We found 11 online brokers that are appropriate for Trading CFD Brokers.
The main ways CFD brokers make money are spreads, overnight financing charges (sometimes called swap rates), and commissions. I learned this the hard way holding Nasdaq CFD positions overnightfinancing fees added up faster than expected. Some brokers, especially those regulated in Europe or Australia, have started lowering commissions to attract new traders, but they still rely heavily on spreads and swaps. On the other hand, Ive noticed newer platforms offering zero commission trading, but in reality, the spreads are often wider, so the broker still earns from every trade.
From my own experience as a trader, understanding how CFD brokers make money has been crucial in managing my costs. In the beginning, I underestimated how much spreads, commissions, and overnight financing charges could eat into profits. Whether you trade forex, indices like the S&P 500, or commodities such as gold and crude oil, brokers follow similar models to generate revenue.
When I first opened a CFD account, I was surprised by how often small spread differences added up during active trading sessions. For example, trading EUR/USD with a tight 0.8 pip spread looked cheap, but after dozens of trades in a day, the brokers cut was significant. Recently, with volatility caused by events like the 2024 U.S. interest rate hikes and oil price swings linked to Middle East tensions, spreads have widened during peak news hours, which reminded me again of how brokers profit most when trading activity spikes.
To help beginners, many brokers now push traders toward demo CFD accounts, where spreads and charges can be practiced risk free. From my own use of demo accounts, I found them helpful in simulating trading costs, though the psychology of risking real money is different. In todays market, with major events like the 2025 Bitcoin ETF approvals boosting CFD trading volumes, brokers continue to make healthy profitsreminding me that no matter how the market moves, the house always earns its share.
To illustrate how CFD brokers make money, heres a practical example. I once placed a $10,000 CFD trade on NVIDIA during a period when AI stocks were booming. NVIDIA had just released strong quarterly earnings, and spreads were slightly wider than usual due to volatility.
When I opened the trade, the broker earned via two channels: the spread and the overnight financing charge. There were no additional commissions on that platform, which made costs easier to estimate.
Suppose the buy price of NVIDIA was $903.56 while the sell price was $903.46. That 10 cent difference is the spread. With a $10,000 position size, I was effectively buying around 11.07 shares. The brokers direct gain from the spread was about $1.11. Small per trade, but it adds up with frequency and size.
Because I kept the position open overnight, I paid an overnight financing fee. With an assumed annualized rate of 5%, the one day financing charge on a $10,000 position came to about $1.37.
Combining spread and financing, the brokers revenue from this single trade was about $2.48. Multiplied across thousands of clients and trades, this is how CFD brokers make money consistently.
From my perspective, the spread remains the most straightforward revenue source for CFD brokers. Every time I open a trade, I immediately see my position start in the red because of the spread. For example, when I traded EUR/USD during the 2024 ECB policy announcement, the spread was noticeably wider than normal, which meant I had to wait longer for the market to move in my favor just to break even. This reminded me how spreads directly feed into broker revenue, especially during big events when trader activity spikes.
Leverage allows me to control a much larger position than my actual deposit. It amplifies profits and losses, but for brokers it boosts the notional volume of every trade, which increases their spread and financing revenue. For example, in 2023 when gold spiked amid inflation fears, I used 1:20 leverage on a CFD position. While the trade itself was risky, the higher notional value meant my broker earned a larger spread than if I had traded without leverage.
Ive personally seen traders, including myself at times, get margin calls during volatile moves like the 2022 crypto crash or the 2024 Bank of Japan policy shock. For brokers, it didnt matter whether traders won or lostthey collected spreads and financing fees regardless. Thats why leverage is often described as a double edged sword: it accelerates outcomes for traders, but it consistently supports broker income in both calm and volatile markets.
Some CFD brokers operate as market makers, meaning they can take the other side of a clients trade. When I went long on a Nasdaq CFD in early 2022 and the market fell sharply, my loss technically became their gain. This setup creates a potential conflict of interest, though many regulated brokers disclose these practices and manage risk carefully.
Other brokers hedge client exposure in the underlying markets. I noticed this when trading oil CFDs in 2023my broker explained in their disclosure that they hedge a portion of client trades. This way, they reduce their exposure while still making consistent income through spreads, commissions, and swaps.
One clear lesson Ive learned: brokers always earn something, whether my trade closes in profit or loss. Spreads, commissions, and overnight fees apply in every case, which is why Ive become more disciplined about calculating costs before opening trades.
My first margin call was on a leveraged forex position in 2022 during a surprise Fed rate hike. The broker auto closed my trade when my equity dropped too low. Even though I lost money, the broker still earned from the spread and financing charges. This experience showed me why margin management is critical for traders, but also how CFD brokers continue making money when risk isnt handled properly.
Another major revenue stream for CFD brokers is commissions. Unlike spreads, commissions are transparent charges applied per trade. Ive seen how quickly these add up, especially when trading share CFDs actively.
When I traded Tesla CFDs during the 2024 earnings season, my broker charged a fixed commission per trade. Even though I made some gains, I realized commissions significantly ate into profits. This reinforced why reviewing broker fee schedules is essential before committing to frequent trading.
Some brokers advertise zero commission accounts, but in my experience, they simply widen the spread. For example, during the 2025 AI stock rally, I noticed wider spreads on a commission free account compared to a commission based account. Either way, the broker earnsits just packaged differently.
Trading EUR/USD generally comes with very tight spreads, but when I tried trading emerging market currencies and smaller commodities, spreads were far wider. This flexibility shows how brokers adjust pricing by asset class to manage their own risks and revenues.
