Contract for difference, in short CFD, is an agreement that a broker enters into with a trader. According to the agreement, the trader is committed to buying an instrument that mirrors the underlying asset’s price movement from the broker. The broker also outlines the margin requirements for purchasing a CFD at the ask price. Typically, the margin requirements will be lower than the standard margin requirements related to stocks. The trader can, when desired, sell the CFD contract at the bid price. CFDs on stocks, commodities, indexes and other financial instruments are available in the U.S. and other international markets. As the capital investment involved is lower and more leverage is possible, the gains and losses associated with CFD trading often gets magnified. In order to help traders to effectively manage positions, brokers must provide:
Access to global markets
Include CFDs in their comprehensive portfolio reports
Enable stop, limit and other types of orders
Provide round the clock customer service
Make available mobile and e-mail alerts options
Trusted CFDs Trading Brokers in UK Regulated by FCA
| Broker | Info | Bonus | Open Account |
|---|---|---|---|
 | Min Deposit: $5 Spread: From 0.2 Pips Leverage: 1000:1 Regulation: Mwali International Services Authority | 50% Deposit Bonus, Copy trading, Trade&Win. | Visit Broker |
 | Min Deposit: $1 Spread: From 0 Pips Leverage: 2000:1 Regulation: FCA UK, CySEC, FSP, BaFin, CRFIN | 35% of the account Deposit | Visit Broker |
 | Min Deposit: $0 Spread: Starting 0 Pips Leverage: 500:1 Regulation: ASIC, FCA, DFSA, The Financial Commission | Visit Broker | |
 | Min Deposit: $100 Spread: Starting 0 Pips Leverage: 500:1 Regulation: ASIC, CySEC, FSCA, FSA, FSC | Visit Broker | |
 | Min Deposit: $300 Spread: floating, from 0 pips Leverage: 500:1 Regulation: FCA UK reference number 579202 | Visit Broker | |
 | Min Deposit: $200 Spread: Starting 0 Pips Leverage: 500:1 Regulation: ASIC Australia, FCA UK | Visit Broker | |
  | Min Deposit: $100 Spread: Starting 0 Pips Leverage: up to 400:1 Regulation: FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA | Visit Broker | |
 | Min Deposit: no minimum deposit Spread: 1.2 pips Leverage: 50:1 Regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC | Visit Broker | |
 | Min Deposit: $100 Spread: Starting 0 Pips Leverage: up to 500:1 Regulation: FCA UK, ASIC Australia, MAS Singapore | Visit Broker | |
 | Min Deposit: $100 Spread: Starting 0 Pip Leverage: 500:1 Regulation: FCA UK, FSA (Seychelles), CySEC | Visit Broker |
image of FCA.org.uk
The Financial Conduct Authority (FCA) is the authority in the U.K. for regulating the financial services firms that offer services to customers. Regulation by FCA ensures the reliability of the financial marketplace in the UK. FCA, organized as a company limited by warranty, regulates wholesale and retail financial services companies as follows:
The FCA stipulates that the financial services companies operating in the UK have to keep customers’ funds in a separate account in a bank. Further, the bank where the customers’ funds are maintained needs to be approved by the FCA.
Financial services companies cannot treat or use customers’ funds as company’s funds.
Regulated financial services companies operating in the U.K. have to submit financial reports to the FCA and subject themselves to an annual review.
In the event of an FCA regulated online CFD broker going insolvent, the customers that have accounts on the broker’s website are protected by way of the Financial Services Compensation Scheme. Customers of authorized financial services companies receive 100 percent of the first £30,000 and 90 percent of the next £20,000 subject to a limit of £48,000 in total. This way the FCA ensures higher protection to individual traders.
Top Recommended CFD Trading companies Regulated By FCA UK
Having discussed a few details about CFD trading and the regulatory environment in the U.K., here are some of the best online CFD brokers in the UK regulated by FCA:
#1: XM
XM.com, a trade name of Trading Point Holdings Ltd, is owned as well as operated by Trading Point of Financial Instruments Ltd, which is regulated by CySEC. It is also European Union-registered forex broker. XM has its headquarters in Limassol, Cyprus. On XM’s platform, you can trade CFDs on Indices, Commodities, Stocks, Metals and Energies.
