IG: 17,000+ markets with ProRealTime charting and L2 Dealer DMA on the Pro tier

Community Rating: 4.3 (194 ratings) Have Your Say →

IG Group plc (LSE: IGG) is a publicly-listed UK broker founded in 1974 and the largest UK CFD provider by client base. The CFD product runs alongside spread betting, with 17,000+ markets across forex, indices, shares, commodities, crypto and options. Proprietary platform plus MT4, ProRealTime and L2 Dealer DMA for Pro-tier clients.

I funded IG with £500 on 14 January 2026 (FCA FRN 195355). EUR/USD averaged 0.6 pips and median execution measured 85 milliseconds across 50 market orders. Phone support averaged 11 minutes 12 seconds to reach an agent.

IG CFD platform with ProRealTime charts and Level 2 order book tested January 2026
IG's CFD platform tested January 2026: ProRealTime charts and Level 2 order book in one workspace.

Pros (CFD lens)

  • 17,000+ markets, second-widest catalogue of the five tested
  • Only broker offering Market Maker + DMA (L2 Dealer) on the Pro tier
  • ProRealTime charting available with 4+ trades a month
  • FTSE 100 listed (LSE: IGG), strongest balance sheet on this list

Trade-offs (CFD lens)

  • Phone support averaged 11 minutes 12 seconds during testing
  • L2 Dealer DMA gated to professional-tier qualified clients
  • 17,000+ markets can feel overwhelming for first-time CFD traders
IG 2026 CFD test scorecard.
TestResultIndustry AvgDateMethodVerdict
Total tradable markets17,000+~6,80014 Jan 2026Platform audit2nd widest
EUR/USD spread (London open)0.6 pips0.65 pips14 Jan - 7 Apr 202630 samplesJoint-tightest
Median execution latency85ms63ms14 Jan - 7 Apr 202650 market ordersMid-pack
DMA access (Pro tier)L2 Dealer available1 of 5 offers it14 Jan 2026Account auditUnique on this list
Phone support wait11 min 12 sec6 min 30 sec5 Feb 20263 callsSlowest of five

What does IG's L2 Dealer actually give a CFD trader?

Direct Market Access on UK and US equity CFDs through the L2 Dealer platform. Real Level 2 order-book pricing, with the ability to place limit orders inside the spread rather than accepting the broker's quoted price. The trade-off is the Professional-tier client classification, which removes negative balance protection.

Why does IG rank #1 for CFD trading?

Range and platform depth. IG offers wide market access on test (17,000+ markets) and is the only proprietary platform here with direct market access on its Pro tier, backed by a regulatory pedigree dating to 1974. Median execution at 85ms is mid-pack rather than fastest, and the sheer breadth can feel overwhelming for a first-time CFD trader, but for anyone who wants one account covering everything from indices to single shares, IG sets the benchmark.

Who should pick a different CFD broker?

Cost-sensitive scalpers placing 5+ lots a month should pick Pepperstone Razor. First-time CFD traders should pick Capital.com for the lower entry point and faster fills. Anyone needing UK-based phone support should pick Spreadex.

Visit IG Read Full Review

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Pepperstone Razor: cheapest all-in forex CFD cost for traders placing 5+ lots a month

Community Rating: 4.4 (195 ratings) Have Your Say →

Pepperstone is an Australian-founded STP/ECN broker with a UK FCA-authorised entity. The Razor account routes orders to liquidity providers without dealer intervention, giving 0.0 to 0.2 pip EUR/USD spreads with a £2.25 per-side commission. MT4, MT5, cTrader, TradingView and Pepperstone's own platform all supported.

I funded Pepperstone Razor with £500 on 14 January 2026 (FCA FRN 684312). A standard 1-lot EUR/USD round-trip on Razor cost about £6.30 all-in (£4.50 commission plus £1.80 spread). IG's spread-only build came in at £6 to £9; CMC at £6 to £7.

Pepperstone MT5 trading platform with advanced charting tested for UK CFD execution January 2026
Pepperstone MT5 platform tested January 2026: advanced charting and fast execution on the Razor ECN routing.

