CFD Brokers In India
CFD brokers in India offer contracts for difference on popular financial markets, from forex to stocks and cryptocurrencies. But with a variety of providers on the market, picking the right broker can be difficult. In this guide, we explain what contracts for difference are and how to find the best CFD brokers in India.
CFD Brokers In India
- AvaTrade - AvaTrade's 1250+ leveraged CFD products span a range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on rising and falling prices in the broker’s feature-rich web and mobile platforms with market-leading research tools.
- Skilling - Take positions on hundreds of CFDs covering stocks, indices, forex and commodities. Get competitive pricing and ultra-fast execution while leverage can boost your purchasing power and potential returns.
- Interactive Brokers - Trade leveraged CFDs on thousands of global stocks as well as 13 global indices, 80+ forex pairs, and London gold and silver. Leverage is available in line with regulatory requirements.
- Deriv.com - Trade CFDs on popular markets, including the broker's exclusive synthetic indices which are available 24/7. New users can open an account and start trading CFDs instantly.
- Pepperstone - Pepperstone is a fast and reliable CFD broker with 1250+ assets covering forex, commodities, shares, indices, and ETFs. CFDs can be traded on four leading platforms with a choice of accounts and base currencies. The broker boasts an impressive 99.94% fill rate with no requotes or dealing desk intervention.
Top 3 Broker Comparison
| AvaTrade | Skilling | Interactive Brokers | |
|---|---|---|---|
| CFD Leverage | 1:30 (Retail) 1:400 (Pro) | 1:500 | 1:50 |
| Minimum Deposit | $100 | $100 | $0 |
| Minimum Trade | 0.01 Lots | 0.01 Lots | $100 |
| Regulators | ASIC, CySEC, FSCA, ISA, CBol, FSA, FRSA | CySEC, FSA | SEC, FCA, IIROC, SFC |
| Visit | Visit | Visit | Visit |
#1 - AvaTrade
AvaTrade's 1250+ leveraged CFD products span a range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on rising and falling prices in the broker’s feature-rich web and mobile platforms with market-leading research tools.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- FTSE Spread: 0.5
- GBPUSD Spread: 1.5
- Stocks Spread: 0.13
- Leverage: 1:30 (Retail) 1:400 (Pro)
- Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FRSA
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
About AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
Pros
- The broker offers reliable 24/5 multilingual customer support with fast response times during testing
- AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more
- There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
Cons
- A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
- It’s a shame that there are no rebate schemes for serious traders looking for additional perks
- Traders from the US are not accepted
#2 - Skilling
Take positions on hundreds of CFDs covering stocks, indices, forex and commodities. Get competitive pricing and ultra-fast execution while leverage can boost your purchasing power and potential returns.
"Skilling is a top pick for beginners looking for user-friendly charting platforms, copy trading features and engaging educational resources to learn as you invest."
- DayTrading Review Team
- FTSE Spread: 22
- GBPUSD Spread: 0.6
- Stocks Spread: 1.0
- Leverage: 1:500
- Regulator: CySEC, FSA
- Platforms: Skilling Trader, MT4, cTrader, TradingView
About Skilling
Skilling is a multi-asset broker founded in 2016 and based in Cyprus. The brand offers hundreds of day trading instruments with competitive spreads from 0.1 pips and beginner-friendly platforms. Skilling are also regulated in Europe and beyond with a transparent pricing structure. Sign up and start trading in three easy steps.
Pros
- Excellent range of promotions with up to $10,000 in bonuses
- Skilling offers a proprietary copy trading solution for day traders looking for an investing community
- There's a full suite of short-term investments and the range of 73 currency pairs is particularly strong for short-term traders
Cons
- You can only access shares in the Skilling Trader platform and fewer instruments are available overall in the MT4 accounts
- There aren't many research and analysis tools available to help day traders make informed decisions
#3 - Interactive Brokers
Trade leveraged CFDs on thousands of global stocks as well as 13 global indices, 80+ forex pairs, and London gold and silver. Leverage is available in line with regulatory requirements.
"Experienced day traders seeking a regulated broker with sophisticated trading software and very low fees should look at IB. Their range of stocks also can't be beaten."
- DayTrading Review Team
- FTSE Spread: 0.005% (£1 Min)
- GBPUSD Spread: Commission (.20 pts x trade value)
- Stocks Spread: From 0.003 per share, variable
- Leverage: 1:50
- Regulator: SEC, FCA, IIROC, SFC
- Platforms: AlgoTrader, OmniTrader, eSignal, TradingCentral
About Interactive Brokers
Interactive Brokers is a leading global brokerage that provides access to a comprehensive offering of stocks as well as forex, futures, metals, bonds and cryptos. The firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, IIROC, and SFC. Day traders can use the proprietary Trader Workstation and can access powerful tools and data feeds as well as comprehensive educational resources.
