2021’s Best UK CFD Brokers List
In our primary recommendations, we listed top UK CFD brokers that we tested thoroughly, e.g., we had a live account and tried trading with real money. Additionally, we see security as the most critical factor in 2021 when choosing a CFD provider. The best CFD UK brokers must be either listed on a stock exchange or be part of a banking group.
UK CFD brokers make their profits through what is called the spread. Margin is a slight difference in the buying and selling price of the CFD. When a trader enters a CFD trade, the online account will immediately show a loss equal to the size of the spread. Therefore, if the broker charges a spread of 0.03, the trade will quickly deliver a loss of 10 cents when the contract opened. The share will have to appreciate by 10 cents to break even, and any appreciation after that will be pure profit.
, Unlike traditional trading, UK CFD brokers provide much higher leverage to their clients. Two per cent is the standard margin required for CFD trading. However, depending on the underlying asset, the margin required to place a trade can go up as high as 20 per cent. A higher margin requirement means that more capital must be traded by the trader and many potential gains – and increased potential risks. Find The best UK Regulated CFD Brokers for 2018.