Which CFD broker Offers The Best Chances To Succeed

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Which CFD broker Offers The Best Chances To Succeed?

The regulations taken by ESMA have several times created waves not only in the forex business. In this article, we will briefly explain what the ESMA regulations are, take a look at the predicted results of individual brokers. Which one gives you the best chances to succeed? How different are the brokers in terms of performance?

ESMA regulations

ESMA is the European Securities and Markets Authority, whose mission is to ensure the stability of financial markets. To support it, on 22 May 2020, ESMA issued the decision regulating CFD contract and binary options trading. This – one of the most rigid decisions – came into effect on 2 July 2020.

What does the ESMA decision mean?

The changes follow regulations adopted in the USA. They put restrictions on leverage trading, adjust sustainability margins and protect from a negative balance. When I started as a trader (in 2020) it would be normal to see a broker offering leverage of 1:300. even 1:400, 1:500 or 1:1000 (!). By today’s standards, these figures seem mad. Just calculate how much you would lose or earn on the EUR/USD pair if the move was just one pip!

The ESMA regulations set for all major currency pairs (USD, EUR, GBP, JPY, CAD and CHF) the maximum leverage at 1:30, 1:20 for minor currencies, gold and the main indexes (such as S&P 500, Dow Jones, NASDAQ 100 or DAX 30), 1:10 for commodities, 1:5 for shares and 1:2 for cryptocurrencies. These regulations seem to be drastic but believe me for serious traders sticking to the principles of healthy money management it is no disaster.

The regulators have also set the minimum margin at 50% and added protection against the negative balance on an account. Again, nothing that should restrict long-term traders that much (speaking of the fundamental principles of money management), but annoying it is.

Transparency is an important part of the ESMA regulations. From now on, all brokers must report how many of their clients are profitable and how many losing.

Numbers of profitable and losing traders with different brokers

The data published below hit the forex community as well as other traders immediately. The numbers, mandatory for each broker, were processed by Finance Magnates Intelligence offering an overall picture. Our list includes a complete overview of results, not necessarily best illustrating the situation.

Complete overview

Statistics of earnings of traders with CFD brokers (Source: Finance Magnates Intelligence)

TOP 5 brokers – profitable clients

  • AETOS
  • eToro
  • GBE brokers
  • Darwinex
  • HM Markets

TOP 5 brokers – losing clients

  • Vestle (used to be iForex)
  • HYCM
  • EasyMarkets
  • XTB
  • GKFX

Can you trust the figures?

Perhaps we would not consider the numbers if the result was somewhat different. As you can see at the top of the list there are a few brokers labeled as a scam. I don’t want to say that they all are crooks – some may not have had time to build the inevitable credibility and image among the customers. So, the clients may still be checking how reliable these guys are. On the other hand, some well-reputed brokers are ranked at the bottom.

If you are a broker that accepts every trader, offers micro/nano lots and whose minimal deposit is a few USD it is likely that a lot of your clients will lose. It’s because they use their small accounts primarily for learning. Initially, they may lose a hundred dollars or so – no tragedy. They will learn lessons and open a bigger account or a new small account. If you accept any client and give them free hand if you offer minimal education etc. the likelihood of most of your clients ending up as losers is bigger.

At the top of the list, you can see two brokers who offer social trading, i.e. copying of someone else’s trades. eToro is the better of the two. If you are their client your chances to win are quite good. Many beginners copy more experienced traders to avoid typical beginner mistakes. The goal of this article is not to judge. The activity – social trading – has already been described. Yet, it involves a lot of great pros and cons.

The figures in the above table are not necessarily 100% illustrative. It may happen that a broker whose only concern is to focus purely on his business i.e. quickly handle all orders at a given market price, offer minimal fees, etc. will be placed at the very end of the ranking. Simply because most of his clients use their micro account to test their trading skills, which frequently results in loss – no matter how good the broker is. On the other hand, a broker using, let’s say, social trading, investing more in the education of its traders and marketing may win a better place in the ranking in spite of offering somewhat worse conditions.

