Contracts for difference (CFDs)

CFDs explained

CFDs are similar to spread betting in that you can bet on stock price movements without having to actually own the shares. The key difference is that spread betting is considered a form of gambling, so is free from capital gains tax and stamp duty, but CFDs are only free from stamp duty.

What is CFD trading?

For experienced, frequent traders in financial markets, contracts for difference (CFDs) are an increasingly popular alternative to spread betting. Find out what they are here.

Should you consider CFDs?

Contracts for difference (CFDs) can be an alternative to spread betting. While these methods are similar, here are some important differences.

CFDs: A useful alternative to spread bets

While spread betting is a popular and powerful tool, more experienced traders will often use contracts for difference (CFDs) instead. Here's how they work.

Are CFDs better than spread bets?

According to a recent survey, 62% of contract for difference (CFD) traders claim gains in the last twelve months, compared to just 50% of spread betters. So should you switch to CFDs?


Looking for a competitive CFD trading account?

We've compiled a table of the leading CFD providers. Here you can easily compare the different offers, and apply for a CFD trading account right away.

For experienced, frequent traders in financial markets, contracts for difference are an increasingly popular alternative to spread betting.

Company Commission from Leverage ratio 1: Trade min Account Min 24 Hour trading Demo account Apply

Interactive Investor

Print
0.1% Forex 200:1 standard(higher on application) Stocks and indices 20:1 or min 5% margin required £1 per point £150
Y
yes
Y
yes
Apply

Saxo Capital Markets

Saxo-Bank
0.1% 40 1 contract £6,000
Y
yes
Y
yes
Apply

Capital Spreads

Capital-Spreads
0.1%/1 Pip 300 1 contract £0
Y
yes
Y
yes
Apply

Spread Co

SpradCo_103x43
0.075% 20 - 100 1 contract £250
Y
yes
Y
yes
Apply

ETX

ETX-Capital
0.1% 10 1 contract £100
Y
yes
Y
yes
Apply

City Index

CityIndex
0.01% n/a 25p £0
Y
yes
Y
yes
Apply

TD Waterhouse

TD-Waterhouse-logo
0.2% 200 1 contract £0
N
no
N
no

Selftrade

Selftrade2
0.15% 200 1 contract £0
Y
yes
Y
yes

XTB

xtb
0.10% 10 1 contract £500
Y
yes
Y
yes

Gekko

Gekko
0% 200 £0.10 £0
Y
yes
Y
yes

CSS Investments

Collins-Sarri-Statham
0.08% 10 £5 £5000
Y
yes
Y
yes

Accendo Markets

Accendo-Markets
0.1% 50 1 contract £0
Y
yes
Y
yes

Capital CFDs

Capital-cfd
0.05% 300 1 contract £0
Y
yes
Y
yes

RBS

RBS
0.2% 200 1 contract £200
Y
yes
N
no

Barclays

Barclays
0.2% 100 £50,000 £5,000
Y
yes
N
no

Internaxx

Internaxx
0.15% 10 1 contract £0
N
no
Y
yes

GFT

GFT_new_103x43
0.1% 200 1 contract £120
Y
yes
Y
yes

NatWest

NatWest
0.2% 200 1 contract £200
Y
yes
N
no

InterTrader

intertrader-black
0.1% 30 1 contract £0
Y
yes
Y
yes

CMC Markets

CMC-Markets
0.08% 200 1 contract £200
Y
yes
N
no

FP Markets

FPMarkets_Logo
0.08% 100 1 contract £1,000
Y
yes
Y
yes

IG Markets

103x43_IG
0.1% 50 £10,000 £0
Y
yes
Y
yes