Regulated brokers under the FCA (UK) or ASIC (Australia) are required to disclose fee structures clearly. Before I opened an account with an FCA regulated broker in 2024, I reviewed their Key Information Documents, which helped me avoid hidden surprises. It made me more confident knowing fees were transparent and aligned with regulation.
Financing charges, or overnight fees, were one of the biggest shocks to me as a beginner. My first crude oil CFD trade held overnight racked up more costs than I expected, teaching me quickly that financing is one of the steadiest income streams for brokers.
Holding positions overnight is essentially borrowing money from the broker. When interest rates rose through 2023 and 2024, I saw financing costs climb sharply on leveraged forex and index positions. For brokers, higher rates meant higher earnings from financing charges.
Because these fees apply daily, they provide brokers with recurring revenue even when trading volume slows. For example, during the quieter summer of 2024, I still paid financing fees on open positions, which meant the broker earned consistently regardless of market activity.
For me, these charges forced me to rethink my strategy. Holding trades for weeks on end drained returns, especially on leveraged trades. Many traders I spoke with online shared the same frustration about overnight costs cutting into profits.
I began closing more trades before market close to avoid financing. I also tested swap free accounts, often marketed for Islamic traders, which reduced some of the overnight costs. These strategies showed me that planning around financing is as important as picking the right trade.
Beyond the obvious spreads and commissions, hidden costs were something I had to learn the hard way. These are subtle but can add up quickly, forming another part of how CFD brokers make money.
My biggest early surprise was overnight fees. During 2023s rate hikes, these charges ballooned and often ate away at gains on otherwise good trades.
When I traded US stock CFDs but funded my account in GBP, I kept seeing small conversion charges. At first they seemed trivial, but after months, the totals were significantanother reminder of hidden revenue streams for brokers.
In late 2023, I paused trading for a few months. To my surprise, my account was charged inactivity fees. While not every broker applies this, those that do generate income even from inactive clients.
On international transfers, I sometimes paid withdrawal fees. Although relatively small, they showed me how brokers can extract revenue even outside trading activity.
In 2024, I paid extra for premium market data during earnings season to keep up with high volatility. The data was valuable, but it also highlighted how brokers monetize optional services for active traders.
Market making is central to the business model of many brokers. By providing continuous price quotes, they profit from spreads and sometimes from client losses depending on their execution model.
During the 2024 US inflation release, I saw spreads widen dramatically across forex pairs. This confirmed to me how brokers increase earnings in volatile conditions by adjusting spreads in real time.
Not all brokers rely on client losses. Many hedge positions in underlying markets, ensuring they still profit consistently from spreads and financing without taking on massive risk.
In 2025, the AI stock boom had me opening multiple CFD trades in a single week. Regardless of whether I won or lost, my broker profited steadily from spreads, commissions, and financing. It showed me how broker income is tied to trader activity, not just outcomes.
From my personal journey with CFD trading, one truth has become clear: brokers always have a way to earn, no matter what the market does or how my trades turn out. At first, I thought the costs would be small and easy to manage, but after months of active trading, I realized spreads, commissions, overnight charges, and even hidden fees consistently chipped away at profits. Whether I was trading forex during the 2024 ECB policy announcements, holding Nasdaq positions through 2023s rate hikes, or joining the 2025 AI stock boom, my broker earned every time I entered, held, or exited a trade.
The combination of spreads on every order, financing fees on overnight positions, commissions on share CFDs, and optional extras like premium market data ensures brokers earn from every trader. Leverage amplifies this even furtherwhile it gave me opportunities for larger gains, it also increased costs, which went straight into the brokers pocket. Even during my first painful margin call, the broker still profited from spreads and swaps while I learned a costly lesson about risk.
Events like the 2024 U.S. interest rate hikes, the 2023 oil price shocks, and the 2025 Bitcoin ETF approval reminded me how spreads widen and financing charges rise during volatilitymoments when brokers make the most revenue. Market maker models may even let some brokers profit from client losses, though regulated firms typically hedge to manage risk while still collecting steady income.
In short, understanding how CFD brokers make money changed how I approached trading. I now calculate spreads, financing, and commissions before I even click buy. For new traders, this knowledge is essentialbecause while profits are never guaranteed for us, brokers earn consistently from the mechanics of every trade. If you want to protect your capital, the best strategy is to manage costs as carefully as you manage your trades.
We have conducted extensive research and analysis on over multiple data points on How Do CFD Brokers Make Money to present you with a comprehensive guide that can help you find the most suitable How Do CFD Brokers Make Money. 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 How Do CFD Brokers Make Money.
Selecting a reliable and reputable online CFD Brokers 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 Brokers more confidently.
Selecting the right online CFD Brokers 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 Brokers trading, it's essential to compare the different options available to you. Our CFD Brokers 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 Brokers broker that best suits your needs and preferences for CFD Brokers. Our CFD Brokers broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top CFD Brokers.
Compare CFD Brokers brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a CFD Brokers broker, it's crucial to compare several factors to choose the right one for your CFD Brokers 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 Brokers clients.
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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) (000261/27) 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) | Easy Forex Trading Ltd is regulated by CySEC ( License Number 079/07). Easy Forex Trading Ltd is the only entity that onboards EU clients, easyMarkets Pty Ltd is regulated by ASIC ( AFS License No. 246566), EF Worldwide Ltd in Seychelles is regulated by FSA ( License Number SD056), EF Worldwide Ltd in British Virgin Islands is regulated by FSC (License Number SIBA/L/20/1135), | 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+ | 40,000,000+ | 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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Up with fxpro |
Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 61% of retail investor accounts lose money when trading CFDs with this provider. | 69% - 80% 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. 75.99% 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 | 65% of retail CFD accounts lose money | 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. 61% 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.
Crypto investments are risky and highly volatile. Tax may apply. Understand the risks here.
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.