CFD broker low spreads

5 best CFD brokers with low spreads

CDF touchscreen is operated by a businessman

CFD, or Contract For Difference, has become very popular since the pandemic. 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 compiled a short list 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:

  1. XTB – Specialized in Forex and CFD
  2. XM – Lowest spreads on the market
  3. RoboForex – Highest maximum leverage
  4. Vantage Markets – The most secure and convenient
  5. IC Markets – Best the customizable platform
CFD Broker:
Review:
demo account:
Spreads:
Assets:
Advantages:
Open account:
1. XTB
XTB Logo
Yes, free
Starting 0.1 pips
3,000+
+ Very good trading conditions
+ Direct market access
+ No hidden fees
+ No minimum deposit
Free demo account(Risk warning: 72% of retail CFD accounts lose money)
2. XM
XM trading logo
Yes, free
Starting 0.0 pips
1,000+
+ Cheap trading fees
+ No hidden fees
+ Metatrader Software
+ More than 1,000 different assets
+ 3 different account types
+ Professional support and service
Free demo account(Risk warning: 75.59% of retail CFD accounts lose)
3. RoboForex
RoboForex logo
Yes, free
Starting 0.0 Pips
12,000+
+ High leverage is possible (1:2000)
+ Bonus Programm
+ Low spreads and commission
+ Professional Support
+ International clients are accepted
Free demo account(Risk warning: Your capital can be at risk)
4. Vantage Markets
Vantage Markets logo
Yes, free
Starting 0.0 pips
400+
+ Real ECN Trading
+ Very fast execution
+ Reliable support and service
+ No hidden fees
+ Low trading fees
Free demo account(Risk warning: Your capital can be at risk)
5. IC Markets
The official logo of IC Markets
Yes, free
Starting 0.0 pips
2000+
+ Real raw spread trading
+ Metatrader 4 and 5, and cTrader
+ Very fast support
+ No hidden fees
+ Minimum deposit of 200$
Free demo account(Risk warning: Your capital might be at risk)

1. XTB

The official website of XTB

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 its 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, deposit, and bank transfer, are next to none, although you get charged for account inactivity, which is fair.

XTB Logo

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
  • XTB demo account is available
  • Transparent and instant quotes
  • Excellent educational courses
  • 48 currency pairs and high maximum leverage
  • Negative balance protection and disclosed financials

(Risk warning: 72% of retail CFD accounts lose money)

2. XM

XM trading's official website
XM trading’s official website

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 Forex Broker 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 XM trading minimum deposit amounts of $100 and $50, respectively, you get little to no commission fees with extremely competitive spread rates.

XM trading logo
XM trading logo

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 are available
  • Regulated by several authorities around the world
  • Excellent customer support

(Risk warning: 75.59% of retail CFD accounts lose)

3. RoboForex

The official website of RoboForex

RoboForex maintains its headquarters in Belize and has been running since 2009. Several authorities have made 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 logo

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 your application.

Finally, one of the best things about RoboForex is 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 you are 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

(Risk warning: Your capital can be at risk)

4. Vantage Markets

The official website of Vantage Markets

Vantage Markets is an excellent trading platform that lives up to its name as one of the best brokers. The company has been in business since 2009 and is one of the few actual ECN brokers.
Major liquidity providers such as HSBC, Bank of America, Credit Suisse, JP Morgen, and others are among the liquidity providers of Vantage Markets.

CIMA and ASIC regulate the platform. In addition to this, traders will find attractive terms and conditions. Spreads start at 0.0 pips, there are over 180 assets, and the minimum deposit for a live account is only $200. Commissions are generally very low. If you want to start with a free demo, you can use a free demo account.

Vantage Markets logo

Even with a free demo account, you can use Vantage Markets’ excellent trading platforms, including MetaTrader 4 and MetaTrader 5.

Traders can benefit from high leverage of up to 1:500. Those who prefer less risk can choose lower leverage.

The benefits of Vantage Markets:

  • Regulated and secure Forex broker
  • Real ECN trading
  • Best trading conditions for Forex
  • High-speed execution
  • Reliable support and service
  • No hidden fees
  • Low trading fees
  • Supports MetaTrader 4/5
  • Free bonus available

(Risk warning: Your capital can be at risk)

5. IC Markets

The official website of 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 is a lot 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 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 tradings also come with no commissions and other competitive ranges of spreads. Overall, with their three different account types plus Islamic accounts and IC Markets demo account for newbies, there are many options to choose from with IC Markets.

The official logo of IC Markets

IC Markets also works very hard to keep itself competitive in the face of a fast-moving market and lots of competition from its peers. They put a lot of effort into innovating their platform to keep up with the technological and market movement. 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 so that you may get lost 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 are available

(Risk warning: Your capital can be at risk)

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 the 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, profit can still be made depending on the CFD and the investor’s bet.

What are the advantages of a CFD broker?

Businessman hand writing advantages with red marker on transparent wipe board, business concept

The most significant advantage of trading with a good CFD broker is that you’ll earn despite a turbulent market. And as we have seen throughout the pandemic, the market is quite turbulent and will be in 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 get access to the entire global CFD market through your broker. That opens a 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.

Conclusion – Practice your skills and become a better trader!

While a risky process, CFD trading can be made much simpler and 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, and 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.

FAQ – The most asked questions about CFD : 

Which CFD broker οffеrs thе lοwеst sprеads?

Today, mοst CFD brοkеrs arе calculating trading cοsts all intο sprеads. In this way, lοw sprеads stand for lοw trading cοsts. Thеrе arе many fοrеx brοkеrs in this cοmpеtitivе fοrеx markеt claiming that thеy οffеr ultra-lοw sprеads thereby trying tο attract invеstοrs and еarn invеstοrs’ businеss.

Hοw tο gеt thе lοwеst sprеad in CFD?

Thеrе arе numеrοus stratеgiеs availablе fοr οbtaining thе lοwеst pοssiblе sprеad in thе fοrеx markеt. Scalping is thе mοst cοmmοn typе οf fοrеx stratеgy. This day trading strategy еntails buying οr sеlling currеncy pairs with a vеry shοrt hοlding pеriοd in οrdеr tο makе a sеriеs οf vеry quick prοfits.

What dοеs CFD sprеad dеpеnd οn?

Thе amοunt οf a fοrеx sprеad is dеtеrminеd by a numbеr οf diffеrеnt factοrs. Fοrеx quοtеs must include and bid pricеs. Thе bid is thе pricе at which thе markеt makеr οr brοkеr wishеs tο purchasе thе basе currеncy.

Hοw arе broker sprеads calculatеd?

Sprеads arе an important figurе tο cοnsidеr whеn calculating yοur cοst. Hοw thе sprеad is calculatеd is dividеd intο twο parts. Thе pricе diffеrеncе is mеasurеd in pips. Pip is an abbrеviatiοn fοr “pеrcеntagе in pοints.” In Fοrеx, οnе pip is usually еqual tο οnе pοint οf markеt valuе mοvеmеnt. This is basеd οn yοur currеncy pair’s fοurth dеcimal placе.

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