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Best CFD brokers in the United Kingdom in 2022

XTB Logo
1st place
XTB
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76% of retail CFD accounts lose money
eToro Logo
2nd place
eToro
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Your capital is at risk
Capital.com Logo
3rd place
Capital.com
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87.41% of retail CFD accounts lose money

How did BrokerChooser select the best CFD brokers?

  • We checked whether the broker is regulated by a trusted regulator,
  • Compared fees (including spreads, withdrawal fee, commission),
  • Specifically compared CFD fees,
  • Checked minimum deposit requirements,
  • Looked at the range of CFDs available,
  • Opened an account and tested the platform (charting, features, usability) with real money.
Save hours of research!
Our expert team has done all the work for you, and reviewed brokers based on BrokerChooser's unique methodology. Let's jump straight to the results!

Top 5 CFD brokers in the UK in 2022:

  1. XTB is the best CFD broker in the UK in 2022. - Commission-free stocks/ETFs for some. Free and fast deposit and withdrawal. Easy and fast account opening.
  2. eToro - Free stock and ETF trading. Seamless account opening. Social trading.
  3. Capital.com - Low forex CFD fees and commission-free real stocks. Great account opening experience. Excellent email and chat support.
  4. ActivTrades - Low trading fees. Excellent account opening. Free deposit and withdrawal.
  5. CMC Markets - Low forex fees. Great web and mobile platforms. Advanced research and educational tools.

BrokerChooser evaluates 9 key areas for all brokers including fees, safety, ease of account opening, education, and trading platforms. We check more than 500 criteria for each broker and finetune our methodology every year based on our own and our users' experiences. We have more than 100 brokers reviewed on our site and our team of analysts examines more than 50,000 data points overall.

Best CFD brokers
Comparison of top CFD brokers and trading platforms in the UK in 2022

While many online CFD brokers and trading platforms catering to investors in the UK offer an excellent service, the ones in our toplist go the extra mile.

Best CFD brokers in the UK key data compiled for December 2022
Broker Negative balance protection Minimum deposit Account activated in Credit/debit card deposit Leverage can be set manually
XTB Yes $0 Yes Yes No
eToro Yes $10 Yes Yes Yes
Capital.com Yes $20 Yes Yes Yes
ActivTrades Yes $500 Yes Yes Yes
CMC Markets Yes $0 Yes Yes No

Best CFD brokers
Fee comparison of the best CFD brokers in the UK

How much you have to pay for a trade in spreads, commission and other trading costs is a key broker selection criteria. We calculated a benchmark fee for the most important CFDs costs, which you can see in the table below. This is the total of how much you have to pay in spreads, commissions and other costs for each asset class.

Fees at the top UK CFD brokers in December 2022
XTB eToro Capital.com ActivTrades CMC Markets
S&P 500 index CFD fee $4.0 $3.1 $2.5 $2.4 $2.9
Europe 50 index CFD fee $3.3 $3.2 $6.0 $1.4 $2.6
Apple CFD fee $10.1 $6.4 $2.3 $4.5 $22.9
Vodafone CFD fee $10.6 - $4.2 $6.7 $23.4
EURUSD benchmark fee $15.2 $15.6 $13.1 $14.2 $15.4
GBPUSD benchmark fee $10.7 $4.5 $7.8 $7.0 $10.3

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

If you are unsure how brokerage fees work, check out this article on the various fees, charges and costs.

Best CFD brokers
Non-trading fees at the best CFD brokers in the UK

Non-trading fees are charges not directly related to a given trade and typically include the account maintenance fee, deposit/withdrawal fees, and the inactivity fee.

XTB eToro Capital.com ActivTrades CMC Markets
Account fee No No No No No
Inactivity fee Yes Yes No Yes Yes
Withdrawal fee $0 $5 $0 $0 $0
Deposit fee $0 $0 $0 $0 $0
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Best CFD brokers
Product selection at the best CFD brokers in the UK

Check out what types of CFDs you can trade at the best CFD brokers and CFD trading platforms.

