Best CFD Trading Platform in UAE | Lowest Fees CFD Brokers (2024)

This guide helps users to find online brokers in UAE with the best CFD trading platforms. Trading with CFDs has gained popularity among UAE investors as it allows them to speculate on the future price development of various underlying assets without actually owning them. 

Due to the increasing number of reliable and scam brokers offering access to trading with CFDs, choosing the ideal option for individual trading needs can be challenging.

This guide assesses 45 online brokers in UAE for users to review and find the ideal platform for their needs. To help them make an informed decision, a list of brokers with the best CFD trading platforms in UAE is shared below, followed by detailed reviews and comparisons.

8 Best CFD Trading Platforms in UAE

1. AVAtrade – Best CFD Broker in UAE Overall
2. eToro – Ideal CFD Platform for Beginners
3. Interactive Brokers – Optimal CFD Broker for Day Traders
4. Pepperstone – Best CFD Trading Platform for Advanced Traders
5. Spreadex – Best CFD Trading Platform in UAE for Professional Traders
6. ActivTrades – Best CFD choice of trading platforms
7. Saxo Bank – Best CFD Broker for Professional Traders
8. Capital.com – Best Low Fees CFD Broker in UAE

Top CFD Brokers in UAE Reviewed

8 online brokers with the top-rated CFD trading platforms in UAE are reviewed below, including pros, cons and key features.

1. AVAtrade – Best CFD Platform and App in UAE Overall

Rating: 4,9/5

Min Deposit: $100

Fees: 4.9

Assets available: 4.9

Total Fees: 0.9 pip

Open account Read review

71% of retail CFD accounts lose money

AVAtrade is a FSMA-regulated forex and CFD broker that allows retail traders to trade over 1,250 CFDs on forex, stocks, commodities, indices, and cryptocurrencies with up to 30:1 leverage. 

AvaTrade users have access to a variety of proprietary trading platforms (Web Trader, AvaTradeGO, AvaOptions, and AvaSocial) and external platform add-ons including MetaTrader 4, 5, ZuluTrade, and DupliTrade. This makes the platform an interesting choice for traders looking to use different trading styles: automated (social/copy) trading, algorithmic trading, scalping and short selling. 

With floating spread-based trading fees on CFDs averaging at 0,22 pips, AVAtrade’s fees are low compared to other regulated CFD brokers. 

AvaTrade also offers extensive range of research tools and educational material like tutorial videos, trading guides, technical analysis indicators and an economic calendar. Those are great to have when you are new to CFD trading.

Account opening at AvaTrade starts at $100. Beginners can practice CFD trading strategies with a free paper trading account pre-loaded with $100,000.

Pros

• Compatible with MT 4 and 5
• Social Trading services for forex, crypto, and CFDs
• Fast order execution (<100ms)

Cons

• No real stocks or cryptos available
• High inactivity fees ($50 quarterly after 3 months on inactivity)
• Deposited AED gets converted to USD

Key features

• Provides access to over 1,250 CFDs and 44 forex pairs
• Offers social trading services
• Allows users to trade options via AvaOptions
• Excellent mobile trading app
• Charges competitive trading fees
• Compatible with MetaTrader 4, 5, and other external trading platforms

Open account

71% of retail CFD accounts lose money

2. eToro – Best for Beginners (Winner For Social/Copy Trading)

Rating: 4,9/5

Min Deposit: $100

Fees: 4.8

Assets available: 4.8

Total Fees:

Open account Read review

51% 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.

With simple buy/sell options, an intuitively designed trading app and social/copy trading features, eToro is an interesting choice for beginner CFD traders. 

