a larger position with a smaller amount of capital, it also amplifies losses. For example, opening a $20,000 position with just $2,000 using 10:1 leverage can lead to significant profits or devastating losses depending on the market movement. The heightened risk makes CFDs less suitable for unsophisticated traders, leading to strict regulatory scrutiny in the US.
While CFDs remain banned in the USA, their popularity continues to grow in other regions. For US traders, alternative instruments like options or futures provide regulated ways to speculate on market movements with defined risk parameters. Explore commodity market trends here.
In the United States, the trading of CFDs is prohibited. This is primarily due to regulations enforced by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). These regulatory bodies have stringent rules aimed at protecting investors and ensuring market stability, which CFDs do not meet due to their speculative nature and high leverage.
For example, unlike traditional stock trading where a US investor might buy 10 shares of a company at $100 each, CFDs allow for leveraged positions that can amplify both profits and losses. US regulators argue that the lack of ownership in CFD trading and the significant risk posed to retail investors outweigh the potential benefits.
Furthermore, the Dodd-Frank Act, passed in 2010, explicitly banned CFD trading for US residents and citizens. This legislation was implemented to promote financial stability and reduce speculative trading practices that could lead to systemic risks in the financial markets.
US traders are unable to access CFDs through domestic brokers, as offering CFDs is illegal within the country. However, some traders attempt to open accounts with international brokers that offer CFDs, often violating US regulations in the process. It is crucial for US traders to understand that engaging in CFD trading with offshore brokers can result in legal consequences, including fines and account closures.
While alternatives like options trading and futures are available in the US, they come with their own sets of risks and regulatory oversight. For example, a trader interested in speculating on crude oil prices might consider futures contracts, which are legal and regulated but require higher capital and have strict margin requirements compared to CFDs. Learn more about regulated trading options on the CFTC site.
The ban on CFD trading in the United States is primarily driven by regulatory concerns related to investor protection and market stability. One of the most critical issues is the leverage that CFDs offer, which can greatly amplify both gains and losses. For example, in regions where CFDs are legal, a trader might use 20:1 leverage to open a $20,000 position with just $1,000. If the position moves against the trader by 5%, the loss would equate to $1,000, wiping out their entire investment. Dodd-Frank Act summary on the CFTC site.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in 2010, laid the foundation for tighter regulation of financial markets. One of its main objectives was to prevent another economic collapse by ensuring transparency and reducing speculative activities in markets like commodities, foreign exchange, and derivatives, including CFDs. This legislation is a cornerstone of the current regulatory framework that bans CFDs in the US.
The ban on CFD trading in the United States has far-reaching implications for both traders and the broader financial market. For instance, the inability to trade CFDs means US traders must seek alternative products or use complex derivative instruments, which may come with their own regulatory challenges and risks. This limitation also prevents traders from accessing potentially higher returns that could be available through CFDs.
Some US traders turn to offshore brokers, exposing themselves to significant risks, including fraud, lack of transparency, and difficulty in resolving disputes. US regulatory bodies strongly advise against such practices. Read the SEC's investor bulletin on risky trades.
The United States has strict regulations that govern financial trading to ensure the safety and stability of its markets. Currently, CFD trading is not permitted on US exchanges, and US citizens are prohibited from trading CFDs. This restriction is in place primarily due to the high leverage and risks associated with CFDs, which could potentially destabilize the US financial system.
The 2008 financial crisis prompted a significant tightening of financial regulations in the US, with authorities placing more emphasis on protecting traders and the broader economy from high-risk instruments like CFDs. In the aftermath, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) implemented stricter rules for over-the-counter (OTC) products, which include CFDs.
At present, unless the US government changes its policy, CFDs will remain banned for US citizens. The SEC and other regulatory bodies continue to monitor market stability, and the legal framework for financial trading instruments is unlikely to shift in favor of CFDs anytime soon.
Despite the current ban on CFD trading in the United States, there are ongoing discussions among financial regulators and industry experts about the potential for change. The rise of global financial markets, coupled with increasing demand for high-leverage trading options, has sparked debates about whether the US might eventually revisit its stance on CFDs. While it remains illegal for US citizens to trade CFDs at the moment, there are several factors that could influence the future of these financial instruments in the US.
One of the primary challenges to the introduction of CFDs in the US is the issue of regulatory oversight. US regulators, including the SEC and CFTC, are cautious about high-leverage products like CFDs due to the risks they pose to retail investors. However, as more countries adopt and regulate CFDs, there may be increasing pressure for the US to align its policies with international standards. This could lead to the introduction of more stringent regulations that control leverage, margin requirements, and risk disclosures to ensure that CFDs are offered safely to US investors.
Another consideration for the future of CFDs in the US is the increasing popularity of alternative financial instruments that offer similar benefits without the same level of risk. For example, options and futures contracts provide traders with the ability to speculate on price movements of assets without actually owning them, similar to CFDs. However, these instruments are heavily regulated in the US, with well-defined rules to protect traders. If the US were to reconsider CFDs, it would need to ensure that these instruments could be offered in a manner that balances innovation with consumer protection.
