CFD forex trading enables traders to go long or short on popular currency pairs, such as EUR/USD, with leverage to amplify trading results (profit and loss). This guide explains how trading currencies with CFDs work. We’ve also tested, rated and ranked the best brokers for CFD forex trading.
Top-Rated CFD Forex Trading Brokers
These are the top-rated brokers with forex CFDs from our direct tests:
-
- FTSE Spread: 1.2
- GBPUSD Spread: 0.1
- Stocks Spread: 0.03 (Apple Inc)
71.28% of retail traders lose money when trading CFDs -
- FTSE Spread: 1.8
- GBPUSD Spread: 1.4
- Stocks Spread: 0.2%
75% of accounts lose money when trading CFDs with this provider. -
- FTSE Spread: From 0.4
- GBPUSD Spread: Variable
- Stocks Spread: Variable
-
- FTSE Spread: 1.0
- GBPUSD Spread: 0.13
- Stocks Spread: 0.01
-
- FTSE Spread: 3.42
- GBPUSD Spread: 1.3
- Stocks Spread: 0.12 (Apple)
-
- FTSE Spread: 1.5
- GBPUSD Spread: 0.5
- Stocks Spread: No mark-up
Learn how we test brokers and why you can trust our ratings.
Here is a short summary of why we think each broker belongs in this top list:
- Eightcap 4.6/5 Eightcap offers 50+ currency pairs in line with the industry average but trailing category leaders like CMC Markets with its 300+ currency pairs. However, Eightcap stands out with institutional-level spreads from 0.0 pips on major pairs like the EUR/USD, alongside low $3.50/side commissions. The broker also offers rich forex data to inform trading decisions, including key fundamentals, bullish/bearish indicators and a calendar that tracks key events in the foreign exchange market.
- XTB 4.8/5 XTB provides access to 70+ currency pairs with low spreads averaging around 1 pip on majors. The xStation platform offers an intuitive environment for forex traders with an excellent charting package encompassing 30+ indicators, plus a range of order types, catering to various strategies and risk management techniques.
- Trade Nation 4.4/5 Trade Nation offers over 30 of the most popular forex pairs with variable spreads. Traders can access a slick proprietary platform or MetaTrader 4, with real-time forex market updates and insights via 'Smart News'.
- Fusion Markets 4.6/5 Fusion Markets offers an excellent selection of 90+ currency pairs, providing a range of short-term trading opportunities. It continues to excel for its ultra-tight spreads from 0.0 pips and exceptionally low commissions of $2.25 per side. You also get access to leading forex software in MetaTrader 4.
- FBS 4.3/5 FBS offers an improved selection of 72 majors, minors and exotics. Spreads are fairly competitive, averaging 0.7 pips for EUR/. There’s also an excellent range of forex market resources and tools on offer, including calculators and an intensive forex course.
- BlackBull 4.5/5 BlackBull offers 64 currency pairs with excellent pricing through its ECN accounts, with the Standard commission-free spread starting from 0.8 pips. BlackBull also ensures its rapid execution carries through to MT4, which still stands as the industry’s most popular platform with active forex traders.
Compare CFD Forex Trading Conditions
Compare trading conditions on forex CFDs side-by-side:
| Broker | Number of FX Pairs | Currency Indices | GBP/USD CFD Spread | Maximum Leverage on FX CFDs |
|---|---|---|---|---|
| Eightcap | 50+ | USD | 0.1 | 1:30 |
| XTB | 70+ | - | 1.4 | 1:30 |
| Trade Nation | 33 | - | From 0.6 | 1:30 |
| Fusion Markets | 90+ | - | 0.13 | 1:30 |
| FBS | 70+ | - | 1.3 | 1:30 |
| BlackBull | 64 | - | 0.5 | 1:500 |
Community Sentiment
See how users rate these brokers based on the average customer ratings submitted on DayTrading.com, plus ratings from Trustpilot, the Apple App Store and Google Play.
| Broker | Our Users' Rating | Trustpilot Score | Trustpilot Reviews | iOS App Rating | Android App Rating |
|---|---|---|---|---|---|
| Eightcap | 3909 | ||||
| XTB | 3055 | ||||
| Trade Nation | 2180 | ||||
| Fusion Markets | 10420 | ||||
| FBS | 10299 | ||||
| BlackBull | 3520 |
Eightcap
Eightcap delivers in every area for day traders with a growing selection of charting platforms, education via Labs, and AI-powered tools. Now sporting 120+ crypto CFDs, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row.