Trading-wise eToro offers a user friendly proprietary platforms (Web Trader) and social/copy trading extensions through CopyTrader – this allows users to copy CFD trades of professional traders automatically from their own accounts. To make it even easier for beginners, eToro offers Smartporfolios, which are pre-made thematic portfolios that beginners can copy/paste without any previous research needed.

eToro users get access to over 5,000 CFD instruments including:

• 2,800 CFDs on stocks
• 250 Indices & Funds CFDs
• 54 Commodity CFDs
• 32 Crypto CFDs

Although eToro offers commission-free trading on some CFDs, their overall spreads are wider compared to other brokers (see the table below).  eToro also charges inactivity and withdrawal fees of $10 per month and $5 per transaction, which makes them finish average in the fee category.

CFD Trading Fees

Asset Type	Trading Fees
FX CFDs	1,00 pip
Commodity CFDs	2,00+ pips
Index CFDs	0,75 pips
Stock & ETF CFDs	0,15%
Cryptocurrency CFDs	1,00%

eToro has great customer support, available 24/7 in both Arabic and English via email, live chat, and by phone.

Pros

• Social trading for CFDs, crypto, and other assets
• Beginner-friendly CFD trading platform
• The possibility to trade with or without leverage

Cons

• Trading platform lacks advanced features (such as conditional order types, external trading software integration, and APIs)
• Relatively high spreads compared to other brokers
• The high leverage offered can backfire

Key features

• Beginner-friendly social trading platform
• Wide range of available banking methods
• Crypto, stocks, and forex all-in-one platform
• Fast registration and KYC on-boarding process
• Commission-free stock trading
• Free $100k demo account
• Islamic swap-free accounts available

Open account

51% 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.

3. Interactive Brokers – Best for Day Traders

Rating: 4,9/5

Min Deposit: $0

Fees: 4.9

Assets available: 4.9

Total Fees:

Open account Read review

All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

Interactive Brokers offers is among the biggest online brokers in the industry and offers access to a staggering range of over 8,000 different CFDs on shares, indices, metals and forex. Users also have access to a great variety of trading tools including level 2 quotes, trade hotkeys, direct market routing and price alerts, which make this broker an interesting choice for day traders.

Interactive Brokers charges competitive trading fees on CFDs starting at 0,05%. Overnight financing is priced at +/- 1,5% with spread discounts up to 75% for active traders. These fees are great for day traders as most other brokers charge fees on a spread, or per-order basis. 

The maximum leverage offered by Interactive Brokers is 5:1 as margin requirements are only 20% and all orders are executed within 40 ms by the use of IB’s SmartRouting technology. 

Interactive Brokers also offers great educational content in the form of short videos, webinars, podcasts, and blog posts.

Professional traders have access to over 100 different order types and up to 3,33% APY on idle cash balances. On the other hand beginners are able to trade CFDs the same way as stocks, because of IBKR matching all CFD orders with hedge-orders making sure that these are filled instantly. 

Pros

• Wide range of available CFDs and other assets
• Competitive trading fees and low margin requirements
• Professional trading tools such as indicators, advanced order types, and dynamic charting

Cons

• Not compatible with MetaTrader 4, 5 or cTrader
• Platform might be overwhelming for beginners
• No Islamic swap-free accounts available

Key features

• Over 8,000 available CFDs across 135+ global markets
• 20% margin requirements allowing CFD trading with up to 5:1 leverage
• Over 100 available order types
• Advanced tools and features such as technical indicators, APIs, and dynamic charting
• Lowest CFD trading fees across all regulated brokers

Open account

All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

4. Pepperstone – Best CFD for Advanced Traders

Rating: 4,9/5

Min Deposit: $0

Fees: 4.9

Assets available: 4.8

Total Fees:

Open account Read review

74-89% of retail CFD accounts lose money

Pepperstone is an Australian-based multi-asset broker that allows users to trade more than 1,638 CFDs on stocks, forex, ETFs, commodities, cryptocurrencies, indices, and forwards with up to 500:1 leverage for traders.

Pepperstone’s available tradable CFDs include CFDs on single stocks, global ETFs, indices like forex pairs like EUR/USD, EUR/GBP, and GBP/USD, commodities like agricultural, soft, and emission commodities, metals, and index options like SPX and DJX.