Pros (CFD lens)

  • Tightest baseline EUR/USD spread tested (0.1 to 0.3 pips on Razor)
  • Cheapest all-in forex CFD cost above five standard lots a month
  • MT4, MT5, cTrader, TradingView and Pepperstone's own platform on the same login
  • 47ms median execution, second-fastest of the five tested

Trade-offs (CFD lens)

  • £2.25 per side commission only pays off above ~5 standard lots a month
  • Stricter wealth and trading-experience checks during sign-up
  • Demo account limited to 30 days
  • Phone support is not UK-based
Pepperstone 2026 CFD test scorecard.
TestResultIndustry AvgDateMethodVerdict
EUR/USD spread (Razor)0.1 pips0.65 pips14 Jan - 7 Apr 202630 samplesTightest of five
All-in cost (1 lot EUR/USD round-trip)£6.30£7.4028 Jan 2026Calculation from test dataCheapest above 5 lots/mo
Median execution latency47ms63ms14 Jan - 7 Apr 202650 market orders2nd fastest
Platforms supportedMT4 + MT5 + cTrader + TradingView + own platform1-2 of these per broker14 Jan 2026Platform auditWidest of five
Commission per side per lot£2.25£0 at 5 of 614 Jan 2026Account termsRazor-tier only
Demo duration30 daysUnlimited at peers14 Jan 2026Account auditShortest of five

When does Pepperstone Razor actually beat the commission-free brokers?

Above five standard lots a month. Below that, the £2.25 commission tax dominates the spread saving and Capital.com or Spreadex come in cheaper. At ten or more lots a month, Razor's all-in cost is the cheapest of the five. Volume determines the right tier, not strategy.

What does the STP/ECN routing actually buy you?

Orders go to liquidity providers without the broker taking the other side. Spreads tighten in calm markets because there's no dealer mark-up. The trade-off is that during news events your fill price comes from whichever LP is quoting, not from the broker absorbing the spike (which Market Maker brokers can do).

Who should pick a different CFD broker?

Sub-5-lots-a-month traders should pick Capital.com or Spreadex on cost. Anyone needing a demo account beyond 30 days should look elsewhere. Traders wanting UK-based phone support should pick Spreadex, IG or Trade Nation.

Visit Pepperstone Read Full Review

72.9% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Spreadex: the only UK-domiciled broker pairing CFDs and spread betting on one login

Community Rating: 4.3 (170 ratings) Have Your Say →

Spreadex is a privately-held UK-domiciled Market Maker founded in 1999 in St Albans. The financial side covers CFDs and spread betting from a single proprietary platform with no MetaTrader option. UK and Ireland clients only.

I funded Spreadex with £500 on 14 January 2026 (FCA FRN 190941). EUR/USD averaged 0.6 pips through London hours. A UK-based agent rang me the same week offering trade-placement help: no other broker on this list did that.

Spreadex CFD dashboard showing top fallers, top risers and popular markets January 2026
Spreadex CFD dashboard tested January 2026: top fallers, top risers and popular markets in a single workspace.

Pros (CFD lens)

  • Only UK-domiciled broker on the list with full FSCS coverage through a UK entity
  • UK-based phone team rang me proactively after sign-up
  • CFDs and spread betting accessible from the same single login
  • 9-minute account setup, fastest of the five brokers funded in this round

Trade-offs (CFD lens)

  • No MT4, MT5 or cTrader (proprietary platform only)
  • No demo account for first-time CFD traders to practise
  • Smaller instrument catalogue than IG's 17,000+
  • UK and Ireland clients only
Spreadex 2026 CFD test scorecard.
TestResultIndustry AvgDateMethodVerdict
EUR/USD spread (London open)0.6 pips0.65 pips16 Jan - 7 Apr 202630 samplesJoint-tightest
Phone support wait (UK-based)2 min 4 sec6 min 30 sec5 Feb 20263 calls3x faster than avg
Account setup time9 minutes14 minutes16 Jan 2026Email verify to first tradeFastest of five
GBP/USD spread (London open)0.9 pips0.95 pips16 Jan 202620 samplesTighter than avg
FTSE 100 spread1.0 points1.0 points16 Jan 202620 samplesAt avg
£500 card withdrawal1 business day2 business days30 Jan 2026Real-money testFastest of five

Why does Spreadex's UK-domiciled status actually matter?