Christian Harris, Reviewer
Eightcap quick facts
- FTSE Spread
- 1.2
- GBPUSD Spread
- 0.1
- Stocks Spread
- 0.03 (Apple Inc)
- Leverage
- 1:30
- Regulator
- FCA, ASIC, CySEC, FSC, SCB, FSA
- Platforms
- MT4, MT5, TradingView, TradeLocker
- EURUSD Spread
- 0.0
- EURGBP Spread
- 0.1
- Total Assets
- 50+
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, SGD
Pros
- With tight spreads from 0 pips, low commission fees, Eightcap provides cost-effective and flexible trading conditions that can accommodate an array of strategies, including day trading and scalping.
- Eightcap added TradeLocker in 2026 for certain regions, marking it out as the best regulated TradeLocker broker, while still delivering Eightcap's ultra-fast execution and low fees for active traders on the charting software.
- After bolstering its roster in 2021, Eightcap offers one of the most extensive selections of cryptocurrency CFDs in the market, with crypto/fiat pairs, crypto/crypto pairs, plus crypto indices for broader exposure to the market.
Cons
- In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
- The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
- Despite a useful library of educational guides and e-books in Labs, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
XTB
XTB stands out as a top choice for new day traders with the terrific xStation platform, low trading costs, no minimum deposit, and excellent educational tools, many of which are seamlessly integrated into the platform.
Christian Harris, Reviewer
XTB quick facts
- FTSE Spread
- 1.8
- GBPUSD Spread
- 1.4
- Stocks Spread
- 0.2%
- Leverage
- 1:30
- Regulator
- FCA, CySEC, KNF, DFSA, FSC, SCA, CMF, Bappebti
- Platforms
- xStation
- EURUSD Spread
- 1.0
- EURGBP Spread
- 1.4
- Total Assets
- 70+
- Account Currencies
- USD, EUR, GBP
Pros
- With an excellent range of educational materials, including training videos and articles integrated into the platform, XTB supports traders at all levels.
- XTB has improved its assets and markets offering further in 2026 with options trading in Spain and Germany, spot cryptos in some regions, and Investment Plans 2.0 with more pre-built plans covering sectors like Defence, a more intuitive interface, and greater flexibility to combine single stocks and ETFs into individual plans.
- First-class 24/5 customer support is available, including a friendly live chat with response times of under two minutes during testing.
Cons
- XTB does not offer a raw spread account, which is becoming increasingly common among competitors like Pepperstone, and may disappoint day traders looking for the tightest spreads.
- XTB discontinued support for MT4, limiting traders to its proprietary platform, xStation, potentially deterring advanced day traders familiar with the MetaTrader suite.
- Trading fees are competitive with average spreads of around 1 pip on the EUR/USD but still trail the cheapest brokers like IC Markets, plus there's an inactivity fee after 12 months.
Trade Nation
Trade Nation suits discretionary traders who want to speculate on major indices like the US 500 or liquid FX pairs, and want the predictable all-in costs of fixed spreads. In tests, we found the fixed-spread TN Trader environment particularly useful for trading around scheduled economic releases owing to its reliable charting environment and because published spreads stayed capped.
Christian Harris, Reviewer
Trade Nation quick facts
- FTSE Spread
- From 0.4
- GBPUSD Spread
- Variable
- Stocks Spread
- Variable
- Leverage
- 1:30
- Regulator
- FCA, ASIC, CMVM , FSCA, SCB, FSA
- Platforms
- TN Trader, MT4, TradingView
- EURUSD Spread
- Variable
- EURGBP Spread
- Variable
- Total Assets
- 33
- Account Currencies
- USD, EUR, GBP, AUD, ZAR, SEK, NOK, DKK
Pros
- The demo comes with a $5,000 practice account and you can request a one-on-one platform walkthrough by callback - this level of personal help is rare.
