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8 Best Share CFD Brokers for 2025
Looking for the top broker for share CFD trading? After testing 80 brokers this year, our experts have identified the 8 best options tailored to diverse trading needs. complete with practical tips.
By:
Reviewed By:
Updated: Jan 6, 2025
List of Top Stock CFD Brokers
Best Brokers for US Traders
10 equity index futures contracts. Innovative proprietary platform. Competitive commissions . 24/7 customer support. Futures Trading Academy.
Best Brokers for International Traders
MT4 and IRESS stock trading platforms. 10,000+ share CFDs. Direct market access accounts. Competitive fees.
16,000+ global stocks. Direct Market Access (DMA) share CFDs. IG Web Trader, ProRealTime, L2 Dealer platforms. Out-of-hours trading and IPOs.
1000+ share CFDs and ETFs. Competitive spreads on stocks. ActivTrader, TradingView, MT4, and MT5 platforms. Ultra-fast order execution speeds averaging 4 ms..
700+ CFDs on stocks. Commission-free share CFDs. Stock market trading course. Wide range of educational materials.
783 share CFDs via MT4/MT5. 10,000+ share CFDs via IRESS. Low fees and commissions. Fee-free deposits and withdrawals.
121 share CFDs available. Libertex app includes sentiment indicators and real-time market news. CFD and investing accounts. Trade from MT4 and MT5 platforms.
143 CFDs on stocks. MT4 and MT5 web, desktop, and mobile platforms. MT4 Smart Trader Tools. Social trading plugins for MT4.
What is Share CFD Trading?
Share CFD (Contract for Difference) trading is a form of derivative trading where you speculate on the price movements of company shares without owning the underlying asset. This approach allows traders to take positions on both rising and falling share prices.
One of the key features of CFD trading is the use of leverage, which means you only need a small deposit to open a position, though this can significantly increase both potential profits and losses. Unlike traditional share trading, CFD trading does not attract stamp duty in many jurisdictions, as the actual shares are not purchased.
How Did FXEmpire Select the Best Share CFD Brokers?
- We ensured every broker had an overall high score in our rating system.
- We checked each broker’s authorization, licenses, and regulations.
- We researched and identified the number of share CFDs available to trade on.
- We identified the accessibility of shares from stock exchanges all around the world.
- We tested the fees associated with trading share CFDs.
- We researched the amount of leverage available to trade share CFDs.
- We checked for any additional research tools provided by the broker.
- We explored the different stock trading platforms available to trade share CFDs on.
Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.
This analysis and my own trading experience have led to the findings and research below for the best forex brokers for share CFD trading.
Best Overall
4.2
80.26% of retails CFD accounts lose money.
- $100Min Deposit
- 10107Tradable Instruments
- HighFees
Why We Picked It
Established in 2013, TMGM provides an excellent range of share CFDs from the US, Australia, and Hong Kong to trade on from the MT4 and IRESS trading platforms. Authorized and regulated by ASIC, VFSC, and FMA New Zealand, TMGM is our choice for the best overall share CFD broker.
Key Features:
- Regulated by ASIC, VFSC, and FMA New Zealand
- Share CFD trading platforms: MT4 and IRESS
- Leverage up to: 1:10 on IRESS (ASIC), 1:5 on MT4 (ASIC), 1:20 on MT4 (other entities)
- Number of share CFDs: 49+ from MT4, 10,000+ from IRESS
Commissions and spreads:
- MT4: Spreads from 0.13 cents per share. Zero commission.
- IRESS: Spreads from 0.05 cents per share. 2.25 cents per share commission.
With TMGM you can trade share CFDs from the MT4 and IRESS platforms. During my 10 years of trading share CFDs, I have enjoyed all the benefits the MT4 platform has to offer, which includes access to more than 80+ inbuilt technical analysis and drawing tools as well as a range of order types such as entering live at the market price or setting stop or limit orders.
I found that there are zero commissions to buy or sell shares, and zero commissions for real-time data from the MT4 platform. TMGM currently provides 49 share CFDs from the US, Australia, and Hong Kong to trade from MT4.