Pepperstone’s proprietary trading platforms and apps are best for professional traders. They include technical analysis tools, indicators, negative balance protection, dynamic charting, and multiple available order types. However, they do not include features for advanced traders, like level 2 order book data.

Pepperstone provides users with access to a wide range of educational resources, such as webinars, explainer videos, and CFD trading tutorial guides. Live trading accounts can be opened with a $0 minimum deposit on Pepperstone.

Additionally, Pepperstone offers Islamic swap-free accounts on request for traders of the Muslim faith who want to trade according to Sharia law. 

Use the table below to compare Peppersone’s CFD trading features with those of the other best CFD trading platforms mentioned in this guide.

Broker	AvaTrade	eToro	Interactive Brokers	Peppersone	Spreadex	Capital.com
Min. Deposit	$100	$100	$0	$0	$0	$20
Nr. of CFDs	1,250	3,250	8,050	1,638	3,350	3,870
Asset Classes as CFDs	Forex, Commodities, Indices, Stocks, ETFs, Bonds, Cryptocurrencies	Stocks, ETFs, Indices, Commodities, Forex, Cryptocurrencies	Stocks, Forex, Bonds, Mutual Funds, ETFs, Commodities, Indices, Cryptocurrencies	Stocks, Forex, ETFs, Commodities, Cryptocurrencies and forwards	Stocks, Forex, ETFs, Indices, Commodities, Cryptocurrencies, Bonds	Stocks, Indices, Forex, Commodities, Crypto
Max. Leverage (for Retail Traders)	400:1	30:1	20:1	200:1	1:30 (1:200 pros)	1:30
Overall Rating	5,0	4,9	4,8	4,7	4,7	4.7
Euro Stock CFDs	2,0 pips	3,0 pips	0,4 pips	0,1 pips	0,3 pips	2.0 pips
Index CFDs	0,5 pips	0,8 pips	0,3 pips	0,4 pips	0,6 pips	0.6 pips
CFDs on Forex Pairs	0,9 pips	0,9 pips	0,2 pips	1,1 pips	1000 pip	106 pips

Pros

• CFDs on a wide range of asset classes
• Customer service 24/5 available in English
• Proprietary trading platform and 4 other platforms
• Regulated by the FSA and 6 other bodies

Cons

• No ECN accounts are available
• The trading platform can be overwhelming for beginner traders

Key features

• Over 1,638 CFDs on multiple asset classes
• Leverage up to 200:1 or 500:1 for retail and professional traders, respectively
• Islamic swap-free accounts are available on request
• Guaranteed stop-loss orders
• Real-time quotes
• Fast and safe deposits and withdrawals

Open account

74-89% of retail CFD accounts lose money

5. Spreadex – Best CFD Trading Platform in UAE for Professional Traders

Rating: 4,5/5

Min Deposit: $0

Fees: 0,6 pips (on EUR/USD)

Assets available: Forex, shares, indices, stocks, ETFs, commodities, cryptocurrencies, bonds, and interest rates

Total Fees: Spreads

Open account Read review

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Spreadex is a globally operating spread betting and CFD broker founded in 1999 that provides users access to more than 3,350 CFDs on shares, indices, stocks, ETFs, commodities, cryptocurrencies, bonds, interest rates, and over 60 forex pairs.

Spreadex’s proprietary trading platform features a fully customizable trading screen, advanced charting tools with Pattern Recognition and Pro Trend Lines, advanced orders, including Market and Limit orders and Force Opens, and price alerts via text, push, or email. 

Additionally, Spreadex supports TradingView, allowing users to trade directly off the charts and access advanced screeners, built-in technical indicators, and community trade ideas and scripts. 

Spreadex offers leverage up to 30:1 for retail traders and 200:1 for professional traders. It charges from 0.06 pips on forex CFDs and 0.03 pips on stock CFDs. Although Spreadex does not charge withdrawal or inactivity fees, users are subject to a 0.01% currency conversion fee. 