Three things UK retail clients rarely think about until they need them. Client money sits in segregated UK bank accounts, FSCS protection applies through the UK scheme directly rather than via passporting, and customer support is UK-based with a 2-minute average phone wait against the six-broker average of seven.

What's the catch with Spreadex's narrower platform offering?

No MetaTrader, no cTrader, no demo account. TradingView IS supported (you can trade Spreadex directly from TradingView charts), but if your workflow needs MT4, MT5 or cTrader for algorithmic execution you'll need a different broker. Spreadex's proprietary platform is functional and quick to learn but doesn't suit pure-algo traders or people who want to practise risk-free first.

Who should pick a different CFD broker?

Algo traders need MetaTrader or cTrader (pick Pepperstone). Range-hungry traders should pick IG (17,000+ markets versus Spreadex's ~10,000). And anyone outside the UK or Ireland can't open a Spreadex account at all.

Visit Spreadex Read Full Review

65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Capital.com: fastest median fills (24ms) and the lowest minimum deposit on the test

Community Rating: 4.3 (152 ratings) Have Your Say →

Capital.com is a Cyprus-headquartered Market Maker broker founded in 2016, operating its UK arm under FCA authorisation. The CFD product covers forex, indices, shares, commodities and crypto. Mobile-first proprietary platform paired with MT4 and TradingView.

I funded Capital.com with the £20 minimum on 14 January 2026 (FCA FRN 793714). EUR/USD averaged 0.6 pips through London hours and median execution measured 24 milliseconds across 50 market orders, the fastest of the five tested.

Capital.com CFD dashboard tested January 2026 showing top-traded assets and live quote panel
Capital.com's discover dashboard tested January 2026: the watchlist and quick-trade panel that hits 24ms median fills.

Pros (CFD lens)

  • 24ms median EUR/USD execution, fastest of the five tested
  • £20 minimum deposit, lowest of any major UK CFD broker
  • Zero commission on forex and indices, all costs in the spread (other fees apply)
  • FCA-regulated, negative balance protection, FSCS-eligible

Trade-offs (CFD lens)

  • No MT5 for UK clients (MT4 only on the MetaTrader side)
  • Phone support is not UK-based
  • 5,000+ markets is narrower than IG's 17,000+
  • No DMA route for traders who want exchange-listed depth
Capital.com 2026 CFD test scorecard.
TestResultIndustry AvgDateMethodVerdict
Median execution latency24ms63ms14 Jan - 7 Apr 202650 market ordersFastest of five
EUR/USD spread (London open)0.6 pips0.65 pips14 Jan - 7 Apr 202630 samplesJoint-tightest
Min deposit£20£6714 Jan 2026Account openingLowest of five
Account setup time11 minutes14 minutes14 Jan 2026Gmail to first trade2nd fastest
Live chat response38 seconds97 seconds4 Feb 20265 attempts2.5x faster
NFP window EUR/USD max1.2 pips1.4 pips31 Jan 20261 releaseHeld tighter

What does Capital.com do best for CFD trading?

Speed and accessibility. The 24ms median execution wasn't even close: Capital.com filled my market orders faster than any other broker on the test, and at the £20 entry point that speed is accessible to anyone. The proprietary platform handles position management cleanly without overwhelming a first-time CFD trader.

What's the trade-off you should know about?

Capital.com is Market Maker rather than DMA, so the spread is the entire cost. That's fine for retail-size positions but professional traders who want exchange-traded depth need IG's Pro-tier L2 Dealer route. And MT5 still isn't live for UK clients, only MT4 and TradingView.

Who should pick a different CFD broker?

Anyone wanting DMA execution on listed instruments should pick IG's Pro-tier L2 Dealer route. Anyone trading more than five lots a month should pick Pepperstone Razor on cost. And traders needing UK-based phone support should pick Spreadex instead.

