The safety of funds is the primary concern of all traders investing in the financial markets. Aside from preferring brokers who offer the best trading platforms, low fees, narrow spreads and top customer support, investors also look for those operating in their home country, and which are governed by their country’s regulations.
If you’re looking for a CFD broker in the UK, it is wise to confirm that they are regulated by the Financial Conduct Authority (FCA). The FCA is responsible for supervising the activities of financial services firms and ensuring that the financial markets in the country remain orderly, competitive and fair. The FCA is headquartered in London and regulates and oversees around 50,000+ financial services firms in the UK, as well as providing specific standards for nearly 18,000 firms.
The Best CFD Brokers in the UK 2022
With thousands of CFD brokers offering various products, services and trading solutions, the best UK CFD brokers stringently follow the rules set by the market regulator and offer tailor-made solutions to clients.
After comprehensive research, we have arrived at a list of the best CFD brokers UK. Check out the following table and choose the one that best suits your trading style:
| Broker | Features | Min Deposit | EURUSD Spread | ||
|---|---|---|---|---|---|
 Your capital is at risk
US Clients: No Regulated : Yes
|
– Flexible leverage up to 500:1 |
$200 | From 0.1 | ||
 73% of retail CFD accounts lose money.
US Clients: No Regulated : Yes
|
– Ultra-fast execution from 0.2s |
$100 | from 0.0 pips |
Sign
Up
Your capital is at risk
|
|
 76% of CFD traders lose money
US Clients: No Regulated : Yes
|
|
$50 (varying by Country) | from 1 |
Sign
Up
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
|
|
 Your capital is at risk
US Clients: No Regulated : Yes
|
– 40% New Member Bonus
|
$100 | Fixed |
Sign
Up
Europe* CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
|
|
 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
US Clients: No Regulated : Yes
|
– FCA (FRN 509909), ASIC, FMA, and FSCA Regulated. |
100GBP/AUD/EUR/USD | variable |
Sign
Up
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
|
|
 Your capital is at risk
US Clients: No Regulated : Yes
|
$50 | from 0 | |||
|
|
|||||
Trading CFDs in the UK
CFD trading in the UK is regulated by the Financial Conduct Authority (FCA). So, if you’re a UK citizen, it is best to trade with an FCA-regulated CFD broker. Some key features of the FCA regulations include:
- Restrictions on leverage on all CFDs and CFD-like options to a maximum of 30:1 and 2:1, respectively
- Brokers can close out client positions if the fund balance falls to 50% of the margin required to maintain open positions to ensure losses don’t exceed the available funds in client accounts
- The FCA’s Financial Services Compensation Scheme (FSCS) compensates individuals up to £85,000 per firm if a CFD broker goes out of business
The Benefits of Trading CFDs in the UK
CFD trading involves buying and selling an asset to profit (losses occur as well) from the price change and does not involve owning the asset. CFDs have several advantages compared to buying and holding an asset. Some of these advantages include leverage, the choice to go long or short, mirror trading, hedging your equity portfolio and access to a wide range of asset classes. Profits from CFD trades are also exempted from stamp duty in the UK.
How to Choose a Safe CFD Broker
CFDs are highly popular as they allow traders to speculate on the price movements of a wide range of securities without the hassle of owning them. However, with thousands of CFD brokers UK enticing clients with the opportunity to trade several assets with massive margins, small spreads, zero commissions and insignificant capital, choosing a safe CFD broker can be a challenge.
When choosing a CFD broker, it is wise to begin by reviewing the regulators, then considering the broker’s reputation, history, products, account types, fees, minimum deposit, trading platforms and the countries of operations.
Although it’s challenging to find a UK CFD broker to match all your objectives, the primary aim is the safety of your funds, so start there and then identify the one that meets most of your other requirements.
Conclusion
CFD trading is well-regulated in the UK, and the brokers operating within the country are generally well-capitalized, with some brokers even listed on the UK stock exchanges. If you’re worried about the safety of your funds, the FCA is one of the top financial market regulators globally. If you have issues with your CFD broker and they fail to address your concerns, you can contact the FCA via email, phone or their contact form.