Trading stock CFDs is popular with experienced, regular traders that have found their rhythm in the financial markets. A contract for difference (CFD) is classed as a derivative, and trading stock CFDs has developed into a popular alternative to spread betting for many. Here we look at five of the best brokers and their apps that can facilitate your stock CFD trading success.
This is our top list with the best Stock CFD Brokers:
Broker:
Stock CFDs:
Features:
Account:
Yes, 500+
(US, EU, UK, AU, Asian Stock CFDs)
- No Minimum Deposit
- Spreads from 0.0 Pips
- 26,000+ Markets
- Leverage up to 1:500
- Low Commission from 2$/1 Lot
- High liquidity and fast execution
- TradingView, MT4/5, cTrader, Invest Account
- New Zealand regulated
Yes, 200+
(US, UK, EU, AU Stock CFDs)
- ECN Accounts
- Spreads from 0.0 Pips
- Copy Trading available
- Leverage up to 1:500
- Low Commission from 1.5$/1 Lot
- High liquidity and fast execution
- TradingView, MT4/5, cTrader, Pro Trader
Yes, 300+
(US, UK, EU, AU Stock CFDs)
- 5x regulated broker
- Spreads from 0.0 Pips
- More than 10,000 markets
- Leverage up to 1:500
- Low Commission from 3$/1 Lot
- High liquidity and fast execution
- TradingView, MT4/5, cTrader, IRRES
Yes, 300+
(US, UK, EU, AU Stock CFDs)
- Different ECN Accounts
- Spreads from 0.0 Pips
- Copy Trading available
- Leverage up to 1:2000
- Low Commission from 6$/1 Lot
- High liquidity and fast execution
- TradingView, MT4/5, cTrader, Pro Trader
Yes, 250+
(US, UK, EU, AU Stock CFDs)
- ECN/STP Accounts
- Spreads from 0.0 Pips
- Leverage up to 1:1000
- Low Commission from 3$/1 Lot
- High liquidity and fast execution
- MT4/5 and Pro Trader
The Best 5 Stock CFD Brokers Compared:
1. BlackBull Markets
Established in New Zealand in 2014, BlackBull Markets is well known by forex traders, but it also and offers stock CFDs in a big way.
A brokerage with a reputation for sleek technology and great customer service, the majority of its offered instruments are stock CFDs.
BlackBull Markets is our top pick for stock CFD traders, because of its extensive asset range, low costs, committed service, and trading platform options.
The broker boasts tight spreads and rapid execution speeds, while also giving you MetaTrader 4/5, cTrader, and TradingView, trading online or through its app.
BlackBull Markets features:
| Feature | Information |
|---|---|
| Free app download | Yes－Android and iOS |
| Key features | Advanced charting tools, multiple account types, more than 26,000 instruments (mostly share CFDs) |
| Minimum deposit | $0 |
| Leverage | Up to 1:500 |
| Spreads from | The BlackBull Prime Account lands at an all-in cost of 0.76 pips, but spreads start from 0.0 pips |
| Commissions | Their Standard Account has no commissions yet higher spreads (starting at 1.0 pips), while the Prime Account runs at $3 per side or $6 round turn per lot |
| Copy trading and algo trading | Yes |
| Trading platforms | TradingView, cTrader, MetaTrader 5, MetaTrader 4, WebTrader, BlackBull CopyTrader, BlackBull Shares, BlackBull Trade, and ZuluTrade |
| Support | 24/7 |
2. Vantage Markets
Many traders favor Vantage Markets for its RAW spread accounts and low commissions, and this is another great broker for stock CFD traders (you’ll enjoy competitive spreads on your favorite instruments).
The Vantage Markets app boasts a highly customizable interface with advanced analytics tools, and the brokerage appeals to both novice and experienced traders with a variety of account types.
The broker backs up its great analytics that enable comprehensive market analysis with fast execution speeds, also facilitating MetaTrader 4 and 5.
Vantage Markets features:
| Feature | Information |
|---|---|
| Free app download | Yes－Android and iOS |
| Key features | Great economic calendar, custom indicators, and CFDs on indices, stocks, commodities, and cryptos (over 140 stock CFDs) |
| Minimum deposit | $50 |
| Leverage | 500:1 |
| Spreads from | Standard Account from 1.0 pips, RAW and Pro accounts 0.0 |
| Commissions | UK & EU share CFDs are 0.1 percentage per lot, or $3 (round turn $6) |
| Copy trading and algo trading | Yes |
| Trading platforms | Metatrader 4 and 5, ProTrader, and TradingView |
| Support | 24/7 |
3. FP Markets
FP Markets offers you a wholesale trading platform with access to a pleasingly wide range of markets.
