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

City Index

0.01% n/a 25p £0
Y
yes
Y
yes
Apply

ETX

0.1% 10 1 contract £100
Y
yes
Y
yes
Apply

InterTrader

0.05% 300 1 contract £0
Y
yes
Y
yes
Apply

Spread Co

SpreadCo
Free of commission 100 1 contract £0
Y
yes
Y
yes
Apply

CMC Markets

0.10% (or 2 cents on US & Canadian shares) 200:1 0.01 units £0
Y
yes
Y
yes
Apply

Colmex Pro

0.5 Cent per Share 1:12 – 1:20 1 Share $250
N
no
Y
yes
Apply

24option

Margin interest, withdrawal and inactivity fees 400 24 £500
Y
yes
Y
yes
Apply

ETX Capital

No commission on MT4 1:200 £0.10 £100
Y
yes
Y
yes
Apply

London Capital Group

No Commission 1-300 £0.10 £0
Y
yes
Y
yes
Apply

Saxo Capital Markets

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

Core Spreads

0% 100 0.01 £0
Y
yes
Y
yes
Apply

Internaxx

0.15% 10 1 contract £0
N
no
Y
yes

Capital CFDs

0.05% 300 1 contract £0
Y
yes
Y
yes

RBS

0.2% 200 1 contract £200
Y
yes
N
no

Selftrade

0.15% 200 1 contract £0
Y
yes
Y
yes

FP Markets

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

CSS Investments

0.08% 10 £5 £5000
Y
yes
Y
yes

Barclays

0.2% 100 £50,000 £5,000
Y
yes
N
no

Gekko

0% 200 £0.10 £0
Y
yes
Y
yes

XTB

0.10% 10 1 contract £500
Y
yes
Y
yes

Accendo Markets

0.1% 50 1 contract £0
Y
yes
Y
yes

GFT

0.1% 200 1 contract £120
Y
yes
Y
yes

TD Waterhouse

0.2% 200 1 contract £0
N
no
N
no

NatWest

0.2% 200 1 contract £200
Y
yes
N
no