Trading is risky business, but if done right, it can be an amazing source of income. We know conventional trading routes, like Forex trading, are straightforward. But you can also make money from trading without actually buying and selling assets. CFD trading is a more flexible way of trading and offers a broader range of markets. It’s a suitable trading business for those looking for diversity across different asset classes.
[lwptoc]CFD trading is also a high-risk business. So, in order to really make the most out of it, you need the right tools. That’s why in this blog post, I’m going to introduce the best CFD trading platforms, and really break down the business for you!
What Are CFDs?
Ever wanted to bet on the price of an asset, for example, a stock instead of buying the asset itself? This is an example of Contract for Difference (CFD) trading. CFDs allow traders to monitor and bet on the price movements of assets without actually owning the asset—be it in the Forex, cryptocurrency, or stock market.
When you feel like an asset’s price will increase, you bet on it. If the price actually goes up, you earn money based on how high the price goes and vice versa; if the price goes down, you lose money based on the decrease. CFD traders never own the asset, but rather bet on the price movement.
[rh-cta-forex type=”2″]CFD vs. Forex vs. Crypto Trading — How Do They Differ?
Each trading market has its own advantages and disadvantages. I know CFD trading might be a bit confusing in the beginning. So, let’s thoroughly compare the different trading markets for you to better understand CFD trading.
Market Scope
When comparing the market scope, CFD trading offers flexibility and variety. While Forex trading is limited to currency pairs and crypto trading focuses on digital currencies, CFD trading offers access to a wide range of assets, including stocks, commodities, indices, and cryptocurrencies.
Trading Hours
If we compare the trading hours of the three markets, they are not that different. The Forex market operates 24 hours, 5 days a week. The crypto market is available 24/7, and CFDs depend on the asset you choose, often offering extended time periods or 24/7 time frames for certain assets.
Volatility
Assets in any market do not change prices at the same speed. The speed of price changes in trading markets is called volatility. And in terms of volatility, Forex is usually experiencing moderate volatility since it depends on economic events and geographic factors. Cryptocurrencies are known for high volatility with significant price swings, especially Bitcoin. CFDs however are much more flexible. You can choose assets based on the volatility rates you prefer, for example, large-cap stocks for low volatility and commodities for high volatility.
Leverage
Just like trading hours, leverage is also practically similar in all three markets. The Forex market usually offers a high leverage availability. In the crypto market, high leverage is often available, depending on the platform and regulatory environment. CFDs also typically offer high leverage availability based on the asset and CFD broker that you choose.
Regulation
Regulation is one of the most important aspects of trading that makes the market safe for traders. The Forex market is well-regulated globally. The crypto market is less regulated which leads to higher risks of fraud and security issues. But the CFD market is heavily regulated in most countries for investor protection.
[irp posts=”22617″]Let’s have an overview of our comparison:
| Category | CFD Trading | Forex Trading | Crypto Trading |
| Market Scope | Wide variety (stocks, commodities, indices) | Currency pairs only | Digital currencies only |
| Trading Hours | Market-dependent, often extended hours | 24/5 | 24/7 |
| Volatility | Varies by asset | Moderate volatility | High volatility |
| Leverage | Typically high, varies by asset and broker | High leverage available | Varies, often high, but depends on the platform |
| Regulation | Highly regulated in many jurisdictions | Well-regulated globally | Less regulated, varies by country |
5 Best CFD Trading Platforms
In order to successfully trade in the high-risk CFD markets, you need a solid CFD trading platform. CFD trading platforms are the software or technology used to execute traders. These platforms offer the interface traders need to interact with their chosen market. Some of the features of a CFD trading platform are charting tools, order types, automated trading, and analysis.
Now, you know what these platforms are and what they offer. The question is, which one is the best CFD trading platform? To answer that question, I gathered a list of the best CFD trading platforms you can choose from!
1. IG Trading Platform
IG is one of the best CFD trading platforms trusted by more than 313,000 CFD traders. The award-winning platform offers a comprehensive range of markets. IG also has an intuitive, user-friendly interface with robust features such as research tools, advanced charting and analysis tools, and risk management features. Because of its user-friendliness, IG is the best CFD trading platform for beginners. But, overall, both beginner and advanced CFD traders can take advantage of the feature-rich CFD trading platform.
2. Plus 500
Another best CFD trading platform is Plus 500, known for the extensive range of CFDs they offer across different asset classes. Its intuitive and easy to use and offers features like real-time quotes, advanced risk management tools, and multi-asset trading from one account. Plus 500 in the best CFD trading platform for traders who need a simple but efficient platform they can use for a wide range of CFD markets.
3. cTrader
cTrader, is another top CFD trading platform which is also popularly used by Forex traders. It’s a great platform for CFD trading with high execution speed. cTrader offers advanced trading capabilities and features, including market analysis tools, DOM (Depth of Market) feature, and custom indicator creation. cTrader is the best CFD trading platform for traders who value high performance.