A prominent name in stock CFD trading, it’s noted for its low spreads and comprehensive selection of assets (it’s seen as a venue of low trading costs and deep liquidity).
Moreover, Vantage Markets facilitates MetaTrader 4/5 traders, while providing you with advanced charting tools (and automated trading options).
FP Markets features:
| Feature | Information |
|---|---|
| Free app download | Yes－Android and iOS |
| Key features | Integrated news feed, risk management tools, advanced order types |
| Minimum deposit | $50 |
| Leverage | Pro Account 500:1 |
| Spreads from | Variable, from around 0.5 pips |
| Commissions | Variable, per trade value or per share ($0.02 per share, with a minimum of $2), or between 0.06% and 0.30% per trade per side |
| Copy trading and algo trading | Yes |
| Trading platform | Metatrader 4/5, cTrader, TradingView, Mobile Trading App, WebTrader |
| Support | 24/7 |
4. RoboForex
RoboForex is recognized for its low spreads and user-friendly trading app, which offers advanced order types and a smooth trading experience.
A strong stock CFD brokerage, it is widely seen as a reliable and accessible trading platform by newcomers and seasoned traders alike.
The broker also stands out for its innovative trading tools and multiple platform offerings, including MetaTrader 4, MetaTrader 5, and cTrader.
This broker provides a diverse range of stock CFDs with attractive leverage, and has good support from traders looking for technological savvy and copy trading features to facilitate their approach to trading.
RoboForex features:
| Feature | Information |
|---|---|
| Free app download | Yes－Android and iOS |
| Key features | Copy trading, algorithmic trading, and VPS support. |
| Minimum deposit | $10 |
| Leverage | 1:2000 |
| Spreads from | Variable spreads on ECN Pro Account from 0.0 pips, Pro-Cent Account also variable spreads from 1.3 pips & no commission |
| Commissions | $0.02 per share with a minimum commission of $2 |
| Copy trading and algo trading | Yes |
| Trading platform | MetaTrader 4/5, cTrader, R StocksTrader, R WebTrader |
| Support | 24/7 |
5. Moneta Markets
Moneta Markets is gaining a reputation for innovative trading tools backed by strong regulation, stock CFDs, and easy access to markets.
The broker’s educational resources are also pronounced, and the platform boasts a user-friendly interface.
With a focus on providing comprehensive educational material that instructs as traders learn the ropes, the brokerage’s app is likely ideal for beginners looking to trade stock CFDs while they’re still acquiring a feel for financial markets.
Moneta Markets also gives you access to the powerful MetaTrader 4 platform, offering the range of analytical tools and charting capabilities many traders prefer.
Moneta Markets features:
| Feature | Information |
|---|---|
| Free app download | Yes－Android and iOS |
| Key features | Educational videos, strong market analysis, trading signals. |
| Minimum deposit | $50 |
| Leverage | Moneta Markets offers leverage up to 1,000:1 on forex pairs and other instruments, but individual stock CFDs get 33:1 leverage maximum |
| Spreads from | You can glean spreads from 0.0 pips on Standard, Prime and ECN CFD accounts using MT4/5 |
| Commissions | Known for fairly high commissions, Moneta Markets’ commissions are based on account currencies and instruments－an AUD base currency account will pay a cheeky $18 when trading UK stock CFDs (per order per side), while the same account holder will pay a more reasonable $6 for AU stock CFDs (per order per side) |
| Copy trading aind algo trading | Yes, they offer Percentage Allocation Management Module (PAMM) accounts & their proprietary CopyTrader App, also ZuluTrade social trading integration |
| Trading platform | MetaTrader 4/5, ProTrader & AppTrader |
| Support | 24/5 |
Important Points We Considered When Choosing The Best Stock CFD Brokers:
Regulation was a prime consideration when choosing stock trading brokers to review, because as we note below, you’re exposed to counterparty risk when trading CFDs, and you should thus only consider reputable, regulated brokers.
All of the listed stock CFD brokers are regulated and aboveboard.
We also factored in considerations like trading instruments on offer, account types, spreads and commissions, and available leverage, to get a bird’s eye view of the whole package.
Proficiency in order execution, slippage concerns, available trading platforms, as well as CFD tools and services (including educational material) contributed to us shortlisting the brokers mentioned here too.
Security of trader’s funds and Support services are also valid considerations, and all of the stock CFD brokers listed in this article handle clients’ money safely, and provide good support.
