Best CFD Brokers in the UK (2026)

CFDs (Contracts for Difference) are one of the most widely used financial instruments in the UK for traders who want to go beyond traditional investing. They allow you to trade on margin with leverage, take short positions on falling markets, and access thousands of instruments, from forex and indices to individual shares and commodities, all without owning the underlying asset. For hedging an existing portfolio, speculating on short-term price movements, or accessing markets that would otherwise require significant capital, CFDs are a practical tool.

We tested 7 FCA-regulated CFD brokers over several weeks, opening real accounts, depositing funds, placing trades, and evaluating each platform on spreads, execution quality, usability, and overall value. Every broker on this list is authorised by the Financial Conduct Authority and offers mandatory negative balance protection for retail clients.

This guide is designed for UK residents who want to find a well-regulated, competitively priced CFD broker. Whether you are looking for a simple platform as a beginner or need raw spreads and DMA access as an experienced trader, we cover the full range below. If CFDs are not what you are looking for and you would prefer to invest in stocks and ETFs for the long term, take a look at our guide to the best stock brokers in the UK or try our free broker matching tool to find the right platform for your needs.

Key Takeaways

• Capital.com is our top pick for most UK CFD traders, offering commission-free trading, a GBP 20 minimum deposit, and AI-powered market insights.
• IG offers the widest range of markets with over 17,000 instruments, plus spread betting for tax-free trading.
• Pepperstone has the tightest raw spreads from 0.0 pips on its Razor account, ideal for active forex traders.
• Interactive Brokers has the lowest retail loss rate at 59.6%, along with DMA access and the largest share CFD selection.
• All 7 brokers are FCA-regulated with mandatory negative balance protection, ensuring your account cannot go below zero.

1. Capital.com - Best Overall CFD Broker

Best for: Most UK CFD traders who want a low entry barrier, commission-free pricing, and a modern platform with AI-powered tools.

Capital.com has become one of the most popular CFD brokers in the UK, and after testing it ourselves, we understand why. The platform is clean, loads quickly, and integrates directly with TradingView for charting. You can also trade through MetaTrader 4 if you prefer a more traditional setup. The standout feature is Capital.com's AI-powered insight system, which analyses your trading behaviour and flags potential biases or mistakes. It is not a silver bullet, but it adds a layer of self-awareness that most competitors lack entirely.

On the cost side, Capital.com operates on a spread-only model with no commissions on any trade. The EUR/USD spread sits at around 0.6 pips, which is competitive for a commission-free broker. The minimum deposit is just GBP 20, making it one of the most accessible options on this list. Deposits and withdrawals are free, and Capital.com states that 98.65% of withdrawals are processed within 24 hours. Guaranteed stop-loss orders are available for traders who want to cap their maximum risk on a position, though these come with a wider spread.

With over 5,000 CFD markets covering forex, indices, commodities, shares, and cryptocurrencies, the range is solid without being overwhelming.

• Pros:
• Low minimum deposit of just GBP 20
• Commission-free trading on all instruments (spread-only model)
• AI-powered insights that help identify trading behavioural patterns
• TradingView integration and guaranteed stop-loss orders

• Cons:
• Spreads can widen significantly during high volatility periods
• Some users have reported slower withdrawal processing than advertised

Risk warning: Your capital is at risk. 62% of retail investor accounts lose money when trading spread bets and CFDs with this provider. FCA No. 793714.

Visit Capital.com

2. IG - Best Range of Markets

Best for: Traders who want access to the widest selection of CFD and spread betting markets from a single, established provider.

IG is the most established name on this list. Founded in 1974 and listed on the London Stock Exchange, it has been operating for over five decades. That history brings a level of institutional credibility that newer brokers simply cannot match. The platform offers more than 17,000 markets, covering forex, indices, shares, commodities, bonds, interest rates, and more. No other UK-regulated broker comes close to this range.

From a trading perspective, IG offers spread-only pricing for forex and indices, with commissions applying to share CFDs. The EUR/USD spread starts at 0.6 pips, which is competitive. IG also offers spread betting alongside CFDs, giving UK traders the option to trade tax-free on profits (spread betting profits are exempt from Capital Gains Tax for most individuals). The platform choices are extensive too, including IG's proprietary platform, MetaTrader 4, ProRealTime, TradingView, and L2 Dealer for DMA access. For more on IG's share trading features, see our article on IG's zero spread FTSE 100 offering, and for crypto traders, our IG crypto trading UK review.

