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The United Kingdom has the 6th largest economy in the world, and its capital, the megacity of London, is the center of trade and investment in digital assets in Europe. More intriguing is that UK citizens are the most prominent CFD and forex traders, with the number of investors nearly doubled in the last two years. Upon looking at this data, British traders have unique trading needs and should find a broker that meets them. If you are based in the UK and looking for the best deals on CFDs, in our broker review, we will present to you the top CFD brokers in the UK for 2023.
- 1 Introduction to CFD Trading
- 2 Advantages of Using a Regulated CFD Broker in the UK
- 3 Overview of the Best 3 CFD Brokers – Our Top Picks for the UK for 2023
- 4 Key Features to consider when choosing the best CFD broker in the UK:
- 5 Comparison Between the Best CFD Brokers in the United Kingdom for 2023:
- 6 Best UK CFD Broker for 2023 – Our Conclusion
- 7 FAQ:
Introduction to CFD Trading
CFDs, also known as contracts for difference, are financial derivatives with high levels of leverage and speculative nature. When trading CFDs, a contract is created between the trader and, most commonly, an investment bank, and the person who is trading speculate on the price movement of an asset. These traders are executed with the help of an online CFD platform, in which investors get access to various features and asset types.
Advantages of Using a Regulated CFD Broker in the UK
Choosing the best forex and CFD broker in the United Kingdom is essential because of the numerous advantages of making the right pick. The safety of a user’s data and funds should be a top priority when vetting CFD brokers. Additionally, having access to reliable technology, instruments and resources is a perk that will get your trading to the next level.
Overview of the Best 3 CFD Brokers – Our Top Picks for the UK for 2023
This section of our article will closely review the best CFD brokers in the UK, examining key factors like account types, supported assets, trading tools, fees and charges, and more. Ultimately, we will give our honest rating for each platform in our CFD broker list. Browse the best UK brokers and pick the best one based on your trading needs and goals.
AvaTrade – Online CFD Broker with Endless Opportunities and Established Regulatory Standards
Founded in 2006 in Dublin, AvaTrade is one of the best CFD brokers in the UK, which has the goal to empower people to trade with confidence in an innovative and reliable environment. AvaTrade values integrity and fairness, ongoing self-improvement, and constant innovation, reflected in its highest quality of services and trading platforms. The online broker provides a seamless trading experience on CFDs on popular instruments like forex, stocks, commodities, cryptocurrencies, indices, and options. Traders can choose from five unique account types, including an Islamic account and a completely free demo trial.
In addition to the above-mentioned features,, AvaTrade CFD broker has the widest variety of tools and platforms in the industry, with the most popular ones being MT4, MT5, and WebTrader. Even though Ava already covers the best possible trading platforms on the market, the company has created innovative in-house platforms: AvaTradeGo, AvaOptions, and AvaSocial. AvaTraderGo is a reliable tool for mobile trading on forex and CFDs, and with AvaSocial, traders can interact with each other and get valuable insights. Lastly, AvaOptions allows impressive FX and options trading at competitive prices.
Claiming to be one of the most secure brokers in the industry is a bold statement; however, AvaTrade has evidence to back up its claim. Being regulated across nine jurisdictions and six continents by central financial authorities like the CySEC, ISA, and CBI, this online trading platform looks like a safe pick. Additionally, numbers speak for themselves, and with over 145,000 registered partners and more than 7000 positive client reviews, AvaTrade also supports CFD trading.
With its selection of trading platforms and safety features, our overall rating for AvaTrade CFD broker is 4.8/5. Their official website states that 76% of retail investor accounts lose money when trading CFDs with this provider, which is a surprising number and one of the lowest in the industry!
- Regulated by Reputable Authorities
- Wide Range of CFDs
- Competitive Spreads and Low Fees
- Supports MetaTrader Platforms
- Extensive Educational Resources
- Excellent Customer Support
- Negative Balance Protection
- Limited Proprietary Trading Tools
- Inactivity Fee
In conclusion, AvaTrade is a compelling choice for UK-based CFD traders in 2023 due to its regulation by reputable authorities, wide range of CFD offerings, competitive spreads, low fees, support for MetaTrader platforms, extensive educational resources, multi-lingual customer support, and negative balance protection. However, UK traders should consider the limited proprietary trading tools and potential inactivity fees when making their decision. Overall, AvaTrade is a reliable and secure option for UK CFD traders seeking a diverse range of investment opportunities and a solid trading platform.
If having access to global CFD markets, innovative trading platforms, and extensive educational materials in a single unified platform is what you are looking for, then look no further than Interactive Brokers. This trading platform is trusted globally by more than 33 countries because of its transparency and the lowest trading costs in the industry. With more than six account types and low fees on trading on CFD Shares, Index, Metals, and Forex, IBKR is an excellent place for every trader.