Taken as a whole, we ranked BlackBull Markets tops, as they’re hard to beat on individual points, and also as a complete trading package.
What Are The Pros And Cons Of Trading Stock CFDs?
Pros:
- Leverage
- Stock access
- Flexibility
- No ownership
- Abundance of market news
- Short selling
Cons:
- Leverage risk
- Complexity
- Volatility
- Risk of overtrading
- Overnight fees
- Counterparty risk.
Pros of trading stock CFDs
One of the biggest benefits to stock CFD trading is that you can access leverage, allowing you to manage larger positions with a much smaller amount of capital, potentially magnifying your profits.
Stock CFD trading exposes you to a huge range of popular and obscure stocks, giving you a great variety of trading opportunities, going long or short.
Trading stock CFDs gives you flexibility in your trading strategies, while also trading on margin, allowing you to hold multiple positions simultaneously that increase your overall market exposure.
Unlike with traditional stock purchases, you won’t take possession of the underlying assets when you’re trading stock CFDs.
Stock CFD traders are spoiled for access to a huge amount of market information and accompanying analysis tools－many see stock CFD trading as technical trading at its best.
You can score when markets rise or fall if you go long or short with stock CFDs.
Cons of trading stock CFDs
While you can employ leverage when trading stock CFDs to amplify your profits, it can also magnify your losses－losses that exceed your initial investment.
Stock CFD trading can be very complex for the inexperienced trader, and you need to grasp the realities of contract details, margin requirements, and rollover costs.
Stock CFD markets can prove highly volatile, with sudden price movements in your favor (great) or against you (not so great)－risk management strategies are paramount to offset the excitement of leveraging your way into bulky trades that can wipe out your trading balance.
Stock CFD trading is by and large accessible and easy to step into, especially when eyeing a leveraged position, but that comes with the risk of emotional overtrading.·
Holding a stock CFD position overnight might incur unforeseen costs (swap or rollover fees).
CFD trades are usually executed via a broker that is acting as the counterparty to the trade, and although it’s a small risk if you choose from the reputable brokers we have listed here, you remain exposed to the credit risk of the brokerage in stock CFD trading.
What Are Fees When Trading Stock CFDs?
Low spreads are a good starting point, but brokers can charge other fees per trade too.
You’ll often encounter no or low commissions, where brokers simply make money on (higher) spreads, but the costs of trading stock CFDs might include a commission, sometimes a financing cost, and then the spread (the difference between the bid (purchase) price and the ask (offer) price at the time of your trade).
While many other instruments come commission-free, brokers will usually charge a commission for stock CFDs.
You’ll see commissions listed as dollar sums or percentages (BlackBull Markets, for example, charges a straight $12 for Apple stock CFD trades).
Since your opening and closing trades are deemed two separate trades, you’ll usually be charged a small commission for both “trades” within a trade.
Financing charges can come into effect with long positions (because overnight positions are deemed investments and you have utilized leverage－borrowed money－to buy the asset).
You’ll typically be charged interest for every day that you hold your position, and although nominal amounts, they need to be factored into your overall profitability for the trade.
Example Of A Stock CFD Trade:
Suppose you fancy buying stock CFDs for the current share price of Company ABC, and you place a $10,000 trade.
The current share price of Company ABC is $47.80, and based on your analysis you expect the share to move to around $51.25, making the bid-offer spread 47.80 – 51.25.
You’ll pay 0.1% commission when opening your position, and another 0.1% when you close it, and if you take a long position, overnight fees are typically the LIBOR interest rate plus 2.5% or thereabouts.
You buy 209 contracts at $47.80 per share, hence your trading position is $9990.20. Let’s say Company ABC’s share price hits your target price of $51.25 in 11 days, meaning the initial value of your trade was $9990.20, and the final value is now $10,711.25.
Your gross profit (before deductions) is:
$10,711.25 – $9990.20 = $721.05
Since your commission was 0.1%, you paid $10 when entering your position. Let’s say interest charges were 7.5% for the duration of your position, payable for each of the days you held your position (209 × $47.80 × 0.075 ÷ 365 = $2.05). As you held your position for 11 days, the total interest charge will be 11 x $2.05 = $22.55. Now you pay another 0.1% commission fee when closing your trade, i.e. $10.
Your net profit is your gross profit minus charges: $721.05 – $10 (opening commission) – $22.55 (total interest) – $10 (closing commission) = $678.50
Important points
- It’s crucial that you factor in anticipated fees before declaring a profit－you need to know your complete cost per trade to be able to determine legitimate profitability.
- Remember that your initial position is reduced by the spread as soon as you open your trading position, and you’ll thus commence trading showing a loss.