The downsides are worth noting. IG charges a GBP 8 per month inactivity fee if you make fewer than 3 trades in a quarter. Overnight funding charges were increased significantly in late 2025, which makes holding positions for extended periods more expensive than before. The platform itself, while powerful, can feel overwhelming for beginners due to the sheer number of features and markets available.

• Pros:
• Over 17,000 markets, the largest range of any FCA-regulated CFD broker
• Spread betting available for tax-free profits on eligible trades
• Established since 1974 and listed on the London Stock Exchange
• Wide platform choice including ProRealTime and TradingView

• Cons:
• Overnight funding charges increased significantly in late 2025
• Platform can be overwhelming for beginners
• GBP 8/month inactivity fee if you trade fewer than 3 times per quarter

Risk warning: Your capital is at risk. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. FCA No. 195355.

Visit IG

3. Pepperstone - Best for Low Spreads

Best for: Active forex and index traders who want raw spreads from 0.0 pips and a wide choice of trading platforms.

Pepperstone is the broker to choose if spreads are your primary concern. The Razor account offers raw spreads from 0.0 pips (averaging around 0.1 pips on EUR/USD during London trading hours) with a commission of GBP 2.25 per side per standard lot. For traders who prefer simplicity, the Standard account wraps everything into the spread with no commission. Either way, Pepperstone consistently ranks among the tightest-spread brokers available to UK retail traders.

The platform selection is one of the best in the industry. You can trade through MetaTrader 4, MetaTrader 5, cTrader, TradingView, or Pepperstone's own platform. This flexibility means you are not locked into one ecosystem. Pepperstone also charges no inactivity fees, no deposit fees, and no withdrawal fees, which is a refreshing approach. The minimum deposit is just GBP 10.

Where Pepperstone falls short is in market range. With around 1,350 instruments, it covers the core markets (major forex pairs, key indices, popular commodities, and some share CFDs) but cannot compete with IG's 17,000+ or CMC's 12,000+. The research and analysis tools are also more basic than what IG provides. If you primarily trade forex and indices, this likely will not matter. If you want access to niche markets or deep equity CFD coverage, look elsewhere.

• Pros:
• Razor-tight spreads from 0.0 pips on the Razor account
• No inactivity fees, no deposit fees, no withdrawal fees
• Wide platform choice including MT4, MT5, cTrader, and TradingView
• Low minimum deposit of GBP 10

• Cons:
• Smaller market range than IG or CMC (1,350 instruments)
• Research and analysis tools less comprehensive than IG

Risk warning: Your capital is at risk. 71.9% of retail investor accounts lose money when trading spread bets and CFDs with this provider. FCA No. 684312.

Visit Pepperstone

4. CMC Markets - Best Trading Platform

Best for: Traders who value a feature-rich, award-winning trading platform with deep charting and analysis tools.

CMC Markets has been around since 1989 and is listed on the London Stock Exchange, which puts it in the same league as IG in terms of institutional credibility. The standout feature is the Next Generation platform, which has won multiple industry awards for its charting capabilities, pattern recognition tools, and client sentiment indicators. It is genuinely one of the best proprietary trading platforms we have tested. You also have the option of MetaTrader 4 or TradingView if you prefer those environments.

With over 12,000 instruments, CMC Markets offers the second-largest market range after IG. The EUR/USD spread is 0.7 pips, which is slightly wider than Capital.com or IG but still competitive. For serious forex traders, CMC offers an FX Active account with raw spreads and commission-based pricing, similar to Pepperstone's Razor account. There is no minimum deposit requirement for bank transfers.

The negatives include higher-than-average commissions on share CFDs compared to some competitors. There is also a GBP 10 per month dormant fee that kicks in after 12 months of inactivity. CMC Markets is purely a CFD and spread betting platform, so there is no stock investing or ISA available. If you are looking for a broker that can do both investing and trading, CMC is not the right fit.

• Pros:
• Award-winning Next Generation platform with advanced charting
• Over 12,000 instruments, the second-largest range after IG
• FX Active account available for raw spread pricing
• No minimum deposit for bank transfers

• Cons:
• Share CFD commissions are higher than some peers
• GBP 10/month dormant fee after 1 year of inactivity
• No stock investing or ISA, purely a trading platform

Risk warning: Your capital is at risk. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. FCA No. 173730.

Visit CMC Markets

5. Interactive Brokers - Best for Advanced Traders

Best for: Experienced traders who want DMA access, exchange-level pricing, and the widest share CFD coverage available.