During our live fee test, the spread for trading Apple share CFDs from MT4 was 0.13 cents per share, which is around the industry average of 0.10 cents per share for a commission-free trading account.
From the TMGM IRESS platform, you receive direct market access (DMA) pricing from the broker’s liquidity providers and stock exchanges and can trade on more than 10,000+ shares from the US, Australia, and Hong Kong. While the spread will be much lower than using MT4, there are more fees to take into consideration, such as commission, platform, and data fees.
For example, I found that while there are no commissions to trade US stocks via MT4, there is a 2.25 USD cent commission per share using the IRESS platform, which is also subject to a minimum commission of $10. While there is no fee to use MT4, there is a 35 USD monthly platform for IRESS.
Pros and Cons
Pros
- MT4 and IRESS stock trading platform.
- 10,000+ share CFDs.
- Zero commission on MT4.
- Good customer support 24/7.
Cons
- IRESS platform requires a high minimum deposit.
Best for Professional Traders
4.6
70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
- $50Min Deposit
- 17205Tradable Instruments
- MediumFees
Why We Picked It
Established in 1974 and listed on the London Stock Exchange, IG is a heavyweight in the retail trading industry with robust regulation by authorities like the FCA and ASIC. It offers an extensive selection of over 17,000 assets. Particularly for advanced traders, IG’s Direct Market Access (DMA) share CFD account provides an opportunity to trade directly on exchange prices, showcasing its commitment to advanced trading needs.
Key Features:
- Regulated by the UK FCA, ASIC, BaFin, MAS, FSA Japan, FINMA, DFSA, FSCA, FMA, CFDTC, and NFA
- Share CFD trading platforms: IG Web Trader, ProRealTime, L2 Dealer
- Leverage up to 1:5, 20% margin
- Number of share CFDs available: 16,000 stocks worldwide
- Commission of 2 cents per share on US stocks
- Spreads from 0.08 cents per share on US stocks
IG stands out with its extensive share CFD offerings, featuring 16,000 stocks from global exchanges such as LSE, NYSE, NASDAQ, and more. The IG Web Trader platform impresses with top-notch charting tools and a comprehensive order ticket that displays real-time margin details.
For the discerning advanced trader, the L2 Dealer platform offers Direct Market Access (DMA) to trade directly on prices from banks and exchanges, along with a transparent view of market depth and sophisticated order types like pegged and fill or kill.
A unique advantage I’ve noted is IG’s provision of out-of-hours pricing on over 75 major US shares, affording insights into pre- and post-market movements, which can be particularly valuable during earnings season to capitalize on early trends.
Pros and Cons
Pros
- 16,000+ global share CFDs.
- Selection of trading platforms.
- DMA share CFD trading.
- Trade pre- and post-market prices.
Cons
- The number of shares may overwhelm some beginners.
Best Order Execution
4.4
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.47% 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.
- $0Min Deposit
- 1253Tradable Instruments
- MediumFees
Why We Picked It
Founded in 2001 in the UK, ActivTrades operates as a market maker without a dealing desk, enabling ultra-fast order execution speeds as low as 4 milliseconds—among the fastest in the industry. This makes ActivTrades particularly well-suited for high-precision stock trading, minimizing the risk of negative slippage.
Key Features:
- Regulated by the FCA (UK), CMVM (Portugal), CVM (Brazil), SCB (Bahamas), FSC (Mauritius)
- Share CFD trading platforms: MetaTrader 5, ActivTrader, TradingView
- Leverage up to 1:5
- Number of share CFDs available: 1000+ stocks worldwide
- Commission of 2 cents per share on US stocks, 0.10% of the transaction value on UK stocks, and 0.05% of the transaction value of EU stocks
- Spreads from 0.03 cents per share on US stocks
ActiveTrades offers more than 1,000 stocks across Europe, the UK, and the US. Its commissions meet the industry standard, and its spreads are generally lower. I performed my testing on an Individual account, which has no minimum deposit and features a combination of margin call at 100% and stop out at 50%.