Visit Capital.com Read Full Review

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

CMC Markets: 115+ technical indicators and a native pattern recognition scanner

Community Rating: 4.2 (126 ratings) Have Your Say →

CMC Markets plc (LSE: CMCX) is a UK-listed Market Maker broker founded in 1989. The Next Generation platform's depth is the differentiator: 20,000+ markets, 115+ technical indicators, and a native pattern recognition scanner none of the other five brokers offer. MT4 and MT5 both supported.

I funded CMC with £500 on 14 January 2026 (FCA FRN 173730). EUR/USD averaged 0.7 pips through London hours, slightly wider than Capital.com or IG. The pattern recognition scanner identified five chart patterns on my GBP/USD chart on 22 January, four of which the price action eventually played out.

CMC Markets Next Generation platform with pattern recognition tools tested January 2026
CMC Next Generation platform tested January 2026: 115+ indicators and the native pattern recognition scanner.

Pros (CFD lens)

  • 115+ technical indicators on the Next Generation platform
  • Only broker on this list with a native pattern recognition scanner
  • Guaranteed stops available with a small premium per use
  • 20,000+ markets, the widest market count here

Trade-offs (CFD lens)

  • EUR/USD spread (0.7 pips) widest of the top four
  • EUR/USD widened to 1.6 pips during the 6 February BoE rate decision
  • 168ms p95 latency in news windows, worst slip of the five
  • £10 monthly inactivity fee after 12 months without a trade
CMC Markets 2026 CFD test scorecard.
TestResultIndustry AvgDateMethodVerdict
Technical indicators (Next Gen)115+~4014 Jan 2026Platform auditMost of five
Pattern recognition scannerAvailable0 of 5 others14 Jan 2026Platform auditUnique on this list
EUR/USD spread (Next Gen)0.7 pips0.65 pips14 Jan - 7 Apr 202630 samplesSlightly wider
EUR/USD during BoE window1.6 pips max1.3 pips avg6 Feb 20261 releaseWidest news slip
Total markets (Next Gen)20,000+~6,800Aug 2026Published figureWidest here
Inactivity fee£10/month after 12 months£8/month at peers14 Jan 2026Account termsEarlier trigger than IG

What does CMC's pattern recognition scanner actually do for a CFD trader?

It scans price action against a library of recognised technical patterns (head-and-shoulders, double tops, flag-and-pole continuations) and tags them in real-time across watched charts. The closest the other five brokers offer is TradingView's manual pattern drawing tools. Useful for traders who anchor their entries on chart structure.

How did CMC's execution hold up under news pressure?

EUR/USD widened to 1.6 pips during the 6 February 2026 BoE rate decision, the widest of the five brokers tested in that window. Execution latency also jumped to 168ms p95, the worst news-window slip I measured. Use guaranteed stops if you trade scheduled news events on CMC.

Who should pick a different CFD broker?

News-event traders should be cautious given the BoE-window slip. Beginners may find Next Generation's depth overwhelming compared with Capital.com's stripped-down interface. And the native platform doesn't feel as polished as IG's despite the indicator depth.

Visit CMC Markets Read Full Review

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail CFD accounts lose money. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

XTB: the broker on this list that pairs CFDs with 9,100+ real stocks, ETFs and a flexible ISA

Community Rating: 3.4 (48 ratings) Have Your Say →

XTB is an FCA-authorised UK branch of X-Trade Brokers (FRN 522157), with 20+ years on the market and 2.9 million clients worldwide. Unlike the other brokers on this list, XTB pairs its 2,600+ leveraged CFD instruments with 9,100+ real stocks and ETFs, a flexible Stocks and Shares ISA and 4% interest on uninvested GBP funds, all on one proprietary platform, xStation 5, on web, desktop and mobile.

I worked through xStation 5 in August 2026. EUR/USD CFDs sampled at 0.9 pips against a published 0.8 minimum, with microlots from 0.01 and no minimum deposit; median fills landed at 85ms. Outside the CFD side, the same account gives 0% commission dealing on real stocks and ETFs up to EUR 100,000 of monthly turnover, fractional investing, and Investment Plans that auto-invest ETF portfolios.

XTB xStation 5 Investment Plans screen with ETF auto-invest portfolios, tested August 2026
XTB's xStation 5 Investment Plans screen tested August 2026: auto-invest ETF portfolios alongside the CFD side of the account.

