Forex CFD Trading

Forex CFD trading allows investors to speculate on price movements of foreign currencies without physically exchanging money. Traders, therefore, do not own the actual currency and are simply betting on whether the price of one currency will go up or down against another. Although CFDs cover a wide range of financial instruments, this guide will focus on the forex market, providing an overview of how it works and discussing various strategies and approaches, as well as exploring the differences and similarities with spread betting.

Best Forex CFD Trading Brokers

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    Pepperstone provides forex spreads on the EUR/USD averaging just 0.12 pips with their Razor account. This is highly competitive. Their extensive portfolio includes over 100 currency pairs, which exceeds what most rivals offer. Furthermore, Pepperstone stands out by offering three unique currency indices: USDX, EURX, and JPYX, which are rare on other platforms. They have been recognised with our 'Best Forex Broker' award twice.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.4 0.1 0.4
    Total Assets FCA Regulated Platforms
    100+ Yes MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower
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    XTB offers access to over 70 currency pairs, with competitive spreads averaging about 1 pip for major pairs. Its xStation platform is user-friendly, providing traders with top-tier charting tools, over 30 indicators, and diverse order types to support different strategies and risk management needs.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    1.4 1.0 1.4
    Total Assets FCA Regulated Platforms
    70+ Yes xStation
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    FXCC champions its competitive forex trading environment. ECN spreads can drop to an impressive 0.0 pips during busy trading periods. Offering more variety than many competitors, it supports over 70 currency pairs. Furthermore, traders benefit from MT4, renowned for its exceptional charting capabilities, specifically designed for forex trading.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    1.0 0.2 0.5
    Total Assets FCA Regulated Platforms
    70+ No MT4, MT5
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    IC Markets remains dedicated to offering tight 0.0-pip spreads on major currency pairs like EUR/USD, ensuring outstanding execution with an average speed of 35 milliseconds. Ideal for traders seeking high performance, those dealing in large volumes can also enjoy rebates of up to $2.50 per forex lot.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.23 0.02 0.27
    Total Assets FCA Regulated Platforms
    75 No MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower
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    FxPro provides over 70 currency pairs, though minors are excluded, and is renowned for its rapid execution and tight spreads, averaging 0.45 pips on EUR/USD. Traders can design, evaluate, and implement short-term strategies using the top-tier MT4 platform with expert advisors for algorithmic trading.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.6 0.45 0.73
    Total Assets FCA Regulated Platforms
    70+ Yes FxPro Edge, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade, Quantower
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    IG provides an extensive selection of over 80 currency pairs through its own web platform, mobile app, or MetaTrader 4. For advanced charting and forex analysis, the ProRealTime software is available. Testing shows forex spreads are competitive, beginning at 0.1 pips on major pairs such as EUR/USD.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.9 0.8 0.9
    Total Assets FCA Regulated Platforms
    80+ Yes Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime
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    IC Trading offers exceptionally tight forex spreads on over 60 currency pairs, notably on major assets like EUR/USD. This makes it an excellent option for traders seeking competitive pricing and superior execution speeds. High-volume traders can also benefit from rebates of up to $2.50 per forex lot.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.2 0.1 0.3
    Total Assets FCA Regulated Platforms
    60+ No MT4, MT5, cTrader, AutoChartist, TradingCentral

Safety Comparison

Compare how safe the Forex CFD Trading are and what features they offer to protect traders.

Safety Comparison
Broker Trust Rating FCA Regulated Negative Balance Protection Guaranteed Stop Loss Segregated Accounts
Pepperstone 4.6
XTB 4.6
FXCC 3.3
IC Markets 4.6
FXPro 4.4
IG Index 4.9
IC Trading 2.8

Payments Comparison

Compare which popular payment methods the Forex CFD Trading support and whether they have trading accounts denominated in British Pounds (GBP).

Payments Comparison
Broker GBP Account Debit Card Credit Card Neteller Skrill Apple Pay
Pepperstone
XTB
FXCC
IC Markets
FXPro
IG Index
IC Trading

Mobile Trading Comparison

How good are the Forex CFD Trading at mobile trading using apps or other mobile interfaces.

