Traders from the UK find it hard to locate the best trading platforms for Contract for Difference, especially when they are new to the industry. Although there are many UK brokers traders can register with, not all of them are good for CFD trading. However, as a CFD trader from the UK, you do not need to bother yourself too much as we have provided you with the four best brokers in this guide.
Review of the Best UK CFD Trading Platforms in 2022
The best UK CFD trading platforms include:
- CMC Markets
If you are a high-risk taker with a fast pace regarding opening and closing positions, the best trading platform to register with is Capital.com. The platform is highly recommended for CFD trading and stock and is very easy to operate. It is compatible with mobile devices, thus, making it easily accessible to traders.
Special features are available to the traders, such as the negative balance protection, which prevents traders from losing beyond the amount they invest. The signing-up process is straightforward, making it easier for the newbies to navigate.
Newbies can practice with the demo account on the platform to perfect their trading strategy before investing money into it. Multiple payment methods are acceptable, and you can start trading at just a minimum of $20. The major downside is the possibility of losing money through CFD trading, which is dangerous.
Many brokers have tradable CFD assets on their platform, which is the opposite of the eToro trading platform. Apart from having multiple tradable assets like commodities, stocks, bonds, ETFs, and Forex, it is also a good trading platform for beginners. Brokers charge commission for trades on their platforms; however, eToro charges nothing for stock trading.
Although trading CFD is highly risky, eToro can guarantee the security of the traders, which is the most important thing. There is a possibility of getting scammed, but the broker puts security measures in place to prevent such from happening. Before full access to the trading platform, every trader must complete their KYC, which helps to filter out bots. The broker also provides trading materials from the traders, which they can use to increase their trading knowledge and carry out the trading analysis.
The major downside of registering with the platform is that the traders become less anonymous due to the various identification processes. However, on the plus side, it is better to be secure while trading than to be known. Also, trading only occurs in one currency, USD; thus, even if you are holding another currency, it is automatically converted to the United States dollar.
Checking the tradable assets on Plus500, you will be convinced the trading platform was established solely for trading Contract of Difference. The broker does not charge a fee for their financial service, and the FCA is responsible for its regulation. There are over seventy tradable CFDs on the platform, although the market is not as busy as that of New York.
Traders can learn more about trading on the platform as learning materials are available to the users. Because the broker is connected to the London Stock Exchange, there will be a limit to what is tradable on the platform. Priority is placed on assets in the EU compared to the United States assets. There is no least tradable amount
The major downside of this trading platform is that trading is not free. Although the commission is small, you will be charged for holding a position overnight known as SWAPs. It’s also not suitable for beginners
Some brokers have multiple assets tradable on their platforms, but CMC Markets focus mainly on two assets which are Forex options and Contract of Difference. FCA is responsible for its regulation, thus, making the trading platform safe and secure for traders in the UK and worldwide. The broker does not charge a fee for trading, and its overall fee is low.
MT4 is an amazing trading platform that is also integrated into the CMC market to provide traders with two trading platform options. The security of the trading platform is its major downside as it does not have the option of two-factor authentication. Also, the support staff is not available all the time.
Another good trading platform with multiple trading options like eToro is AvaTrade, and the CFD option is one of the best. Customization of trade is possible on the platform, so it is easy to communicate when buying or selling, which is rarely seen in other trading platforms. The good user interface makes it easy to set up an account.
The Central Bank of Ireland is responsible for its regulation, and the broker has a presence in different parts of the world. Exchange-traded funds, stocks, commodities, indexes, and bonds are tradable on the platform. The major downside of the trading platform is its unsuitability for newbies and the charging fee for converting currencies.
Contract of Difference is a high-risk venture; therefore, the traders must know the risk before registering with a suitable trading platform. The trading strategy of the traders will determine the kind of broker suitable for them. Registering with the best CFD broker will reduce the risk the traders will encounter while trading CFDs.
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