Forex Australia follows a strict editorial standard in our review process. We may receive compensation when you click on links to products we review. Please read our advertising disclosure.

CFD trading is a form of investment made popular by tales of generous profits from trading both sides of the market – all from the comfort of working from home. CFD Brokers provide the trading software needed to connect traders with the CFD market, so the first step for a new trader will be to choose from a long list of potential brokers.

To start our review process, we evaluated the broker’s financial regulation, trading platforms, educational material, minimum deposit requirements, and fee structure. To test these CFD brokers further, we created live trading accounts, depositing the minimum required amount, and started researching the trading conditions and functionality offered to emulate a beginner trader’s experience. These are the best CFD brokers in Australia for 2021, according to our testing and our research, where extra consideration was given for low trading costs and local ASIC regulation. 

English

Best Brokers in Australia for Trading CFDs

Last updated on 21 May 2021
Updated 21 May 2021
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
FP Markets
Min. Deposit
AUD 100
4.234.23
Min. Spread
0 pips
Fx Pairs
60+
REGULATED BY
Overall Rating
11110.54.23/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC and ASIC.
2
Black Bull Markets
Min. Deposit
USD 200
3.423.42
Min. Spread
0.20 pips
Fx Pairs
31
REGULATED BY
Overall Rating
1110.503.42/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Blackbull Markets is regulated by the FMA & the FSA-Seychelles.
3
Pepperstone
Min. Deposit
AUD 100
4.614.61
Min. Spread
0 pips
Fx Pairs
80+
REGULATED BY
Overall Rating
11110.54.61/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.09 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA.
4
IG Markets
Min. Deposit
AUD 250
4.694.69
Min. Spread
0.60 pips
Fx Pairs
93
REGULATED BY
Overall Rating
11110.54.69/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.
5
XM
Min. Deposit
AUD 5
4.384.38
Min. Spread
1 pips
Fx Pairs
57
REGULATED BY
Overall Rating
11110.54.38/ 5
AlertLeverage limitations apply to all the EU regulated entities of the group.
6
CMC Markets
Min. Deposit
AUD 5
4.694.69
Min. Spread
0.70 pips
Fx Pairs
330
REGULATED BY
Overall Rating
11110.54.69/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & CMC Proprietary platforms supported. CMC Markets is regulated by the ASIC, FCA, MAS and the FMA.
7
eToro
Min. Deposit
AUD 50
3.693.69
Min. Spread
1 pips
Fx Pairs
52
REGULATED BY
Overall Rating
1110.503.69/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC.
8
Plus500
Min. Deposit
AUD 200
4.094.09
Min. Spread
0 pips
Fx Pairs
70+
REGULATED BY
Overall Rating
11110.54.09/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Plus500 proprietary platform support. Plus500 Group is regulated by FCA, CySEC, ASIC, and MAS.
9
FXCM
Min. Deposit
AUD 50
4.134.13
Min. Spread
0 pips
Fx Pairs
40
REGULATED BY
Overall Rating
11110.54.13/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & Ninja Trader platforms supported. FXCM is regulated by FCA, ASIC, and the FSCA.
10
Axitrader
Min. Deposit
AUD 5
4.344.34
Min. Spread
0 pips
Fx Pairs
80+
REGULATED BY
Overall Rating
11110.54.34/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA
11
Admiral Markets
Min. Deposit
AUD 100
4.244.24
Min. Spread
0.10 pips
Fx Pairs
40+
REGULATED BY
Overall Rating
11110.54.24/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.50 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, and the FCA.

Best CFD brokers for 2021

FP Markets – Best CFD Broker in Australia

FP Markets is an Australian CFD broker offering thousands of CFDs to trade, including 60+ Forex pairs, shares, metals, indices, commodities, and cryptocurrencies (Bitcoin, Etherium, Ripple, Bitcoin Cash and Litecoin). Both MT4 and MT5 are available with ECN pricing, ensuring low spreads and fast execution. But for the full range of FP Market’s CFDs the IRESS trading platform offers direct exchange access and leverage of 20:1 on 10,000 global stocks.

MT4 and MT5 trading accounts can be opened with a minimum deposit of 100 AUD. Average spreads on the RAW Account are 0.1 pips (EUR/USD) and commission on this account is 6 USD round turn, making the total trading costs at the low end for the industry. IRESS trading accounts require higher minimum deposits, starting at 1000 AUD for the Standard Account. IRESS trading accounts also attract a brokerage rate, IRESS platform fee and an ASX Live Data fee unless a minimum monthly commission is reached.