Broker Type – DMA/STP, MM
Regulatiion – Cyprus Securities and Exchange Commission (CySEC), Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
Minimum Deposit – $5
Deposit Options – Bank Wire, Neteller, Skrill, WebMoney, Credit Card, WesternUnion, MoneyGram, SOFORT, UnionPay (China), etc.
Maximum Leverage – 888:1
Minimum Lot Size – 0.01
Spreads – Variable
Lowest Spreads for EUR/USD – more than 1
#2: Plus500
The forex trading platform of Plus500, founded in 2008, is provided by Plus500CY Ltd., which is a company based in Cyprus and has its headquarters in Limassol. Plus500 offers CFDs on shares, commodities, indices, forex, etc.
Broker Type – Market Maker
Regulation – Cyprus Securities and Exchange Commission (CySEC), Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
Platforms – Windows Trader, WebTrader
Minimum Deposit – $100
Deposit Options – Bank Wire, PayPal, Credit Card, Skrill, etc.
Maximum Leverage – 50:1
Minimum Lot Size – 0.01
Spreads – Fixed
Lowest Spreads for EUR/USD – 2
#3: ETX Capital
ETX Capital, a financial services company based in the UK, provides institutional, high net worth and retail customers with online platforms for trading forex and derivatives. ETX Capital is the trading name of Monecor (London) Limited. The company offers CFDs on 5,000+ markets – forex, shares, indices, commodities and bonds.
Broker Type – Forex and CFD Broker
Regulation – Financial Conduct Authority (FCA), UK
Platforms – MT4, Marketspulse
Minimum Deposit – $100
Deposit Options – China UnionPay, Giropay, Neteller, Credit Card, Sofort, Wire Transfer, Skrill
Maximum Leverage – 400:1
Minimum Lot Size – 0.01
Spreads – Fixed
Lowest Spreads for EUR/USD – 0.7
#4: eToro
eToro, an online forex broker, offers trading in currencies, indices, commodities and CFD stocks. More than 4.5 million users from over 170 countries around the world make use of the online forex broker’s website. Founded in 2006 in Tel Aviv, the multi-asset brokerage company has registered offices in Israel, the United Kingdom and Cyprus. One of the key features of eToro is the social investment platform with Copy-Trading feature that it offers. On their platform you can trade and invest in Stocks, Indices, Commodities and Currencies CFDs.
Broker Type – Market Maker
Regulation – Cyprus Securities and Exchange Commission (CySEC), Markets in Financial Instruments Directive (MiFID), Commodity Futures Trading Commission (CFTC), Financial Conduit Authority (FCA), National Futures Association (NFA), Australian Securities and Investments Commission (ASIC)
Platforms – eToro OpenBook, eToro WebTrader, eToro Mobile Trader
Minimum Deposit – $50
Deposit Options – Bank Wire Transfer, Credit/Debit Card, Skrill, Moneygram, PayPal, Neteller, Webmoney, Western Union
Maximum Leverage – 400:1
Minimum Lot Size – 0.01
Spreads – Fixed
Lowest Spreads for EUR/USD – 3
#5: Tickmill
Tickmill, owned by Tickmill Limited and operated by Tmill UK Limited and Tickmill Ltd., which is a company registered in England and Wales. Tickmill has principal and registered offices in London and Seychelles. Tickmill is under the regulatory control of both Financial operates Conduct Authority in the UK and Financial Services Authority of Seychelles. The forex broker enables you to trade crude oil and international stock indices CFDs on the MT4 platform.
Broker Type – STP/ECN/NDD/DMA
Regulation – Financial Conduct Authority (FCA), UK and Financial Services Authority (FSA), Seychelles
Platforms – Web Platform, MetaTrader 4, Mobile Platform
Minimum Deposit – $25
Deposit Options – Wire Transfer, Credit/Debit Card, WebMoney, UnionPay, Skrill, Neteller, FasaPay
Maximum Leverage – 500:1
Minimum Lot Size – 0.01
Spreads – Variable
Lowest Spreads for EUR/USD – Starts from 0.0
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