5 best CFD brokers with low spreads
CFD, or Contract For Differences, has become very popular since the pandemic happened. Ever since the spread of COVID-19, the market has been turbulent for the most part. However, CFDs allow people to profit both when prices are on the rise and when they are declining. CFDs also will enable you to earn from assets that you did not precisely own in the first place.
There are many advantages to using CFDs which you’ll find out more about in our FAQ section. However, trading through CFDs requires that the trader (in this case you) pay the spread. That is why we’ve put together a shortlist of our five best CFD Brokers with low to no spread. Through them, you can reap all the rewards of CFD trading with little to no consequence on the spreads and profits you attain.
Choosing the best:
As always, the best broker for you is what most matches your preferred trading experience. There are several things to watch out for with CFD trading in particular: the real-time data and research, the leverage risks involved, and the overall reputation of the broker. While CFD is getting more common, it’s still an offshoot from your regular Forex trading and isn’t exactly for the faint of heart.
To discover which broker will be perfect for you, let’s dive into our top five.
5 Best CFD Brokers With Low/No Spread:
- XTB – Specialized in Forex and CFD
- XM – Lowest spreads on the market
- RoboForex – Highest maximum leverage
- BDSwiss – Most secure and convenient
- IC Markets – Best in customizable platform
If you’ve been browsing the internet for broker reviews, you’ve probably already heard about XTB. They are a popular and trusted broker that has kept their decade-long reputation high. Without a doubt, XTB comes highly recommended by experienced investors and us.
Regulated in five countries including Cyprus and the UK, XTB is also registered with the Warsaw Stock Exchange, which requires that their financials are disclosed. They also offer protection against negative balances. Thanks to this, security and trust levels are high.
Some great things about XTB are their low fees. Otherwise, they wouldn’t have made it to our shortlist of low to no spread brokers. Commissions and fees are kept at competitive prices. Other fees including withdrawal fees, deposit fees, and bank transfer fees are next to none, although you do get charged for account inactivity, which is fair.
The exciting thing about XTB is that they keep their focus primarily on Forex trading and CFDs. Although they have other tradable assets, the best deals that XTB offers are on their Forex, such as their 0.1 pip spreads and micro-lot accounts. There are also 48 currency pairs to choose from. XTB’s maximum leverage goes as high as 1:500, which is impressive.
More of XTB’s advantages lie in their platform and educational resources, which are invaluable for markets as turbulent as CFD and Forex trading. You can access the first two levels of their educational courses for free through their website. The two more advanced course levels will require you to make an account on their platform. That is quite handy since you’ll be able to get some idea of trading even before you decide to create an account.
Overall, XTB has many excellent features that will get even beginners up to a comfortable trading level. If you’re only interested in Forex, XTB is a good option since you’ll get some of the best deals on their platform. Whether you’re a novice or an expert, XTB is sure to be a good experience for you.
Benefits of XTB:
- Low spreads and commissions especially for Forex trading
- Demo accounts are available
- Transparent and instant quotes
- Excellent educational courses
- 48 currency pairs and high maximum leverage
- Negative balance protection and disclosed financials
XM Group is probably one of the widest-used broker platforms around the world. Operating in 196 countries for over a decade, they are licensed by authorities from Australia via the ASIC, Belize through the IFSC, and even Cyprus, Dubai, and the UK through their respective financial authorities.
In terms of how well they serve their customers, there are a lot of positives about them. They provide competitive and low fees for stock CFD and even zero fees for withdrawing from your account. For example, CFD spreads go as low as 0.7 during trading hours with the most traffic, making it a prime candidate to put in our shortlist of best CFD brokers with little to no spreads. However, when it comes to stock CFD fees, XM’s fees still fall within a somewhat competitive range.
XM also offers a generous range of account types; you may choose from Micro, Standard, XM Zero, XM Ultra Low, and a Shares account. The first two accounts only have a minimum deposit of $5. These are good for investors who don’t want to commit quite yet or are still learning the ropes. These accounts have average spreads but no commissions.