Pros (CFD lens)

  • 9,100+ real stocks and ETFs alongside 2,600+ CFD markets
  • Flexible Stocks and Shares ISA, free to open, 0% commission inside
  • Investment Plans auto-invest ETF portfolios
  • 4% GBP interest on uninvested funds

Trade-offs (CFD lens)

  • No spread betting for tax-free trading
  • xStation only; no MT4, MT5 or TradingView
  • 0.5% FX conversion on non-GBP instruments
  • Demo limited to 30 days (extendable on request)
XTB 2026 CFD test scorecard.
TestResultIndustry AvgDateMethodVerdict
EUR/USD spread (session sampling)0.9 pips0.65 pipsAug 2026Session samplingWider than avg
Median execution latency85ms63msAug 2026Session samplingMid-pack
Real stocks & ETFs available9,100+0 of the other five offer thisAug 2026Platform auditUnique on this list
£500 card withdrawal1 business day2 business daysAug 2026Published figureFaster than avg (not TIC-tested)

Why does XTB pair CFDs with real stocks and an ISA?

Because XTB's UK account isn't CFD-only. The same login gives you 2,600+ leveraged CFD instruments for trading and 9,100+ real stocks and ETFs for investing, with a flexible Stocks and Shares ISA and Investment Plans that auto-invest ETF portfolios sitting alongside the CFD book. If you want to trade CFDs and build a long-term ISA position without switching provider, XTB is the only broker on this list built that way.

What's the trade-off of XTB's proprietary-only platform?

Everything runs through xStation 5: no MT4, MT5 or TradingView. That's a single fast interface with no version juggling, but traders whose workflow depends on MetaTrader or TradingView charting will need a different broker. There's no spread betting product either, so tax-free UK trading isn't available here.

Who should pick a different CFD broker?

Traders wanting DMA execution on listed instruments should pick IG's Pro-tier L2 Dealer route. Anyone trading more than five lots a month should pick Pepperstone Razor on cost. And anyone who wants a spread-bet product for tax-free trading won't find one at XTB; Spreadex is the option on this list.

Visit XTB Read Full Review

74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Trading.com: a simple FCA-regulated newcomer, added after the Q1 2026 funded test

Community Rating: 3.1 (40 ratings) Have Your Say →

Trading.com is the UK trading name of Trading.com Markets UK Limited (FCA FRN 705428), the rebranded UK arm of XM, FCA-authorised since 2016. It runs a leveraged CFD account alongside a commission-free Investment Account, on a clean WebTrader with TradingView-powered charts and MetaTrader 5 connectivity, plus a £10,000 demo that never expires. The CFD account covers 55 forex pairs, indices, commodities and single-stock CFDs.

Published-pricing comparison. Trading.com quotes EUR/USD from 0.8 pips on the CFD account with no separate commission, with cost sitting in the spread and overnight financing. Our hands-on platform review found a clean interface and withdrawals clearing within one working day. CFDs are complex, leveraged products and most retail traders lose money trading them.

Trading.com WebTrader dashboard showing TradingView-powered EUR/USD charts
Trading.com's WebTrader with TradingView-powered charts and MetaTrader 5 connectivity.

Pros (CFD lens)

  • FCA-regulated (FRN 705428) and FSCS-protected
  • TradingView charts plus MetaTrader 5 for algos and custom indicators
  • £10,000 demo with no expiry to test execution before funding
  • Quoted EUR/USD from 0.8 pips with no separate commission

Trade-offs (CFD lens)

  • Latency shown using the rounded 63ms comparison average*
  • Younger UK track record than the six tested brokers
  • No UK spread-betting product (CFD only)
  • Human support Mon–Fri only
Trading.com CFD at a glance on published terms (not part of the Q1 2026 funded test).
At a glance (published terms)Detail
FCA FRN705428 (authorised since 2016)
Broker typeMarket Maker (CFD) + commission-free Invest account
EUR/USD spreadFrom 0.8 pips (quoted, no separate commission)
PlatformsWebTrader (TradingView) + MetaTrader 5
Demo account£10,000, no expiry
Funded test statusAdded after Q1 2026 round; measured figures to follow

Who is Trading.com for as a CFD trader?

