Forex Broker Comparison

CFD Broker Comparison 2022

Compare the best CFD brokers. CFDs have been around since the 1990s and are classified as derivatives. Trading CFDs is becoming more and more popular and almost all forex brokers have CFDs in their product range. There are even brokers like Plus500 that only offer CFDs. However, the brokers differ in price and performance. Apart from the spread, there are no fees for CFD trading. There are only the so-called overnight costs if you hold a position overnight. A comparison is worthwhile! CFDs are very popular with speculative investors. A key feature of CFDs is the enormous leverage. It is therefore possible to make relatively high profits with only a small price movement. However, this leverage is also the risk of CFDs. If the price develops in the wrong direction, high losses are possible, in extreme cases even a total loss.

CFD Broker Comparison CFD Broker Comparison
CFDs are complex instruments and come with a high risk of losing money quickly because of leverage. Between 74% and 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.

The best CFD Brokers

CFD Broker CFD Markets Rating to the Broker*
Vantage Votings Forex, Indices, Commodities, Stocks, Cryptos
100% Voting
FP Markets Votings Forex, Indices, Raw Materials, Shares, Cryptos, Bunds
100% Voting
GKFX Votings Forex, Indices, Raw Materials, Shares, Cryptos, Bunds
100% Voting
Plus500 Votings Krypto, Indices, Currency, Raw Materials, Shares, Options, ETF
100% Voting
RoboForex Votings Forex, Shares, Indices
100% Voting
FxPro Votings Forex, Shares, Futures, Spot-Indices, Spot-Metals, Spot-Energies
100% Voting
Libertex Votings Forex-Currency, Shares, Cryptos, Indices, Raw Materials, ETFs
100% Voting Votings Indices, Currencies, Raw Materials, Cryptos, Shares
100% Voting
GBE Brokers Votings Forex, Shares, Cryptos, Raw Materials, Indices, Precious Metals, Energies, Bonds
100% Voting
XM Votings Forex, Shares, Raw Materials, Indices, Precious Metals, Energies
100% Voting
JFD Bank Votings Indices, Shares, Krypto, Raw Materials, ETFS & ETNs
0% Voting
ActivTrades Votings Indices, Currency, Raw Materials, Shares, Bonds, Metals
100% Voting
Admiral Markets Forex, Raw Materials, Indices, US Shares, Bonds, ETFs, Cryptos
100% Voting
AvaTrade Votings Shares, Indices, Raw Materials, Bonds, ETF
100% Voting
Tickmill Votings Forex, Shares, Indices, Metals, Krypto
0% Voting
eToro Votings Currency, Raw Materials, Indices, Shares, Krypto
0% Voting
FXFlat Votings Indices, Shares Raw Materials, Bonds, Cryptos
0% Voting
FXOpen Votings Forex, Indices, Metals, Shares, Krypto
0% Voting
T1Markets Votings Forex, Krypto, Raw Materials, Indices, Shares, Metals
0% Voting
SimpleFX Forex, Krypto, Raw Materials, Cash Indices, Shares, Precious Metals
0% Voting

CFD Trading

CFDs can usually be traded on all Forex instruments (shares, indices, raw materials, cryptos). The price of a CFD always runs parallel to the price of the underlying instrument. You can also go long or short (buy or sell) with CFDs. One advantage of CFDs is that you can move relatively high volumes with little capital investment. All brokers in our comparison offer a demo account to familiarize yourself with CFD trading.

No obligation to make additional payments with CFD brokers

Extreme price fluctuations can occur, especially when trading CFDs on volatile instruments such as Bitcoin. This can result in a loss that exceeds the account balance. Now it would come to the so-called margin call. However, you are basically protected against a negative account development. Before there is a minus, the positions are automatically closed. I.e. In the worst case you suffer a total loss, but it is impossible that you have to pay something back.

Holding Fees and Overnight Funding on CFDs

In addition to the spread, CFDs incur further fees if they are held for more than one day. If you hold a CFD overnight, fees apply per night. Depending on the broker, the holding costs are around 1-2% of the margin. If you only hold a CFD for a few days, the holding fees are negligible. CFDs have no minimum holding period. In our test, we bought CFDs on the DAX. If you hold CFDs longer than 2 weeks, the holding fees are clearly noticeable. We sold our DAX CFDs again after 3 weeks at a profit. The holding fees were so high that there was almost nothing left of the profit. Especially when you start CFD trading, the holding fees or overnight financing are an important factor that is often neglected. CFDs are therefore more suitable for a short-term investment strategy. The longer the term, the more the holding fees weigh and reduce the profit. Another feature of CFDs is the high leverage, which makes high profits possible with small price changes. In combination with the holding fees, it can be concluded that CFD trading is more suitable for the short-term and speculative investor.

CFD leverage

Huge leverage is a key feature of CFDs, which sets them apart from other financial products. Large positions can also be moved with little capital investment. The higher the leverage, the bigger the profit can be. A small change in the price of the underlying is enough to make a profitable profit through leverage. CFDs are ahead particularly suitable for speculative investors. It should be noted that in addition to the possibility of making high profits, there is also the risk of losing your stake quickly. Evolving If the course goes in the wrong direction, it can even happen that the margin is exceeded and the account is debited. Therefore, one should choose the lever as low as possible, when starting CFD trading.

Spread and Margin

As with currency pairs, there is a difference between the purchase price and the selling price (spread). There are fixed and variable spreads. Margin is the security required for each order must be deposited. Depending on the leverage, the margin is only a fraction of the actual volume that you move. The spread is the only fee involved in CFD trading. There is no order fees or other costs. The spread varies from broker to broker. A comparison is worthwhile! There are still a few brokers who charge fees for custody account management. Make sure you find a broker that doesn't charge any additional fees for the deposit.

CFD pricing

The price of a CFD is always parallel to the price of the underlying asset. The difference is that the current price is provided by the broker, who here acts as a market maker acts. With market makers, the price is not generated by a liquidity pool, but the broker generates the price himself. Even if the rate of a CFD is identical to the rate of the initial value, you do not acquire a security or a share. In principle, you only bet on the price development of the underlying asset.

Advantages of CFDs

  • high profits possible through leverage
  • Profits possible with rising and falling prices
  • Many tradable instruments (Shares Indices, Raw Materials, Cryptos, Futures)
  • Low minimum deposit
  • No order fees
  • CFDs are transparent and easy to understand

How to find a good CFD broker ?

Almost all brokers now have CFDs in their program. A comparison of different brokers is definitely worthwhile, as fees and services can differ. A demo account is recommended to open and thoroughly test the broker before starting CFD trading. One difference with CFD brokers is the instruments they offer. Some brokers are even on the Specialized in trading certain instruments (e.g. Cryptos). If you trade with certain instruments or specializes in this, you should clarify beforehand whether this is from the broker at all Tobe offered. Good support should also be a basic requirement. Especially when you start CFD trading, questions can still arise. Customer support should be in German and be available 24/7. A crucial aspect are also the fees of a broker. Deposits and withdrawals should be free. Also for the depot management should not costs arise. Ideally, you will find a broker that does not charge any additional fees apart from the spread. It is also important which trading platforms the broker offers. For CFD trading you don't need a special platform. CFDs can be traded effortlessly with the Metatrader. Some brokers also offer a specially developed platform that has been optimized for CFD trading. You should also find out which authority the broker is regulated by. Regulation by the EU or even a German authority is advisable. As a result, the customer funds secured and even if a broker were to go bankrupt, you preserve your capital. With good regulation, company funds and customer funds must always be kept separate. Take advantage of our votes and votes when choosing a CFD broker and open an account to start CFD trading.
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