Available products at the top UK CFD brokers
XTB eToro Capital.com ActivTrades CMC Markets
Stock index CFD Yes Yes Yes Yes Yes
Stock CFD Yes Yes Yes Yes Yes
Commodity CFD Yes Yes Yes Yes Yes
Bond CFD No No No Yes Yes
Crypto Yes Yes Yes Yes Yes

Best CFD brokers
What is CFD trading?

CFDs, short for Contracts for Difference, are derivative products used to speculate on the price movements of a wide range of underlying assets. A CFD is a contract between two parties under which the seller pays the buyer the difference between the current value of an asset and its value at the time the contract is due.

When trading CFDs, you speculate on whether the price of a financial asset (i.e. stock, bond, commodity, etc.) will go up or down, without actually buying the asset itself. Instead of buying a Vodafone stock, at a CFD broker you will bet on the direction you think the Vodafone stock will go. If your bet is right, you will make profit on your CFD trade.

CFDs are leveraged products meaning that you trade with your own money and the money you borrow from your broker. This makes CFD trading extremely risky and not suitable for beginners. A very high percentage of retail traders lose money when trading CFDs.

CFD trading is illegal in the U.S. However, if you open an account at a European broker, you will be able to trade CFDs on U.S. assets.

To better understand CFDs and the risk involved, read this article on CFD trading tips compiled by our team of experts.

Best CFD brokers
CFD trading in the UK

Trading CFDs is fully legal in the United Kingdom. What’s more, many consider the UK as the home of these products as the first CFDs were traded on the London Stock Exchange (LSE) in the 1990s.

Financial markets and CFD trading in the UK is supervised by the Financial Conduct Authority (FCA). The FCA’s main mandates include protecting retail traders from scam brokers and from illegal or indecent market practices.

In an effort to step up the regulation of CFD trading in the UK, the FCA introduced limits on leverage that brokers can offer to traders in the UK: for major currency pairs the maximum leverage is 1:30 while stocks and shares can usually be traded with a leverage of 1:5.

Under regulatory requirements imposed by the FCA, brokers must ensure that:

  • Customer positions are closed out when their funds fall to 50% of the margin needed to maintain their open positions on their CFD account.
  • Appropriate protections are in place that guarantee a client cannot lose more than the total funds in their CFD account.
  • No monetary and non-monetary inducements are offered to clients to encourage trading.
  • They publish a standardized risk warning telling potential customers the percentage of their retail client accounts that make losses.

Best CFD brokers
Taxation of CFD trading in the UK

CFD trading is exempt from stamp duty in the UK but if you make profit on such trades, you will need to pay capital gains tax (CGT). As an individual, if you’ve made a capital gain on a CFD above your CGT allowance, you will need to file a Self Assessment tax return to declare this profit and pay tax on it.

And now, let's see the top CFD brokers in the UK one by one, starting with the winner, XTB.

XTB Logo

#1 Best CFD broker
XTB

UK investors trade with XTB Limited (UK), an entity regulated by the Financial Conduct Authority (FCA). UK clients are entitled to £85,000 in investor protection and to negative balance protection.

XTB is recommended for forex and CFD traders looking for low fees and great deposit/withdrawal service.

XTB snapshot
Minimum deposit $0
Mobile app score 4.4 stars
Deposit methods Bank transfer, Credit/debit cards, Paysafe, Skrill
Withdrawal fee $0
Read review For a detailed analysis of XTB services, check out our review for 2022

Visit broker
76% of retail CFD accounts lose money

eToro Logo

#2 Best CFD broker
eToro

UK investors trade with eToro (UK) Ltd., an entity regulated by the Financial Conduct Authority (FCA). UK clients are entitled to £85,000 in investor protection and an additional £ 1,000,000 in eToro private insurance for cash, securities and CFDs.