Mobile Trading Comparison
Broker Mobile Apps iOS Rating Android Rating Smart Watch App
Pepperstone iOS & Android 4.4 4.1
XTB iOS & Android 4.7 4.1
FXCC iOS & Android 4.8 4.4
IC Markets iOS & Android 3.1 4.2
FXPro iOS & Android 4.7 4.3
IG Index iOS & Android 4.6 4
IC Trading iOS & Android 4.8 4.6

Beginners Comparison

Are the Forex CFD Trading good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?

Beginners Comparison
Broker Demo Account Minimum Deposit Minimum Trade Support Rating Education Rating
Pepperstone $0 0.01 Lots 4.6 4
XTB $0 0.01 Lots 4.3 3.8
FXCC $0 0.01 Lots 4.3 2.5
IC Markets $200 0.01 Lots 4.5 3.5
FXPro $100 0.01 Lots 4 4
IG Index $0 0.01 Lots 4.5 5
IC Trading $200 0.01 Lots 2.8 2.2

Advanced Trading Comparison

Do the Forex CFD Trading offer features that allow for more advanced trading strategies?

Advanced Trading Comparison
Broker Automated Trading Pro Account Leverage VPS AI Low Latency Extended Hours
Pepperstone Expert Advisors (EAs) on MetaTrader 1:30 (Retail), 1:500 (Pro)
XTB Open API 1:30
FXCC Expert Advisors (EAs) on MetaTrader 1:500
IC Markets Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
FXPro Expert Advisors (EAs) on MetaTrader, cBots on cTrader 1:30 (Retail), 1:500 (Pro)
IG Index Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime 1:30 (Retail), 1:222 (Pro)
IC Trading Expert Advisors (EAs) on MetaTrader, cBots on cTrader 1:500

Detailed Rating Comparison

Use this heatmap to compare our detailed ratings for all of the Forex CFD Trading.

Detailed Rating Comparison
Broker Trust Platforms Mobile Assets Fees Accounts Support Research Education
Pepperstone 4.6 4.4 4.3 3.8 4.5 4 4.6 4.3 4
XTB 4.6 4 4.4 4 4.3 4 4.3 4.1 3.8
FXCC 3.3 3.3 4.6 3 4 3.5 4.3 2 2.5
IC Markets 4.6 4 3.7 3.5 4.6 4 4.5 4 3.5
FXPro 4.4 4.3 4.5 4 4 3.8 4 4 4
IG Index 4.9 4.9 4.3 4.5 3.5 4 4.5 4.9 5
IC Trading 2.8 4 4.7 3 4 3.5 2.8 3 2.2

Our Take On Pepperstone

"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."
Tobias Robinson
Tobias Robinson
Reviewer

Pros

  • Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
  • Pepperstone now offers spread betting via TradingView, delivering a streamlined and tax-efficient trading experience with sophisticated analytical tools.
  • Support for top-tier charting platforms such as MT4, MT5, TradingView, and cTrader. These tools accommodate different short-term trading methods, including algorithmic trading.

Cons

  • Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
  • Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
  • Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.

Our Take On XTB

"XTB emerges as an ideal option for novice traders, offering the impressive xStation platform, zero commission pricing, no required minimum deposit, and outstanding educational resources, many of which are conveniently integrated into the platform."

Pros

  • The xStation platform stands out with its user-friendly design and intuitive tools, such as adaptable news feeds, sentiment heatmaps, and a trader calculator. These features streamline the learning process for new traders.
  • XTB ensures swift access to funds, providing fast withdrawals with same-day payments for requests made before 1 pm.
  • XTB offers a diverse range of over 7,000 instruments, including CFDs on shares, indices, ETFs, commodities, forex, and cryptocurrencies. The platform also provides real shares, real ETFs, share dealing, and the latest addition, Investment Plans, serving both traders seeking short-term gains and investors focused on long-term growth.