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I view the figures with some tolerance. If, however, the broker you are doing business with is placed close to the bottom, do a small research to find out more details why this is happening. Aren’t his trading costs too high? Is the settlement process always quick? Think about his marketing and business – does he offer micro forex accounts, some form of education?

Last but not least, remember that in the market the losers always prevail over the winners. When trading it can’t be different. But the fact that you are reading this article gives you the potential to perform better than the rest i.e. 70% of losing traders. Discipline and self-education such as with us on xBinOp is a journey to success.

Author

More about the author J. Pro

Unlike Stephen (the other author) I have been thinking mainly about online business lately. I wasn’t very successfull with dropshipping on Amazon and other ways of making money online, and I’d only earn a few hundreds of dollars in years. But then binary options caught my attention with it’s simplicity. Now I’m glad it did because it really is worth it. More posts by this author

List of the best CFD Broker 2020 – Trusted reviews

Table of Contents

Due to the large choice of different offers on the internet, it is difficult to find a secure and reputable CFD Broker today who can offer the client good trading conditions. Especially international it is confusing through many comparison sites because they do not always recommend the best CFD provider. In the following list, you get the guarantee to find the online broker with the best trading conditions. Read also the important criteria of this comparison, which was carried out by us with more than 7 years of experience in the industry.You will get a deeper look at these companies by our reviews in the following sections.

74.93% of retail CFD accounts lose money

76% of retail CFD accounts lose money

62% of private investor accounts lose when trading CFDs

76.4% of retail CFD accounts lose money

75% of retail CFD accounts lose money

75% of retail CFD accounts lose money

75.6% of retail CFD accounts lose money

71% of retail CFD accounts lose money


74% of retail CFD accounts lose money

81.27% of retail CFD accounts lose money

How to find a good CFD Broker? – Criteria for the reviews

In order to find a serious and secure CFD Broker at all, you have to check the company for different criteria. By checking before opening a portfolio, you can assume that there will be no fraud. Especially dubious companies hope for the ignorance of the new customers in order to cheat them about the invested assets. Therefore you should read through this website completely. For much more information about the companies, you can also click on “Read the review” in the list above and you will get many more facts about the CFD Broker.

Note that the most online brokers offering CFDs and Forex together.

Security and safety for customers fund is the most important point for traders

Before you sign up with any CFD Broker you should check if it is a regulated company. Brokers with no regulation or license are not secure for the client’s money. On the internet, you can read a lot about complaints and frauds from unregulated brokers. As a customer, you should check the license and security for customer funds. If you do not find any information you should better ask the CFD Broker before you sign up.

From our experience, Online Brokers who got an official license from a financial authority are safe and secure. You can make unlimited profits and withdrawal your money without any problems. To find the best CFD Broker you should have a look at the further criteria of a good one. All companies in this review are checked by this checklist.

Criteria for a good CFD Broker:

  • Official regulation and financial license
  • Safety of customerfunds (seperated funds)
  • Fast execution of trades;
  • Good trading data and charting
  • Free demo account with virtual money
  • Regulated and secure payment methods
  • Fast withdrawal of profit
  • Professional customer support and service in different languages

On this website we gurantee that any broker we recommend is checked and proven by our team. With more than 7 years experience in financial trading we know how the industry works and how to get the best conditions for traders.

Quick recap: What are CFDs?

The shortcut CFDs means Contact for Difference (Wikipedia). These are contracts between the trader and the CFD Broker. The Contract for Difference can be used to invest in every market you want. The contract shows you exactly a copy of the real asset like stocks, commodities, or indices. It is an over the counter product which means you invest in the contract and not in the real asset. The broker has to hedge the risk on the markets or against other traders of the platform.