Note that Spreadex does not have a demo or Islamic swap-free accounts available.

Pros

• Many advanced trading tools are available
• A broad range of tradable assets
• Competitive Pricing

Cons

• It does not support MetaTrader 4, 5, or cTrader
• No demo or Islamic accounts are available
• Spread betting is only offered to UK clients

Key features

• Provides access to over 3,350 CFDs across 9 different asset classes
• Advanced order types available
• Average forex spreads of 0,6 pips (on EUR/USD)
• Average stock CFD spreads of 0,3 pips
• No deposit, withdrawal, or inactivity fees
• Supports TradingView
• Low margin requirements (of 3,33% and 0,20% for retail and professional traders, respectively)

Open account

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

6. ActivTrades – Best CFD choice of trading platforms

Rating: 4,4/5

Min Deposit: $0.00

Fees: 3.6

Assets available: 3.8

Total Fees:

Open account Read review

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% 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.

ActivTrades is a UK CFD and forex broker, having won over 65+ global awards. With over 20+ years of experience and over 1624 CFDs available, ActivTrades is among the top. ActivTrades is regulated by the Financial Conduct Authority (FCA), providing traders with high financial integrity and transparency standards.

ActivTrades is one of the few brokers that allows a $0 minimum deposit and offers trading in various assets, including Stocks, Forex, ETFs, Commodities, Cryptocurrencies, and Bonds. The maximum leverage ratio at ActivTrades is 1:200, which allows traders to increase their profit potential.

ActivTrades offers traders access to popular platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), and TradingView. ActivTrades provides different types of accounts for different needs, like professional accounts, individual accounts, demo accounts for beginners, Islamic accounts, etc.

For novice traders, ActivTrades provides various learning materials like webinars, seminars, manuals, analysis, etc.

ActivTrades has an award-winning support system for traders, available 24/7 in English via live chat, free calls, and messages. The UK customer support number is +44 (0) 207 6500 567, +44 (0) 207 6500 500.

Broker	eToro	AvaTrade	ActivTrades	Interactive Brokers	Pepperstone	Sarwa	Capital.com
Min. Deposit	$100	$100	$0	$0,00	$0,00	$0	$20
Assets	Stocks, ETFs, Cryptos, Forex, CFDs	Forex, CFDs, Binary Options	Stocks, Forex, ETFs, Commodities, Cryptocurrencies, Bonds	Stocks, ETFs, Mutual Funds, Bonds, Options, Futures, Cryptos, Forex, CFDs	Forex, CFDs	Stocks, ETFs, Cryptos	Forex, CFDs
Trading Platform	Proprietary	Web Trading, AvaTradeGO, MetaTrader 4, MetaTrader 5, AvaOptions,	ActivTrader, MetaTrader 4 (MT4), MetaTrader 5 (MT5), and TradingView	IBKR Global Trader, Client Portal, IBKR Mobile, TraderWorkstation	TradingView, MetaTrader 4, MetaTrader 5, cTrader	Sarwa	TradingView, MetaTrader 4
Copy Trading Tools	Yes	Yes	YES	No	Yes	No	Yes
Easy to Use	Yes	Yes	Yes	No	Yes	Yes	Yes
Inactivity Fee	Yes	Yes	Yes	Yes	No	No	No
Funding Fees	Yes	No	No	No	No	No	No
Market Insights	Yes	Yes	Yes	Yes	Yes	No	Yes
Webinars	Yes	Yes	Yes	Yes	Yes	No	Yes
Daily News	Yes	Yes	Yes	Yes	Yes	No	Yes
Customer Service	Phone, Email, and Live Chat	Phone, Email, and Live Chat	Phone, SMS, and Live Chat	Phone, Email, and Live Chat	Phone, Email, and Live Chat	Phone, Email, and Live Chat	Phone, Email, and Live Chat