However, for investors who are more used to trading, especially with CFD, the XM Zero and XM Ultra Low are great options. With minimum deposit amounts of $100 and $50 respectively, you get little to no commission fees with extremely competitive spread rates.
XM accounts are quick, easy, and very secure to open. All it takes is a sign-up process that only takes about 20 minutes to complete. You can usually get your account verified within the same day. You can also avail of an Islamic account or a demo account before you put in your real money.
As for their platforms, XM is available on MetaTrader4, 5, and its own XM Web Trading platform. Their app platforms are very usable and offer a lot of utility for their users. However, many prefer their mobile app over their web browser or desktop app. Their apps are accessible in 21 different languages, and their customer support works well in all these languages.
When it comes to research, XM is probably one of the leading brokers in that field. Their news feed and economic calendar are fantastic for helping customers with their trading patterns and informing their decisions. They also have trading ideas, which primarily serve as recommendations for specific trading decisions.
Benefits of XM:
- One of the leaders in terms of research
- Very low commissions and spreads, sometimes none at all
- Islamic accounts and demo accounts available
- Regulated by several authorities around the world
- Excellent customer support
RoboForex maintains its headquarters in Belize and has been running since 2009. They have several authorities making sure they are well-regulated, including the International Financial Services Commission. As of 2020, they have held around 3 million live accounts and are still growing.
When it comes to Forex trading, you have over 40 currency pairs to trade with through RoboForex. There are also plenty of other assets to be traded.
RoboForex is quite competitive in terms of its commissions, spreads, and leverages. For one, their maximum leverage goes all the way up to 1:2000, which is possibly one of the highest you’ll find. While they have an average of around 1.7 pips in a spread for most assets and accounts, there are some situations in which you’ll get very low spreads or even none at all. You’ll have to look through the available account types that differ in the commissions and spreads.
RoboForex does a great job of securing your account and protecting you as a client. They offer negative balance protection, which means your account will never lose more than you’ve deposited. RoboForex is also covered by Civil Liability insurance, another security layer that everyone can appreciate.
Their platform is accessible through cTrader, RTrader, and MetaTrader 4 and 5. So far, all of these applications have performed well in transaction speed, user-friendliness, overall utility, social trading, copy trading, features, and tools. However, you should note that some fee systems may vary according to the application you are using.
Finally, one of the best things about RoboForex would be its educational tools. You get several branches of analysis, including market, technical, and professional analytics. There are educational tools that help you build trading strategies and advise your trading decisions. Signing up with RoboForex means lots of trading advice and expertise to help your investing along.
Benefits of RoboForex:
- Offers several account bonuses
- Excellent educational modules
- Lots of analytics for trading strategies and advice
- Securely regulated by trusted authorities
- Competitive spreads on certain account types
- Very high maximum leverage of 1:2000
As you can probably tell from the name BDSwiss is led by the Swiss and are without a date, it is excellent to handle your financials and trades. But even with this generalization, BDSwiss has proven its excellence through its achievements. In over 180 countries around the world, BDSwiss has a user base of about 1 million. Every year, BDSwiss accomplishes at least 56 million trades.
Regulated by Cyprus, Mauritius, the US, and more, BDSwiss offers a lot of security and protection for their clients. However, note that they are not listed in the Warsaw Stock Exchange, and they still allow for offshore accounts.
That being said, BDSwiss is great at trading Forex and CFD. They provide spreads that come up to lower than average among its peers. However, their maximum leverage goes up to around 1:500, which is more than enough for most investors.
But BDSwiss shines in the convenience and options they offer their clients. They have a vast range of payment methods, adding up to around 151 different options. They have several trading account types that you can open, including a demo account to practice trading without risking anything at first. Opening accounts is a fast and painless process and has no disadvantages at all.
Furthermore, their customer support is also impressive. Boasting an average of 35 seconds in response time, this overall leads to a very satisfied customer base. You also have access to customer support the entire business week around the clock. Thankfully, they operate in more than 20 different languages, covering most of the countries that BDSwiss operates in.