Interactive Brokers is not your typical retail CFD platform, and that is precisely why it makes this list. IBKR offers Direct Market Access (DMA), meaning your CFD prices are derived directly from the underlying exchange order book rather than being set by the broker. This results in institutional-grade pricing with raw spreads from 0.1 pips on major forex pairs plus a commission (0.002% of trade value, minimum $2). The retail loss rate of 59.6% is the lowest among pure CFD brokers on this list, which speaks to the calibre of its client base and the transparency of its pricing.

The share CFD offering is where IBKR truly stands out. With over 8,500 share CFDs across global exchanges, it dwarfs every other broker on this list. You can trade US, UK, European, and Asian share CFDs with exchange-level pricing. Unique features include pairs trading, overnight US stock CFD trading, and the ability to avoid stamp duty on UK share CFDs. The API access makes IBKR the go-to choice for algo traders. For a deeper look at IBKR's fee structure, see our IBKR fixed vs tiered pricing analysis, and for safety details, our Interactive Brokers safety review.

The learning curve is the biggest barrier. Trader Workstation (TWS) is powerful but complex, and the commission structure takes time to fully understand. CFDs are also somewhat of a secondary product for IBKR, which is primarily an investment broker. The platform is not designed for casual traders or beginners.

• Pros:
• Lowest retail loss rate among dedicated CFD offerings (59.6%)
• DMA access with genuine exchange-level pricing
• Massive share CFD range with over 8,500 instruments
• API access for algorithmic and automated trading

• Cons:
• Steep learning curve, especially with Trader Workstation
• Commission structure can be confusing for new users
• CFDs are a secondary product within IBKR's broader offering

Risk warning: Your capital is at risk. 59.6% of retail investor accounts lose money when trading CFDs with this provider. FCA No. 208159.

Visit Interactive Brokers

6. XTB - Best for Beginners

Best for: New CFD traders who want a clean, easy-to-use platform with no minimum deposit and strong educational resources.

XTB's xStation 5 platform is one of the most intuitive trading interfaces we have tested. It is modern, responsive, and clearly designed with newer traders in mind. The onboarding experience is smooth, and the built-in educational resources (including video courses, webinars, and market analysis) genuinely help beginners understand what they are doing before placing trades. XTB also pays 4.00% per annum interest on uninvested GBP balances, which is a nice touch that most CFD brokers do not offer.

The pricing is competitive on a spread-only model with no commission on the Standard account. EUR/USD spreads start from 0.5 pips but typically sit around 0.8 pips during regular trading hours. There is no minimum deposit requirement, and XTB offers over 2,500 CFD instruments covering forex, indices, commodities, shares, and ETFs. For stock investing alongside CFD trading, XTB also offers commission-free fractional share investing. See our article on XTB's UK free share promotion for more details.

We do want to flag a couple of concerns. Some users have reported receiving high-pressure sales calls during the onboarding process, which is off-putting. There have also been isolated reports of platform execution issues during periods of extreme volatility. These are not deal-breakers, but they are worth being aware of.

• Pros:
• Clean and intuitive xStation 5 platform, ideal for beginners
• No minimum deposit required
• Interest on uninvested cash at 4.00% GBP per annum
• Strong educational resources including video courses and webinars

• Cons:
• Some users report high-pressure sales calls during onboarding
• Platform execution concerns during high volatility events

Risk warning: Your capital is at risk. 71% of retail investor accounts lose money when trading CFDs with this provider. FCA No. 522157.

Visit XTB

7. eToro - Best for Social and Copy Trading

Best for: Traders who want to follow and automatically copy the strategies of experienced investors through CopyTrader.

eToro occupies a unique position in this list because it is the only broker that offers genuine social and copy trading features. The CopyTrader function lets you automatically replicate the trades of other investors on the platform, which can be a useful starting point for beginners who want exposure to CFD markets without making every decision themselves. Smart Portfolios bundle together themed investment strategies across multiple assets. The loss rate of 51% is the lowest on this list, likely influenced by the copy trading feature helping less experienced users follow more successful strategies.

The platform itself is clean and easy to navigate, with a social feed that feels more like a trading community than a traditional broker interface. The minimum deposit is $50, and eToro uses a commission-free, spread-only model. The catch is that the spreads are wider than dedicated CFD platforms. The EUR/USD spread is 1.0 pip, which is roughly double what Capital.com or IG charge. Overnight holding fees are also on the higher side, with triple charges applied on weekends. There is a 0.5% FX conversion fee for non-USD accounts. For a full breakdown, see our eToro fees guide. You can also read more about the CopyTrader feature and our eToro safety analysis.

