Advertisement
Best CFD brokers in Iran in 2021

To help you find the best CFD broker in Iran for 2021, we went ahead and did the research for you. First, we selected 85 quality online brokers, then we checked and compared their CFD fees, product selection, deposit and withdrawal options, trading platforms and more. We dug deep so you don't have to. 3 brokers made it to the top in Iran. We strongly recommend all 3 to you. And now, without further ado...

Our top 3 picks for the best CFD brokers of 2021 for citizens in Iran:

  1. HYCM is the best CFD broker in Iran in 2021. Low forex and CFD fees. Great educational content. User-friendly account opening.
  2. MultiBank takes the second place. Quick and easy account opening. Free and varied deposit and withdrawal options. Fast and helpful customer service.
  3. FXTM rounds out the top three. Superb customer service. Great educational tools. Digital and fast account opening.
Best CFD brokers in 2021 for Iranian citizens
Broker CFD fee score CFD product selection score
#1 HYCM 4.7 stars 3.7 stars
#2 MultiBank 2.4 stars 2.0 stars
#3 FXTM 2.6 stars 1.7 stars

What makes a good CFD broker? First of all, fair fees. They should provide access to lots of products as well as easy account opening and depositing. Having a great trading platform is also a strong plus for a good CFD broker.

Easy to list, but hard to figure out. We are testing brokers based on more than 300 criteria with real accounts and real money. We know what's going on. You can find the details of all the ranking criteria in our methodology.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take that kind of risks. If you don't have a clue what a CFD is, you should start by reading more about CFD trading.

Not sure which broker to choose? For a tailored recommendation, check out our broker finder tool. Just enter the name of your country and you will see only the relevant brokers. Want more details? Compare brokers with this in-depth comparison table.

And now, let's see the best CFD brokers for Iranian citizens in 2021 one by one. Starting with the winner, HYCM.

HYCM Logo

#1 Best CFD broker
HYCM

4.3

HYCM or Henyep Markets is a global CFD and forex broker. HYCM's parent company, Henyep was established in 1977. The broker is regulated by several financial authorities globally, including the UK Financial Services Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC).

HYCM's UK operation is considered safe because it has a long track record and it is regulated by the top-tier FCA.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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.

Recommended for forex and cfd traders who prefer the metatrader platform

Pros Cons
Low forex and CFD fees Only forex and CFD products
Great educational content Trading platforms have outdated design
User-friendly account opening Inactivity fee

Visit broker
71% of retail CFD accounts lose money

#1 HYCM
Fees
4.1

HYCM has low forex and CFD trading fees. It's also great that the broker charges no deposit and withdrawal fees in most cases. On the negative side, there is a quite high inactivity fee.
Pros Cons
Low forex fees Inactivity fee
Low CFD fees
HYCM trading fees
HYCM MultiBank FXTM
S&P 500 index CFD fee $1.0 $1.3 $2.2
Europe 50 index CFD fee $0.9 $2.1 $2.4
Apple CFD $1.8 $25.7 $17.5
Vodafone CFD - $25.8 -
EURUSD benchmark fee $7.1 $6.7 $8.2
GBPUSD benchmark fee $8.2 $6.1 $7.4

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

HYCM non-trading fees
HYCM MultiBank FXTM
Account fee No No No
Inactivity fee Yes Yes Yes
Withdrawal fee $0 $0 $3

Visit broker More
71% of retail CFD accounts lose money

#1 HYCM
Markets and products
2.0

At HYCM you can only trade with forex and other CFDs (commodities, stock indices, futures, and share CFDs). Popular asset classes, such as real stocks, bonds, mutual funds and options are missing.
HYCM CFD markets
HYCM MultiBank FXTM
Currency pairs (#) 70 27 62
Stock index CFDs (#) 28 7 11
Stock CFDs (#) 65 1,000 172
ETF CFDs (#) 20 - -
Commodity CFDs (#) 17 6 3
Bond CFDs (#) - - -
Cryptos (#) 64 4 4
HYCM product selection, besides CFDs
HYCM MultiBank FXTM
Stock No No Yes
ETF No No No
Forex Yes Yes Yes
Fund No No No
Bond No No No
Options No No No
Futures No No No
Crypto Yes Yes No