FP Markets also offers a range of trading tools including VPS, Autochartist and copy-trading via Myfxbook AutoTrade. For beginners, the Traders Hub gives beginner CFD traders the education they need to get started and includes video tutorials and trading courses.

Pros
  • Well regulated
  • Tight spreads
  • Good range of accounts
  • Great customer support
Cons
  • Expensive withdrawals
AlertAccepts Australian Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC and ASIC.

BlackBull Markets – Best Institutional CFD Trading Account

BlackBull Markets is an ECN-only broker providing direct market access on the MT4 platform. BlackBull Markets offers three account types, the ECN Standard, ECN Prime and ECN Institutional.

All BlackBull Markets accounts offer CFD trading on Forex, indices, commodities, precious metals, and energy, but professional and institutional traders will appreciate the features on the ECN Institutional Account. The institutional account has a minimum deposit of 20,000 USD, spreads starting from 0.0 pips and leverage of 500:1. Commission is negotiable, VPS access is complementary, and a customised MAM/PAMM platform and 24/6 dedicated technical support are both available.   

BlackBull Markets is a true ECN/STP broker and does not operate a dealing desk. Equinix servers based in New York (NY4), London (LD5) and Tokyo (TY3) allow for lightning-fast market access, while Straight Through Processing prevents slippage and failed executions.

Pros
  • Tight spreads
  • Good for beginners
  • Wide range of assets
Cons
  • Expensive withdrawals
  • Limited market analysis
AlertAccepts Australian Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Blackbull Markets is regulated by the FMA & the FSA-Seychelles.

Pepperstone – Best ECN CFD Broker

Pepperstone is the leading ASIC regulated ECN/STP Forex and CFD broker with CFD trading on 180+ instrument including Forex, indices, shares, commodities, cryptocurrencies, and currency indices. Pepperstone’s two ECN accounts offer market execution with some of the tightest spreads in the industry – the Razor Account has spreads from 0 pips for the EUR/USD and 7 USD commission.

Pepperstone also offers fixed spreads on its indices CFDs, after-hours trading for US shares, and crypto basket trading – indices of the world most highly traded cryptocurrencies.

Pepperstone’s award-winning, 24-hour support provides the foundation for its excellent customer service, where personalised assistance is available via several methods. For beginners interested in CFD trading with an ECN broker, Pepperstone’s also has one of the better education sections offered by a market execution broker.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
    AlertAccepts Australian Clients. Average spread EUR/USD 0.09 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA.

    IG Markets – Best CFD Broker for Weekend Trading

    IG Markets is the world’s largest CFD broker by revenue and it offers a single commission-free CFD trading account. Forex trading is commission-free, and spreads start at 0.6 pips on the EUR/USD. IG Markets also offers over 17,000 other instruments to trade from its single account. These include commodities, indices, cryptocurrencies, ETFs, over 13,000 shares, options, interest rates and bonds. Unique to IG Markets is its weekend trading product line: 24/7 trading available on major Forex pairs, eight cryptocurrencies (including Bitcoin) and the main global indices such as FTSE 100 and HS50.

    The IG Academy has structured courses for beginner, intermediate and advanced traders and daily classroom-style lessons. Market analysis across all CFD assets is updated regularly by the IG Markets research team of finance professionals. 

    Pros
    • Well regulated
    • Tight spreads
    • Great platform choice
    • Excellent education
    • Excellent market analysis
    Cons
    • High minimum deposit
    AlertAccepts Australian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.

    XM – Best CFD Trading Education

    An FCA regulated CFD broker with tight spreads over three simple account types, XM offers trading on Forex, shares, commodities, indices, precious metals, and energies. XM stands out for its educational support and market research. XM’s research team provide frequent market updates across all CFD classes in an easy-to-understand manner, highlighting trading opportunities and technical insight. Webinars are available 7 days a week in 19 languages and educational videos cover basic, intermediate, and advanced trading concepts.

    All XM accounts have a max leverage 1:30, negative balance protection, and minimum deposits start from 5 GBP. XM also has a strict no-requotes/rejection policy, which means that all trades are always filled at the price expected. Platform support is offered for MT4 and MT5 but MT4 users will only be able to trade Forex, stock indices, precious metals, and energies.

