Find Reviews of Forex, CFD and Spread Betting Brokers

Forex, CFD & Spread Betting Reviews

Reviews of FX, CFD and Spread Betting Brokers and Comparison Table
Trade Now >>Max LeverageMinimum FX SpreadRead Review
City Index30:1 0.5City Index
easyMarkets30:1 3.0easyMarkets
ETX Capital30:10.6ETX Capital
IC Markets500:11.0IC Markets
Spread Co30:10.8 Spread Co
TitanFX500:11.0Titan FX
XM30:11.0XM Trade

About Spread Betting and CFD Trading

Many brokers offer CFDs and/or Spread Betting. These products are both based around the movement of an asset's price. CFD trading is based around contracts to exchange the difference between the price of an asset at the beginning of the trade and its close.

In Spread Betting, the trader risks a certain sum on price movement, the amount of movement being the difference between the price of an asset at beginning of the trade and close, expressed in points or sometimes pips in Forex.

These products allow for higher leverage, but increasing leverage increases risk. Typically brokers may offer Spread Betting services, if they provide them, to residents of the UK and Ireland and CFDs to these and other nationals. In neither spread betting nor CFD trading does the trader own the underlying asset.

Maximum Leverage

Leverage can vary across markets, typically the highest spreads are for Forex and Indices and lower for Commodities and Equities.

Minimum Spread

In the table above, spreads are for Standard account types without commissions. Headline figures for spreads tend to refer to Forex spreads (as they do in the table above). Spreads can be fixed or variable. Fixed spreads may also vary depending on time and market conditions. Variable spreads may have a low average, but they can widen considerably at times, for example volatile market conditions around a news event. Some brokers may offer lower minimum spreads for accounts which require a higher minimum deposit.

Low fixed spreads are available from some brokers, but in common with dealing desk brokers whether offering fixed or variable spreads, there may be effectively or even explicitly restrictions on types of trading which aim to take advantage of low spreads.

Spreads can also be taken from the ECN (from the liquidity sources brokers use), meaning they may be very low, for example from 0 or close to 0, provided there is sufficient liquidity, but there will typically be a commission charge to pay for each side of a round turn trade. However these brokers can be friendly to scalpers and types of automated trading. They may also offer very low average spreads for Forex.

ECN and other brokers brokers may also offer STP (Straight Through Processing) spreads, where the spreads come from a liquidity provider, usually without dealing desk intervention, but have a mark-up from the broker and do not have an additional commission charge.

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