Stock trading can be practiced on the popular MetaTrader 5, the seamless TradingView, or the broker’s own ActivTrader platform. I tested ActivTrader and found it quite flexible. It features more than 180 technical indicators and drawing tools, 9 timeframes, and 11 chart types. The platform also supports all basic order types—market, limit, and stop—and essential features, such as one-click trading, watchlist management, and an alerts-setting option.
I also appreciated ActivTrades’ extensive offering of 72 ETFs, which helps stock traders to better manage their overall market exposure. ETFs are considered lower-risk securities, making them ideal hedging tools.
Pros and Cons
Pros
- 1000+ share CFDs
- Decent choice of platforms
- Fast order execution speeds
- Favorable fees
Cons
- Withdrawal fees
Best for Beginners
4.6
Trading CFDs and FX Options entail risk and could result in the loss of your capital.
- $100Min Deposit
- 853Tradable Instruments
- MediumFees
Why We Picked It
Founded in 2006, AvaTrade provides an excellent offering for beginner traders with commission-free share trading accounts and a wide range of educational materials. Authorized and regulated by the CBI, ASIC, CySEC, FSC BVI, FSCA, FSA Japan, ISA, and FSRA you can trade more than 700+ share CFDs.
Key Features:
- Regulated by CBI, ASIC, CySEC, FSC BVI, FSCA, FSA Japan, ISA, and FSRA
- Share CFD trading platforms: MT4 and MT5
- Leverage: up to 1:5, 20% margin
- Number of share CFDs: 700+ from the US, EU, UK, and Asia
- Zero commission
- Spreads: from 0.33 cents per share
AvaTrade provides a good option for beginner traders starting out, with access to a free demo account and a commission-free trading account. A demo account is an excellent way to practice your trading ideas and gain more experience with the broker’s trading platform risk-free.
From our live test, I found that AvaTrade provides an excellent range of educational materials. This includes the Ultimate Guide to CFD Trading ebook and a stock market trading course with lectures covering fundamental analysis, technical analysis, trading strategies, platform tutorials, and more.
If you are a beginner trader, I would suggest reading the How to Trade Stocks course first, as it explains the core concepts of stock trading using leverage very well. After this, you should go through the platform tutorial videos, which are excellent to help you navigate the different share trading platforms AvaTrade provides, such as MT4 and MT5, as well as its own propriety web-based platform.
Pros and Cons
Pros
- 700+ CFDs on stocks.
- Commission-free share CFDs.
- Stock market trading course.
- Wide range of educational materials.
Cons
- 3 months inactivity fee.
Best Spreads on CFD Shares
4.6
Contracts for Difference (CFDs) are leveraged over-the-counter derivative products and carry a high level of risk to your capital. You should only risk capital that you can afford to lose. In certain circumstances, due to fluctuations in market value you may not get back your initial investment amount. You may not only lose your initial investment but you may incur a liability to pay a further amount to cover losses. This means you can lose more money than you have invested.
- $100Min Deposit
- 8977Tradable Instruments
- LowFees
Why We Picked It
Established in 2009, FP Markets is authorized and regulated by ASIC and CySEC and has one entity based in St. Vincent and the Grenadines that is not regulated. It provides the ability to trade on more than 10,000+ share CFDs across the MT4/MT5 and IRESS trading platforms.
Key Features:
- Regulated by ASIC, CySEC, as well as the unregulated SVG entity
- Share CFD trading platforms: MT4, MT5, and IRESS
- Leverage up to: 1:5 (20% margin for ASIC/CySEC), 1:20, (5% margin with unregulated SVG entity)
- Number of share CFDs: 680+ on MT4/MT5, 10,000+ on IRESS
Commissions and spreads:
- MT4/MT5: US stock spreads from 0.06 cents per share, with 2 cents per share commission (minimum 2 USD).
- IRESS: US stock spreads from 0.03 cents per share with 2 cents per share commission (minimum 15 USD).
During the course of our live fee test, I found that the live spread for trading Apple share CFDs from the MT5 platform was 0.06 cents per share which is much better than the industry average of 0.10 cents per share. However, there is also an additional charge of 2 cents per share, subject to a minimum of 2 USD.
From the MT4 platform, you can trade on more than 680+ shares from the US, Europe, UK, and Australia. However, I found that from the IRESS platform, you can trade on more than 10,000+ shares from the same regions.