    Pros
    • Well regulated
    • Excellent education
    • Wide range of assets
    • Fast and free withdrawals
    Cons
    • Dealing desk
    AlertLeverage limitations apply to all the EU regulated entities of the group.

    CMC Markets – Lowest Deposit CFD Broker

    CMC Markets is a British market maker broker with ASIC regulation, a low minimum deposit, and great CFD trading conditions on both MT4 and its own Next Generation CFD trading platform.

    CMC Markets’ single trading account has a 5 AUD minimum deposit and offers commission-free trading on 330 Forex pairs, one of the industry’s largest sets. Minimum spreads are as low as 0.7 pips on the AUD/USD and EUR/USD and low commissions are available on over 9000 shares and ETFs. Other markets to trade in include indices, commodities, treasuries, and cryptocurrencies.

    MT4 traders can further customise their platform with a range of tool such as, Autochartist, a free VPS service and the FX Blue plugin.

    Pros
    • Well regulated
    • Tight spreads
    • Good for beginners
    • Excellent education
    • Excellent market analysis
    Cons
    • No swap-free account option
    AlertAccepts Australian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & CMC Proprietary platforms supported. CMC Markets is regulated by the ASIC, FCA, MAS and the FMA.

    eToro – Best Social Trading CFD Broker

    eToro was the creator of the first social trading system and it remains the leading social trading broker in Australia. Its intuitive and bespoke CFD trading platform gives traders access to 52 currency pairs alongside a wide range of stocks, commodities, cryptocurrencies, ETFs, and indices. Its cryptocurrency range is particularly diverse, with 96 crypto pairs and cross pairs to trade on. eToro offers a free unlimited demo account on its proprietary platform, and for traders who want to start trading with a live account, the minimum deposit is 50 AUD. 

    eToro’s web-based platform, also available as a mobile app, is easy to use and features floating spreads down to 1.0 pip on the EUR/USD. While the trading platform does not offer the sophistication and customisability of either MT4/5 or cTrader, it does make both social trading and copy trading a simple business. eToro allows traders to copy individual traders or algorithmically managed investment portfolios following a selected strategy named CopyPortfolios.

    Pros
    • Well regulated
    • Good for beginners
    • Innovative trading tools
    Cons
    • Limited education
    • Wide spreads
    AlertAccepts Australian Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC.

    Plus500 – Best Mobile CFD Trading Account

    Plus500 is a leading CFD provider mainly due to the intuitive nature of its mobile platform, appealing trading conditions and range of 2000+ non-Forex CFDs, including Shares, Indices, Cryptocurrencies, Commodities, ETFs, and Options. Spreads are fixed at Plus500 but are reasonably tight with a 0.8 pip spread on the EUR/USD (April 16th, 2021) and no commission. Deposits and withdrawals are free, and there are no fees for rolling over your position. Plus500’s customer service team is available 24/7 via WhatsApp and Live Chat for traders who need customer service on weekends and evenings.

    The Plus500 app has the same functionality as the web platform, and traders will find it intuitive to grasp and feature-rich. Traders can use the app’s advanced order types, sentiment indicators and price alerts to stay on top of the market, even when on the move. 

    Pros
    • Well regulated
    • Wide range of assets
    Cons
    • Limited education
    • Limited account options
    AlertAccepts Australian Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Plus500 proprietary platform support. Plus500 Group is regulated by FCA, CySEC, ASIC, and MAS.

    FXCM – Best Specialty Trading Platforms

    FXCM is a well-regulated CFD broker with a single account, competitive spreads (starting at 1.3 pips on the EUR/USD), and a low minimum deposit of 50 AUD. CFD trading is available on Forex, shares, indices, commodities, 7 cryptocurrencies as well as Forex and share baskets. FXCM supports the MT4 platform, NinjaTrader 8 and its own intuitive Trading Station platform, but experienced traders will be interested in its wide variety of specialist platforms.

    FXCM’s range of specialist CFD trading platforms includes QuantConnect, MotiveWave, AlgoTerminal AgenaTrader, Sierra Chart, SeerTrading, NeuroShell Trader and StrategyQuant. Most of these platforms require programming knowledge to use appropriately, though some, such as NeuroShell Trader are built for more complex technical analysis. FXCM’s technical support team is available 24/5 via webchat, email and 42 freephone numbers worldwide.