Visit broker More
71% of retail CFD accounts lose money

#1 HYCM
Account opening
5.0

The account opening at HYCM is seamless and fully digital. Our account was verified within one business day. The minimum deposit is also low: $100 for Classic and Fixed accounts and $200 for Raw accounts.
Pros Cons
Fast None
Fully digital
Low minimum deposit
HYCM minimum deposit and time to open an account
HYCM MultiBank FXTM
Minimum deposit $100 $50 $10
Time to open account 1 day 1 day 1 day

Visit broker More
71% of retail CFD accounts lose money

#1 HYCM
Deposit and withdrawal
4.5

HYCM offers free and fast deposit and withdrawal options, including traditional methods such as bank transfer and credit card funding as well as various e-wallets. On the other hand, the number of available account currencies lags behind some of HYCM's competitors.
Pros Cons
Credit/Debit card available Average account currency selection
Free withdrawal
No deposit fee
HYCM withdrawal fee and options
HYCM MultiBank FXTM
Bank transfer Yes Yes Yes
Credit/debit card Yes Yes Yes
Electronic wallets Yes Yes Yes
Withdrawal fee $0 $0 $3

Visit broker More
71% of retail CFD accounts lose money

#1 HYCM
Web trading platform
2.8

HYCM's web trading platform is provided by MetaTrader. It is highly customizable, available in many languages and has a clear fee report. On the other hand, the platform lacks a two-step login or price alerts and its design is outdated.
Pros Cons
Clear fee report No two-step (safer) login
Good customizability (for charts, workspace) No price alerts
Order confirmation Poor design
Best CFD brokers - HYCM trading platform
HYCM trading platforms
HYCM MultiBank FXTM
Web platform score 2.8 stars 2.8 stars 2.8 stars
Mobile platform score 3.8 stars 3.8 stars 3.8 stars
Desktop platform score 3.4 stars 3.4 stars 3.4 stars
Can you set leverage manually? No No Yes

Visit broker More
71% of retail CFD accounts lose money

#1 HYCM
Verdict

HYCM is a forex and CFD broker regulated by several authorities globally, including the top-tier FCA.

On the plus side, HYCM has low forex and CFD fees. The education section, especially the webinars are more informative and enjoyable than what some other brokers offer. The account opening is seamless and there are a lot of free deposit & withdrawal options.

On the flip side, the product portfolio at HYCM is limited as the broker only offers forex and CFDs. In our view, the MetaTrader platforms that the broker uses have an outdated design. HYCM charges an inactivity fee: $10 per month after only 90 days of inactivity.

We recommend HYCM for those who are interested in CFD and forex trading and prefer MetaTrader trading platforms. Feel free to test it via the demo account.

Below you can find links to all aspects of HYCM in this comprehensive collection.

Lower fees, lower costs?

We detailed this in our HYCM fees article.

What about the minimum deposit?

Our ultimate guide to the HYCM minimum deposit is updated regularly.

How to start your HYCM account?

Look no further than our evaluation of the HYCM account opening.

How's their trading app?

Here's our expert view after checking the HYCM trading app.

Is the quality of customer service satisfactory?

All you need to know about the HYCM customer service.

Legit or scam?

Is HYCM legit features all the key aspects you need to look at to see if a broker is safe and legit.

Free or premium? Or both?

A glance at actual costs and whether HYCM is really free.

Is this broker good for beginners?

We checked it in Is HYCM good for beginners.

Should you buy your silver bullets on HYCM?

Research for silver bugs in the Silver buy on HYCM guide

I want to trade options, are they available at HYCM?

We explored the topic in Can you trade options on HYCM?

HYCM
Summary HYCM is a global forex and CFD broker regulated by many financial authorities globally, including the top-tier FCA.
Fees score 4.1 stars
Recommended for Forex and CFD traders who prefer the MetaTrader platform

Visit broker More
71% of retail CFD accounts lose money

MultiBank Logo

#2 Best CFD broker
MultiBank

4.0

MultiBank is a global CFD and FX broker. MultiBank Group is a global financial group whose member companies are active in areas from asset management to brokerage. MultiBank's brokerage service is operating under several legal entities, regulated by the Australian Securities and Investments Commission (ASIC) and other financial authorities. In this review, we will use MultiBank as a name for the brokerage service.