I also found that you can access even better spreads from the IRESS trading platform, which provides a direct market access price feed. This means you can trade at the price quoted by FP Markets’ liquidy providers or stock exchanges. But, there are a range of other fees to take into consideration with the IRESS platform, such as platform and data fees.
For example, the IRESS platform has a monthly 60 USD platform fee which is waived if 150 USD of commission is generated in the prior month. While you can access tighter spreads from IRESS, the commission of 2 cents per share is the same as trading with MT4, but there is a much higher minimum commission of $15.
Pros and Cons
Pros
- Low spreads for share CFDs.
- Trade from MT4, MT5, IRESS platforms.
- Large range of shares available.
- DMA trading account.
Cons
- Best leverage available from the unregulated SVG entity.
Best Trading App
4.2
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.1% 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.
- $100Min Deposit
- 377Tradable Instruments
- LowFees
Why We Picked It
Founded in 2012, Libertex is regulated by CySEC and is the Official Trading Partner of FC Bayern. There are more than 250+ CFD instruments available from the Libertex trading app, which is easy to use and provides real-time charts, news, and sentiment indicators.
Key Features:
- Regulated by CySEC
- Share CFD trading platforms: MT4, MT5 ,and Libertex app
- Leverage up to: 1:5, 20% margin
- Number of share CFDs available: 121 from the US, EU, and UK
- Spreads from 0.10 cents per share on US stocks.
- Commission from 0%
Libertex offers the well-known and popular MT4 and MT5 trading platforms and its own proprietary Libertex app. The app is available on iOS and Android and is a quick and easy trading method. The trading ticket features multiple order types, including stop, limit, and market orders. The charts offer a good range of timeframes, although they lack technical analysis indicators. I found the inbuilt trader sentiment indicators useful to understand how many Libertex traders are long and short in a market. This can help to identify overbought and oversold trading conditions.
There are 121 share CFDs from the US, UK, and Europe available in the app, along with forex pairs, commodities, indices, bonds, and cryptocurrencies. Beyond trading CFDs, the Libertex app also supports trading from the Libertex Invest account, allowing you to buy real stocks with zero commissions and collect dividend payments. Additionally, the app’s inbuilt market news section is a valuable tool for staying updated with the latest market movements and trends.
Pros and Cons
Pros
- 121 global share CFDs.
- Sentiment indicator in Libertex app.
- CFD and real investing accounts.
- Trade from 0% commission.
Cons
- Does not currently accept UK clients.
Best CFD Trading on MT4
4.5
Trading derivatives carries significant risks. It is not suitable for all investors and if you are a professional client, you could lose substantially more than your initial investment. When acquiring our derivative products, you have no entitlement, right or obligation to the underlying financial assets. Past performance is no indication of future performance and tax laws are subject to change. The information on this website is general in nature and doesn't take into account your personal objectives, financial circumstances, or needs. Accordingly, before acting on the advice, you should consider whether the advice is suitable for you having regard to your objectives, financial situation and needs. We encourage you to seek independent advice if necessary. Please read our legal documents and ensure that you fully understand the risks before you make any trading decisions.
- $50Min Deposit
- 935Tradable Instruments
- LowFees
Why We Picked It
Established in 2009, Vantage provides a good range of extra trading tools for the MT4 platform to support share CFD trading. Authorized and regulated by ASIC, VFSC, CIMA, and FSCA you can trade US, European and Australian shares using the Vantage Smart Trader Tools MT4 package.
Key Features:
- Regulated by ASIC, VFSC, CIMA, and FSCA
- Share CFD trading platforms: MT4 and MT5
- Leverage up to: 1:5 (20% margin for ASIC), 1:20 (5% margin for other entities)
- Number of share CFDs: 143 from the US, EU, UK, and AU
- Spreads: from 0.13 cents per share on US stocks.
- Zero commission, data, and platform fees.
During our research, I found that Vantage provides its traders with the MT4 and MT5 trading platforms. These are considered the go-to platforms for CFD traders. There are more than 80+ inbuilt technical indicators and drawing tools, the ability to look at multiple charts and timeframes, and access to a good range of order functionality and algorithmic trading capabilities.
