We found 11 online brokers that are appropriate for Trading Forex / CFD.
Forex, short for Foreign Exchange, is the global marketplace where currencies like the € (Euro), $ (US Dollar), and £ (British Pound) are traded. CFDs (Contracts for Difference) allow you to speculate on the price movement of assets such as stocks, commodities, and indices without owning the underlying asset. Both offer exciting opportunities, but their risk profiles and mechanisms differ significantly. For instance, if I trade EUR/USD in Forex, I own the euros I purchase, but if I trade an oil CFD, I only profit from its price changes without owning oil.
In this guide, I'll walk you through the differences and similarities between Forex and CFD trading. My aim is to make it easier for you to decide which might align better with your strategy and risk tolerance.
Whether you're interested in currencies like the South African Rand (R) or global commodities like gold, understanding how these instruments work and their unique features will help you make informed trading decisions. Remember, both markets are volatile, influenced by factors like economic data, geopolitical events, and global trends, so thorough research and caution are key.
Aspect | Traditional Forex Trading | CFD Leverage Trading | Advantages | Disadvantages | Predictions (2025-2026) |
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Ownership | You own the actual currency. For example, buying EUR/USD means holding euros. | No ownership of the asset. A CFD trade on oil reflects price changes but doesn't involve owning oil. |
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Greater adoption of CFDs for speculative purposes while Forex remains a choice for long-term investors. |
Leverage | Regulated leverage, often capped. For instance, Europe limits leverage to 30:1 for retail traders. | High leverage, sometimes 500:1. This allows smaller initial investments but amplifies risks. |
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Regulators might impose stricter leverage limits for CFDs, aiming to reduce risks while limiting appeal. |
Costs | Spread-based costs with occasional commissions. For example, the EUR/USD spread might be 1 pip ($10 per lot). | Spread-based fees plus overnight charges (swap fees). For instance, $50 for holding a leveraged position overnight. |
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Market competition could reduce spreads, benefiting traders in both markets. |
Example Trade | Buying 1 lot (100,000 units) of EUR/USD at 1.1000 and selling at 1.1200 results in a $2,000 profit without leverage. | Buying 1 lot CFD on EUR/USD at 1.1000 with 100:1 leverage nets $2,000 using only $1,000 capital. |
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Retail interest in CFDs continues to grow due to accessibility, while Forex trading remains strong among institutional investors. |
Regulation | Strictly regulated globally. For example, the FCA in the UK protects Forex traders (FCA website). | CFD regulation varies. Some jurisdictions, like Australia, impose stricter guidelines (ASIC website). |
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Global regulatory frameworks are likely to evolve to ensure investor safety across both markets. |
CFDs (Contracts for Difference) are a flexible way for traders like me to speculate on the price movement of assets without actually owning them. A CFD works as an agreement with a broker to exchange the price difference of an asset from when the contract opens to when it closes. For example, if I buy a CFD on gold at $1,800 per ounce and sell it at $1,850, my profit is $50 per ounce (excluding fees). I can choose to go long (buy) or short (sell), which allows me to potentially profit whether prices rise or fall. CFDs cover various markets, including Forex, stocks, commodities, and indices.
CFDs also offer leverage, which lets me control larger positions with less initial capital. This amplifies both potential profits and losses. Forex trading, on the other hand, focuses on trading currency pairs like EUR/USD or GBP/JPY. For instance, with 1:30 leverage in Forex, I can trade a position worth $30,000 by investing only $1,000. Leverage in Forex is often lower compared to CFDs, but the direct nature of trading currency pairs makes it simpler to track price movements.
With CFDs, I can trade diverse assets without owning them. For example, I might open a CFD position on crude oil at $70 per barrel using 10:1 leverage, which means I control a $7,000 position with only $700. In Forex, currencies are always traded in pairs, so I would focus on the exchange rate, like EUR/USD at 1.1000. Both markets provide unique opportunities for traders based on their preferences and expertise.
CFDs allow me to profit from rising or falling markets by taking long or short positions. For example, I might short-sell a CFD on Tesla stock at $1,000 per share and close it at $950, earning a $50 profit per share (excluding fees). Forex trading is slightly different, as it involves trading currencies directly. The Forex market’s high liquidity, with over $5 trillion traded daily, makes it one of the most dynamic financial markets globally.