Pros

• $0 minimum deposit
• Advanced trading platforms like MT4, MT5, ActivTrader and Tradingview
• Low trading fees
• Free deposit and withdrawal
• Excellent education and research materials

Cons

• Customer care is not available in Arabic Currency
• Conversion Fee

Key features

• 49 Forex pairs and 1624+ different CFDs
• MetaTrader 4, MetaTrader 5, ActivTrader, and Tradingview trading platforms
• Zero withdrawal fee
• Different types of accounts are available
• Various materials and learning sources

Open account

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% 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.

7. Saxo Bank – Best for Professionals

Rating: 4,9/5

Min Deposit: $5000

Fees: 4.7

Assets available: 4.9

Total Fees:

Open account Read review

69% of retail investor accounts lose money when trading CFDs with this provider.

Saxo Bank is a CFD broker regulated by the Central Bank of the UAE that provides users access to over 9,000 different CFDs on stocks, indices, commodities, forex, and cryptocurrency ETPs. 

• 7,800+ CFDs on single stocks
• 1,100+ CFDs on global ETFs
• 20 CFDs on indices such as Germany 40, US 500, and UK 100
• 7 CFDs on FX pairs, including EUR/USD, EUR/GBP, GBP/USD, and AUD/USD
• 8 CFDs on government bonds, including German 10-year bunds and French 10-year OATs
• 20 CFDs on agriculture, metals, soft, and emission commodities
• 10+ CFDs on index options such as the SPX, DJX, ESX, and OESX

Their proprietary platform (SaxoTraderGO) features 50+ technical indicators, integrated trade signals, news feeds, and innovative risk management features such as advanced order types and price signal services. Those are great tools to have as a professional trader, but can be a bit overwhelming for beginners to start with.

The platform additionally offers access to a vast library of educational resources, including live events, webinars, tutorial videos, podcasts, and SaxoStrats.

With trading fees ranging from $0,70 to $3,00 /order, Saxo Bank trading fees on CFDs are  competitive compared to other brokers. For active and high volume traders Saxo Bank even offers the lowest fees in the industry.

With only 5% margin requirements on CFDs, users can trade with up to 20:1 leverage on Saxo Bank. However, the broker’s minimum deposit requirement of $2,000 is quite steep compared to other brokers.

Saxo Bank offers an Islamic swap-free account for Muslim traders that want to trade according to Sharia Law.

Pros

• Huge range of available CFDs (9,000+)
• Professional trading platform including advanced features like indicators and drawing tools
• Competitive trading fees

Cons

• High minimum deposit requirement to open account
• Trading platform might be overwhelming for beginners
• Mobile trading platform has room for improvement

Key features

• Over 9,000 available CFDs and 40,000+ financial instruments in total
• Advanced order types such as Limit IOC orders, Resting Stop Orders, and Sleep Orders
• Fast order execution speeds (<30 ms) and over 98% fill rate
• $10,000 minimum deposit required to open account
• Broad range of educational resources and research tools
• Easy to use, fully customizable trading platform
• TradingView-powered charts

Open account

69% of retail investor accounts lose money when trading CFDs with this provider.

8. Capital.com Review – Best CFD Broker For Forex CFDs

Rating: 4,8/5

Min Deposit: 20 USD/EUR/GBP or 80 AED (bank cards)

Fees: 4.8

Assets available: 4.7

Total Fees:

Open account Read review

CFD trading carries risk. Capital.com is regulated by the Securities and Commodities Authority.

Capital.com is an online CFD broker regulated by the FCA, ASIC, CySEC and SCA in the UAE. They allow users to trade on over 4,100 CFD instruments with low fees and with up to 20:1 leverage. Trading-wise they offers 3 different mobile apps (Trading app, Investmate app and MT4), a proprietary desktop platform and Tradingview integration. This provides everything users need to successfully trade the CFD markets including real-time price quotes, dynamic charts, order book information, and basic risk management tools such as stop losses and take profits. (disclaimer: CFD trading carries risk. Capital.com is regulated by the Securities and Commodities Authority.)