MultiBank is considered safe because it is regulated by the top-tier ASIC and has a reasonably long history, dating back to 2005.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Recommended for forex and cfd traders familiar with the metatrader trading platform

Pros Cons
Quick and easy account opening High stock CFD and inactivity fees
Free and varied deposit and withdrawal options Limited product coverage
Fast and helpful customer service Poor research and educational tools

Visit broker
74-89% of retail CFD accounts lose money

#2 MultiBank
Fees
3.3

MultiBank has low forex and stock index CFD fees, and doesn't charge any withdrawal fees. On the other hand, stock CFD fees are high, and an inactivity fee kicks in after three months.
Pros Cons
Low forex fees High inactivity fee
No withdrawal fee High stock CFD fees
MultiBank trading fees
HYCM MultiBank FXTM
S&P 500 index CFD fee $1.0 $1.3 $2.2
Europe 50 index CFD fee $0.9 $2.1 $2.4
Apple CFD $1.8 $25.7 $17.5
Vodafone CFD - $25.8 -
EURUSD benchmark fee $7.1 $6.7 $8.2
GBPUSD benchmark fee $8.2 $6.1 $7.4

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

MultiBank non-trading fees
HYCM MultiBank FXTM
Account fee No No No
Inactivity fee Yes Yes Yes
Withdrawal fee $0 $0 $3

Visit broker More
74-89% of retail CFD accounts lose money

#2 MultiBank
Markets and products
1.4

At MultiBank, you can trade only forex and CFDs, including stock and stock index CFDs as well as cryptos.
MultiBank CFD markets
HYCM MultiBank FXTM
Currency pairs (#) 70 27 62
Stock index CFDs (#) 28 7 11
Stock CFDs (#) 65 1,000 172
ETF CFDs (#) 20 - -
Commodity CFDs (#) 17 6 3
Bond CFDs (#) - - -
Cryptos (#) 64 4 4
MultiBank product selection, besides CFDs
HYCM MultiBank FXTM
Stock No No Yes
ETF No No No
Forex Yes Yes Yes
Fund No No No
Bond No No No
Options No No No
Futures No No No
Crypto Yes Yes No

Visit broker More
74-89% of retail CFD accounts lose money

#2 MultiBank
Account opening
5.0

Opening an account at MultiBank is easy and straightforward; your account could be ready for trading within a day. However, some account types require a high minimum deposit.
Pros Cons
Fast High minimum deposit for ECN Pro and MultiBank Pro accounts
Fully digital
Low minimum deposit
MultiBank minimum deposit and time to open an account
HYCM MultiBank FXTM
Minimum deposit $100 $50 $10
Time to open account 1 day 1 day 1 day

Visit broker More
74-89% of retail CFD accounts lose money

#2 MultiBank
Deposit and withdrawal
4.5

Deposit and withdrawal at MultiBank are great. You can use many deposit and withdrawal types and withdrawal is free.
Pros Cons
Credit/Debit card available None
Free withdrawal
No deposit fee
MultiBank withdrawal fee and options
HYCM MultiBank FXTM
Bank transfer Yes Yes Yes
Credit/debit card Yes Yes Yes
Electronic wallets Yes Yes Yes
Withdrawal fee $0 $0 $3

Visit broker More
74-89% of retail CFD accounts lose money

#2 MultiBank
Web trading platform
2.8

Multibank offers the MetaTrader4 trading platform. It's highly customizable, multilingual and has a clear fee report. However, it lacks two-step login and the design is outdated.
Pros Cons
Clear fee report No two-step (safer) login
Good customizability (for charts, workspace) No price alerts
Order confirmation Poor design
Best CFD brokers - MultiBank trading platform
MultiBank trading platforms
HYCM MultiBank FXTM
Web platform score 2.8 stars 2.8 stars 2.8 stars
Mobile platform score 3.8 stars 3.8 stars 3.8 stars
Desktop platform score 3.4 stars 3.4 stars 3.4 stars
Can you set leverage manually? No No Yes

Visit broker More
74-89% of retail CFD accounts lose money

#2 MultiBank
Verdict

MultiBank is a forex and CFD broker regulated by several financial authorities globally, including the top-tier ASIC.