eToro is recommended for traders interested in social trading (i.e. copying other investors’ trades) and zero commission stock trading.

eToro snapshot
Minimum deposit $10
Mobile app score 4.9 stars
Deposit methods Bank transfer, Credit/debit cards, PayPal, Skrill, Neteller, China UnionPay, Klarna, POLi, iDEAL
Withdrawal fee $5
Read review For a detailed analysis of eToro services, check out our review for 2022

Visit broker
Your capital is at risk

Capital.com Logo

#3 Best CFD broker
Capital.com

UK investors trade with Capital Com (UK) Limited, an entity regulated by the Financial Conduct Authority (FCA). UK clients are entitled to £85,000 in investor protection and negative balance protection .

The broker is recommended for investors and CFD traders looking for a great trading platform and excellent customer service.

Capital.com snapshot
Minimum deposit $20
Mobile app score 4.9 stars
Deposit methods Bank transfer, Credit/debit cards, Apple Pay, PayPal
Withdrawal fee $0
Read review For a detailed analysis of Capital.com services, check out our review for 2022

Visit broker
87.41% of retail CFD accounts lose money

ActivTrades Logo

#4 Best CFD broker
ActivTrades

UK investors trade with ActivTrades Plc, an entity regulated by the Financial Conduct Authority (FCA). UK clients are entitled to £85,000 in investor protection and negative balance protection .

The broker is recommended for forex and CFD traders looking for low fees and great deposit/withdrawal conditions.

ActivTrades snapshot
Minimum deposit $500
Mobile app score 3.9 stars
Deposit methods Bank transfer, Credit/debit cards, Neteller, Skrill, PayPal, Sofort
Withdrawal fee $0
Read review For a detailed analysis of ActivTrades services, check out our review for 2022

Visit broker
73-85% of retail CFD accounts lose money

CMC Markets Logo

#5 Best CFD broker
CMC Markets

UK investors trade with CMC Markets UK plc, an entity regulated by the Financial Conduct Authority (FCA). UK clients are entitled to £85,000 in investor protection and negative balance protection.

The broker is recommended for forex and CFD traders looking for an advanced trading platform with many research tools.

CMC Markets snapshot
Minimum deposit $0
Mobile app score 5.0 stars
Deposit methods Bank transfer, Credit/debit cards, PayPal
Withdrawal fee $0
Read review For a detailed analysis of CMC Markets services, check out our review for 2022

Visit broker
76% of retail CFD accounts lose money

Best CFD brokers
FAQ

Do I pay taxes on CFD profits in the UK?

UK retail traders do not need to pay stamp duty on CFD trades. However, they will need to pay capital gains tax after any profit they make on CFD trading.

What is the difference between spread betting and CFD trading?

The most important difference between spread betting and CFD trading is how they are taxed.

While both are exempt from stamp duty, spread betting is not subject to capital gains tax either but CFD trading is. If you make any profit on CFD trading, you will need to pay capital gains tax on it above your capital gains tax allowance. At the same time, profits from CFD trading can be offset against any losses in the same period for tax purposes.

Is CFD trading legal in the UK?

CFD trading is fully legal in the UK. The Financial Conduct Authority, which is the country’s financial markets regulator, imposed certain restrictions on CFD trading, including leverage limits and a ban on monetary and non-monetary inducements offered to clients to encourage trading. Brokers working with UK investors are also required to offer negative balance protection.

Author of this article

Gergely Korpos

Author of this article

Gergely is the co-founder and CPO of BrokerChooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Gergely Korpos

Co-founder, CPO

Gergely is the co-founder and CPO of BrokerChooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

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

Visit XTB
76% of retail CFD accounts lose money
Visit eToro
Your capital is at risk
Visit Capital.com
87.41% of retail CFD accounts lose money
Visit ActivTrades
73-85% of retail CFD accounts lose money
Visit CMC Markets
76% of retail CFD accounts lose money

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