We found 11 online brokers that are appropriate for Trading CFD.
Contracts for Difference (CFDs) allow investors to speculate on prices of various assets, such as stocks, commodities, or currencies, without owning the underlying assets. Traders can take positions on whether they believe the price of the asset will go up or down.
CFDs provide the opportunity to use leverage, meaning traders can control large positions with a relatively small amount of capital. However, this also amplifies potential losses. CFD trading is favored for its flexibility, allowing for short and long positions, access to global markets, and lower transaction costs.
Yet, it carries significant risks, particularly due to market volatility and leverage.
Here's a table summarizing the key differences between CFD and Futures trading:
Feature | CFD Trading | Futures Trading |
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Contract Type | Over-the-counter (OTC) agreement with a broker | Standardized exchange-traded contract |
Holding Period | Flexible, can be held indefinitely (overnight fees apply) | Fixed expiry date, needs to be rolled over before expiry |
Costs | Spreads (difference between buy and sell price) | Spreads + commissions charged by exchange and broker |
Leverage | Typically higher leverage offered by brokers (up to 30:1) | Moderate leverage regulated by exchange (up to 15:1) |
Delivery | Cash settlement (no physical delivery of underlying asset) | Cash settlement or physical delivery (depending on contract) |
Regulation | Less regulated than futures | Highly regulated by exchange and government agencies |
Minimum Investment | Lower due to leverage (e.g., $1,000 - $5,000) | Higher due to margin requirements (e.g., $5,000 - $10,000) |
Suitability | Short-term trading, active traders | Longer-term trading, hedging strategies |
The first question with CFD vs futures is why the two are different. Many remain confused as both appear to be similar products. However, there are some differences.
Futures are basically traded on a stock exchange while Contract for Difference is not and this is traded directly with brokers and has lower entry barriers compared to futures.
The primary differences in CFD vs futures are in financing and liquidity. Futures are not easily completed compared to CFD. It also has higher entry barriers.
However, both the financial products are derivatives as the value of CFD or futures are based on the value of the underlying assets, which are usually a bond, commodity, or action.
The primary similarity of the two is that both the tools are high risk due to the leverage level offered, meaning, many retail investor accounts lose money when trading.
This is the reason some traders choose not to buy or sell futures contracts and avoid trading CFDs or futures.
However, it is suggested not to move away from it as a risk-management system is applied to minimize the potential losses. If profits are made, it is multiplied profits, far beyond what a trader earns without using leverage features.
CFD leverage can vary depending on the broker and the underlying asset.
Futures is a buying or selling agreement at a predefined price of an underlying asset on a predefined date in the future irrespective of the change of futures prices in between. Futures contracts are available for a variety of assets, including stocks, currencies, and commodities.
This means that futures contracts are typically settled in cash, rather than with physical delivery of the underlying asset. They benefit from the price movements of the assets. They take the opposition position, called compensation, of the existing open position until the contract date is reached.
CFD trading, on the other hand, underlines no predefined date or price. It is simply to pay the price differences of the underlying assets between entry and exit of position.
There's an important difference between the two. In CFD trading you are trading against your broker, who quotes the prices of the underlying assets. Some say the broker manipulates the prices.
But it is not true in practicality considering the immense popularity of CFDs in the industry and tough competition between the brokers.
Futures is traded in a centralized open market and this enables other market participants to watch the quotes and rates. Traders get more selection of instruments.
Spreads are lower in futures and higher in CFDs while commissions are vice versa. Futures trade needs a higher margin as transactions are executed with greater capital compared to CFD.
When it comes to trading futures, the size of the futures contracts are negotiated and usually traded on big exchanges.
The minimum commitments are larger than CFDs as futures are basically used by big institutions including investment banks.
Let us check with an example. In CFD a trader can exchange 5 ounces of Platinum with lower capital compared to futures. A single futures contract represents 100 ounces of Platinum.
This means CFD is comparatively more flexible and it is virtually found in every financial market like currencies, commodities, stocks, and indexes.
Furthermore, just one or two CFD retail investor accounts are enough to vary trading with different brokers. CFD account opening is easier compared to futures account opening because of less regulation.
In both the products the brokerage agency charges interest. With CFD it is on a daily basis while in the futures the charges are clubbed with the asset value.
The daily interest with CFD is not much as it is a commercial vehicle, and a trader doesn’t keep it for long.
Below are examples of trading Natural Gas (NG) using both CFDs and Futures, showing what happens if the trade goes in your favor and against you.
Both CFD and Futures trading in Natural Gas offer significant profit potential but come with high risks due to leverage, market volatility, and potential margin calls. Proper risk management, including setting stop-loss orders and not over-leveraging, is crucial to mitigate these risks.