While I have primarily used the MT4 desktop for many years, the company that created the platform MetaQuotes has finally upgraded the web version, which is now far simpler to use than ever before. It also comes with extra drawing tools and responsive charting and is now a breeze to trade from.
However, the MT4 desktop platform does come with the ability to add on extra customizations, such as the Vantage Smart Trader Tools package. This is a suite of extra tools and plugins to add to the platform, which includes an alarm manager for price alerts, a mini terminal to trade directly from the chart, and many more.
In my own trading, I like the mini terminal as it allows you to easily buy and sell from a chart just by clicking on the chart and moving your price levels. It also comes with inbuilt risk management calculators that can be used all from the same chart speeding up the trading process.
Pros and Cons
Pros
- 143 CFDs on stocks.
- MT4 and MT5 web, desktop, and mobile platforms.
- MT4 Smart Trader Tools package.
- Social trading plugins for MT4.
Cons
- Limited stock trading education, though the materials for learning MT4 are good.
Best Stock Index Futures in the US
4.5
Trading with leverage comes with a high risk and may not be suitable for everyone.
- $100Min Deposit
- 52Tradable Instruments
- LowFees
Why We Picked It
Founded in 2008, Plus500 is a global multi-asset fintech group operating proprietary technology-based trading platforms. A giant of the CFD industry, Plus500 has recently expanded into the United States to offer futures trading via its state-of-the-art platform which is available on the web, desktop, and Android/iOS mobile devices. US clients can access futures contracts on forex, interest rates, commodities, equity rates, and cryptocurrencies.
Key Features:
- Regulated by CFTC, NFA
- Equity index futures trading platforms: WebTrader, Plus500 mobile and desktop apps
- Number of stock index futures contracts available: 9 from the US, 1 from Japan
- Standard contract commission $0.89 (excluding Exchange and NFA fees)
With high liquidity and high volatility, stock index futures are popular among traders. Plus500 US offers benchmark contracts like the E-mini S&P 500, E-mini Dow Jones, E-mini Nasdaq-100, and Nikkei. I noted that micro contracts like the Micro E-mini Dow Jones are also available, which allow beginners with relatively small accounts to trade. The intraday margin requirement for Micro E-mini Dow Jones is just $50 per contract.
Plus500’s WebTrader platform is clean and uncluttered with easy-to-understand order entry and robust charting tools. I also rated the Plus500 mobile app as much better than average thanks to its outstanding design and usability.
Plus500 US makes it simple for new traders to get started in futures trading with a low minimum deposit, a beginner-friendly platform, and helpful educational resources. My assessment showed that trading costs are minimal, and the live chat support is among the best I have encountered.
The above information is NOT relevant to EU residents. EU residents are to be serviced by European-regulated subsidiaries of the Plus500 Group, such as Plus500CY Ltd, which is authorized and regulated by CySEC, license No 250/14. Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.
Pros and Cons
Pros
- State-of-the-art platform
- 52 futures contracts
- 24/7 support via live chat and email
- Low fees
Cons
- No phone support
How to Choose a Share CFD Broker?
Selecting the right broker significantly impacts your overall trading experience. When choosing a share CFD broker, prioritize those that offer a reliable trading platform, a transparent and competitive fee structure, exceptional customer support, and robust safety measures through proper licensing and regulatory oversight.
Be sure to keep in mind the following factors as well.
How to Find a Safe Share CFD Broker?
When selecting a share CFD broker, safety should be your top priority. A broker’s safety is primarily determined by the regulatory authorities that oversee its operations.
In our reviews, we categorize brokers into three tiers to assess their level of regulation:
- Tier 1 regulators provide the highest level of protection and include the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and others.
- Tier 2 regulators maintain high standards but offer slightly lower protection compared to Tier 1. Examples include the Financial Sector Conduct Authority (FSCA) of South Africa, the Dubai Financial Services Authority (DFSA), and others.
- Tier 3 regulators typically operate in offshore jurisdictions. Examples include the International Financial Services Commission (IFSC) of Belize, the Securities Commission of the Bahamas (SCB), and others.