Among its positive features, the account opening process is seamless and hassle-free. Forex fees are competitive, and multiple free options are available for deposit and withdrawal. Customer service is great - quick, helpful and multilingual.

MultiBank has some drawbacks, though. Stock CFD fees are high and there is an inactivity fee. Its product range is limited to FX, CFDs and cryptos. Research and educational tools are quite basic, limited to some charting tools and a newsletter.

As MultiBank has a free demo account, we encourage you to give it a try.

Below you can find links to all aspects of MultiBank in this comprehensive collection.

Lower fees, lower costs?

We detailed this in our MultiBank fees article.

What about the minimum deposit?

Our ultimate guide to the MultiBank minimum deposit is updated regularly.

How to start your MultiBank account?

Look no further than our evaluation of the MultiBank account opening.

How's their trading app?

Here's our expert view after checking the MultiBank trading app.

Is the quality of customer service satisfactory?

All you need to know about the MultiBank customer service.

Legit or scam?

Is MultiBank legit features all the key aspects you need to look at to see if a broker is safe and legit.

Free or premium? Or both?

A glance at actual costs and whether MultiBank is really free.

Is this broker good for beginners?

We checked it in Is MultiBank good for beginners.

Should you buy your silver bullets on MultiBank?

Research for silver bugs in the Silver buy on MultiBank guide

I want to trade options, are they available at MultiBank?

We explored the topic in Can you trade options on MultiBank?

MultiBank
Summary MultiBank is an international CFD and forex broker, regulated by several financial authorities such as the top-tier ASIC of Australia.
Fees score 3.3 stars
Recommended for Forex and CFD traders familiar with the MetaTrader trading platform

Visit broker More
74-89% of retail CFD accounts lose money

FXTM Logo

#3 Best CFD broker
FXTM

4.3

Disclaimer:  from March 2021, FXTM ends retail operations in the EEA, under CySEC regulation. Only professional clients will be able to use FXTM's services in this region.

FXTM or ForexTime was founded in 2011 and is a global CFD and FX broker. It is regulated by several financial authorities, including the UK Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC).

FXTM is considered safe because it is regulated by the top-tier FCA.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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.

Recommended for forex traders familiar with the metatrader platform

Pros Cons
Superb customer service High CFD fees
Great educational tools Inactivity and withdrawal fees
Digital and fast account opening Limited product portfolio

Visit broker
81% of retail CFD accounts lose money

#3 FXTM
Fees
3.4

FXTM's trading fees are low for forex, but average for CFDs. There is also a withdrawal fee.
Pros Cons
Low forex fees Withdrawal fee
Low financing rate Average CFD fees
FXTM trading fees
HYCM MultiBank FXTM
S&P 500 index CFD fee $1.0 $1.3 $2.2
Europe 50 index CFD fee $0.9 $2.1 $2.4
Apple CFD $1.8 $25.7 $17.5
Vodafone CFD - $25.8 -
EURUSD benchmark fee $7.1 $6.7 $8.2
GBPUSD benchmark fee $8.2 $6.1 $7.4

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

FXTM non-trading fees
HYCM MultiBank FXTM
Account fee No No No
Inactivity fee Yes Yes Yes
Withdrawal fee $0 $0 $3

Visit broker More
81% of retail CFD accounts lose money

#3 FXTM
Markets and products
2.5

FXTM's product selection covers forex and CFDs. Non-EU clients can also trade with real stocks. On the negative side, it lacks ETFs, mutual funds, bonds, options, and futures.
FXTM CFD markets
HYCM MultiBank FXTM
Currency pairs (#) 70 27 62
Stock index CFDs (#) 28 7 11
Stock CFDs (#) 65 1,000 172
ETF CFDs (#) 20 - -
Commodity CFDs (#) 17 6 3
Bond CFDs (#) - - -
Cryptos (#) 64 4 4
FXTM product selection, besides CFDs
HYCM MultiBank FXTM
Stock No No Yes
ETF No No No
Forex Yes Yes Yes
Fund No No No
Bond No No No
Options No No No
Futures No No No
Crypto Yes Yes No