Interactive Brokers’ trading platforms offer a wide-range of tools to execute CFD trades. The CFD broker offers six tools: IBKR GlobalTrader, Client Portal, IBKR Mobile, Trader Workstation, IBKR APIs, and IMPACT. Each of these tools is separated into three experience levels: beginner, intermediate and advanced, and depending on the platform, traders can use them on desktop, mobile, or their web versions.
What is outstanding about this CFD broker is that it supports advanced traders with powerful trading platforms but also aims to integrate and educate new traders by offering on-demand learning resources. On IBKR’s campus, you will find six channels: Traders’Academy, IBKR Webinars, TradersInsights, IBKRPodcasts, IBKRQuant, and StudentTradingLab. This online CFD trading platform has everything from extensive courses, webinars, and trending market topics to interviews and valuable insights. Even the most experienced traders should take advantage of IB KR’s learning resources, which will help them stay ahead and perfect their CFD trading skills.
In terms of overall rating, a solid 4.5/5 is fair for a reputable online trading platform like Interactive Brokers. With just 69.4% of retail accounts ending up on a loss when trading with this provider, IBKR’s platform is without a doubt one of the best places for trading CFDs.
- Low Commissions
- Wide Range of Investment Products
- Advanced Trading Platform
- Robust Educational Resources
- Strong Customer Support
- Account Security
- Complex Interface
- Inactivity Fees
In conclusion, Interactive Brokers is an excellent choice for UK-based CFD traders in 2023 due to its regulation by the FCA, extensive range of CFD offerings, competitive pricing, advanced trading platforms, comprehensive research and market data, strong customer support, and access to global markets. However, UK traders should consider the steep learning curve associated with the TWS platform and potential inactivity fees when making their decision. Overall, Interactive Brokers is a reliable and secure option for UK CFD traders seeking a robust trading platform and a diverse range of investment opportunities.
London Capital Group (LCG) – Leading CFD Provider that has Build a Reputation in the UK
The third company in our CFD broker list is LCG, short for London Capital Group, a leading CFD provider based in London, the heart of the United Kingdom. This online broker has offered trading services for more than 20 years, which has resulted in over $20 trillion in executed volume. The reputable trading platform allows traders to invest in 7000 instruments across nine asset types, including CFDs on forex, shares, indices, spot metals, futures, bonds, options, and ETFs. LCG CFD broker offers four different types of accounts – Standard, ECN, Corporate and Islamic, which will serve all your trading needs.
Regarding trading tools, London Capital Group keeps everything simple by offering two reliable trading platforms, their in-house platform LCG Trader and the popular MetaTrader4. Both these innovative multi-asset platforms are beginner friendly but also provide access to advanced trading tools that experienced traders will find more than beneficial. Some of the perks you will get from LCG Trader are valuable market insights and data, charts, news, and analysis, which will help you incorporate winning strategies in your CFD trading. The trading platform is also available on the web, desktop, and mobile devices, a convenient feature that allows you to trade on the move.
The online broker offers support through various customer service channels, a diverse range of education and trading resources, and extra layers of protection by being one of the safest CFD trading platforms. These key factors contribute to an overall score of 4.6/5 for this experienced online broker. Additionally, on their official website, London Capital Group states that 70% of retail investor accounts lose money when trading CFDs with this provider, which is a low percentage compared to the industry’s average of 80%.
- Wide Range of Tradable Instruments
- Advanced Trading Platforms
- Competitive Pricing and Spreads
- Regulation and Safety
- Robust Educational Resources and Market Analysis
- Multiple Account Types
- No Minimum Deposit:
- Limited Customer Support:
- Inactivity Fee
In conclusion, London Capital Group (LCG) is a solid choice for UK-based CFD traders in 2023 due to its FCA regulation, competitive spreads and low fees, wide range of CFD offerings, user-friendly trading platforms, educational resources, multiple account types, and no minimum deposit requirement. However, UK traders should consider the limited customer support hours and potential inactivity fees when making their decision. Overall, LCG is a reliable and secure option for UK CFD traders seeking a diverse range of investment opportunities and an accessible trading platform.
Key Features to consider when choosing the best CFD broker in the UK:
For a CFD broker to be selected for our list, the platform needs to meet several criteria, which are determinants for prosperous trading, ease of use, and overall positive customer experience. Below are the fundamental features traders must look for when choosing the right online trading broker to invest in.
Diversification is the best risk-management tool, and having the option to pick from various account types gives you just that. For example, standard accounts are a great entry point for most traders, VIP accounts provide enhanced trading conditions and services, and demo accounts help you test out the forex and CFD brokers without risking real money.