Both Forex and CFD markets are influenced by various factors that can impact my trading decisions. Staying informed about these elements helps me manage risks and seize opportunities.
Economic indicators like GDP growth, inflation, and interest rate changes significantly influence Forex prices. For example, if the U.S. Federal Reserve raises interest rates, the USD might strengthen, causing the EUR/USD rate to drop from 1.1000 to 1.0800. For CFDs, the same logic applies to underlying assets. A report showing an increase in crude oil inventories might push oil prices down from $75 to $72 per barrel.
Geopolitical events such as elections or international conflicts can create market volatility. For instance, political instability in a country could cause its currency to weaken, while decisions by OPEC could lead to fluctuations in oil prices. Such events impact both Forex and CFD markets significantly.
Market sentiment and news also play a critical role. Positive corporate earnings might drive up a stock CFD price, while negative news can lead to sharp declines. I use real-time updates and analysis tools to adapt to these changes quickly.
Both technical and fundamental analysis help me predict price movements. Technical analysis involves studying past price data, while fundamental analysis focuses on broader economic conditions.
Trading Forex and CFDs share several common traits. Both allow me to speculate on price movements without owning the underlying asset. Whether trading Forex pairs or CFDs on stocks, I’m primarily focused on price fluctuations.
Both are over-the-counter (OTC) products, meaning trades are executed through a network rather than a centralized exchange. I access these markets via platforms like MetaTrader 4 or 5, which offer advanced charting and automation tools.
Leverage is another similarity. In both cases, I can control larger positions with smaller capital. For example, in Forex, 1:50 leverage lets me trade a $10,000 position with $200, while a 10% margin requirement in CFDs lets me trade the same value with $1,000. Both instruments charge trading costs through spreads, which is the difference between the buying and selling price of an asset.
Forex trading involves currencies, while CFDs allow me to trade various assets, such as stocks, commodities, or indices. Forex markets operate 24 hours a day, five days a week, while CFD market hours depend on the underlying asset. Both markets offer unique advantages depending on my trading goals.
Leverage in Forex is usually expressed as ratios, while CFDs often require a fixed percentage margin. Additionally, the liquidity in Forex markets, with trillions traded daily, makes it incredibly dynamic. In contrast, CFD liquidity varies by asset.
Taxes on trading profits depend on local laws. In some countries, Forex and CFD profits are taxed as capital gains, while in others, they may count as ordinary income. For example, the UK taxes profits as capital gains (Learn more), while Australia applies income tax to frequent traders (Australian Taxation Office).
Accurate record-keeping is essential for tax reporting. My broker provides tools to track trades, helping ensure I comply with regulations. For specific guidance, I consult a tax professional.
Choosing between Forex and CFD trading depends on my goals and risk tolerance. Forex is ideal if I prefer straightforward currency trading with high liquidity. CFDs, however, give me access to diverse markets, offering more flexibility.
Regardless of the market, managing risks and staying informed are key to successful trading. Understanding how leverage works and preparing for market changes help me trade confidently in both Forex and CFD markets.
We have conducted extensive research and analysis on over multiple data points on Forex vs CFD to present you with a comprehensive guide that can help you find the most suitable Forex vs CFD. Below we shortlist what we think are the best Forex / CFD after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Forex vs CFD.
Selecting a reliable and reputable online Forex / 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 Forex / CFD more confidently.
Selecting the right online Forex / 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 Forex / CFD trading, it's essential to compare the different options available to you. Our Forex / 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 Forex / CFD broker that best suits your needs and preferences for Forex / CFD. Our Forex / CFD broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Forex / CFD.
Compare Forex / CFD brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Forex / CFD broker, it's crucial to compare several factors to choose the right one for your Forex / CFD needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are Forex / CFD. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Forex / CFD that accept Forex / CFD clients.
Broker |
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 | 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+ |
Benefits |
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Accounts |
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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) |
Support |
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Learn More |
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Up with fxpro |
Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 51% of retail investor accounts lose money when trading CFDs with this provider. | 69% - 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 Forex / CFD 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 Forex / CFD for 2025 article further below. You can see it now by clicking here
We have listed top Forex / CFD 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.
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
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.