CFDs are developed to avoid taxation and now it is a popular financial product for retail traders. The advantages of CFDs are very clear. You can invest very easy into rising and falling prices. Short trades are not a problem for stock trading with CFDs. Furthermore, it is possible to start investing with a very small amount of money and you can use high leverage which is depending on the CFD Broker.

List of the more detailed CFD Broker Reviews:

1. Marketsx (Markets.com) – Comfortable trading platform with the best spreads

When it comes to online trading the most traders want to invest with a trading platform which is easy to use and very compact. Compared to the other CFD Brokers on this site Markets.com is one of the largest companies for online investing too. The advantages of the trading platform are that the software is very userfriendly and when you want to trade with more professional tools you can use the platform MarketsX.

Markets.com belongs to the Playtech PLC which is listed on the London Stock exchange. This shows us the very high trust and safety. In addition, the customer funds are very safe with this broker because of the Financial Service Compensation Scheme (£85,000). The CFD Broker is multi-regulated by important regulators like FCA, CySEC, and ASIC. International clients are accepted.

The trading platform is very compact and recommended for beginners. You clearly see what you can trade and where you can invest. New traders can try the free demo account to test the platform. Two platforms are offered. MarketsX is a new chapter of the broker. You will get more tools, analysis, and chances to do professional strategies. All in all, Markets.com is recommended to trade with because of the huge range of assets, trustworthiness, and user-friendly platform.

The official website of Marketsx

The advantages of Marketsx (Markets.com):

  • Multi-regulated CFD Broker
  • The company is listed on the London Stock Exchange (Playtech PLC)
  • 2,000 different markets and 2,200 assets to trade
  • CFDs on forex, commodities, cryptocurrencies, stocks, and more
  • Free and unlimited demo account
  • Variable spreads (0.6 pips) and no hidden fees
  • VIP accounts and professional platforms (MarketsX)
  • PayPal, bank wire, Credit Cards for funding and withdrawal
  • High security of customer funds

(74.93% of retail CFD accounts lose money)

2. IQ Option – Userfriendly and customizable platform with new assets

IQ Option is another international broker for trading CFD. Especially the trading platform of this company is very unique. It is userfriendly and very customizable. You can do multi-charting and use more than 100 different tools to do technical or fundamental analysis. Compared to other platforms is IQ Option easy to use.

You can start with a minimum deposit of 10$ or with the free demo account. IQ Options offers more than 500 different markets traded with CFDs or other financial instruments. Moreover, different options are available to trader with the possibility of a profit of 900%+. Next, to the good conditions the broker offers a 24/7 support in different languages. If you are searching for an easy way to invest you definitely should try IQ Option.

The official homepage of IQ Option

The advantages of IQ Option:

  • Regulated broker since 2020
  • Minimum deposit 10$
  • Minimum investment amount 1$
  • Userfriendly platform and easy to use
  • Stocks, Commodities, ETFs, CFDs, Binary Options, Digital Options, and more
  • Yield 80 – 100%
  • Competitive spreads
  • High leverage up to 1:1000
  • Support 24/7
  • Fast deposit and withdrawal

(77% of private investor accounts lose when trading CFDs)

3. eToro – The best offers for CFD traders

Etoro is one of the most famous CFD Broker worldwide. Next, to a huge range of assets, they offer you to do social and copy trading. For example, you copy the trades of professional traders or become a copied trader by yourself to earn additional money. Also, fonds for investing are available on the platform. It is a very userfriendly trading platform for beginners. Moreover, advanced traders will find the right tools and charting analysis for their successful trading.

The CFD Broker is based in many different countries and got official financial licenses. Customer funds are managed on big European banks and are separated from the broker money. You can use different payment methods like PayPal, credit card or bank wire to deposit and withdrawal your money. Furthermore, you get professional support through their support team. All in all, eToro offers the best overall package for CFD traders.