Cons

  • The research tools at XTB are commendable but have the potential to excel further. Enhancing them with access to top-tier third-party services like Autochartist, Trading Central, and TipRanks would significantly elevate their offering.
  • XTB has stopped supporting MT4, restricting traders to its own platform, xStation. This decision may discourage experienced traders accustomed to using the MetaTrader suite.
  • Trading fees are competitive, with average EUR/USD spreads of about 1 pip. However, they are not as low as the most affordable brokers, such as IC Markets. Additionally, an inactivity fee applies after a year.

Our Take On FXCC

"FXCC remains a top choice for forex traders, offering over 70 currency pairs, very tight spreads from 0.0 pips in tests, and high leverage up to 1:500 with the ECN XL account."

Pros

  • There are no deposit fees other than standard cryptocurrency mining charges, which benefits active traders.
  • FXCC has introduced MT5, which in our evaluations, mirrored the trading conditions of MT4 by offering swift execution, improved charting, and market depth tools.
  • There are no limitations on short-term trading techniques such as trading and scalping.

Cons

  • While the MetaTrader suite excels in technical analysis, its outdated design detracts from the overall trading experience, particularly when contrasted with contemporary platforms such as TradingView.
  • The variety of currency pairs surpasses most options, but the choice of other assets is limited. Notably, stocks are absent.
  • Unaware traders might face steep withdrawal fees, such as a notable $45 for bank transfers.

Our Take On IC Markets

"IC Markets provides excellent pricing, swift execution, and easy deposits. With cutting-edge charting tools like TradingView and the Raw Trader Plus account, it continues to be a preferred option for intermediate and advanced traders."

Pros

  • IC Markets provides some of the industry's narrowest spreads, offering 0.0-pip spreads on major currency pairs. This makes it an extremely cost-effective choice for traders.
  • In 2025, IC Markets earned DayTrading.com's accolade for 'Best MT4/MT5 Broker' due to its top-tier MetaTrader integration. This achievement highlights the broker's continuous refinement over the years to enhance the platform experience.
  • IC Markets provides reliable 24/5 support, especially for account and funding queries, drawing from direct experience.

Cons

  • Although there are four top-tier third-party platforms available, the absence of in-house software or a trading app tailored for novice traders is notable.
  • The tutorials, webinars, and educational resources require enhancement, lagging behind competitors such as CMC Markets, which diminishes their appeal to novice traders.
  • IC Markets provides metals and cryptocurrencies for trading through CFDs, though the selection is narrower compared to brokers such as eToro. This limits opportunities for traders focused on these asset classes.

Our Take On FXPro

"FxPro is an excellent choice for traders, offering swift execution speeds under 12ms, reduced fees since 2022, and outstanding charting platforms like MT4, MT5, cTrader, and FxPro Edge."

Pros

  • FxPro uses a 'No Dealing Desk' (NDD) model for swift and transparent order execution, usually within 12 milliseconds, making it well-suited for short-term trading strategies.
  • FxPro provides four dependable charting platforms, including the user-friendly FxPro Edge. It features more than 50 indicators, 7 types of charts, and 15 different timeframes.
  • FxPro's Wallet is a notable feature enabling traders to securely manage their funds. It ensures additional protection and ease by separating unused funds from active trading accounts.

Cons

  • FxPro offers customer support five days a week around the clock, accessible via various platforms, and the service quality is reliable based on tests. However, the absence of weekend support can be a drawback for traders requiring help beyond standard market times.
  • There are no passive investment options such as copy trading or interest on cash. While traders might not find these essential, competitors like eToro, which accommodate both active and passive investors, offer more extensive services.
  • FxPro, with its $10M funded demo account and expanding Knowledge Hub, mainly caters to experienced traders. Beginners might find its account and fee structure challenging to understand.

Our Take On IG Index

"IG offers a complete package with an intuitive online platform, top-tier beginner education, advanced charting tools through its TradingView integration, real-time data, and swift execution for seasoned traders."