If you are serious about CFD trading and cost efficiency, eToro is not the cheapest option. But if the social and copy trading features appeal to you, no other FCA-regulated broker offers anything comparable.

• Pros:
• Unique CopyTrader feature for automatically following experienced traders
• Lowest retail loss rate on this list at 51%
• Beginner-friendly interface with a social trading community

• Cons:
• Wider CFD spreads than dedicated platforms (1.0 pip EUR/USD)
• High overnight holding fees with triple charges on weekends
• 0.5% FX conversion fee for non-USD deposits and withdrawals

Risk warning: Your capital is at risk. 51% of retail investor accounts lose money when trading CFDs with this provider. FCA No. 583263.

Visit eToro

How We Chose Our Top CFD Brokers

We do not just compile a list from marketing materials. We opened accounts at all 7 brokers, deposited real money, placed trades, and tested each platform over several weeks. Our evaluation focused on the factors that actually matter to UK CFD traders, and we weighted those factors according to their practical impact on trading outcomes.

FCA regulation was our non-negotiable baseline. Every broker on this list is authorised and regulated by the Financial Conduct Authority, which means mandatory negative balance protection, client money segregation, and membership in the Financial Services Compensation Scheme (FSCS). We excluded any broker without full FCA authorisation, regardless of how competitive their pricing appeared.

Beyond regulation, we evaluated spreads and fees (both headline rates and real-world execution), platform quality and reliability, the range of available markets, educational resources, and customer support responsiveness. We also considered each broker's transparency, including how clearly they disclose overnight funding charges, their risk warnings, and their retail client loss rates. The loss rate data comes directly from each broker's FCA-mandated disclosure.

For full details on our testing process and editorial standards, visit our methodology page.

What Is CFD Trading?

A Contract for Difference (CFD) is a financial derivative that allows you to speculate on the price movement of an underlying asset without actually owning it. When you open a CFD position, you enter into a contract with your broker. If the price moves in your favour, you profit from the difference. If it moves against you, you lose the difference. You can go long (buy) if you expect the price to rise, or go short (sell) if you expect it to fall.

The key feature of CFDs is leverage. Rather than paying the full value of a position, you put up a fraction of it as margin. The FCA sets strict leverage limits for UK retail clients: 1:30 for major forex pairs, 1:20 for non-major forex pairs and major indices, 1:10 for commodities (excluding gold), 1:5 for individual shares, and 1:2 for cryptocurrencies. Leverage amplifies both profits and losses, which is why most retail traders lose money.

Here is a worked cost example. If you buy 1 standard lot of EUR/USD with a 0.6 pip spread, your immediate cost is approximately $6 (0.6 pips x $10 per pip). If you hold the position overnight, you pay an additional daily financing charge, which is typically calculated based on the interbank rate plus a markup. On a position worth $100,000, overnight charges might range from $5 to $15 per day depending on the broker and the current interest rate environment. These costs compound over time, which is why CFDs are generally better suited to short-term trading rather than long-term holding.

CFDs vs Spread Betting: Which Should You Choose?

Both CFDs and spread betting allow you to trade on margin and speculate on price movements without owning the underlying asset. The core mechanics are similar, but the tax treatment differs significantly. Spread betting profits are exempt from Capital Gains Tax for most UK individuals (unless it is your primary source of income), while CFD profits are taxable. On the other hand, CFD losses can be offset against other capital gains, which can be valuable if you have gains elsewhere in your portfolio.

Three brokers on this list offer both CFDs and spread betting: IG, CMC Markets, and Pepperstone. If you are unsure which structure is better for your situation, choosing one of these brokers gives you the flexibility to use either. For traders who are consistently profitable, spread betting is generally more tax-efficient. For traders who are still learning (and potentially making losses), CFDs offer the tax offset advantage.

It is also worth noting that CFDs are more widely available internationally. If you trade across borders or may relocate in the future, CFDs provide more portability. Spread betting is a UK-specific product and is not available in most other countries.

Risks of CFD Trading

The most important risk to understand is leverage. While leverage allows you to control a large position with a small amount of capital, it also amplifies losses at the same rate it amplifies gains. The retail loss rates disclosed by each broker on this list range from 51% (eToro) to 71.9% (Pepperstone). These are not theoretical figures. They represent the actual percentage of retail accounts that lost money over the disclosure period.

Overnight holding fees are another risk that is often underestimated. If you hold a leveraged position overnight, your broker charges a financing cost based on the interbank lending rate plus a markup. These charges may seem small on a daily basis, but they compound over time and can significantly erode profits on longer-term positions. The FCA's Consumer Duty review in November 2025 found that some providers were not adequately justifying or clearly disclosing the level of overnight funding charges, prompting the regulator to push for greater transparency in this area.