The official eToro homepage

The advantages of eToro:

  • Multi regulated and licensed CFD Broker founded in 2007
  • They know how to serve clients desires
  • More than 1,500 asstes (forex, CFDs, real stocks, cryptocurrencies, commodities)
  • Competitive spreads
  • Fast execution and high liquidity
  • Social and copy trading
  • Professional and userfriendly trading platform
  • Good support for traders (phone and email)
  • Free education and analytics
  • Regulated payment methods (PayPal, Bank wire, credit card, e-wallets)

(Risk Warning: eToro is a multi-asset platform that belongs to stocks and cryptocurrencies as well as trading CFD investments.

CFDs are administrative financial instruments. Because of the leverage, they run a certain risk of losing money quickly. 62% of private investor accounts lose money when trading CFDs with this provider

Please hear yourself heard in advance about CFD trading rights as high rights cannot be heard.

Cryptocurrencies are not listed and their prices can fluctuate widely. Not even cryptocurrencies authorized itself for all investors. Trading cryptocurrencies under closed government supervision through EU regulatory measures. Your capital is heard.

Past performance is not indicative of the same results. This release does not constitute investment advice. CFD trading)

4. Plus500 – One of the worlds largest trading brands

When it comes to CFD trading many traders know the brand Plus500 because of its advertising. It is an international broker where you can trade more than 200 assets. It is such a large brand that the Plus500 is listed on the main market of the London Stock Exchange. The CFD Broker is multi regulated and got different branches around the world.

Traders get a clear and userfriendly trading platform which is easy to use and understand. You get access to CFDs on currencies, stocks, commodities, cryptocurrencies, options, and more. Also, the spreads are variable and always depending on the market conditions and assets. For trading you can use a guaranteed stop loss which is a huge advantage of the broker. Just start with a low minimum deposit of 100$ and use many different payment methods. In conclusion, Plus500 is one of the best CFD Brokers because the trading platform is easy to use for everyone and you get good conditions.

The official homepage of Plus500

The advantages of Plus500:

  • Multi regulated CFD Broker
  • Plus500 is listed on the main market of the London Stock Exchange
  • More than 2,000 assets
  • New and innovative markets to trade
  • Low minimum deposit of 100$
  • Competitive spreads and no hidden fees
  • Support 24/7
  • PayPal, bank wire, E-wallets, and other regulated payment methods

(76.4% of retail CFD accounts lose money)

5. IG Online Broker – CFD Trading at its finest

IG is one of the oldest and leading brokers in the trading industry. The company is listed on the London Stock Exchange and shows us high trust. It is a multi regulated broker with international branches. From our experience, the broker really knows how to give the customer the best conditions.

You can trade more than 16,000 markets on one platform. Different trading platforms are available, also for professional trading with direct market access. Furthermore, you can trade different financial products like cryptocurrencies, options, spread betting, forex, CFDs, stocks, bonds, and more. The offer for traders is really huge.

Through our tests, IG offers the best education and service for each customer. They want their traders to succeed because they will earn more money in a long-term relationship. With this broker, you can learn professional trading strategies and get a good education for free. In conclusion, IG ist one of the largest and most trusted brokers for CFD Traders.

The official homepage of IG

The advantages of IG:

  • Professional broker since 1974
  • The company is listed on the London Stock Exchange
  • More than 16,000 markets to trade
  • Different financial products (stocks, options, CFDs, and more)
  • Free demo account
  • Low spreads (0.6 pips) and no hidden fees
  • Very good support and education
  • PayPal, bank wire, Credit Cards for funding and withdrawal
  • High financial security

(75% of retail CFD accounts lose money)

6. CMC Markets – Professional CFD Broker

CMC Markets is a well-known brand because the company exists since 1989 and is listed on the London Stock Exchange which shows us high trust. The CFD Broker is multi-regulated and accepts international clients. The main customer base is in Europe where the trader is managed by the FCA (UK) license.

The financial security is very high and there is a Financial Services Compensation Scheme (FSCS) for more than £85,000. The customer funds are managed in big international banks with high liquidity. The history of the company shows that the customer base and revenue of the broker are growing continuously.