Benefits of BDSwiss:
- Customer support is available 24 hours during the business week
- Platform and customer support is accessible in 20 different languages
- A high number of payment options
- Execution and transaction speed is swift
- Good research features available
- Available on MT4, MT5, and their own application
- Secure and well-trusted by authorities worldwide
- Competitive spreads, commissions, and high maximum leverage
- Several account types available
5. IC Markets
IC Markets was started in Australia, and up to now is still regulated by the Australian Securities and Investments Commission. Other authorities such as those from Cyprus and Seychelles. Throughout its operations as a Forex broker, they’ve maintained a good reputation amongst users and review sites, earning them lots of awards over the years.
There are lots to be said about IC Markets. For one, they make sure that their platform always prioritizes their users. Their track record shows a lot of safety and security that their users still hold them to this day.
When it comes to spreads, they have account options that give raw spreads starting from 0.0 pips. Some of their asset trading also comes with no commissions and other competitive ranges of spreads. Overall, with their three different account types plus Islamic accounts and demo accounts for newbies, there are many options to choose from with IC Markets.
IC Markets also works very hard to keep themselves competitive in the face of a fast-moving market and lots of competition from their peers. They put a lot of effort into innovating their platform to keep up with the movement of technology and the market. You can open your IC Market account through cTrader, MetaTrader4 or MetaTrader 5.
Along with opening an account, you will also get access to lots of educational tools. Video tutorials, resources, news headlines, and expert advice are all accessible to IC Market users. Their applications are also very customizable, almost so much that you may get lost in them if you’re a beginner. Thankfully, however, you can always opt for a demo account first and give yourself time to explore everything before putting your money into it.
Benefits of IC Markets:
- Offers three accounts types plus a demo account and Islamic accounts
- Offers trades with no commission fees
- Offers accounts with raw spread starting from 0.0 pips
- Accessible through MetaTrader 4, 5, and even cTrader
- Customer support is available around the clock during the entire week
- Fantastic for educational videos and articles
- Plenty of features and tools available
What is a CFD Broker?
CFD Brokers are those who offer CFD training. CDF is short for Contract For Differences, which is an agreement for exchanging the change in value of a specific asset over the period between the contract’s opening and closing. While this all sounds a bit confusing and overly technical, the short of it is that CFDs can be used to profit from an asset whether its price goes up or down. Either way, depending on the CFD and the investor’s bet, profit can still be made.
What are the advantages of a CFD Broker?
The most significant advantage of trading with a good CFD broker is that you’ll be able to earn despite a turbulent market. And as we have seen throughout the pandemic, the market is quite turbulent and will be for the meantime. What’s even more interesting is that you can earn from the asset without even owning it, because you’re betting on its change in value and not the asset itself. Furthermore, there are higher leverages available. While higher leverage also means potential losses, it mostly gives you the opportunity for greater potential profits.
The CFD market is also a widely-accessed market at all times of the day. There are no minimum or maximum requirements for day trading, and you pretty much get access to the entire global CFD market through your broker. That in itself opens a whole lot of opportunities, and since hours are way more flexible, you could even work that properly into your daily or weekly schedule.
What are the disadvantages of trading with CFDs?
The biggest disadvantage is that the investor, or you, will pay the spread. That is why we wanted to find the best brokers who offer the lowest spreads possible so that you will get the most out of your CFD trade. Other than that, CFD brokers can often be regulated poorly. But looking at our shortlist, the brokers we ranked are very well regulated globally, making them trustworthy. And lastly, CFD trading is somewhat riskier compared to regular Forex trading. But as they say, higher risks come with higher rewards.
The Final Verdict
While a risky process, CFD trading can be made much simpler and much more rewarding through the right broker. We’ve listed our best five brokers that we’ve found through lots of critical reviewing and investigation. These brokers are trusted, efficient, user-centered, and have some of the most competitive offerings on the market.
Do you want to find the best CFD broker for you? The brokers we’ve listed offer demo accounts for you to try out their platform with. If you think CFD trading will be where you shine, now would be a great chance to open a demo account for yourself.
Last Updated on April 7, 2022 by Andre Witzel