Some brokers are not regulated and operate without oversight, posing significant risks to traders as they lack accountability or protection mechanisms. Given that scalping is a precision-focused trading strategy, it’s advisable to choose brokers regulated by Tier 1 authorities for maximum security.
Read more about Best regulated forex brokers.
You can check the regulation of your broker by reviewing its legal documents and searching for the broker on the register of the relevant regulator’s website. To save you time, we also created detailed guides on the Best CySEC-regulated brokers, Best ASIC-regulated brokers, and Best FCA-regulated brokers.
What Fees Should You Consider?
Understanding the fee structure of a share CFD broker is crucial as it can significantly impact your profitability. Brokers typically charge trading fees and non-trading fees.
Trading fees include:
- Spreads: The difference between the buy and sell price. Brokers may offer institutional-grade spreads or mark them up as a fee. For scalpers, low spreads are critical. See our guide for the Best forex brokers with lowest spreads.
- Commission: A fee for opening and closing trades. Some brokers provide commission-free accounts with higher spreads, while others offer commission-based accounts with lower spreads.
- Swaps: A fee for holding leveraged positions overnight, typically tied to currency interest rates and broker markups. Scalpers generally avoid swap fees as they close positions quickly. Discover Best low swaps forex brokers.
Non-trading fees cover account management, such as inactivity fees or charges for deposits and withdrawals. While most brokers don’t charge account maintenance fees, withdrawal and deposit costs vary based on the payment method—bank transfers, cards, or e-wallets. These fees are worth checking to avoid surprises.
A reliable broker should offer a clear and transparent fee structure to instill confidence in your choice. If they don’t, it’s likely best to look elsewhere. Fee information can typically be found on the broker’s website, in the legal terms and conditions, through a live customer support agent, or by starting with a demo trading account.
Check out our guide for the Best forex brokers with zero spreads.
How to Choose a Trading Account?
Selecting the right trading account for share CFD trading is a key step in building a successful trading journey. The best account for you will depend on your trading experience, goals, and individual needs, as there’s no one-size-fits-all solution.
Here are a few factors to consider:
- Minimum Deposit Requirements: Beginners may prefer accounts with low deposit thresholds to get started easily. Check out Best forex brokers with low/no minimum deposit.
- Leverage Levels: Choose an account that offers leverage options suited to your trading style and risk tolerance.
- Market Access: Ensure the account provides access to the global stock markets you’re interested in trading.
- Demo Account: Many brokers offer demo accounts, which allow you to test platform features and execution speeds in a risk-free environment before committing to a live account. Find our list of Best demo accounts.
Which Leverage is Available for Share CFD Trading?
The typical leverage for share CFD trading varies depending on the broker and regulatory jurisdiction. In general:
- Tier 1 Regulated Brokers (e.g., FCA, CySEC, ASIC): Offer lower leverage, typically ranging from 5:1 to 20:1, due to stricter regulatory requirements to protect retail clients.
- Offshore or Unregulated Brokers: They may provide significantly higher leverage, often up to 50:1 or more, but with fewer safeguards in place.
Leverage levels for share CFDs are usually lower than for forex trading due to the higher volatility and risk associated with stock markets. It’s crucial to select a leverage level that aligns with your risk tolerance and trading strategy while ensuring the broker operates under reputable regulatory oversight.
Discover Best forex brokers with high leverage.
Which Trading Platform is Best for Share CFD Trading?
The best trading platform for share CFD trading depends on your trading style, experience level, and personal preferences. Here are some key considerations to help you choose:
- MetaTrader 4 (MT4) and MetaTrader 5 (MT5): Widely supported by brokers offering share CFDs, making them ideal for traders seeking customizable tools, advanced charting capabilities, technical analysis, and algorithmic trading with Expert Advisors (EAs).
Check out our detailed guides on the Best MT4 brokers and Best MT5 brokers.
- cTrader: Known for its user-friendly interface and advanced trading features, cTrader is excellent for algorithmic trading and traders focused on precision.
Read more about Best cTrader forex brokers
- Proprietary Broker Platforms: Many brokers offer custom-built platforms tailored to their services. They often include unique features such as integrated market research, advanced risk management tools, and superior mobile compatibility.