     

    Pros
    • Well regulated
    • Great platform choice
    • Excellent education
    • Innovative trading tools
    Cons
    • Limited demo account
    AlertAccepts Australian Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & Ninja Trader platforms supported. FXCM is regulated by FCA, ASIC, and the FSCA.

    Axi – Best ECN CFD Broker on the MT4 Platform

    Axi is an Australian ASIC and FCA regulated ECN broker offering CFD trading on 140 Forex pairs, precious metals, commodities, indices, and cryptocurrencies. As an ECN broker, Axi offers tight spreads – down to 0 pips at times – and a commission of 7 USD is charged. No minimum deposit is required to open an account, but Axi does recommend starting with a minimum of 100 USD.

    By exclusively supporting the MT4 platform, Axi offers a thoughtful and heavily customisable MT4 experience. Axi offers a range of tools as part of its MT4 NexGen package. These include a sentiment indicator, a correlation trader, a more intuitive terminal window, and an automated trade journal. Other tools include AutoChartist, a powerful automated technical analysis tool, and PsyQuation, an AI diagnostic that tracks your trading style and coaches you into more profitable trades. VPS hosting is also available, along with various trading algorithms to install on your MT4.

    Pros
    • Low minimum deposit
    • Wide range of assets
    • Well regulated
    • Tight spreads
    Cons
    • Poor customer service
    • Limited demo account
    AlertAccepts Australian Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA

    Admirals – Best CFD Broker on the MT5 Platform

    Admirals, formerly Admiral Markets, is an Australian CFD broker offering market execution on four accounts, two of which focus on the MT5 platform – Trade.MT5 and Zero.MT5. Both MT5 trading accounts have a 100 AUD minimum deposit and attractive trading conditions. CFDs available to trade include 40+ FX pairs, 32 crypto CFDs, precious metals, energies, commodities, indices, shares, ETFs, and bonds.

    The Trade.MT5 account has a minimum spread from 0.5 pips with no commission and the Zero.MT5 account has spreads from 0 pips with commission varying between 1.8 to 3.0 USD per lot. Admirals also offers the MetaTrader 4 Supreme Edition, which has advancements in technical analysis, improved trading widgets and trader terminal and new charts and indicators.

    Pros
    • Well regulated
    • Excellent education
    • Wide range of assets
    Cons
    • Expensive withdrawals
    AlertAccepts Australian Clients. Average spread EUR/USD 0.50 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, and the FCA.

    What are CFDs?

    A CFD is a Contract For Difference. It is an agreement between you and a CFD broker to pay the difference in the price of an asset (like gold, or oil, or Tesla stock) after it increases or decreases.

    Trading CFDs is speculating on the price movement of an asset without ever owning it.

    CFDs are usually traded with leverage (money borrowed from the CFD broker) and neither the trader nor the broker ever owns the underlying asset.

    What is a CFD Broker?

    CFD brokers are the companies that provide access to a CFD market and provide a trading platform to open and close trades. To trade CFDs, you will need to open an account with a CFD broker. Once you open an account you will need to fund it with the minimum deposit required by the CFD broker.

    CFD brokers usually require a minimum deposit to open an account

    All CFD brokers offer the same basic services – like a trading platform and access to a market – but they can be quite different in other ways.

    Types of CFD Brokers

    CFD brokers come in two main forms: Market Makers or Direct Market Access (DMA)

    Market Makers

    Market makers are CFD brokers who create an artificial market for traders. When you trade with a market maker, you are not trading with real market prices. Instead, you are trading with prices that a market maker thinks are fair.

    Market makers are always counterparty to your trade

    Because a market maker is the market, it will always take the other side of your trade. This is called being the counterparty. So, when you lose money the market maker will profit – and when you profit the market maker will lose money.

    Market makers will often require low minimum deposits to open an account and offer instant execution of trades.