Pros
- Gives day traders unmatched access to global stocks with tens of thousands available from 100+ market centres in 24 countries
- Low commissions and tight spreads
- Diverse payment options and account currencies
Cons
- Accessing products like CFDs is not straightforward compared to competitors
- Mediocre customer support
- Platform and web interface are complex and difficult for beginners to pick up
#4 - Deriv.com
Trade CFDs on popular markets, including the broker's exclusive synthetic indices which are available 24/7. New users can open an account and start trading CFDs instantly.
"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "
- DayTrading Review Team
- FTSE Spread: 0.5
- GBPUSD Spread: 0.5
- Stocks Spread: 0.07
- Leverage: 1:1000 (Retail)
- Regulator: MFSA, LFSA, VFSC, BFSC
- Platforms: Deriv Trader, MT5
About Deriv.com
Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs and multipliers, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.
Pros
- The free demo account is ideal for practicing short-term trading strategies
- Traders can use multipliers between 1 and 30, with take profit, stop loss and deal cancellation parameters
- There's a good range of deposit and withdrawal methods with zero payment fees
Cons
- There's no loyalty program or rebate scheme for high volume traders
- There are limited copy trading tools and analysis features compared to alternatives
- There are fewer day trading markets available than some other brands
#5 - Pepperstone
Pepperstone is a fast and reliable CFD broker with 1250+ assets covering forex, commodities, shares, indices, and ETFs. CFDs can be traded on four leading platforms with a choice of accounts and base currencies. The broker boasts an impressive 99.94% fill rate with no requotes or dealing desk intervention.
"Pepperstone is a best-in-class broker. Experienced day traders benefit from razor sharp spreads, ultra-fast execution and 1250+ instruments. New traders get user-friendly platforms, rich education materials and 24/7 support."
- DayTrading Review Team
- FTSE Spread: 1.0
- GBPUSD Spread: 0.0
- Stocks Spread: 0.02
- Leverage: 1:30 (Retail), 1:500 (Pro)
- Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
- Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
About Pepperstone
Pepperstone is a leading online broker with over 400,000 clients in more than 175 countries. The top-rated brokerage offers excellent market access, industry-leading platforms in MT4, MT5, TradingView and cTrader, plus low fees with no hidden charges. Pepperstone is also heavily regulated with a high trust score, holding licenses with reputable bodies, including the FCA, ASIC, DFSA, and CySEC.
Pros
- Excellent suite of automated trading tools including Capitalise.ai, Smart Trader and APIs
- World-renowned broker with licenses in 7 jurisdictions, including the UK (FCA) and Cyprus (CySEC)
- Active Trader Program for high-volume traders with discounts on forex, indices and commodities (eligible jurisdictions only)
Cons
- It took us longer to sign up than at many alternatives
- Traders from the US are not accepted
- No proprietary trading app
What Is A CFD?
A contract for difference (CFD) is a type of financial derivative that represents a contract between a trader and a broker. The agreement is to exchange the difference between the buy and sell price. For example, if the closing price is higher than the entry price, the buyer makes a profit. The broker profits when the closing price is lower than the entry price, i.e the trader makes a loss. The opposite would be true if an investor took a short position.
The parties do not own the securities involved but simply speculate on price changes, which is why CFDs are a derivative – their value is derived from the performance of an underlying asset.
History Of CFDs
CFDs were created by a financial services firm in London in the early 1990s. Their invention is largely credited to Brian Keelan and Jon Wood. They were developed as a type of equity swap that was traded on margin and was used to offset the risk of losses on the London Stock Exchange. They were primarily used for hedging institutional trades, but CFD brokers in India and worldwide now offer this type of investment to retail clients.
Popularity Of CFDs In India
There are a few reasons why CFDs are popular in India. Firstly, many brokers do not charge commission or fees to enter or close a trade. Instead, brokers earn money through the spreads. Plus, CFD brokers in India offer the option of either a rolling contract or one with an expiry. This flexibility is popular compared to futures and options that come with a fixed expiry.
CFDs are also available on a diverse range of assets, including forex, stocks and commodities. In addition, CFDs can be leveraged, meaning the results of a trade can be multiplied beyond what the deposit amount would normally allow.
How Do CFD Brokers In India Work?
There are different ways CFD brokers in India can operate. A ‘no dealing desk’ broker works by providing direct access to the interbank market and sends orders to liquidity providers while acting as an intermediary. These can either be a ‘Straight-Through-Processing’ (STP) broker or an ‘Electronic Communication Network’ (ECN) broker. An STP broker does not execute orders but simply runs trades to external liquidity providers.
ECN CFD brokers in India compile buy and sell orders from a number of liquidity providers onto an electronic trading system. Simply put, they connect market participants together so they can trade with each other. These types of CFD brokers in India profit from volume or commission. However, they can be expensive to trade with, having large minimum lot sizes and a costly commission structure.
A dealing desk broker, on the other hand, acts as a ‘market maker’ meaning they create liquidity for their traders by taking the other side of a trade. As a result, market maker CFD brokers in India earn money from client losses, which arguably creates a conflict of interest. They’re often more accessible to traders with less capital, with low minimum deposits and competitive fees. However, they tend to be less transparent and can offer inconsistent prices. Therefore, no dealing desk brokers are sometimes preferred by experienced traders.
