We found 11 online brokers that are appropriate for Trading CFD.
In this article of CFD vs Forex we will try to understand what the significant differences between CFD and Forex. Both are popular financial instruments and traders believe the two can help them in building wealth faster compared to other products.
Before we talk about the differences, let us have a look at the similarities in CFD vs Forex.
There are several similarities between CFD and Forex. Both the financial instruments involve the same kind of trade execution process. In both, a trader can easily take an entry and exit the market following the rise and fall of the financial markets.
Trades on both financial tools can be executed on the same platform by following and analyzing pricing methods and charts of underlying assets. In both kinds, the trades are performed in the OTC market. This means the trades are run electronically and entirely within a banking network. There is no central trade and no physical location.
In both cases the cost of trading is just the spread and no commission or fee. Other financial instruments involve charges in the form of commission or fee.
In both CFD and Forex, a trader does not take possession of the underlying assets. If a trader buys EURAUD, it does not mean that he purchases the euros and there after sells the Australian dollars. He merely speculates on the currency pair’s exchange rate.
Similarly, if the trader buys a CFD on the FTSE 100, he does not own the stocks listed in the FTSE 100 index. He rather speculates on the underlying price of the assets. This is the reason Forex is also considered as a kind of CFD for not taking ownership of the underlying assets.
There are several differences in CFD vs Forex, but few are significant ones. The primary difference is that the CFD involves various contracts like indices, metals, and energy. Forex on the other hand is purely limited to currency trading.
In CFD a trader can choose different contracts, and these can vary in currency type as well as increment value based on the country where the underlying asset originates. In Forex the opportunity is not so vast. A trader can only trade two currencies against each other. More to this, the trading needs to be in uniform sizes.
CFD is influenced by specific factors like demand and supply or market trends of the commodity while Forex is driven by global events such as international political changes and large employment shifts.
CFD is an abbreviation of Contracts for Difference and it is a derivative financial instrument that offers price speculating opportunities to traders of underlying assets. A trader never takes ownership of the assets in which the contract is based.
A trader gets leverage opportunity with CFDs and this facilitates him or her to open a position with a lower initial capital. The exposure is comparatively large and hence profit is amplified. However, the losses may also go beyond the initial deposit.
The leverage is up to 30:1 and 500:1 for retail traders and professional traders respectively.
The capital requirement is very low to start the trade. There is no financing charge and one can trade indices, metals, and energy. The entry to market and exit from it is easy and traders enjoy global trading on a single platform.
Forex or FX also known as foreign exchange is a $5 trillion daily global turnover market. It is also referred to as FX. Traders who seek to capitalize on the opportunities with such huge daily transaction volume get involved in Forex trading. They buy and sell currencies. The added advantage of Forex compared to other financial tools is its 24-hour trading hours from Monday to Saturday.
Forex is an over the counter product and not controlled by any central governing body. The negotiations between brokers and dealers are direct through electronic networks.
In this article, we looked at CFD vs Forex and tried to highlight both similarities as well as differences. We talked about some of the significant driving forces.
The beauty of CFD and Forex is that the initial required capital is lower than other financial products due to the high leverage offered. A trader can gain larger exposure with limited capital. The profits are also magnified.
However, a trader should always consider there may be a darker side of trading and profits cannot be always guaranteed. Losses do exist, but there are risk-management tools available to implement and minimize the risks.
Apart from this, it is always suggested to deal with a reliable, regulated, popular, and trusted brokerage agency for your CFD and Forex needs. A good broker matters the most in yielding positive results.
If you are researching CFDs make sure to read through the below CFD related guides. You will find something useful.
We have conducted extensive research and analysis on over multiple data points on Cfd Vs Forex to present you with a comprehensive guide that can help you find the most suitable Cfd Vs Forex. Below is a list of what we consider to be the best CFD brokers after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Cfd Vs Forex.
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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Roboforex
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eToro
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XM
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Pepperstone
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XTB
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NordFX
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AvaTrade
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FP Markets
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Trading212
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EasyMarkets
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | 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) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | 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 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 | Cyprus Securities and Exchange Commission (CySEC), License No: 209/13, VFSC registration number 15008 | 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), Central Bank of Ireland | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), FSCA (FSP Number 50926) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) |
Min Deposit | 200 | 1 | 50 | 5 | 200 | No minimum deposit | 1 | 100 | 100 | 1 | 100 |
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Used By | 180,000+ | 1,000,000+ | 30,000,000+ | 3,500,000+ | 400,000+ | 581,000+ | 10,000+ | 300,000+ | 10,000+ | 15,000,000+ | 142,500+ |
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Platforms | MT4, MT5, Mirror Trader, Web Trader, cTrader, Windows, Mac, iOS, Android | MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, Tablet & Mobile apps |
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Learn More |
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Up with easymarkets |
Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 79% 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. 77.74% 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 | 81% 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 | 71% of retail investor accounts lose money when trading CFDs with this provider | 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. | Your capital is at risk |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XM Demo |
Pepperstone Demo |
XTB Demo |
NordFX Demo |
AvaTrade Demo |
FP Markets Demo |
Trading 212 Demo |
easyMarkets Demo |
Excluded Countries | US, IR, CA, NZ, JP | US, JP, IR, RU | 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, PT, BB, BM, BS, AG, AI, AW, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, UA, JO, KR, | US, CA, IL, KR, IR, MM, CU, SD, SY | 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, IN, PK, BD, NG , ID, BE, AU | US, CA, EU, RU, SY, KP, CU | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, CA | 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 |
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 2023 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. 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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.