Traders can trade more than 10,000 different markets. Currencies, cryptocurrencies, bonds, stocks, ETFs, and more are available on the professional trading platform “Next Generation”. The platform provides more professional features than the popular MetaTrader. In addition, traders can trade Spread Betting products next to the CFDs. From our experience, CMC Markets is a highly reliable broker which offers a good service for its clients.

The official website of CMC Markets

The advantages of CMC Markets:

  • Professional broker since 1989
  • The company is listed on the London Stock Exchange
  • More than 10,000 markets to trade
  • CFDs and Spread Betting
  • Free demo account and 0$ minimum deposit
  • Low spreads (0.7 pips variable) and no hidden fees
  • Exclusive Support (Webinars and more)
  • High financial security
  • Professional Trading Platform “Next Generation”

(75% of retail CFD accounts lose money)

ETX Capital is a best known CFD Broker and part of a company (Monecor London) which was founded in 1965. Clients get access to over 5,000 different markets with a spread of 0.6 pips. This includes forex, cryptocurrencies, commodities, metals, bonds, and a huge range of stocks. Moreover, the platform the MetaTrader 4 and ETX pro trader is available.

The company is based in the United Kingdom (UK) and regulated by the FCA (Financial Conduct Authority). In addition, the client’s funds are protected by the FSCS scheme with money up to £85,000. Traders can be sure that their money is protected in top one-tier banks.

If you want to start trading you can open a free demo account or start live trading with only $250 deposit in the account. As you know CFDs (Contract for Difference) are leveraged financial products. Through the FCA regulation, ETX Capital can offer a leverage of 1:30 for retail clients and 1:500 for professional clients. From our experience, ETX Capital can be used as a reliable broker for any investing.

The official website of ETX Capital

The advantages of ETX Capital:

  • CFD Broker founded 2002
  • Based in the United Kingdom
  • FCA (UK) regulated with high financial security
  • Free demo account
  • Minimum deposit 250$
  • Spreads starting 0.6 pips
  • More than 5,000 different markets
  • Spread Betting
  • Good trading education for beginners and advanced traders

(75.6% of retail CFD accounts lose money)

8. ActivTrades – Professional brokerage with high security

On this page, we present you only reputable and safe CFD Brokers. ActivTrades is one of them. Founded in Switzerland the company moved to the financial center in London (United Kingdom). In addition, ActivTrades is regulated there by the FCA (Financial Conduct Authority) like many other CFD Brokers.

ActivTrades offers very professional software and support for its clients. Besides that, the minimum deposit is with 1,000$ very high but we want to present you this broker because of the good conditions and services. Also, you can open a free demo account to test the platform.

For trading, more than 450 available assets the software ActivTrader and MetaTrader 4/5 are offered. The ActivTrader gives you professional market data with market depth and volume for the best execution. The spreads are starting from 0.45 pips. In addition, the financial security is very high and there is a insurance protection up to £1,000,000.

The official website of ActivTrades

The advantages of ActivTrades:

  • Regulated by the famous FCA (UK)
  • Financial Services Compensation Scheme £85,000
  • Additional insurance protect customers up to £1,000,000
  • Free demo account
  • Spreads starting 0.45 pips
  • More than 450 assets
  • No Dealing Desk Broker
  • Professional trading platform ActivTrader
  • Good support and education for traders

(71% of retail CFD accounts lose money)

9. easyMarkets – Fixed spreads on a high quality platform

easyMarkets is a European CFD Broker which is based in Cyprus and regulated by the CySEC. Also, the company got a trading regulation in Australia by the ASIC. The slogan of easyMarkets is that it is a simple and honest online broker. From our experience, the trading platform is very easy to use and there are a lot of features for beginners.

Start trading with over 200 different financial markets by forex, CFDs, and vanilla options. The broker shows us a huge variety of assets. You can open a free demo account or deposit $100 for live trading. What is so special about this broker? – It offers fixed spreads in each account. So traders exactly know which trading fees they have to pay. This is a big advantage.