Pros

  • The ProRealTime advanced charting platform remains free, provided traders meet modest monthly activity requirements.
  • IG provides a wide range of professional and engaging educational materials, such as webinars, articles, and analyses, tailored for traders.
  • IG stands out with its extensive range of instruments, offering stocks, forex, indices, commodities, and cryptocurrencies. Additionally, it has recently introduced US-listed futures and options, along with an AI Index. These options enhance opportunities for diversification in trading.

Cons

  • Based on tests, stock and CFD spreads remain less competitive than the lowest-cost brokers, such as CMC Markets.
  • IG imposes a monthly inactivity fee of $12 after two years, discouraging occasional traders.
  • Beginners may find IG's fees complicated, as they vary depending on the trades or services. This could cause confusion and unexpected costs.

Our Take On IC Trading

"IC Trading offers an ideal environment, featuring top-tier execution speeds of around 40 milliseconds, extensive liquidity, and advanced charting tools, perfect for scalpers, traders, and algorithmic traders."
Christian Harris
Christian Harris
Reviewer

Pros

  • The streamlined digital account setup allows traders to commence trading swiftly, eliminating lengthy paperwork. Testing shows the process takes mere minutes.
  • IC Trading provides exceptional flexibility, allowing traders to open as many as 10 live accounts and 20 demo accounts. This enables the management of distinct profiles for various activities, including manual and algorithmic trading.
  • IC Trading offers top-tier spreads, with some major currency pairs like EUR/USD featuring spreads as low as 0.0 pips, making it an excellent choice for traders.

Cons

  • Customer support was inadequate during testing, with multiple live chat attempts going unanswered and emails ignored. This raises significant concerns regarding their capacity to manage urgent trading issues.
  • Although IC Trading operates under the reputable IC Markets group, it is licensed by the FSC in Mauritius, a regulator known for its limited financial transparency and lack of robust safeguards.
  • Unlike IC Markets, IC Trading lacks support for social trading via the IC Social app or the ZuluTrade platform.

How Forex CFD Trading Works

Contracts for difference (CFDs) are a derivatives product that allows speculation upon the variation in the values of two different global currencies. Forex CFD trading assets are given as currency pairs, such as GBP/USD, and each contract purchased will rely on the change in the exchange rate between these two currencies. CFDs are effectively contracts with a seller whereby both parties agree to exchange the difference in the value of the exchange rate between the open and close positions of the contract.

Forex trading through CFDs, rather than straight purchasing a large quantity of another currency to sell on later, makes it possible to profit from both an increase and decrease in the exchange rate, called going long or going short. For example, if you believe the exchange rate of GBP/USD will decrease (the GBP weakening against the USD), you would go short and, if the exchange rate does decrease by the time you close the position, you will have earned the difference as profit. Forex CFDs do not have expiry dates, so positions can be closed whenever you wish.forex cfd trading brokers

CFDs, including forex CFDs, are traded over-the-counter (OTC) in the same way that non-CFD forex trading is, which means they are not traded on a regulated exchange. The Financial Conduct Authority (FCA) has therefore sought to impose some protections for retail clients, which are explained further down in this guide.

Size Of The CFD Market

In 2020, we saw a 32% year-over-year increase in investors trading CFD products. This growth is being driven by more online brokers offering these products to retail investors (rather than just professional clients).

Videforex, XTB (which uses the xStation platform), and Forex.com offer traders access to other diverse product ranges online and through mobile apps (such as via an Android Package Kit (APK)).

However, forex traders should always verify the legitimacy and security of the platform they use as there have been serious concerns around some platforms like QProfit System, an automated trading robot in the CFD trading market.

Another reason for the growth in forex CFD trading is that the range of markets clients can access is always expanding, now often including cryptocurrencies (where legal), which has seen massive growth. There has also been more market volatility in recent years, which lends itself to CFD trading as it is designed for speculative trading of shorter-term trends with no need to take ownership of the underlying asset.

Leverage

Forex CFD trading, along with all types of CFD trading, can be leveraged, which means that brokers only require a proportion of the total value of the trade size to be given as collateral. This amount will be determined by the margin requirements. By way of an example, a particular CFD may have a margin requirement of 5%. This would mean the trader would only need to put down £5 for every £100 they are exposed to.