Supported Assets and Investment Options
The CFD market is considered highly volatile, so having the ability to choose from different asset classes and instruments is beneficial for diversification and risk management. Having many investment options means you can adapt based on current and future market conditions.
Offering different trading tools with many innovative features is good, but adding customization elements to these tools makes them great. Every trader has different strategies and preferences and might find personalizing their dashboard helpful.
The main goal of CFD brokers is to attract and retain customers, and a good trading interface makes trading pleasant and efficient, so traders will prefer to stay with this broker and maintain their accounts. If you are a new trader, picking a platform with a convenient interface will make using complicated tools much more manageable.
Fees & Charges
Traders constantly browse the latest deals to find the CFD broker with the best fees, as they are crucial to cost-effective trading. Small percentages matter once you start making bigger investments and, in the long term, will reflect your earnings and loss reports.
Staying up-to-date with market movements and price fluctuation can only be possible if the online CFD broker you have chosen provides real-time access to market data directly from their mobile app. Having access to such information may improve your trading decisions significantly and help you win more or lose less.
Online trading platforms have the highest security standards; however, technical issues may appear, and the customer service team is the first line of support. People panic once a problem occurs when finances are involved, so knowing that you can get assistance anytime is an appreciated feature.
Comparison Between the Best CFD Brokers in the United Kingdom for 2023:
If you are still trying to decide which online CFD broker UK you should choose, this article’s Pros & Cons section will undoubtedly help with your pick. In the table below, we compare the strengths and weaknesses of each platform in our CFD broker list so that you can make the most informed choice based on your trading needs.
|Variety of Supported InstrumentsUseful Trading Tools and MaterialsPersonal AccountsCompetitive Fees and Charges
|High Inactivity FeeCustomer Support May Take Time to Respond
|Low Industry CostsAccess to Global Markets and InstrumentsFree Trading ToolsGreat Education Resources
|Complicated Registration ProcessDeposit and Withdrawal Methods are Scarce
|London Capital Group (LCG)
|Wide Range of Instruments and Asset ClassesWord-Class Trading PlatformsTrusted and Regulated UK BrokerExpert Knowledge of Materials
|Inactivity and Deposit Fees may ApplyOutdated Trading Interface
How to Register for a Regulated CFD Broker in the UK– A Step-by-step Guide for Beginners:
When you are trading on the CFD market, the last thing you want to deal with is a prolonged registration process. That is why the best CFD brokers in the UK have simplified the process to make it less time-consuming than ever. Follow the steps below to register for a regulated British CFD Broker in no time:
Step 1: Register for an Account
Firstly, to open a CFD broker account, you will be asked to provide your personal information, such as your full name, address, contact information, and email address. Additionally, you will need to come up with a secure username and password and verify your profile by sending the required documents.
Step 2: Fund your Account
Now that you have a verified account for the online trading platform of your choice, you should make your first deposit, following the CFD broker’s policies and minimum deposit requirements. You can pick from safe payment methods, including bank transfers, credit/debit cards, and popular e-wallets like Skrill and ePay.
Step 3: Start Trading
Once everything is set up and your account is funded, you can start trading, but first, it may be a good idea to get familiar with the trading platform and learning resources. Browse the different CFD instruments and make the most informed investment decision without forgetting the risk factor involved.
Best UK CFD Broker for 2023 – Our Conclusion
To conclude our review, the best CFD broker UK is one that provides a seamless trading experience with the help of perfect features like tools, platforms, account types, and a variety of supported assets. Picking a company from our CFD broker list guarantees that you will get the most out of your investments on the market securely and efficiently. Overall, traders from the United Kingdom have the opportunity to trade in the most competitive market, having access to online trading platforms with the best possible deals. The highly volatile nature of CFDs should not be omitted, and always keep in mind that more than 80% of traders lose money when trading with this exciting but risky financial instrument.
Unlike the US, CFD trading is not prohibited in the UK and is completely legal. However, the regulatory authority for financial trades of England (FCA) warns people about the risk of CFDs by publishing guidelines that must be followed.
Numerous companies are great for trading contracts for differences in the United Kingdom, and each offers fantastic perks and benefits. Our review shows that AvaTrade, Interactive Broker, and London Capital Group (LCG) are excellent CFD brokers with competitive fees and high-quality services.
The Financial Conduct Authority (FCA) is England’s primary financial regulatory authority. When choosing a CFD broker for your needs, make sure that the platform is regulated by significant authorities, like the Securities & Exchange Commission and the Cyprus Securities and Exchange Commission (CySEC).
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