Cfd trading account
The CFD brokers that charge the lowest fees are typically those that feature the lowest effective spreads. Effective spreads are determined by calculating the broker’s average spreads, and then factoring in any per-trade commissions Versus Trade. In 2025, CMC Markets reigns supreme in this category, with the lowest effective spreads out of our list of the best brokers in the industry.
Demo Accounts: Almost all CFD brokers offer demo accounts where traders can practice their strategies with virtual money before risking real money. This is a great way to get to know the broker’s platform and test your trading skills. Read more about Best demo accounts.
Axi is a reputable online trading platform that offers over 200 CFD products to trade. As well as traditional CFD trading, the platform can also be used for tax-free spread betting, copy trading, and paper trading.
For beginners, when you make a relationship between leverage and margin, both refer to opening a larger position than you have the capital to do so. To explain it better, the margin is usually written in % and leverage in ratio, for example, 1:20. Now, let’s think that a Facebook share is worth $200. If your broker recommends you a CFD with a leverage of 1:20, you have to pay one-twentieth of the total price: 200 divided by 20 is also 10 dollars.
What is cfd trading
A contract for differences (CFD) is a financial instrument traders use to speculate on prices without owning the underlying asset. When entering into a CFD, an investor and broker agree to exchange the difference between the opening and closing value of the underlying financial product.
When trading CFDs, an investor does not actually own the asset itself. Instead, investors can trade derivative instruments such as CFDs, which track the price of the actual asset (known as the “underlying asset”). Underlying assets could include stocks and commodities, among others.
Online CFD trading has become increasingly popular in recent years, as traders can trade from anywhere in the world, using a computer or mobile device. Online CFD trading offers traders access to a wide range of underlying assets, from a single trading platform, and the ability to trade with leverage.
A contract for differences (CFD) is a financial instrument traders use to speculate on prices without owning the underlying asset. When entering into a CFD, an investor and broker agree to exchange the difference between the opening and closing value of the underlying financial product.
When trading CFDs, an investor does not actually own the asset itself. Instead, investors can trade derivative instruments such as CFDs, which track the price of the actual asset (known as the “underlying asset”). Underlying assets could include stocks and commodities, among others.
Bitcoin cfd trading
A Bitcoin CFD, or Contract for Difference, is a financial instrument that allows you to speculate on the price movements of Bitcoin without taking direct ownership of the cryptocurrency itself. This means you can potentially profit from both rises and falls in the Bitcoin price.
AvaTrade provides access to 18 cryptocurrency pairs, including BTC/USD, BTC/EUR, BTC/JPY, BTG/USD (Bitcoin gold), and BCH/USD (Bitcoin cash). I recorded the spread in BTC/USD at $45.82, the widest in our list. Under European (ESMA) regulation, the available leverage for trading CFDs on cryptocurrencies is 1:2, and at the offshore entity, AvaTrade offers 1:25 for crypto.
I conducted my live testing on a Direct STP account with Moneta Markets, which features zero commissions and floating spreads from 1.2 pips. I also recorded a $15 spread on the BTCUSD, which beats the industry average and offers excellent conditions for crypto traders.
Working with a broker that keeps costs such as the spread to a minimum can make the difference between profit and loss at the end of the day. For example, a spread of $20 (2,000 pips) or less in Bitcoin is competitive and makes it much less expensive to enter and exit positions in the market. This is a crucial point for day traders. Inactivity fees and fees for withdrawing funds are other areas to keep an eye on when considering a broker.
