Category: CFD Trading

Selection of Top CFD Brokers in The UK.

You don’t have to sit at home on your computer anymore to trade the financial markets. Almost all brokers now have a mobile trading app for iPhone and Android devices, allowing you trading of CFDs from the palm of your hand whenever and wherever you want.

 Nothing But most UK CFD providers are listed on this page

What is the finest trading platform in the UK for beginners? If you’re new to the UK trading platform market, it’s better to start with a beginner-friendly service like eToro. Not only is the website simple to use, but you may enter trades for as little as $25. Furthermore, eToro provides a demo account that allows you to trade risk-free.

Maintain your integrity. “Honest communication is built on truth and honesty, as well as respect for one another,” a wise man once stated. We have created our company on the fundamental premise of being open, transparent, honest, and fair to our clients and partners and bringing genuine value to our end-users, workers, partners, and the communities in which we work and live. Hire the best people possible. How can we create the most effective products and services? It’s actually relatively simple: start by assembling the best team possible. Hire the brightest minds, challenge and reward them, and allow them to reach their full potential.

As a result, you may take advantage of industry-leading quotes. Furthermore, while Libertex charges a commission on either side of the trade, it is frequently relatively little. Indeed, commissions at UK virtual trading platforms are frequently less than 0.1 percent for every order.

Although Pepperstone does not have its own platform, it is compatible with cTrader, MT4, and MT5. cTrader is a beginner-friendly platform, whereas MT4 and MT5 are filled with extensive trading capabilities geared for professional traders.

When you first start trading with IG, you’ll see that their CFD interface is quite user-friendly and even slightly customizable. If you wish to perform more consistently at CFD trading, many educational materials are available, and searching your CFD catalog is quick and straightforward. IG’s inventory of alternative trading choices is somewhat limited due to their CFD specialization.

When trading CFDs, how significant is CFD spread width? Because you must sell at the lower bid price and buy at the higher offer price, the closer the two prices are, the less the market must move in your favor before you can profit. When scalping the market and attempting to make a large number of small, lucrative trades, the tightness of a spread might mean the difference between success and failure. Essentially, narrower spreads indicate faster possible earnings, whereas larger spreads indicate bigger price swings required to generate a profit.

Because of margin dangers, it is also relatively easy to “overexpose yourself” when trading CFDs. Having many open positions on CFD transactions with minimal margins, for example, might pile up over time. You may unknowingly take on a lot of leverage, which might be fatal if your transactions don’t go as planned.

IG is one of the world’s largest CFD trading groups. They were founded in 1974 and have grown to become a household name in the trading industry, with an extensive trading product catalog and competitive rates. It is one of the highest-quality CFD trading platforms available, with a top-tier platform and interface and jurisdiction in most nations (six tier-1 in total).

Best for sophisticated trading and research tools, CMC Markets has been recognized for providing the most ideal trading conditions. It has 9,400 global shares, with commissions beginning at 0.10 percent each share. Although there is no minimum deposit, the trader must have funds available to buy and share. The educational materials are suitable, and customer care is available by phone, email, and live chat at a decent speed. CMC Markets is a publicly-traded company with negative balance protection. While it lacks a banking license, it is governed by the top-tier FCA. Unfortunately, while forex commissions are modest, stock CFD commissions are substantial.

What Is Leverage And How Is It Used In Trade?

 What Is Leverage And How Is It Used In Trade? 

A key feature of CFD trading is leverage, a powerful tool that also goes by the English name leverage. 

Leverage offers traders to take advantage of relatively small price changes, greater flexibility and extend your exposure. It is therefore hardly surprising that the leverage and its effect have made CFD trading so popular.

Simply put, leverage is the tool with which your initial investment in a CFD gets more significant exposure in the same asset. The result is a leverage effect, which implies that CFDs increase the potential profit.

Let’s take a look at an example to concretize the leverage in CFD trading for an underlying asset where the collateral requirement/margin is 5%.In other words, traders are required to invest a minimum of 5% of the amount they wish to trade with.

We are going to examine what the corresponding trade would look like if an ordinary broker executed it.

Ordinary stock trading with the stock ZX

You want to buy 1000 shares in the company ZX which costs 250 USD. Your total investment is, therefore, USD 250,000, i.e. USD 250 x 1,000 shares.

Ready to start trading CFDs? 

We recommend the following CFD brokers for trading :

XM – Full-service brokers with low fees – 

CFD trading with the share ZX

If you instead choose to trade CFDs for the same share, it would be equivalent to you buying 1000 CFD contracts for the same company stock in the belief that the value will rise. But the advantage of CFDs is that you can use leverage to get the same exposure but with a smaller investment. In this case, it is a 5% security requirement or margin, which is equivalent to USD 12,500 that you need to invest for you to be able to trade with 1000 CFDs for the stock ZX.

The calculation is as follows:

USD 250 per CFD for share ZX = 1000 x 250 = USD 250,000

5% of USD 250,000 = USD 12,500

This means that if you choose to purchase CFDs for ZX, an investment of USD 12,500 is enough to buy 1000 contracts. Compare this with buying the share from an ordinary stockbroker and then having to invest as much as USD 250,000 to be able to buy the same number of the same share.

We hope our leverage article has given you the information you need. The next natural step is to check in with one of the CFD brokers we can recommend to take part in some of their training materials to read more about how to trade with leverage:

Virus cases rise in the U.S., causing stocks to fall from record heights.


The U.S. stock market declined last week, as the negotiations over a new Covid-19 relief package ran into a setback.
Wall Street’s major indices finished mixed on Friday. The Dow Jones Industrial Average gained 0.2%, while the S&P 500 Index declined by 0.1%, and the Nasdaq Composite Index ended 0.2% lower. For the week, the Dow fell 0.6%, the S&P 500 dropped 1%, and the Nasdaq finished 0.7% lower.
The CBOE VIX Volatility Index, commonly known as the VIX, rose 3.5% on Friday to settle at 23.31 on a scale of 1-100 where 20 represents the historical average. For the week, the so-called “fear index” rose 12.1%.

Live4 Trading provides VIX CFD Brokers list.

Setting up a CFD Trading Demo Account

Before choosing a CFD provider, you should take a free demo trading account test drive. Setting up a CFD Trading demo account is a straightforward task. You have to fill a standard registration form; with necessary personal information such as telephone number, email address, username, and password, and then get started.
When you register a demo account, you’ll be given direct access to a demo trading platform, together with a pre-set balance of- virtual funds’ to practice. The purpose is to simulate actual trading experience as closely as possible so that you can get experience, training, and knowledge of the platform’s features, markets behavior and evaluate your trading skills. The key difference is you won’t be investing real money, so you can examine and test risk-free. However, demo trading is not limited to novices. Seasoned traders often use demo accounts to test new tools or strategies, a safe bet since they won’t cause any actual losses.
When real money’s at stake, executing a new trade and closing an existing one will seem a lot more daunting. And it would be best if you secured against the false sense of certainty that the risk-free demo trading environment provides.

Testing a few different providers by opening a free demo CFD account would help you choose a CFD broker.