How to choose a good cfd broker

When you have become enthousiastic about the possibilities that trading cfd's offer, then the next step is important: choosing a good cfd broker. There are big differences between cfd-brokers and once you have signed up with one of them, you are less likely to another cfd-broker. That is why it is important to get wel informed, so that you can make the right choice and start with the broker that right for you.

Important aspects of choosing a cfd broker CFD's

  • Which markets and assets can be traded?
  • What is the maximum leverage?
  • What is the minimum position size?
  • CFD trading platform
  • Regulation
  • spread


Which markets and assets can be traded?

Most cfd brokers offer trading in differentindices (like the S&P500, NASDAQ, DAX, NIKKEI, etc.), commodities (gold, oil, wheat, copper, gas, etc.) and the most important forex pairs (EUR/USD, USD/JPY, etc.). There is a number of brokers that offer trading in individual stocks. Often the biggest, worldwide operating multinationals. When choosing a cfd broker it is good to think about what assets you want to trade and choose your broker accordingly. 

What is the maximum leverage?

There is a big difference in the maximum leverage that cfd brokers offer. Usually leverage lies somewhere between 2 and 30. The highest leverage is often possible on forex-pairs. The lowest leverage on individual stocks.

What is the minimum position size?

For the not so wealthy traders among us, it is important that the minimum position size is as small as possible. Otherwise trading some assets could be impossible for you due to a too small trading capital. Information about minimum position size can be found on the website of the cfd broker.

Trading platform

There are different trading platforms in use with the different cfd brokers. Some are very extensive with a lot of possibilities. These are however somewhat more complicated for a starting inexperienced cfd trader. Others are more basic and easy to use. It is important to choose a platform that matches your knowledge and experience level and anwsers to your wishes. With most cfd brokers you can open a demo account, which is a very good way to try out the trading platform.


It is important to know where and by what institution the cfd broker is being regulated. It is best when the broker is being regulated by a reliable financial authority like the British FSA or the NFA in the USA. That way you have more security that your money is safe with a reliable broker and that you can go somewhere with complaints or conflicts. 


The spread is the difference between the bid and ask price. The cfd-broker defines the spread. This is how the broker makes money. The difference between the bid and ask price is the commission for the broker. Cfd brokers often have different spreads for the different asset categories. For example the spread for individual stocks will usually be higher than the spread on major indices or forex. There are differences between the spreads used by the different cfd brokers. It is worth the effort to compare them, because this is about the cost of trading. Information about spreads can be found on the website of the broker.


It takes time and some effort to find the right cfd-broker. If you don't have the time to check them all out, then we can recommend a few. These are all reliable brokers of high standard, with a proven trackrecord. It are the following brokers: A cfd broker with a very professional tradingplatform. They offer extensive trading possibilities and very good service and support. A very good broker for the more advanced  trader. is being regulated by the British FSA. is a highly regarded broker. They offer a solid trading platform and very competitive spreads. Check out their free demo account or open a real account and give them a try.

eToro : A well known broker from the U.K which is regulated by the British FSA. eToro is, with more than 2 million customers, one of the biggest cfd brokers in the world. And that is for a reason. They are strong in the area of "social trading". They maintain an extensive community of traders, where you can make use of. Amongst other things they offer "copy trading". With copy trading you can copy the best performing traders, direct and automatically in your account. 

eToro is a platform for various assets on which you can invest in stocks and cryptocurrencies. You can also trade CFD's based on assets. Cfd's are complex instruments and, due to the use of leverage, involve a high risk of you losing your money.


75% 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.

Returns achieved in the past, offer no guarantee for the future.

Very volatile, non-regulated investment product. No EU protection for investors.

Plus500 **: Plus500 offers a multilingual, easy to understand, tradingplatform. Most types of cfd's can be traded with Plus500: forex, stocks, stockmarket indices, ETF's, commodities, cryptocurrencies and precious metals.

**Risk warning: 76.4% 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

Plus500UK Ltd authorised & regulated by the FCA (#509909).