Visit broker More
81% of retail CFD accounts lose money

#3 FXTM
Account opening
5.0

FXTM account opening is fully digital, easy and fast. Your account will be ready within 1-2 business days. There are also a lot of account types you can choose from.
Pros Cons
Fast None
Fully digital
User-friendly
FXTM minimum deposit and time to open an account
HYCM MultiBank FXTM
Minimum deposit $100 $50 $10
Time to open account 1 day 1 day 1 day

Visit broker More
81% of retail CFD accounts lose money

#3 FXTM
Deposit and withdrawal
3.7

FXTM offers a great variety of deposit and withdrawal options. Almost everything is available, including credit cards, bank transfer and electronic wallets. The main disadvantage is that FXTM charges a fee for most withdrawal types.
Pros Cons
Credit/Debit card available Most of the withdrawal options have a fee
No deposit fee
Quick deposit and withdrawal - within 3 days
FXTM withdrawal fee and options
HYCM MultiBank FXTM
Bank transfer Yes Yes Yes
Credit/debit card Yes Yes Yes
Electronic wallets Yes Yes Yes
Withdrawal fee $0 $0 $3

Visit broker More
81% of retail CFD accounts lose money

#3 FXTM
Web trading platform
2.8

The web trading platform of FXTM is provided by MetaTrader. It is highly customizable, available in a lot of languages, and has a clear fee report. On the other hand, it lacks a two-step login and price alerts, and the design is outdated.
Pros Cons
Clear fee report No two-step (safer) login
Good customizability (for charts, workspace) No price alerts
Order confirmation Poor design
Best CFD brokers - FXTM trading platform
FXTM trading platforms
HYCM MultiBank FXTM
Web platform score 2.8 stars 2.8 stars 2.8 stars
Mobile platform score 3.8 stars 3.8 stars 3.8 stars
Desktop platform score 3.4 stars 3.4 stars 3.4 stars
Can you set leverage manually? No No Yes

Visit broker More
81% of retail CFD accounts lose money

#3 FXTM
Verdict

FXTM is regulated by several financial authorities globally, including the top-tier Financial Conduct Authority (FCA).

On the plus side, customer support gives fast and relevant answers. There are several educational tools, including demo accounts and webinars. The account opening is fully digital and fast.

FXTM has some drawbacks though: it charges high CFD fees, inactivity, and withdrawal fees, and the product range is limited.

As account opening only takes a short time, and customer support is helpful and reliable, feel free to try FXTM.

Below you can find links to all aspects of FXTM in this comprehensive collection.

Lower fees, lower costs?

We detailed this in our FXTM fees article.

What about the minimum deposit?

Our ultimate guide to the FXTM minimum deposit is updated regularly.

How to start your FXTM account?

Look no further than our evaluation of the FXTM account opening.

How's their trading app?

Here's our expert view after checking the FXTM trading app.

Is the quality of customer service satisfactory?

All you need to know about the FXTM customer service.

Legit or scam?

Is FXTM legit features all the key aspects you need to look at to see if a broker is safe and legit.

Free or premium? Or both?

A glance at actual costs and whether FXTM is really free.

Is this broker good for beginners?

We checked it in Is FXTM good for beginners.

Should you buy your silver bullets on FXTM?

Research for silver bugs in the Silver buy on FXTM guide

I want to trade options, are they available at FXTM?

We explored the topic in Can you trade options on FXTM?

FXTM
Summary FXTM is an international CFD and forex broker, regulated by the UK FCA, CySEC of Cyprus and the Mauritian FSC. It is licensed by South Africa's FSCA.
Fees score 3.4 stars
Recommended for Forex traders familiar with the MetaTrader platform

Visit broker More
81% of retail CFD accounts lose money

Best CFD brokers
What makes a good CFD broker?

Trading with CFDs became widely popular over the past decade. Keeping your eyes on important criteria like CFD fees or the number of CFDs offered can help find the best CFD broker for you.