All of the platforms offers access to a variety of assets, which are mostly available as CFDs:

• 3800 stocks as CFDs
• 125 forex CFDs
• 136 crypto CFDs
• 37 commodity CFDs
• 19 Indices as CFDs

With trading fees build into the spreads that average at 0,6 pips during peak trading hours, Capital.com fees are average compared with other CFD brokers.

The broker also provides its users with a broad range of educational material in the form of online courses, trading guides, podcasts and webinars, which is great for beginners and casual traders who want to step-up their game.

Users can open a live trading account for as low as $20, or practice with a freely available $10,000 demo account first to familiarize themselves with the trading platform.

Pros

• MetaTrader 4 compatible and TradingView charts
• Excellent research and educational tools for CFD trading
• Broad range of tradable assets (4,100+)

Cons

• Fees on Index CFDs higher than at other brokers
• Doesn’t offer real stock or crypto trading
• No Islamic swap-free accounts available

Key features

• Great variety of Platforms and apps
• Patented AI Trade Bias System
• Negative Balance Protection
• Commission-free Trading

Open account

CFD trading carries risk. Capital.com is regulated by the Securities and Commodities Authority.

Top CFD Brokers Compared

Key features of the top CFD brokers and platforms are compared in the table below.

CFD Trading Fees Of Top Choices Compared

CFD trading fees of the top choices are compared in the table below.

Education & Analysis

Advanced Features

Account Types

Market Access

Spreads & Commissions

Added Value

How To Choose The Ideal CFD Broker and Platform in UAE?

The most important criteria for finding an online broker with the optimal CFD trading platform in UAE are listed below.

• Number of CFD instruments (markets, number of CFDs on different asset classes)
• Fees (spreads and commissions)
• Accessibility (web, desktop, mobile app)
• CFD Trading tools & platforms (technical, fundamental, risk management tools)
• Research & education (number and depth of coverage)
• Regulation (number of international financial regulators)
• Islamic accounts availability (Swap-free accounts)
• Customer support (accessibility and response time)

What are CFDs?

CFDs are trading instruments that are derivates of underlying securities or assets. CFDs allow you to bet on the price movements of underlying assets without actually owning them. They track the price of the underlying asset.

When you purchase an asset like company stock, you own those shares. When purchasing a CFD, however, you never own the underlying asset. As the underlying asset’s price fluctuates, the CFD trader will experience either an unrealized profit or an unrealized loss (or neither if the price remains flat). Profits are only realized if the trade is closed while the position is still profitable (losses work under the same principle – if the trade is unprofitable when closed, the loss becomes realized).

For example, if a trader buys a CFD on the EUR/USD pair and the contract price moves higher than the initial purchase price, the unrealized profit will be the difference between those two prices (minus any applicable trading costs).

It is not always that you are going to gain with CFDs, you’ll have losing trades too. So, losses will be bigger if you use leverage, which allows you to trade larger amounts than you have in your account. This can lead to a situation where you might owe more money than you initially invested, particularly if there’s a sudden large drop in price (known as a ‘gap’) or if a margin call occurs, where the broker demands additional funds to cover potential losses.

How are CFDs different from stocks?

When you buy stock, you become a part owner of the company. You have rights like voting in meetings and potentially receiving dividends. Your broker keeps the share for you. 

But when you trade CFDs, you don’t actually own the asset they represent, like stocks. CFDs are a type of investment that mirrors the price movements of underlying assets. While some CFD brokers might offer dividends to resemble stock trading, it’s not the same as having real ownership. You just have the right to execute the contracts.