Newer CFD traders who want a simple, FCA-regulated Market Maker platform with TradingView charting and a no-expiry demo to rehearse execution, and who like having a commission-free Investment Account in the same login. The clean WebTrader plus MetaTrader 5 means you can start simple and add algos or custom indicators later without switching broker.

Who should pick a tested broker instead?

Cost- and execution-sensitive CFD traders should stick with the tested six until we publish measured figures for Trading.com: Pepperstone Razor for raw cost above five lots a month, Capital.com for the fastest fills, IG for DMA depth on the Pro tier, XTB if you also want real stocks, ETFs and an ISA alongside the CFDs. Spread-betting traders won't find a spread-bet product here either.

Visit Trading.com Read Full Review

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

How did I actually test these CFD platforms?

I funded five brokers with my own capital between 14 and 28 January 2026: Capital.com (£20), Spreadex (£500), IG (£500), Pepperstone Razor (£500) and CMC Markets (£500). XTB was reviewed on xStation 5 in August 2026, while Trading.com uses published pricing plus our hands-on platform and withdrawal observations. All testing ran from a wired Suffolk FTTP 1Gb connection.

Spreads were sampled at 08:00, 10:30 and 14:45 GMT on Monday, Wednesday and Friday for the first three weeks. Execution latency came from 50 EUR/USD market orders per broker. Cost calculations verified through actual fills, not platform-published rates. News-window captures during the 31 January NFP and 6 February BoE rate decision.

What I almost got wrong during testing

My early shortlist leaned on execution speed at the entry tier, where Capital.com's 24ms median fills are genuinely excellent. After three weeks I kept coming back to range: for CFD trading specifically, the breadth of markets and platform depth you get with IG (17,000+ markets, DMA on the Pro tier) is what most traders grow into, which is why IG sits at the top. Capital.com remains the better pick if entry-tier speed and the £20 minimum matter most to you.

You can download my full UK CFD broker test data as a CSV: 53 measured variables across all 6 brokers, including EUR/USD and GBP/USD spreads at London-session times, news-window widening during the 6 February BoE rate decision, execution latency, overnight swap rates, withdrawal speed across bank and card methods, customer support response times and account-protection features. The wider TIC trading dataset covering 17 brokers and ~140 variables is available in the dataset library.

Is CFD trading legal and safe in the UK?

Yes on both counts. Every broker on this list is FCA-authorised, with retail clients covered by the Financial Services Compensation Scheme up to £85,000 per investment firm. The FCA caps retail CFD leverage at 30:1 on major forex, 20:1 on minor pairs and major indices, 10:1 on commodities, 5:1 on shares and 2:1 on crypto. Negative balance protection applies to every retail account. Verify any broker at register.fca.org.uk.

Six FCA safeguards for UK CFD traders, with FSCS cover capped at GBP 85,000 per person per firm
FCA protections for UK retail CFD traders: negative balance protection, leverage caps by asset class, FSCS cover and segregated client funds.

What does CFD trading actually cost?

Three components. The spread is your main cost on Market Maker brokers, baked into the price you trade at. Overnight financing kicks in if you hold positions past the daily cut-off, calculated on the full notional value (because leverage means you're effectively borrowing the rest). Commission applies on STP/ECN accounts (Pepperstone Razor at £2.25/side) and on IG's Pro-tier L2 Dealer DMA route for qualifying clients. Most retail CFD activity below five lots a month is cheapest on a commission-free Market Maker.

Diagram explaining how leverage works when shorting a stock CFD showing margin requirement versus full notional exposure
How CFD leverage works: a small margin deposit controls a larger notional position, with overnight financing charged on the full notional.

How are UK CFDs actually taxed?

CFD profits are subject to UK Capital Gains Tax on gains above the £3,000 annual exemption (2025/26 tax year). CGT rates are 18% within the basic-rate band and 24% above, following the Autumn Budget 2024 alignment with residential property rates. Losses can offset gains in the same or future tax years. Spread betting, by contrast, is currently treated by HMRC as gambling and is tax-free for retail clients but losses carry no tax utility. The trade-off matters most for traders with consistent profits or losses.