Moreover, some industry experts argue that the globalization of finance and the rise of digital platforms could eventually force the US to relax its stance on CFDs. As more investors look for ways to access international markets, there may be growing demand for CFD trading products that allow for diversification across multiple asset classes, such as foreign stocks, commodities, and cryptocurrency markets. The ability to trade global markets without having to navigate complex regulatory hurdles may lead to a reassessment of the current ban on CFDs.
However, any potential change in policy would likely come with significant debate and a long regulatory process. US authorities would have to consider the broader implications for financial stability and market integrity, as well as the impact on retail traders. While there is growing interest in financial innovation, the US is known for its cautious approach to new financial products. For any shift in policy to occur, the regulatory framework would need to be restructured to address the risks and challenges associated with CFDs, including stringent margin requirements, transparency, and consumer education.
The current legal status of CFD trading in the United States is clear: it is strictly banned. Neither US residents nor US citizens are allowed to trade CFDs within the country. This ban is enforced by regulatory bodies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), both of which work to protect US traders and ensure the integrity of the financial markets.
The primary reason for this ban is the high leverage that CFDs offer, which significantly increases the potential for both large profits and substantial losses. Given the risks involved, the US government has decided to prohibit these instruments in order to prevent any instability in its financial system and to shield traders from the dangers of over-leveraged trading.
For those interested in trading CFDs, it is essential to remember that no broker or CFD provider can legally offer these services to US citizens. Attempting to engage in CFD trading through offshore brokers could result in severe legal consequences, including fines and penalties.
As of now, there are no indications that the US will lift the ban on CFDs in the near future. Regulatory changes are always possible, but considering the current economic and financial climate, it seems unlikely that US regulators will change their stance on CFDs anytime soon.
Traders are advised to follow the government’s regulations and avoid any attempts to bypass these laws. Always choose regulated and trustworthy platforms for trading, and stay informed about the evolving regulatory environment to avoid legal risks.
We have conducted extensive research and analysis on over multiple data points on Cfd Usa to present you with a comprehensive guide that can help you find the most suitable Cfd Usa. 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 Usa.
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.
Broker | IC Markets | Roboforex | XTB | XM | Pepperstone | AvaTrade | FP Markets | EasyMarkets | SpreadEx | FXPro | Admiral |
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Regulation | Seychelles Financial Services Authority (FSA) (SD018) | RoboForex Lid is regulated by Belize FSC, License No. 000138/7, reg. number 000001272. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC) (000261/4) XM ZA (Pty) Ltd, 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),, FFAJ, Abu Dhabi Global Markets (ADGM)(190018) Ava Trade Middle East Ltd (190018), Polish Financial Supervision Authority (KNF) AVA Trade EU Ltd, Central Bank of Ireland (C53877) AVA Trade EU Ltd, British Virgin Islands Financial Services Commission (BVI) BVI (SIBA/L/13/1049), Israel Securities Association (ISA) (514666577) ATrade Ltd, Financial Regulatory Services Authority (FRSA) | 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) (130) | Cyprus Securities and Exchange Commission (CySEC) (079/07) Easy Forex Trading Ltd, Australian Securities and Investments Commission (ASIC) (Easy Markets Pty Ltd 246566), British Virgin Islands Financial Services Commission (BVI) EF Worldwide Ltd (SIBA/L/20/1135), Financial Sector Conduct Authority South Africa (FSA) EF Worldwide (PTY) Ltd (54018), FSC (Financial Services Commission) (SIBA/L/20/1135), FSCA (Financial Sector Conduct Authority) (54018) | FCA (Financial Conduct Authority) (190941), Gambling Commission (Great Britain) (8835) | 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) | Financial Conduct Authority (FCA) (595450), Cyprus Securities and Exchange Commission (CySEC)(310328), FSA (Financial Services Authority of Seychelles) (SD073) |
Min Deposit | 200 | 10 | No minimum deposit | 5 | No minimum deposit | 100 | 100 | 25 | No minimum deposit | 100 | 1 |
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Used By | 200,000+ | 730,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 400,000+ | 200,000+ | 250,000+ | 60,000+ | 7,800,000+ | 30,000+ |
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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 | 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) | MT5, MT4, MetaTrader WebTrader, Admirals Mobile Apps, iOS (App Store), Android (Google Play), Admirals Platform, StereoTrader |
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Up with admiralmarkets |
Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 74-83% 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. 74.12% 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. | 75-95 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider | Losses can exceed deposits |
Demo |
IC Markets Demo |
Roboforex Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Admiral Markets 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 | 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 | US, CA, JP, SG, MY, JM, IR, TR |
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 2025 article further below. You can see it now by clicking here
We have listed top CFD brokers below.