Leveraged financial products can increase returns, as the trader is trading with a value larger than their capital investment. However, for the same reasons, this means losses can also be more significant. Therefore forex CFD trading with leverage should only be undertaken by those who fully understand how CFDs work and the risks involved. Traders should only speculate upon currencies with leverage and margin requirements that are appropriate for their circumstances.

Forex CFD Trading Strategies

Long

When traders ‘go long’, this means they are buying an asset that they expect will rise in value, so they can sell it at a later date to make a profit from this rise. Knowing whether a particular currency pair is going to rise in value depends on several factors, for example, central bank interest rate decisions, the value of key commodities, political events and macroeconomic data releases. Traders should be aware of these factors and which upcoming events are likely to influence the value of a currency. Most brokers will give traders access to live economic news and data.

Short

‘Going short’ in forex CFD trading is when you ‘sell’ the CFD first, expecting the value of the asset to fall so that you can then buy the asset back and make a profit. Not all financial markets allow traders to ‘go short’ and so this is a popular strategy used by traders in the CFD markets. As with long positions, it requires strong knowledge of factors influencing the market.

Hedging

Forex CFD trading often forms part of sophisticated hedging strategies. For example, if an investor holds a large amount of one currency and believes its value may drop temporarily, they may wish to short it with a CFD to profit from its drop, offsetting the loss incurred by the held currency.

Day Trading

Forex CFD trading speculators may choose to buy and then sell their assets all within the same day. The success of this approach depends on the currency pair being traded and the time of day. For example, a forex pair may be more volatile and liquid on the day of a central bank interest rate meeting and could provide an opportunity for day traders. Day traders will also avoid overnight fees charged by many brokers.

Pros Of Forex CFD Trading

  • CFDs are a leveraged asset so traders can gain more exposure to the market and therefore earn greater profits (although they are at risk of greater losses for the same reason)
  • Allows for long and short positions, which means traders with a diverse portfolio can engage in hedging strategies
  • CFDs are not subject to stamp duty in the UK (though they will usually be subject to capital gains tax (CGT))
  • The CFD market has seen strong growth, which means higher liquidity and volume

Cons Of Forex CFD Trading

  • All types of CFDs are banned in the US, including forex CFDs
  • Spreads can reduce the profitability of forex CFD trading, especially with exotic currency pairs
  • In the UK, CFDs are generally subject to CGT
  • Leverage can make investing in forex CFDs high risk – 67% of retail investor accounts on CMC Markets lose money when trading CFDs

How To Start Forex CFD Trading

Choose A Broker

Many online brokers offer forex CFD trading, including IG and Plus500. Make sure that the broker is regulated and offers competitive spreads, with minimal additional fees.

Traders will usually be able to begin forex CFD trading on the broker’s trading platform through their website or on their app using a mobile or tablet device. Forex & CFD trading platforms – like XTB (running on the xStation platform) – can often also be downloaded through an APK. Most brokers will have demo accounts, which are recommended for less-experienced traders, given the complexity and risk of the CFD market.

Getting access to a live account will usually require the completion of an application form with personal details and other information, such as a preference of account type.

Open A Position

The range of currency pairs available for forex CFD trading will depend on the broker, though most will offer the major currency pairs (e.g EUR/USD, GBP/USD etc.), with many supplementing these with minor and exotic pairs. Traders can easily see the spread for a particular currency pair and then choose whether to go long (buy) or short (sell) on that pair.

Monitor Position

Be aware of key financial and macroeconomic events that impact currency values. Make use of any economic calendars or live data and news available on the broker’s platform. You should also keep an eye on other markets that may indirectly impact the forex market.

Close Position

The forex CFD trading position is closed when the investor decides, with the difference between the initial contract price and the final price being appropriately distributed between the trader and the broker.