- Brokers’ commission on stock CFD trades are variably based on the value of your trade, the number of contracts you entered, or a fixed rate.
- The longer you hold your position, the higher the overnight costs will be, making this a time-sensitive cost to be monitored carefully.
- Also, never forget that when you’re trading stock CFDs, you might be subject to a dividend adjustment, an amount either added to or subtracted from your trading account balance－if you’re long and the company pay s a dividend you might gain a dividend payment, but if you shorted the stock, you can be charged a dividend adjustment.
- Lastly, be clear about any non-trading fees that might apply to you as an account holder with any particular brokerage.
How To Trade Share CFDs Via A Broker
Step-by-step guide to trade stock CFDs at your chosen broker:
- Choose your broker. Select a broker that offers stock CFDs and meets your trading needs.
- Open an account. Complete the registration process and verify your identity.
- Deposit funds. Transfer funds into your trading account using your preferred payment method.
- Download their trading app. Install the broker’s trading app on your mobile device if you plan on mobile trading.
- Analyze the market. Use the app’s tools to research and analyze stocks you are interested in.
- Place a trade. Select the stock CFD you wish to trade, choose your position size, calculate potential costs, and execute the trade.
- Monitor and manage. Track your trade through the app and make adjustments as needed, watching overnight charges carefully.
- Close your trade. Close your position when you achieve your desired profit or to limit losses.
CFD vs Share Trading – What Is The Difference?
Probably the main difference between CFD vs share trading, is that CFDs allow you to go short (which is speculating on the share price going down), whereas with shares you can only go long.
CFDs also come with leverage, magnifying your potential profits (or losses), and give you access to more markets, although obviously stock CFDs are limited by stocks traded.
For intraday and day traders (shorter term), it can be argued that CFDs are a better choice of vehicle, whereas longer term speculation is best served by legacy share trading.
This doesn’t preclude turning a profit day trading stocks and shares, but as a general rule, stock CFDs are the preferred tool of many pro traders, not least because CFDs enjoy a higher liquidity level.
Another principal difference between CFDs and share trading is that with CFDs being leveraged, they come with a heightened risk of quick losses.
CFDs are more complex instruments than elementary share trading, and while a stock price can see-saw and allow you to exit at a high point and recoup losses, leveraged stock CFDs are costing you money daily.
Conclusion
Choosing the right stock CFD broker can impact your trading experience and overall profitability－ contact WR Trading to both learn the ropes, as well as to see what best suits your trading approach.
These top stock CFD brokers—BlackBull Markets, Vantage Markets, FP Markets, RoboForex, and Moneta Markets—offer you robust trading platforms, competitive fees, and strong regulatory oversight.
Personal preference for particular app features, fee comparisons, and an analysis of their available options (as well as educational resources for newcomers) will highlight your best option in the pack. The right trading broker is essential to save costs and ensure quick order execution.
Understanding the pros and cons of trading stock CFDs versus traditional share trading can also aid you in making a well informed choice.
Once again, here is our top list with the best Stock CFD Brokers:
- BlackBull Markets－Known for its competitive spreads, extensive range of assets, and sleek trading tools
- Vantage Markets－Offers low commissions and tight spreads on its RAW account, and a relatively sophisticated app
- FP Markets－Provides a feature-rich trading platform with access to a wide range of markets
- RoboForex－Features low spreads, a user-friendly app that nonetheless has ample sophisticated features for seasoned traders
- Moneta Markets－Combines a smart and intuitive app with innovative trading tools
Frequently Asked Questions on Stock CFDs:
What is a stock CFD?
A stock (or share) CFD is classed as a financial derivative that allows you to speculate on the price movement of a stock without owning the underlying shares. CFDs also allow you to short a falling market (make money when a share price tumbles).
How does leverage work in CFD trading?
Leverage allows you to control a larger position with a smaller amount of personal capital, as you are essentially borrowing money at a nominal daily interest rate from the brokerage. While it can amplify your profits, it also increases the speed and volume of potential losses.
Are Share CFDs suitable for long-term investing?
CFDs are generally more suited for short-term trading and speculation rather than long-term investing, due to their complexity, the leverage involved, and associated risks.
Can I trade on both rising and falling markets with CFDs?
Yes, CFDs allow you to take both long and short positions, allowing you to profit from both rising and falling markets－one of the most attractive features for many traders.
What should I look for in a trading app?
Key features to consider in a trading app include real-time data, charting tools, order execution capabilities, and overall usability, but personal preferences count for a lot, so make sure the app you settle on has the features you need to trade comfortably.