- Trade Nation accounts can now be linked with TradingView, providing advanced multi-charts and the ability to execute trades directly.
- In testing of the TN Trader account under normal market conditions, fixed spreads held while fills were prompt on major forex pairs, with a slight drift in the entry level as price ticked between click and fill.
Cons
- There is no raw or ECN pricing tier, which are often prefered by day traders. No matter how much you deposit or trade, you use the same fixed (or variable on MT4) pricing as beginners, making it unsuitable for scalpers especially.
- The 2–20% rebate scheme is closed to FCA, CMVM, and ASIC clients, meaning active day traders in these regions who would benefit from transaction rebates cannot claim them.
- Withdrawals can take up to five business days, which is around the industry average but slower than the 1-3 days we’re increasingly seeing brokers offer in an attempt to quash withdrawal complaints from retail investors.
Fusion Markets
Fusion Markets is a standout option for forex traders looking for excellent pricing with spreads near zero, industry-low commissions and recently TradingView integration. It’s a particularly good broker for Australian traders where the company is headquartered and regulated by the ASIC.
Jemma Grist, Reviewer
Fusion Markets quick facts
- FTSE Spread
- 1.0
- GBPUSD Spread
- 0.13
- Stocks Spread
- 0.01
- Leverage
- 1:30
- Regulator
- ASIC, CySEC, VFSC, FSA
- Platforms
- MT4, MT5, cTrader, TradingView, DupliTrade
- EURUSD Spread
- 0.05
- EURGBP Spread
- 0.09
- Total Assets
- 90+
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- Average execution speeds of around 37 milliseconds are noticeably faster than many rivals and can help day traders secure optimal prices in fast-moving markets.
- Fusion Markets is set up to support algo traders with a sponsored VPS solution and a 25% discount if you opt for the NYC Servers VPS for MT4 or cTrader.
- Fusion Markets offers best-in-class support with very fast, friendly and helpful responses during tests and no frustrating automated chatbot to navigate.
Cons
- The demo account expires after 30 days, limiting its potential as a useful trading tool alongside a real-money account.
- There is no proprietary trading platform or app built with beginners in mind, a notable drawback compared to AvaTrade.
- While the selection of currency pairs trumps most rivals, the broker's alternative investment offering is average with no stock CFDs beyond the US.
FBS
FBS is an excellent choice for day traders at every level and budget, with just a $5 minimum deposit and intensive academy for aspiring traders alongside access to MT4 and MT5.
Christian Harris, Reviewer
FBS quick facts
- FTSE Spread
- 3.42
- GBPUSD Spread
- 1.3
- Stocks Spread
- 0.12 (Apple)
- Leverage
- 1:30
- Regulator
- ASIC, CySEC, FSCA, FSC
- Platforms
- FBS App, MT4, MT5
- EURUSD Spread
- 1.1
- EURGBP Spread
- 1.3
- Total Assets
- 70+
- Account Currencies
- USD, EUR, AUD, JPY
Pros
- FBS offers lightning-fast execution speeds from just 10 milliseconds, placing it among the industry leaders for highly active traders like scalpers who demand rapid order processing.
- The introduction of the FBI Assistant has given active traders useful, AI-powered intelligence to assess charts and patterns with potential trade ideas that can be executed in one click.
- FBS strikes the balance between robust features and ease of use, with a sign-up process taking <10 minutes, an intuitive app, advanced research through Market Analytics & more recently VIP Analytics, plus immersive education through the FBS Academy and Trader’s Blog.
Cons
- Although the FBS app offers a terrific mobile trading experience for aspiring traders and MT4/MT5 cater to advanced traders, the absence of cTrader and TradingView, which are increasingly offered by alternatives like Pepperstone, will deter day traders familiar with these platforms.
- Despite enhancing the selection of currency pairs, now providing over 70, FBS still trails industry leaders like BlackBull Markets in its market offering with a particularly narrow selection of commodities and indices.
- There are only four base currencies available - EUR, USD, AUD and JPY (region dependant) - which isn't practical for minimizing currency conversion fees for many global traders, and is especially striking given the broker’s user base spans over 150 nations.