Side-by-side comparison of UK tax treatment for CFDs versus spread betting. CFDs are taxable at 18-24% CGT with a 3000 GBP allowance but losses can offset gains. Spread betting is tax-free for most traders but losses have no tax utility.
CFDs versus spread betting on UK tax: CGT (18% basic rate, 24% higher rate) applies to CFDs but losses offset; spread betting is tax-free but losses have no tax value.

So which CFD platform should you actually pick?

A note for first-time CFD traders before the winners below. If you're after the best CFD trading platform for beginners specifically, Capital.com (£20 minimum, 24ms median fills) and Spreadex (UK phone support, 9-minute sign-up) are the gentlest starting points among the seven ranked here. IG's range and XTB's investing side land harder once you've decided what you want to trade and whether you want real stocks and an ISA alongside the CFDs.

IG wins on range. 17,000+ markets and the only Market Maker on this list with a DMA route (L2 Dealer Pro tier). Trade-off: 11-minute average phone wait and the platform feels complex to newcomers.

Pepperstone Razor wins on cost. 0.1 pips on EUR/USD plus £2.25/side, cheapest all-in above five standard lots a month. Trade-off: the commission tax dominates below that volume.

Capital.com wins on speed and entry. 24ms median EUR/USD execution and the £20 minimum deposit make it the lowest-friction credible CFD account I tested. Trade-off: Market Maker only, no DMA route.

FAQs

Is CFD trading legal in the UK?

Yes for FCA-authorised retail clients. UK CFD traders can access leveraged exposure to forex, indices, shares, commodities and crypto through any of the seven brokers on this list. All seven are FCA-regulated with FSCS coverage up to £85,000 per investment firm and negative balance protection by default.

What's the minimum I need to start CFD trading in the UK?

Capital.com accepts £20, the lowest of the six. Spreadex, IG, Pepperstone, CMC and XTB all accept £0 floors. For credible position sizing under FCA leverage caps, £200 to £500 is sensible across most brokers.

Can I lose more than my deposit on a CFD trade?

No, not on a retail account. Every FCA-authorised broker on this list applies negative balance protection by regulation, so retail clients cannot owe more than they have deposited. Professional-tier clients (including IG's L2 Dealer DMA users) waive this protection in exchange for higher leverage caps.

How do I verify a UK CFD broker is FCA-authorised?

Enter the broker's Firm Reference Number at register.fca.org.uk. Active retail-derivative permissions confirm the broker can offer CFDs to UK clients. The six FRNs in this article (Capital.com 793714, Spreadex 190941, IG 195355, Pepperstone 684312, CMC 173730, XTB 522157) all link directly to their register entries.

How do you start CFD trading in the UK?

Five steps, and the second one matters most. Pick an FCA-authorised platform from a tested shortlist like the one above. Open a demo account first and trade it until position sizing and stop placement feel automatic; my trading demo accounts guide compares the six brokers' demos. Verify your identity (photo ID plus proof of address). Deposit a small amount, £20 gets you started at Capital.com and £200 to £500 supports proper position sizing anywhere. Then start with one market you follow closely, at minimum size, under the FCA's 30:1 leverage caps rather than against them.

Can you make a living from CFD trading?

A small minority do; the published numbers say most won't, and I'd rather show you those numbers than sell you the dream. Across the six FCA-regulated brokers I tested, the mandated retail loss disclosures run from 61% to 74% of accounts losing money. To draw a £2,000 monthly income at a sustainable 2% monthly return, you'd need around £100,000 of trading capital and the discipline to hold that return through drawdowns, which is precisely what the majority of retail accounts fail to do. Realistic path: treat CFD trading as a skill with a multi-year apprenticeship, funded by income you don't depend on, and let spread betting's tax treatment (no CGT) work for you if you ever do become consistently profitable.

References

  • Financial Conduct Authority, FCA Register. Available at: register.fca.org.uk
  • Financial Services Compensation Scheme, investment firm protection. Available at: fscs.org.uk
  • HM Revenue & Customs, Capital Gains Tax. Available at: gov.uk/capital-gains-tax
  • FCA Policy Statement PS19/18 on CFD restrictions. Available at: fca.org.uk