How To Compare CFD Brokers In India
When choosing the right CFD brokers in India for you, traders should consider their individual needs. Start by understanding your preferred investment style and level of knowledge. CFDs are a risky product, particularly when leveraged, so you should also check it fits with your risk tolerance.
The following factors are also important to consider:
Fees
CFD brokers in India will have varying commission and spread structures which is an important consideration. Commission is charged per lot while spreads are a broker’s markup on the market price. If you plan to trade frequently, fees can add up. Therefore it’s important to pick a broker with tight spreads and low commissions.
Leverage
CFDs are a leveraged product, meaning you can open positions that are larger than your available balance would usually afford you. The higher the leverage offered by CFD brokers in India, the larger the trade you can open. Leverage limits depend on the regulatory status of the broker.
Range Of Markets
The best CFD brokers in India offer a variety of markets to speculate on. Some of the most popular are forex, commodities, cryptocurrencies and Indian market indices. For FX traders, in particular, it could be worth checking the platform offers currency pairs with INR.
Regulation In India
The Securities and Exchange Board of India (SEBI) prohibits CFD brokers in India. Despite this, there are a number of platforms brokers advertising illegal or unregulated services to traders. If you are based in India and are eager to trade CFDs, you can open an account with brokers based in other countries, such as Australia or Europe.
We’d recommend selecting CFD brokers in India that are licensed and regulated with a trusted global regulator, such as the UK’s Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC).
Bonuses
CFD brokers in India may reward traders for choosing their services by offering a welcome no deposit bonus. These promotions can be attractive offers, but check the terms and conditions before you get started.
Account Types
Accounts types may differ in fees, minimum deposit requirements, leverage limits and markets. Ensure you pick one that fits with your budget. The top CFD brokers in India also offer free demo accounts so you can try before you buy.
Platforms
Platforms offered by CFD brokers in India provide varying functionality and usability. Some platforms are more suited to advanced traders, offering customisable indicators, graphs and charts. The same information and tools can be overwhelming for a beginner, therefore, you may want to use a paper trading account to try the platform before investing.
Mobile Apps
The best online CFD brokers in India offer a mobile version of their platform. This enables better access to the markets without being tied to your desk. Most platforms are available on both Android and iOS devices.
Tools
The tools provided by CFD brokers in India can greatly enhance your experience. For example, beginners may benefit from educational resources while experts require a solid selection of analytical tools. Select a broker that offers the right tools for your experience level.
Customer Support
A matter of seconds or minutes can make the difference when investing. Therefore, a responsive and reliable customer support team is crucial when choosing between CFD brokers in India. The support team should be available during the hours that you trade and offer a number of ways that you can contact them, such as a toll-free telephone number, email or live chat.
Payment Methods
Popular payment methods include bank wire transfer, credit/debit card and PayPal. Look for CFD brokers in India that offer instant deposits that are free of charge.
Accounts with lower minimum deposit requirements are more accessible for beginners or those with less capital. Spot trading forex and stocks often have high minimum thresholds, as there are minimum trade sizes on exchanges. For example, you’ll need to buy a whole share in a company. In general, CFD brokers in India do not require large minimum deposits as they are leveraged products with smaller order sizes.
Final Word On CFD Brokers In India
Since CFD brokers are banned in India, there are a number of firms operating illegally, with no regulation. Therefore, the best online CFD brokers for Indian traders operate out of other jurisdictions. Take your unique trading requirements into account when selecting a broker, in particular, consider your strategy, capital and risk strategy before looking at bonuses. See our list of the top providers to get started.
FAQs
Are CFD Brokers In India Legal?
CFD brokers are prohibited by The Securities and Exchange Board of India (SEBI) who do not have a robust set of rules to regulate them. However, some offshore brokers, or those regulated in other jurisdictions, do permit Indian traders. See our table of the best CFD brokers in India.
How Much Capital Do I Need To Trade With CFD Brokers In India?
As CFDs are a leveraged product, you do not need a lot of capital to place larger trades. The higher the leverage ratio offered by the broker, the larger trades you can place beyond the balance in your account. Each broker will have varying minimum deposit requirements, but these are usually small. Consider what you can afford to lose before depositing.
Will I Be Taxed For Investing With CFD Brokers In India?
Any profits or losses on your trades may be subject to capital gains tax. It could be worth consulting a tax professional to ensure you meet your responsibilities.
How Do I Find The Best CFD Brokers In India?
The best CFD brokers in India will depend on your personal trading style, volume and other individual factors. We’ve compiled a list of the top brokers for you to select from.
What Are The Different Types Of CFD Brokers In India?
There are two main types of CFD brokers in India, ‘no dealing desk’ or ‘dealing desk’ brokers. No dealing desk brokers are market makers that create their own liquidity by taking the other side of a trade. Dealing desk brokers connect directly with exchanges. There are pros and cons to each. Dealing desk brokers tend to have high minimum deposits while some prefer the transparency of a direct exchange approach.