BlackBull
After improving its trading infrastructure with Equinix servers in London, reducing latency for traders, BlackBull is an obvious choice if you want to day trade stock CFDs with ECN pricing. With competitive spreads and no commission on a growing roster of digital tokens paired with USD, BlackBull also works for active crypto traders.
Christian Harris, Reviewer
BlackBull quick facts
- FTSE Spread
- 1.5
- GBPUSD Spread
- 0.5
- Stocks Spread
- No mark-up
- Leverage
- 1:500
- Regulator
- FMA, FSA
- Platforms
- BlackBull Invest, BlackBull CopyTrader, MT4, MT5, cTrader, TradingView, AutoChartist
- EURUSD Spread
- 0.16
- EURGBP Spread
- 0.8
- Total Assets
- 64
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, ZAR, SGD
Pros
- With two ECN-powered accounts (Standard and Prime), plus Prime+ - an active trader rewards program offering trading rebates - BlackBull accommodates beginners through to high-volume active traders.
- After partnering with ZuluTrade and Myfxbook, alongside improvements to its own CopyTrader, and finally enabling cTrader Copy, BlackBull offers one of the most comprehensive copy trading experiences we've seen.
- BlackBulls’s research is superb, especially the daily ‘Trading Opportunities’ articles that break down complex market movements into easy-to-understand insights, making it simpler to capitalize on emerging trends.
Cons
- Unlike most top brokers, BlackBull charges an irritating $5 withdrawal fee, which can detract from the overall cost-effectiveness, especially for active traders who frequently move funds.
- Despite a growing selection of 2,180+ assets, including additions to its Asia Pacific indices, they are mainly stocks with an average selection of currency pairs and indices.
- Although the Education Hub now features improvements like webinars and tutorials, the courses we’ve explored need more focus on explaining the wider economic factors influencing prices.
What Is CFD Forex Trading?
A contract for difference (CFD) is a contract between a buyer (trader) and a seller (broker) that stipulates that the difference between the current value of an asset and its value at the end of the contract will be paid to one of the parties at the expiry. CFDs allow investors to profit, or lose, from price movements without having to own the underlying asset.
How CFD Forex Trading Works
Essentially, CFD forex trading entails opening trades based on whether the value of one currency will rise or fall against another.
The investor can speculate on either upward or downward movement in the value of the currency. If they think the value of the base currency will rise, they will open a long position. If the value does increase, the net difference between the purchase and sale prices will be the net result of the trade (either profit or loss).
Similarly, the trader could believe the value will drop and open a short position. In this case, the profit or loss is the net result of the value between the initial price and the final value.
A good way to understand CFD forex trading is to look at an example, such as the GBP/USD forex pair. Consider that the ask price is 1.20720 and an investor believes the value of the pound (GBP) will rise against the US dollar. That investor purchases 1,000 pips of GBP.
Two weeks pass and the value of the GBP has risen as the investor predicted, the bid price is now 1.22220.
The trader is paid the difference between the initial ask price and the final bid price, multiplied by the size of the trade. That is 0.015 multiplied by 1000, which equals a £15 profit.
CFD Forex Trading Vs Spot Forex Trading
Forex trading can be conducted with or without CFDs, but what difference does it make?
In non-CFD (spot) forex trading, traders still speculate on the value of a currency rising or falling against its pair.
However, they then directly buy or sell the currency, depending on their position. This means the investor owns the currency itself and more money is required to buy the currency. Profit or loss is then finalised by directly selling the currency when the price has risen or fallen.
In CFD forex trading, you are only speculating on the value rising, without buying and owning the currency. CFD brokers usually require a much smaller margin (around 5%) and any profit or loss comes from the spread between the initial currency value and the final value of the currency.
Where You Can Trade Forex CFDs
CFD regulations vary in different countries. CFD trading, forex or not, is banned in the US and Brazil. However, many other major trading countries allow these instruments. Countries like the United Kingdom, Germany, Switzerland, Spain and Hong Kong all allow forex and CFD forex trading in over-the-counter (OTC) markets.
Strategies
There are a few different trading strategies you can adopt when trading forex CFDs. We will run through four of the most popular below.