Net Position:
Net Position:
Net Position:
Net Position:
Natural Gas prices are highly volatile due to factors like weather, geopolitical events, supply and demand imbalances, and economic indicators. This volatility can lead to rapid and substantial price changes, impacting your trades significantly.
Leverage can be a high-risk strategy, as it can magnify both gains and losses. Allowing trading at greater exposure than your deposited amount, which can lead to high gains and high loss.
In both CFDs and Futures, if financial market volatility causes loses, you may receive a margin call, requiring you to add funds to your exposed live trading account. Failure to meet margin calls may result in a closure of your open positions, often at a loss.
During periods of high volatility or low trading volume, you may find it difficult to execute trades at your desired price. This can exacerbate losses or reduce gains.
Once you get involved in this type of trading, you will know that three primary differences between CFDs and futures decide who uses them and the best financial instruments at different times in the financial markets.
In essence, CFDs are short-term contracts; they are the most affordable for shorter timeframes. This is mainly because they end up incurring overnight fees called 'financing costs'. This means that the longer the trader decides to hold the trade, the more costly it will get.
Futures do not incur any financing costs. This is because any impact from usury rates is integrated into the futures costs concerning its expiry date.
It is normal for many traders who trade futures to hold their positions for a number of weeks; however, the contracts expire and have to be rolled into the following contract period.
Since CFD trade is rolled over continuously, they do not have an expiration date, which is why they incur overnight charges.
The main advantage is CFD traders can maintain their open trades without having to exit their CFD trading position, which is able to the following CFD contract. In contrast, futures come with expiry dates set at the futures exchange once the contract is first set.
A spread refers to the contrast between a particular asset's buy and sell value. During high market volatility, spreads decrease, and spreads will increase when there is a low volume in the financial markets.
When traders trade CFDs, they normally only pay a spread. On the other hand, with futures trading, a spread is charged by the futures exchange, and the futures broker charges a commission fee.
CFDs and futures contracts also share several key similarities.
Both CFDs and futures allow traders to use leverage, which means that traders can control large positions with a relatively small amount of capital. This leverage can amplify both gains and losses, making both instruments potentially profitable but also risky.
Traders use both CFDs and futures for speculation—to profit from price changes in the underlying assets. Additionally, both are used for hedging purposes to protect against adverse movements in the price of assets that traders hold in their physical or investment portfolios.
Both instruments provide access to a broad range of markets including commodities, currencies, stock indices, and more. This allows traders to gain exposure to different sectors and geographical regions without the need to physically own the underlying asset.
Both CFDs and futures allow traders to take both long and short positions. This means that traders can profit from both rising and falling markets by speculating on the direction they expect prices to move.
In most cases, both CFDs and futures are settled financially rather than through the physical delivery of the underlying asset. Most traders close their positions before the contract expires and do not take or make delivery of the actual commodity or financial instrument.
Both CFDs and futures are typically subject to daily settlement procedures to reflect the market value of the positions. This process, known as mark-to-market, involves adjusting the value of an open contract to reflect current market prices, thereby showing unrealized gains or losses.
Risk management is one of the most crucial topics when trading, whether it is CFDs trading, derivatives trading, or futures trading. Regardless of the market, trading instruments, or strategy your employ, you must control your trading via risk management.
Usually, many traders use a 10:1 leverage in their retail investor accounts, which means they can control $100,000 with an investment of just $10,000.
According to investment advice from trading veterans, it is best for beginner traders to start trading by using demo accounts and practice using leverage.
Experienced traders with more experimental strategies and trading plans can try using higher leverage. However, keep in mind that the more leverage you use, the more you end up exposing your account.
At this point, it has become obvious that you should never put more than 10 percent of your account balance at risk in a trade.
Make sure to safeguard your account and diversify your trading positions.
These are the pros and cons of CFD vs futures, but both the trading instruments play important roles in building a solid portfolio.
There are notable similarities as well as differences and it is believed the primary question is answered that why the two are different.
Traders should understand both the financial products before trading on either. Financial instruments are market sensitive and are directly affected by breaking events.
It is better to understand what the maximum losses could be and whether one has the capacity of undergoing extended losses.
It is also good to note that profits cannot be guaranteed. Hence, one should always deal with a reliable regulated, and trusted broker who can correctly guide with the pros and cons of the instruments and the volatility level of the industry. Unregulated brokers when trading CFDs or futures online might not be as reliable.
We have conducted extensive research and analysis on over multiple data points on Cfd Vs Futures to present you with a comprehensive guide that can help you find the most suitable Cfd Vs Futures. 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 Vs Futures.
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 | eToro | XTB | XM | Pepperstone | AvaTrade | FP Markets | EasyMarkets | SpreadEx | FXPro |
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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) 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 | 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) |
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+ | 35,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 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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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 51% of retail investor accounts lose money when trading CFDs with this provider. | 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 |
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 2025 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. 51% 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.
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.
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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.