In addition, there are some special features like the “deal cancellation” for trades. You can cancel lost trades by paying a small fee within an hour. That is perfect insurance against high volatility. The “freeze rate” can freeze the price for 3 seconds. This is also a very special tool. Overall, easyMarkets is a competitive CFD Broker that offers good and transparent trading conditions.

The official website of easyMarkets

The advantages of easyMarkets:

  • Regulated by the CySEC (EU) and ASIC (AU)
  • High secure platform for traders
  • Free demo account
  • Minimum deposit of $100
  • Fixed spreads starting 0.9 pips
  • More than 200 assets
  • User-friendly interface
  • Deal Cancellation
  • Price freezing of 3 seconds
  • Multi-language support

(74% of retail CFD accounts lose money)

10. 24Option – European based CFD Broker with competitive features

24Option was known as one of the biggest brands for options trading in Europe. Nowadays the broker offers more than 250 different CFDs to trade. To open an account with 24Option is quite simple. Just try the free demo account or start live trading with a 250$ deposit.

In addition, 24Option offers different account types for small and huge deposits. If you deposit more money the broker can give you smaller spreads for trading. The spreads are starting with 1.1 pips variable.

The company 24Option is regulated by the Cyprus CySEC for European clients. International clients are trading under the IFSC (Belize) license. Overall, 24Option always offers the newest trends like cryptocurrencies or cannabis stocks. It is a recommended broker with competitive spreads and good service for traders.

The official website of 24Option

The advantages of 24Option:

  • European based CFD Broker
  • Regulated by the CySEC (Cyprus)
  • Free demo account
  • Low minimum deposit of 250$
  • Different account types (VIP)
  • More than 250 assets
  • Innovative (new assets)
  • Competitive spreads 1.1 pips
  • MetaTrader 4 and web platform
  • Recommended service and support

Posts Tagged: brokers

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CFD Broker: Review: Regulation: Spreads: Assets: Advantages: Open Account:
1. Markets.com (5 / 5)
➜ Read the review
CySEC, FSCA, ASIC, FCA 0.6 pips variable 2,200+ + Easy to use
+ PayPal
+ Professional tools
Low spreads
2. IQ Option (5 / 5)
➜ Read the review
CySEC 1.0 pips variable 500+ + Best platform
+ Binary Trading
+ Support 24/7
+ Min. Deposit 10$
3. eToro (5 / 5)
➜ Read the review
CySEC, FCA, ASIC 3.0 pips variable 2,000+ + Best platform
+ Social Trading
+ Cryptocurrencies
+ PayPal
4. Plus500 (4.9 / 5)
➜ Read the review
CySEC, FCA, AFSL Variable 2,000+ + Support 24/7
+ PayPal
+ Cryptocurrencies CFDs
5. IG (4.9 / 5)
➜ Read the review
FCA, NFA, AFSL 0.6 pips variable 16,000+ + Huge diversity
+ PayPal
+ Broker since 1974
+ Professional education
6. CMC Markets (4.9 / 5)
➜ Read the review
FCA, ASIC, FMA, MAS 0.7 pips variable 10,000+ + Huge diversity
+ Very good platform
+ Broker since 1989
+ Exclusive support
7. ETX Capital (4.9 / 5)
➜ Read the review
FCA 0.6 pips variable 5,000+ + Spread Betting
+ Huge varierity
+ Good service
8. ActivTrades (4.9 / 5)
➜ Read the review
FCA 0.45 pips variable 450+ + High financial security
+ Low spreads
+ Professional platform
9. easyMarkets (4.5 / 5)
➜ Read the review
CySEC, ASIC 0.9 pips fixed 200+ + Fixed spreads
+ Deal Cancellation
+ Friendly Platform
10. 24Option (4 / 5)
➜ Read the review
CySEC, IFSC 1.1 pips variable 250+ + Account types
+ Good service
+ Always new assets