    These are the best ASIC-regulated market maker CFD brokers in 2021:

    Scroll for more detailsPreviousNext
    Overall Rating
    Regulators
    Min. Deposit
    Cost of Trading
    Trading Commission
    No. of FX Pairs
    Compare
    Official Site
    4.69 /5
    Read Review
    AUD 5
    USD 7
    Fees Included in Spread
    330
    Visit Broker >
    Your capital is at risk
    4.69 /5
    Read Review
    AUD 250
    USD 6
    Fees Included in Spread
    93
    Visit Broker >
    Your capital is at risk
    4.48 /5
    Read Review
    AUD 100
    USD 9
    Fees Included in Spread
    50+
    Visit Broker >
    Your capital is at risk
    4.39 /5
    Read Review
    AUD 250
    USD 6
    Fees Included in Spread
    50+
    Visit Broker >
    Your capital is at risk
    4.38 /5
    Read Review
    AUD 5
    USD 16
    7 USD / lot - XM Zero Account
    57
    Visit Broker >
    Your capital is at risk

    Direct Market Access (DMA)

    ECN-Network

    Unlike market makers, DMA brokers provide access to the CFD market. The most common form of DMA broker is called an ECN (Electronic Communication Network) broker. When you trade with an ECN broker, it will pass your trade to a member of its network to take the other side of your trade.

    DMA brokers pass your trade to other members of the CFD market

    ECN brokers and other DMA brokers usually require high minimum deposits to open an account and trade execution is never instant.

    These are the best ASIC-regulated ECN CFD brokers in 2021:

    Scroll for more detailsPreviousNext
    Overall Rating
    Regulators
    Min. Deposit
    Cost of Trading
    Trading Commission
    No. of FX Pairs
    Compare
    Official Site
    4.61 /5
    Read Review
    AUD 100
    USD 7.90
    From 7 USD / lot - Razor Account
    80+
    Visit Broker >
    Your capital is at risk
    4.46 /5
    Read Review
    AUD 200
    USD 8
    7 USD / lot - True ECN account
    60
    Visit Broker >
    Your capital is at risk
    4.34 /5
    Read Review
    AUD 5
    USD 12
    7 USD / lot - PRO account
    80+
    Visit Broker >
    Your capital is at risk
    4.23 /5
    Read Review
    USD 50
    USD 10
    Fees Included in Spread
    65
    Visit Broker >
    Your capital is at risk
    4.23 /5
    Read Review
    AUD 100
    USD 7
    6 USD / lot - RAW Accounts
    60+
    Visit Broker >
    Your capital is at risk

    What is a CFD Trading Account?

    CFD trading accounts are accounts opened with a CFD broker. Many CFD brokers will offer different accounts with different costs and benefits.

    Unless it is a CFD demo account, traders have to transfer money into the trading account to start trading.

    Types of CFD Trading Accounts

    Accounts with CFD brokers can be split into two main groups: Demo Accounts and Live (or Real) Accounts.

    Demo Accounts

    Demo accounts are the best way to practice CFD trading with zero risk. All CFD brokers will offer a demo account for beginners to practice trading and get used to the broker’s trading platform. They are free to open, and the broker will load them with virtual money.

    Demo accounts have fake money, but real market conditions

    Even though there is no real money involved, demo accounts have real market conditions; traders with a demo account are seeing exactly the same thing as traders with a real account. Demo accounts are indispensable for new traders who want to understand how it feels to trade CFDs.

    Some CFD brokers will put a time limit on their demo accounts, usually 2 or 3 weeks, forcing new traders to switch to a real account. The best CFD brokers have demo accounts that never expire, so traders can continue to practice as long as they want.

    These are the ASIC-regulated CFD brokers with the best demo accounts in 2021:

    Scroll for more detailsPreviousNext
    Overall Rating
    Regulators
    Min. Deposit
    Cost of Trading
    Trading Commission
    No. of FX Pairs
    Compare
    Official Site
    4.24 /5
    Read Review
    AUD 100
    USD 5
    1.8 - 3 USD per lot
    40+
    Visit Broker >
    Your capital is at risk
    4.69 /5
    Read Review
    AUD 5
    USD 7
    Fees Included in Spread
    330
    Visit Broker >
    Your capital is at risk
    4.46 /5
    Read Review
    AUD 200
    USD 8
    7 USD / lot - True ECN account
    60
    Visit Broker >
    Your capital is at risk
    4.48 /5
    Read Review
    AUD 100
    USD 9
    Fees Included in Spread
    50+
    Visit Broker >
    Your capital is at risk
    4.38 /5
    Read Review
    AUD 5
    USD 16
    7 USD / lot - XM Zero Account
    57
    Visit Broker >
    Your capital is at risk

    Live Accounts

    Live accounts come in many different forms depending on the CFD broker. Most CFD brokers have several live accounts, with different required minimum deposits. Generally, live accounts with lower minimum deposits have worse trading conditions (i.e. making trades is more expensive).