Brokers will usually have advanced order types available, including a stop-loss order. A stop-loss order helps reduce risk by setting a limit on the amount by which a currency can depreciate before the position is automatically closed.forex cfd trading guide for beginners

Fees

Fees in forex CFD trading are usually generated from spreads (as opposed to commissions). Spreads tend to be tighter when investing in major currency pairs (e.g EUR/USD). With exotics, traders can easily encounter spreads over 20 pips.

Overnight rates will usually apply and vary depending on whether the trader has gone long or short. Some brokers will also charge fees for currency conversion, advanced order types and account inactivity. Deposit and withdrawal fees may also apply.

Forex CFD Trading Tips

Manage Risk Using Advanced Orders

Most brokers will have tools to enable traders to set limits on their losses and also allow them to close positions once profits reach a certain level. For any financial product, this is a useful tool to manage risk. However, for leveraged forex CFD trading, ensuring that limits on losses are implemented is important.

Do Not Hold Positions for Too Long

Overnight fees are usually charged by brokers on all CFDs. Although some traders may deliberately implement a longer strategy (swing traders and position traders), large trades kept open for a prolonged period can cause these fees to add up. Intraday forex CFD trading is not subject to overnight fees.

Start Small

Forex CFD trading was traditionally only available to professional investors and veterans. Although this market has opened up in recent years to retail investors, those with less experience should be fully aware of the fees they are liable for and the risk they are exposed to through leverage and market volatility. Make use of the demo accounts and any educational resources available on the broker’s website. If you are then satisfied that forex CFD trading is right for you, start with major currency pairs and small deposits.

Regulation

All types of CFD trading, including forex CFD trading, is regulated by the FCA in the UK. This regulation protects retail investors, for example, by limiting the maximum leverage rates to 1:30 for major pairs and ensuring traders cannot lose more money than they deposited in their accounts.

Some regulators in other jurisdictions have also implemented their restrictions on CFD trading. Like the FCA, the European Securities and Markets Authority (ESMA) has adopted leverage limits for retail clients.

Forex CFD Trading Promotions

The FCA has banned brokers from offering retail traders cash or other inducements to encourage them to trade. This is part of a string of measures taken by the FCA to protect retail clients from any financial product that has significant risk and is often traded without enough understanding and knowledge of the dangers involved. Other regulators, such as the Cyprus Securities and Exchange Commission (CySEC), have adopted similar measures.

Final Word On Forex CFD Trading

Forex CFD trading allows investors to speculate on the value of a range of currency pairs and potentially benefit from market volatility and the performance of different national economies. The assets are provided OTC and traders should be fully aware of the risks of investing in this leveraged financial product, preferably making use of advanced order types to limit losses. While spot forex trading may be less risky, with none of the leverage dangers, forex CFD trading allows for increased market exposure and the ability to earn a profit from bullish and bearish trends.

FAQs

What Is A CFD?

A CFD is a contract for difference. It is an agreement between a buyer and seller to exchange the difference in the value of the underlying asset between the opening of the contract and the closing of the contract, without actually owning the underlying asset. With forex CFD trading, this would be the exchange rate of a pair of currencies.

What Is The Definition Of Forex CFD Trading?

Forex CFD trading is a particular type of CFD trading involving currency pairs. It is essentially a form of speculating on whether the value of a currency will go up or down, without physically purchasing the currency.

Is Forex CFD Trading Risky?

Forex CFDs are a leveraged financial product, which means investors only have to invest a small proportion of a trade’s value. Gains will be multiplied by the leverage rate used, though losses are also magnified and you can end up losing more than you have in your account.

What Fees Are Typically Applied To Forex CFD Trading?

Most brokers will generate fees from spreads (the difference between the bid (buy) and ask (sell) prices). Spreads on major currency pairs, as opposed to exotic pairs, will usually be tighter and therefore more profitable to the investor. Other fees may be applicable depending on the broker, including overnight fees.

Is Spread Betting Or CFDs Better When Trading Forex?

Both involve traders speculating on whether the price of the underlying asset will rise or fall, without actually owning the underlying asset. In the UK, spread betting has a tax advantage; it is not subject to CGT or stamp duty, whereas forex CFD trading profits are subject to CGT (although not stamp duty).