Day Trading
This is the practice of making short-term trades on the same day. Typically, the CFD forex trading position is held for anywhere from a couple of minutes to several hours before being sold, though it is not generally held overnight. The premise involves taking advantage of volatile forex pairs and requires high levels of concentration, you need to constantly monitor the market and be ready to make quick decisions.
Scalping
This is similar to day trading, except that positions are held open for minutes at a time and closed as soon as it becomes profitable. Again, this involves constant monitoring of the market.
The strategy hopes to minimise risk by reducing the opportunity for a reversal and profits are made by the aggregation of many low-profit, high volume trades. Margin trading is often used to facilitate scalping, though you should be careful as one large loss can erode a significant portion of your progress.
Position Trading
Position traders don’t take short-term approaches like day traders and scalpers. Instead, a position trader will buy CFD contracts and hold them for a few days or weeks. This is a strategy that doesn’t require such constant monitoring of the market but it can need perseverance if there are market dips.
Swing Trading
Swing trading is suitable in more volatile markets than position trading. The emphasis is on looking for strong price swings over one or several days. The strategy entails identifying short-term trends and waiting for signs of a reversal, trading against the trend once there are some. Swing trading may require that CFD forex positions be held overnight, incurring additional interest fees.
Pros Of CFD Forex Trading
- High leverage
- No shorting rules
- Low/no commission
- Instant order execution
- Trade both short and long positions
- No minimum day trading requirements
Cons Of CFD Forex Trading
- Not all countries allow CFD forex trading
- Quick execution makes it easy to overtrade
- Financing fees can be high when contracts are held for days/weeks
How To Start CFD Forex Trading
This step-by-step guide will help you get started trading forex CFDs:
Choose A Broker
The first thing to do is select the best CFD forex trading brokerage for you. Low spreads and financing fees are two basic things to look out for, along with trading platforms, asset ranges and customer service.
There are many brokers, both regulated and unregulated. Forex and CFD trading with IG Group, Oanda or XTB are popular choices. Additionally, more options, like CFDs on forex, stocks, indices, oil and gold are available with XM.
Those investors looking for mobile trading may want to consider Trade Interceptor and xStation, both of which offer APK and iOS trading apps.
Select An Asset
Each forex pair comes with a different level of risk. Major pairs like USD/GBP are relatively stable and demonstrate strong liquidity. Exotic pairs such as GBP/HKD are more volatile and have more dramatic price movements, giving more potential for those that know what they are doing.
Open A Position
Once you have selected an asset, you can open a CFD forex trading position by taking out a contract. Be sure to check the leverage ratio and ensure you have the funds to cover any potential losses. Also, look at implementing stop loss and take profit orders to limit risk.
Monitor & Close Position
Keep an eye on the price and trends for the currency pair you have a position open on. Many platforms will have a mobile app for you to use on the go. Consider any fees when looking to leave the position open overnight. As soon as the price is right, close your position and finalise the trade.
Trading Tips
This list of tips will boost your CFD forex trading skills:
- Stay Up To Date: Price movements can change rapidly and randomly. Make sure you are constantly monitoring the charts. Also, keep up with any news announcements, major stories can have a large impact on forex pairs.
- Stop Losses And Take Profit Orders: Don’t let your losses run wild, set a stop loss to automatically pull out and stop yourself burning funds if the market swings against you. Equally, ensure the trade closes if the value hits a certain point. You don’t want to miss out if you were asleep at the time.
- Demo Account: If your brokerage offers it, practise on a demo account before staking capital. These accounts are the perfect place to trial your strategies and get to know the platform you are using.
Final Word
CFD forex trading is a way to speculate on the foreign exchange markets without physically converting currencies. Investors can make use of high leverage rates and simpler fee structures than their spot forex counterparts. However, it is important to implement robust risk management systems and carry out detailed research to guide your strategy. See our list of recommended CFD forex brokers and follow the guide above to get started.
FAQ
Why Is CFD Forex Trading Illegal In The US?
Part of the reason is that they are an over-the-counter (OTC) product. This means they don’t pass through regulated exchanges and hence the US have banned them.
Is CFD Forex Trading Legal In The UK?
CFD forex trading is legal in the UK. However, Financial Conduct Authority (FCA) regulated brokers have several restrictions and rules they must abide by to protect their clients, including segregating bank accounts.