Discover our pick of Best forex trading platforms.
- Mobile Trading Apps: Ideal for traders who need to monitor and execute trades on the go.
Find a list of Best share CFD apps in Europe.
What to Avoid When Choosing a Broker for Share CFD Trading?
When choosing a broker for share CFD trading, it’s important to be aware of potential red flags. Avoid brokers with a history of regulatory violations or those with a reputation for poor customer service.
High trading fees can diminish your profits, so be wary of brokers with non-competitive fee structures and those that promise guaranteed profits. Trading involves risk, and any broker claiming otherwise is likely untrustworthy.
In my experience, you should avoid unregulated brokers, as you have no protections if they commit fraudulent activities with your capital.
How to Avoid Forex and CFD Scams?
Share CFD trading scams can be sophisticated, but with a little extra care and research, you can stay safe. Always check the broker’s regulatory status and read online reviews from other traders.
Understand their fee structure and make sure it is transparent and reasonable. Be skeptical of offers that seem too good to be true, such as guaranteed profits. Stay informed and vigilant to ensure your trading experience is safe and secure.
Test customer support to make sure there is always someone to help you. Ideally, choose stock brokers that are based in well-established financial jurisdictions and countries, as there are likely to be fewer scams, in contrast to brokers based on an offshore island with a secret register of owners.
Investigate each broker as much as possible. Be sure to read FX Empire’s rating review of each broker, as we’ve battle-tested many brokers in the industry to ensure safety, security, and reliability.
Our Methodology
Since establishing the broker rating review industry many years ago, our rating process now includes 250 data points across nine different categories:
- Trust
- Fees
- Platforms and tools
- Tradable instruments
- Customer service
- Deposit and withdrawals
- Account types
- Research
- Education
We test each broker according to these categories by opening live trading accounts, engaging with live customer support, and testing the broker’s services and products firsthand. Learn more about our detailed review process.
For this guide, we evaluated the number and global accessibility of share CFDs available for trading. We also tested the fees associated with share CFD trading and examined the leverage options provided. An important part of our review included assessing the additional research tools offered by brokers, as well as exploring the variety and efficiency of their stock trading platforms for share CFDs.
Meet Our Writers
The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.
Get to Know Our Authors
Dan BlystoneBroker Analyst
Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.
Jitan SolankiBroker Analyst
Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.
Plamen StoyanovBroker Analyst
Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.
Vladimir ZernovBroker Analyst
In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.
What is a Share CFD in Forex trading?
A Share CFD (Contract for Difference) is a financial contract that pays the difference in the settlement price between opening and closing a trade. It is a derivative product that allows traders to speculate on the price movements of shares without owning the underlying asset, providing benefits such as trading long and short.
What is the difference between trading Share CFDs and traditional stock trading?
The key difference between Share CFDs and traditional stock trading lies in ownership. With Share CFDs, you don't own the underlying asset, you merely speculate on its price direction, long or short. In contrast, traditional stock trading involves buying and owning the actual shares.
How do I start trading CFDs on stocks?
While investing in CFDs may seem complex at first glance, getting started can actually be quite manageable if proper steps are taken ahead of time. Specifically, taking time to learn more about both CFD trading best practices and the current state of global financial markets can be useful to get started. After this initial period of education, selecting a reputable broker is the next step.
What are the advantages and risks of trading Share CFDs?
Share CFD trading offers advantages such as the ability to trade global stock markets long and short using leverage. While leverage can amplify wins, it can also amplify losses. All trading comes with inherent risks.
How does leverage work in Share CFD trading?
In Share CFD trading, leverage works as a loan provided by the broker, allowing you to open a position larger than your initial investment. However, while it can amplify profits, it can also magnify losses. As you are borrowing money from your broker, there is a financing fee to pay for any positions held overnight, known as the ‘swap’ fee.
Do I need to pay taxes for Share CFD trading?
Yes, taxes are a part of Share CFD trading. The profits you make from trading CFDs are generally subject to tax, but will depend on your jurisdiction. Tax laws can vary greatly depending on your location, so it's always a good idea to consult a tax professional or advisor to understand your tax obligations.