    Lower minimum deposits = worse trading conditions

    As well as lower trading costs, CFD brokers will also offer more perks on accounts with higher minimum deposits. Perks can include one-on-one training and advanced trading tools.

    Some CFD brokers will offer both market maker accounts (so you will be trading against the broker) and direct market access accounts (so you will be trading on the market).

    What Types of CFDs Can You Trade?

    Tradeable CFDs include: Forex (currency pairs), commodities (oil, gold, coffee, grain, etc.), stocks (Tesla, Apple, etc.), indices (like the NASDAQ or FTSE 100) and cryptocurrency pairs (such as BTC/USD). There are other CFDs, but these are the most common.

    The most popular form of CFD trading is Forex trading

    The most popular form of CFD trading is Forex trading, or the trading of currency pairs such as EUR/USD (Euro/US Dollar) or GBP/JPY (British Pound/Japanese Yen).

    How do CFD Brokers Make Money?

    Money

    CFD brokers make money from traders with:

    • Spreads and commission
    • Overnight interest
    • Hedging
    • Deposit and withdrawal fees
    • Optional services.

    Once you understand how these fees work, you will be able to compare CFD brokers by cost.

    Spreads and Commission

    Most CFD brokers will make money from the spread. The spread is the broker’s fee for their services. It is the difference between the buy and sell price a CFD broker gives traders and the real market price. The lower (or tighter) the spread, the cheaper a broker is to trade with.

    The spread is the CFD broker’s fee for their services

    Market makers brokers have wider spreads than direct market access brokers. But direct market access brokers usually charge a commission. This commission is paid when you open a trade and when you close a trade and is usually a fixed amount, charged in USD.

    Direct market access brokers have tight spreads but usually charge a commission

    Overnight Interest

    CFD brokers also make money from interest. CFD trading is leveraged, which means that you borrow money from the broker to increase the size of your position. Brokers will charge you interest for borrowing money from them, this is charged on all trading positions that are held overnight.

    Hedging

    Market maker CFD brokers will also hedge their counterparty trades. If a CFD broker is the counterparty to a trader buying gold, it will also sell gold to protect itself from the trader winning.

    Deposit and Withdrawal Fees

    Some CFD brokers also charge deposit and withdrawal fees. These can be either a fixed fee or a percentage of the deposit or withdrawal. Always check with the CFD broker first before you make a deposit or withdrawal to avoid being surprised.

    Other Fees

    CFD brokers also charge other fees. The most common is an inactivity fee for trading accounts that have not been used for many months. But brokers may also charge for optional services such as advanced trading tools, in-depth education, and VPS services.

    CFD Broker Ratings and Reviews

    It is important to read reviews and check the ratings for CFD brokers when comparing them. CFD brokers tend to be strong in some areas and weaker in others, only a very few are excellent overall.

    The best CFD broker for you will depend on your trading experience, educational background, and financial situation.

    For instance, the best CFD broker for beginners will have excellent education and trading accounts with low minimum deposits. But the best CFD broker for experienced traders will have advanced trading tools and trading accounts with high minimum deposits and exceptional trading conditions.

    Regulated CFD Brokers

    Regulators are national authorities that protect citizens from financial scams and unethical businesses. Traders should always use CFD brokers that regulated by at least one national authority. In Australia, the national regulator is the Australian Securities and Investments Commission (ASIC).

    Traders should always use a regulated CFD broker

    To protect traders, ASIC-regulated CFD brokers are required to comply with the following rules:

    • Segregated Accounts: CFD brokers are required to keep trader’s money in a separate bank account from their own. This means that traders can get their money back if a CFD broker goes bankrupt.
    • Negative Balance Protection: Traders with ASIC-regulated CFD brokers can never lose more money than they have in their trading account. This means that any negative balance cannot be claimed by the brokers.
    • Leverage Limits: From 29th March 2021, all CFD brokers regulated by the ASIC can only offer leverage of 30:1. This means that traders can only borrow from the broker 30 times more than they have in their trading account.
    • Regular Audits and Inspections: ASIC-regulated CFD brokers are subject to audits of their finances and surprise inspections of their trading setup. This prevents brokers from cheating their traders.