4. SaxoTraderGO
Another award-winning platform, SaxoTraderGo is number 4 on our best CFD trading platforms list. Like Plus 500, SaxoTraderGo focuses on offering a comprehensive range of CFDs. It offers an intuitive interface with features like detailed charting tools, integrated news and research tools, and a seamless multi-device access. SaxoTraderGo is the best CFD trading platform for traders needing a professional-grade platform with access to extensive market data and research.
5. ThinkTrader
Formerly known as Trade Interceptor, ThinkTrader is the last CFD trading platform introduced in our list. It’s a multi-broker platform in the CFD market that offers advanced charting tools and is surprisingly mobile-friendly. Some other features ThinkTrader offers are technical analysis tools, cloud-based alerts, detailed market analysis, and multi-timeframe analysis. ThinkTrader can be the best CFD trading platform for traders who need a functional and powerful mobile trading platform.
[irp posts=”24421″]What Are CFD Brokers?
Another factor you need to consider if you want to successfully trade CFDs is choosing the right CDF broker, but, what exactly is a CFD broker?
CFD brokers are actually financial institutions or firms. These firms facilitate the buying and selling of CFDs for their clients—brokers like you. Anyone can work with CFD brokers, but they are perfect for beginner traders with less experience or traders who cannot invest dedicated time to trading. CFD brokers act as the middle man between traders and markets. Some of the most highly noted services CFD brokers offer are:
- Account management: CFD brokers will open and manage trading accounts for traders.
- Trade Execution: They will carry out orders (buy and sell) on behalf of traders.
- Leverage and Margin: CFD traders offer leverage to allow traders to control larger positions with a smaller investment.
- Regulation: Probably the most important factor of working with CFD brokers is that they ensure compliance with financial regulations and provide a secure trading environment.
Best Brokers for CFD Trading
There are numerous brokers offering CFD trading services. I did a little digging and found the top 3 best CFD brokers of 2024 based on financial experts suggestions. Check out the list below to find the best CFD broker for your trading business!
1. Vantage
Vantage is one of the best brokers for CFD trading, headquartered in Australia, but not limiting services to Australians only. Vantage offers CFDs on Forex, commodities, indices, shares, and cryptocurrencies. In terms of security, Vantage is regulated by ASIC, making it a safe CFD broker for traders.
2. IronFX
IronFX is one of the best brokers for CFD trading and Forex. It offers traders a wide range of useful trading features, tools, and account types. IronFX is regulated with CySEC and FCA. THe CFD broker offers CFDs on Forex, metals, indices, commodities, futures, and shares. IronFX also offers multiple deposit and withdrawal options and seven accounts to choose from.
3. IC Markets
Just like IronFX, IC markets is also one of the best CFD brokers and Forex brokers. With a focus on CFDs, they offer CFD trading opportunities with Forex, index, commodities, bonds, stocks, and cryptocurrencies. IC Markets is also regulated by CySEC and ASIC. They also offers 15 different funding and withdrawal methods, including bank wire and digital wallets.
Let’s now compare top 3 CFD brokers based on important factors in choosing the right broker:
| CFD Broker | Min Deposit | Fees | CFD Trading Platforms | Spreads |
| Vantage | $50 | Low | MetaTrader 4/5, ProTrader, Vantage App | EUR/USD from 1.2 pips, Dax 40 from 0.05 pip |
| IronFX | $0 | Medium | MetaTrader 4, IronFX Web Trader, IronFX Mobile App | EUR/USD from 0.9 pip, Dax 30 from 4.5 pips |
| IC Markets | $200 | Low | MetaTrader 4/5, cTrader, IC Social | EUR/USD from 0.6 pip, Dax 40 from 0.5 pip |
Best CFD Trading Platforms — A Conclusion
CFD trading is a great way of earning money with trading if you do not have the initial budget to buy assets. Since CFDs are high-risk to deal with, you need the best CFD trading platform and CFD broker to lower the risk of money loss as much as possible. Bear in mind that traders also need a robust computer system so they can stay live when dealing with multiple markets. An affordable and seamless way to do so is by getting a VPS. At Cloudzy, we offer virtual private servers that act as your computer which you can install CFD trading platforms on without worrying about hardware expenses and downtime. We also offer virtual servers in 15+ global locations; you can trade anywhere in the world without worrying about latency!
[rh-cta-buy type=”2″]FAQ
Is CFD trading good for beginners?
CFD trading is a great way of learning necessary trading skills for beginners. It is also an affordable trading business since you are not investing in any assets. So, yes, CFD trading is a great introduction to trading.
Can CFD trading be profitable?
While it is obviously not a way to get rich overnight, CFD trading can be very profitable. Since CFDs are leveraged, you can make considerable amounts of money by betting on asset price movements. Just ensure you use the right tools and resources to minimize the risks of profit loss.
What are the best CFD trading platforms?
Based on the research done on dozens of trading platforms, below are the best CFD trading platforms:
- IG Trading Platform
- Plus 500
- cTrader
- SaxoTraderGo
- ThinkTrader