What should I look for in a Share CFD broker?
When looking for a Share CFD broker, make sure they are regulated, provide good customer support, have access to global markets from a range of trading platforms, and have low, transparent fees.
What are the costs involved in trading Share CFDs?
The costs of trading Share CFDs can include a commission to buy and sell, the spread (which is the difference between the buy price and sell price), overnight financing costs, platform fees, and data fees. Some brokers may charge a fee for all of these categories, and some will offer zero fees.
What are the best trading platforms to trade Share CFDs?
The best trading platforms for Share CFDs offer good charting tools and technical indicators, a wide range of markets, and an easy-to-use interface. Popular share CFD trading platforms include MT4, MT5, IRESS, and ProRealTime.
Which broker charges the lowest spreads on share CFDs?
From our live test, we have found FP Markets to charge the lowest spreads overall on share CFD trading. However, there is a fee to buy and sell shares. Some brokers may have a higher spread but will not charge a fee to buy and sell.
Which Share CFD Broker is most suitable for beginner traders?
AvaTrade is the most suitable share CFD broker for beginners, as you can access commission-free trading accounts, demo accounts, a wide range of stocks, and free educational materials regarding stock market trading.
Which Share CFD Broker is most suitable for professional traders?
FXCM is the best choice for professional traders, as they provide more than 3,000+ global share CFDs to trade from, excellent trading platforms, and tools with competitive fees.
How do dividend adjustments work in Share CFD trading?
Share CFD trading pays out dividends by using dividend adjustments. If you are long on a stock and the company pays out a dividend, you will be credited this dividend. If you are short on a stock when the company pays a dividend, you will be debited this amount.
Is Share CFD Trading regulated?
Share CFD trading itself is not regulated. An unregulated broker can offer this service. However, it is the broker that chooses to be regulated or not. It is best to stick to brokers who are regulated by well-established authorities to make sure your funds are kept safe.
What tools can help me when trading Share CFDs?
Tools that can assist in trading Share CFDs include charting tools for technical analysis, economic calendars for fundamental analysis, and risk management tools such as stop-loss orders.
What is Direct Market Access (DMA) in Share CFD trading?
Direct Market Access (DMA) in Share CFD trading refers to the ability to place trades directly in the order book of a stock exchange or a broker’s liquidity provider.
What is negative balance protection in forex trading?
Negative balance protection is a policy implemented by some brokers to prevent traders from losing more money than they have deposited in their trading accounts.
How can I verify that my broker has negative balance protection?
To verify that your broker offers negative balance protection, check the legal terms and conditions or speak to customer support. You can also check the regulator’s websites, as some make it a legal requirement to offer this, such as the UK FCA, CySEC, and ASIC.
What is a compensation scheme in forex trading?
A compensation scheme is designed to safeguard investor funds. If a broker goes bankrupt, the compensation scheme steps in to compensate the investors up to a certain limit.
How can I verify that my broker is a member of the compensation scheme?
To ensure your broker is a member of a compensation scheme, you can check the legal terms and conditions or speaking to customer support. Some regulators such as the UK FCA and CySEC make it a legal requirement to offer this.
What is a segregated fund?
A segregated fund is a pool of client funds that a broker keeps separate from its own operating funds. This is an important practice in financial services as it guarantees that client money is not used by the broker for its own operational expenses.
How to verify if the broker offers a segregated fund?
To verify if your broker uses segregated funds, you can check the legal terms and conditions, which should outline their policy. You can also speak to customer support to confirm. Some regulatory bodies such as the UK FCA, CySEC, and ASIC make it a legal requirement to do this.
About the Author
Jitan SolankiBroker Analyst
Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.
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Table of Contents
- List of Top Stock CFD Brokers
- How Did FXEmpire Select the Best Share CFD Brokers?
- Best Overall
- Best for Professional Traders
- Best Order Execution
- Best for Beginners
- Best Spreads on CFD Shares
- Best Trading App
- Best CFD Trading on MT4
- Best Stock Index Futures in the US
- How to Choose a Share CFD Broker?
- Our Methodology
- Meet Our Writers
- FAQ