On the protective side, all FCA-regulated brokers must offer mandatory negative balance protection for retail clients. This means your account balance cannot go below zero, regardless of how quickly a market moves against you. This protection has been in place since August 2019 under the FCA's permanent product intervention measures. While it does not prevent losses, it does ensure you cannot owe money to your broker beyond what you have deposited.

Frequently Asked Questions

Is CFD trading legal in the UK?

Yes, CFD trading is fully legal and regulated in the UK. The Financial Conduct Authority (FCA) oversees all CFD providers operating in the country. All 7 brokers on this list are authorised and regulated by the FCA. However, cryptocurrency CFDs are banned for UK retail clients under FCA rules introduced in January 2021. Some brokers (like Capital.com) offer crypto CFDs in other jurisdictions, but not through their UK FCA-regulated entity.

What is the best CFD broker for beginners in the UK?

We recommend Capital.com for most beginners due to its low GBP 20 minimum deposit, commission-free pricing, intuitive platform, and AI-powered learning tools that help identify trading mistakes. XTB is also an excellent choice for beginners with its clean xStation 5 interface, strong educational resources including video courses and webinars, and no minimum deposit requirement. Both brokers make it straightforward to get started without being overwhelmed by complexity.

How much money do you need to start CFD trading?

You can start with as little as GBP 10 at Pepperstone or GBP 20 at Capital.com. IG, CMC Markets, XTB, and Interactive Brokers have no minimum deposit requirement (though you need enough margin to open a position). However, starting with a very small amount limits your ability to manage risk effectively. We recommend depositing enough to maintain comfortable margin requirements on your positions, and never risking money you cannot afford to lose.

Are CFD profits taxable in the UK?

Yes. CFD profits are subject to Capital Gains Tax (CGT) in the UK. However, CFD losses can be offset against other capital gains, which is an advantage that spread betting does not offer. The annual CGT exempt amount (currently GBP 3,000 for the 2025/26 tax year) applies before any tax is due. Spread betting profits, by contrast, are generally tax-free for individuals who do not trade as their primary source of income. If you are unsure about your tax position, consult a qualified tax adviser.

Can I lose more than my deposit trading CFDs?

No. Under FCA rules, all UK retail CFD accounts have mandatory negative balance protection. This means your account balance cannot go below zero, no matter how extreme the market moves. This protection has been in place since August 2019 under the FCA's permanent product intervention measures. You can lose your entire deposit, but you cannot owe your broker additional money beyond what you have deposited.

What is the maximum leverage for CFDs in the UK?

The FCA caps leverage for retail clients at the following levels: 1:30 for major forex pairs (e.g. EUR/USD, GBP/USD), 1:20 for non-major forex pairs and major indices (e.g. FTSE 100, S&P 500), 1:10 for commodities other than gold, 1:5 for individual shares, and 1:2 for cryptocurrencies. Professional clients can apply for higher leverage limits, but must meet specific eligibility criteria and give up certain retail protections including negative balance protection.

Should I use CFDs or spread betting?

It depends on your tax situation and trading profile. Spread betting is tax-free for most UK individuals, making it the more tax-efficient choice for profitable traders. CFDs allow you to offset losses against capital gains elsewhere, which can be useful if you have taxable investment gains. IG, CMC Markets, and Pepperstone all offer both CFDs and spread betting through the same account, so you can use whichever structure suits each trade. If you are new to leveraged trading, the choice of instrument matters less than understanding the risks of leverage itself.

Finding the Right CFD Broker

Choosing a CFD broker ultimately comes down to what you value most. Capital.com is our top pick for the majority of UK traders because it combines low costs, an accessible platform, and a genuinely low barrier to entry. But if you need the widest market range, IG is the clear winner. If raw spreads matter above all else, Pepperstone is the one to beat. And if you are an advanced trader who wants DMA access and institutional pricing, Interactive Brokers stands alone.

Regardless of which broker you choose, remember that CFD trading is inherently high-risk. Start with an amount you are comfortable losing, use stop-losses consistently, and take the time to understand how leverage and overnight fees affect your positions before scaling up.

If you are still unsure which broker fits your needs, try our free broker matching tool for a personalised recommendation based on your trading preferences and experience level.

Trading involves significant risk and may not be suitable for all investors. The value of investments can go down as well as up, and you may lose some or all of your initial investment. Past performance is not indicative of future results.