    There are many other regulators around the world. Apart from ASIC, the best regulators are CySEC (Cyprus Securities and Exchange Commission) and the UK’s FCA (Financial Conduct Authority). Some CFD brokers are regulated by more than one national authority.

    CFD Trading Platforms

    All CFD brokers will offer a trading platform to access the markets. Some brokers have their own platforms, while others use popular independent trading platforms that you can download to your computer.

    The most popular CFD trading platform is MetaTrader 4

    The most popular trading platform in the world is MetaTrader 4 (MT4). Other popular CFD trading platforms are MetaTrader 5 (MT5) and cTrader. All three platforms provide access to the CFD markets and allow users to make trades.

    These are the best ASIC-regulated CFD brokers with MT4 in 2021 according to our expert’s research:

    Scroll for more detailsPreviousNext
    Overall Rating
    Regulators
    Min. Deposit
    Cost of Trading
    Trading Commission
    No. of FX Pairs
    Compare
    Official Site
    4.69 /5
    Read Review
    AUD 5
    USD 7
    Fees Included in Spread
    330
    Visit Broker >
    Your capital is at risk
    4.61 /5
    Read Review
    AUD 100
    USD 7.90
    From 7 USD / lot - Razor Account
    80+
    Visit Broker >
    Your capital is at risk
    4.48 /5
    Read Review
    AUD 100
    USD 9
    Fees Included in Spread
    50+
    Visit Broker >
    Your capital is at risk
    4.46 /5
    Read Review
    AUD 200
    USD 8
    7 USD / lot - True ECN account
    60
    Visit Broker >
    Your capital is at risk
    4.39 /5
    Read Review
    AUD 250
    USD 6
    Fees Included in Spread
    50+
    Visit Broker >
    Your capital is at risk

    All three platforms also allow CFD traders to install small software programs called robots and indicators. Robots trade automatically, based on pre-determined signals, and indicators help traders find opportunities in the markets.

    Trading robots will trade automatically for you based on pre-set signals

    All trading platforms are also available on Android and iOS mobile devices. CFD brokers with their own platforms will often have their own mobile apps too. MT4, MT5 and cTrader are also available as mobile apps.

    Deposits and Withdrawals with a CFD Broker

    The best CFD brokers offer a range of methods to make deposits and withdrawals. Almost all CFD brokers will accept credit/debit cards, bank wires and ewallets such as Skrill or Neteller.

    Deposits can usually be made instantly with credit/debit cards and ewallets, but bank transfers usually take a few days – or longer if you are making an international bank transfer.

    Withdrawals tend to take a little longer, but the best CFD brokers will allow you to withdraw to your credit/debit card or ewallet within 24 hours. Again, bank transfers will take a few days and international bank transfers even longer.

    The best CFD brokers will not charge for deposits or withdrawals

    The best CFD brokers will not charge for deposits or withdrawals, but unfortunately, this is quite rare. Many CFD brokers will allow free deposits but will charge a fee for withdrawals. Some CFD brokers will even charge for both.

    International bank transfers will always incur a fee from the banks involved in the transfer and CFD brokers will usually not cover this cost.

    Learn How to Trade CFDs

    Forex education

    Trading CFDs with a CFD broker (even the best) is risky, and most traders lose money.

    The first step to being a profitable CFD trader is to be an educated CFD trader

    Most CFD brokers will offer some form of education, but the best CFD brokers excel when it comes to teaching new traders. CFD education should be comprehensive and well-structured. It should be a mix of video and written content, featuring input from market experts and trading professionals.

    The best CFD brokers will also have an in-house team of market analysts to provide technical insight and detailed coverage of events that affect the CFD markets.

    Final Word

    The best CFD brokers will be well-regulated, have low trading costs and will provide excellent education and powerful but easy-to-manage trading platforms. Because there are quite a few brokers who will fit those criteria, it is important to think about what you want from a CFD broker when making your comparison.

    Forex Risk Disclaimer

    Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

    Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

    Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

    Our Methodology

    Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

    With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

    In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

    All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

    References

    Stay updated

    This form has double opt in enabled. You will need to confirm your email address before being added to the list.

    Featured Brokers

    Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    Close
    >