In 2021, we ranked CFD brokers based on more than 300 criteria. We list below only the five most important criteria to make sure you don't get overwhelmed.

5 most important criteria for the best CFD brokers in 2021
1. Fee structure: The overall cost of a typical CFD trade can be 10-15 times higher at one CFD broker than at another. So it’s worth checking their fees.
2. Products and markets: You want to trade with Amazon or Bitcoin CFDs? They might not be available. Check the product coverage before opening an account.
3. Account opening: Some brokers require a minimum deposit, while others don't. Check what the conditions are at the best CFD brokers.
4. Deposit and withdrawal: Transferring money to your account can be 5 times slower and more expensive from one CFD broker to another.
5. Web trading platform: A user-friendly and well-equipped trading platform can significantly increase your comfort.

Best CFD brokers
CFD broker fees

Fees, fees and fees. We bet fees are always on your mind when you’re looking for the best CFD broker. Let's see how we compared the fees of the various CFD brokers.

It is not easy to compare CFD broker fees, but we are here to help. There are two categories: trading-related fees and non-trading fees.

Trading-related fees

As to trading-related fees, brokers can charge commissions, spreads and overnight fees. To make your life easier we calculated all fees based on real-life scenarios so you can make a simple comparison. We looked at the following products:

  • Stock index - S&P 500 index CFD and Europe 50 index CFD
  • Stock - Apple CFD and Vodafone CFD
  • Forex - EURUSD and GBPUSD

Our assumptions included opening a position, holding it for a week, and then closing it. We calculated with the following positions: $2,000 for stock index and stock CFDs and a $20,000 forex position. These real-life assumptions make CFD fees comparable.

Compare more fees

Best CFD brokers
CFD brokers explained

CFDs are derivatives, where you can make bets on the price movement of a wide range of products. However, it is a leveraged product, which means that it is quite risky.

CFDs are derivatives: you bet on price movements

With CFDs, you can bet on whether the price of an asset will go up or down, without buying the underlying asset. Let's say you want to profit from the Microsoft stock price going up. At an online stockbroker, you would simply buy the Microsoft stock. In comparison, at a CFD broker you can instead bet directly on the stock price going up. However, CFDs are much like knives: they can be very useful, but if you have no idea how to use them, you can easily hurt yourself.

CFDs are an easy way to reach a lot of markets with leverage

Why would this be interesting for you? Well, CFDs have three big advantages:

  • 1. You can make bets on all kinds of products. If you want to trade with Turkish stocks, you can do so via CFDs, which might not be possible with an online stockbroker. It is easier for a broker to provide a CFD than to have access to the Turkish stock exchange.
  • 2. The second advantage is leverage. The potential return on your bet will be much bigger than with owning the actual stock. But this certainly carries greater risks, so you should fully understand leverage before you invest.
  • 3. Lastly, CFDs are an easy way to have short positions. This is indeed a big plus.

To better understand these advantages, educate yourself by reading our CFD trading tips.

Not owning the underlying asset exposes you to additional risks

If you do not own the stock (or any other underlying asset), you are running a whole different kind of risk, which you need to understand before trading CFDs.

Let's say Bob owns Siemens stock, while Janet has an open long Siemens CFD position, both of them with “Bust Brokers.” The worst happens, and Bust Brokers goes bust. Bob's Siemens stock is in custody with his custody service provider. This means that sooner or later he will be able to access it again. However, Janet did not own any stock, only a long CFD position, therefore she will be compensated only up to the investor protection scheme of the broker’s country. In most cases, this is a maximum of €20,000.

Best CFD brokers
CFD regulations and security

The regulation of CFDs changed significantly in the last few years. One of the most significant changes were the measures European Securities and Markets Authority (ESMA) published back in 2018. Most recently the Australian regulator followed ESMA's direction and introduced similar regulations for brokers operating in Australia. These measures clearly show how regulators globally aim to protect retail investors from the dark side of the retail brokerage industry.

Based on ESMA's research, around 74-89% of investors were losing money on their CFD investments, and in many cases it was not entirely their fault. One core problem is that some dealing desks brokers made a profit when their clients lost money. If you don't know what this model looks like, this Financemagnates article clearly explains it. Another problem was the aggressive and unbridled marketing of deposit bonuses, cheap prices and messages that promised easy ways of getting rich.

The new ESMA and ASIC regulation is aimed at lowering the proportion of accounts suffering losses. Here are the measures with their explanations:

  • Limiting leverage: it was not uncommon to be able to open a position with 400:1 leverage. The possible maximum leverage is now limited to 30:1 for major currency pairs. The limitation varies according to the underlying asset's volatility:
    • 30:1 for major currency pairs
    • 20:1 for non-major currency pairs, gold and major stock indices
    • 10:1 for commodities other than gold and non-major stock indices;
    • 5:1 for single stocks and any underlying not otherwise mentioned
    • 2:1 for cryptocurrencies
  • Margin close out on a per account basis: if an account's total margin falls below 50% of the initially required margin, brokers must close one or more of your positions.
  • Negative balance protection: you cannot lose more money than you invested.
  • Restrictions on marketing and incentive tools: instead of promoting CFD trading by get-rich-quick, promises, brokers have to clearly show what percentage of their customers are losing money.

To sum it up, do the stricter regulations mean that trading CFDs will become nothing but a bedtime story we tell our kids? On the one hand, retail investors are now protected from losing more than they invest. On the other, canny investors won't be able to multiply their profits by using high leverage. All in all, we think CFDs will remain popular despite the new regulations as trading becomes safer and more transparent.

You should be aware that investor protection regulation is different in every jurisdiction. You should always check the relevant rules.

Being part of a banking group or listed on an exchange should be your primary compass for finding the best CFD brokerss

It's time to discuss how to make a well-informed choice in today's changing landscape of CFD brokers. We prefer exchange-listed and/or banking licensed brokers. Why?

  • Being listed on any developed exchange means additional regulations, strict and frequent audits and also the need for constant communication between shareholders and other stakeholders. No wonder that only a small portion of retail brokers decide to give up money in exchange for transparency.
  • Banks are the crucial building blocks of any economy. Strict capital requirements, regulations and transparency are a must. Therefore any broker backed by a bank can be considered more reliable than the ones that aren't.

For more help on these points, check out ourcomparison table for online brokers.

Compare protection amounts

Best CFD brokers
Bottom line

You've seen the details, now let's zoom out. here are once again the best CFD brokers in 2021 for citizens in Iran:

Best CFD brokers in 2021 for Iranian citizens
HYCM MultiBank FXTM
Overall score 4.3 4.0 4.3
Fees score 4.1 stars 3.3 stars 3.4 stars
Markets and products score 2.0 stars 1.4 stars 2.5 stars
Account opening score 5.0 stars 5.0 stars 5.0 stars
Deposit and withdrawal score 4.5 stars 4.5 stars 3.7 stars
Web platform score 2.8 stars 2.8 stars 2.8 stars
Visit broker
71% of retail CFD accounts lose money
Visit broker
74-89% of retail CFD accounts lose money
Visit broker
81% of retail CFD accounts lose money

HYCM is our winner, the best CFD broker for Iranian citizens in 2021. Low forex and CFD fees. Great educational content. User-friendly account opening.

All the five top brokers are great choices. However, do not forget, that CFDs are really risky. If you are experienced, pick your winner, and take the next step in your trading journey. Let us know what you think in the comments section.

Still unsure? Use the broker finder and find the best broker for you.

Author of this article

Dan Sallai

Author of this article

My goal is to help people find our resourceful content when they need the most. I combine my 10+ years online marketing experience with the team's finance knowledge to reach that every day. On the side I'm paying bowling, tennis and enjoy spending great time with my children.
My goal is to help people find our resourceful content when they need the most. I combine my 10+ years online marketing experience with the team's finance knowledge to reach that every day. On the side I'm paying bowling, tennis and enjoy spending great time with my children.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

Share

Comments

Visit broker
71% of retail CFD accounts lose money
Visit broker
74-89% of retail CFD accounts lose money
Visit broker
81% of retail CFD accounts lose money
×