The difference between stocks and CFDs on major points:

Leverage: The main difference a stock makes from CFDs is the leverage, leverage is generally not available when trading stocks directly, except for some specific traders like pattern day traders in the U.S., who can get up to 4:1 leverage. CFD traders in the EU can use up to 5:1 leverage. Remember, CFDs are not available for trading in the U.S. or to U.S. residents. Check out my guide to the best high leverage brokers.

Risk: As for risks, while the value of your stock portfolio might not drop to zero, trading CFDs carries a higher risk. Many retail CFD traders end up losing money. The leverage in CFD trading adds an extra layer of risk (higher gains and higher losses), With CFDs, it is possible that you may lose your entire capital or even go in -ve in some cases.

How do I choose the best CFD platform?

The problem today is that there is a lot to choose from, and that makes choosing the right one difficult. To help you choose a good CFD platform, here are some key factors to consider:

1. Regulation: Make sure you are not dealing with anything illegal. Ensure that your forex broker is licensed and regulated by credible authorities. Trading with unlicensed brokers raises the risk of encountering forex scams. You can read my educational series to learn more about how to avoid such scams.
   
2. Markets: Variety is important when choosing a broker. Check whether the broker offers a variety of markets and instruments for CFD trading. Depending on your trading strategy, you might want access to assets such as forex, stocks, commodities, indices, and cryptos like bitcoin.
   
3. Fees: Hidden fees can mount up a large amount and cause capital loss. Investigate the broker’s fee structure, which could include spreads, commissions, overnight fees, swap rates, inactivity fees, and withdrawal fees. Aim for a broker that provides competitive and transparent pricing. For more information, see my guide on the best zero-spread brokers.
   
4. Platform: With any broker, a smooth trading experience is necessary. You can choose a demo account initially; this will allow you to assess its usability and reliability without risking actual funds. Look for user-friendly features, reliable news feeds, risk management tools, and advanced charting capabilities. For further details, you can explore my guide on forex charts.
   
5. Educational Resources: Start with a broker that offers comprehensive educational materials for beginners. The best brokers often provide high-quality videos, articles, and webinars created by an experienced in-house team. Check out my guide to the best free forex trading courses for more insights.

These considerations can guide you toward choosing a CFD platform that aligns with your trading needs and preferences.

How are CFDs different from forex?

Both CFDs and forex are different things. CFDs are a type of instrument, whereas forex is an asset class. CFD traders speculate on price movements for various asset classes, but they never take ownership of the underlying assets. Forex trading sometimes allows traders actually to receive the currencies they trade.

It took me quite some time to understand the difference but its simple, CFDs are derivatives that follow the prices of underlying assets but are settled in cash, CFDs are always cash-settled, with no possibility for delivery of any underlying asset. For example, even if a trader buys a CFD for a currency pair like EUR/USD, they cannot receive any euros or dollars; they can only profit by closing the position at a favorable price.

But with some forex trading, you can get delivery of the pair. Let’s say you buy EUR/USD and opt for delivery. You pay in U.S. dollars and receive euros in your account.

Despite these differences, CFD and forex trading are similar in many ways, especially in retail markets; both are settled in cash without delivering physical assets. However, it is important for you to remember that both trading types come with risks, and the level of regulatory protection can vary based on where you live.

Pros & Cons of CFD Trading

Pros 

• CFD traders have access to a lot of options across markets, including those instruments that are not available in your country of residence.
• There’s no rocket science in executing orders with CFDs. You can easily go long (buy) or short (sell) with CFDs, making it easy to open a selling position.
• CFD trades usually execute very fast, reducing the risk of price changes (slippage) between the order and execution times; slippage can lead to large losses over time.
• Trading fees and commissions on CFD platforms are generally low.

Cons 

• Using leverage to trade CFDs is risky; it’s possible to lose all the money in your account, one of my friends lost initial capital in it because of lack of knowledge.
• Holding a CFD position overnight will charge you a fee, known as carry charges.
• CFD traders only own a contract, not the actual asset, so they miss out on benefits like dividends and shareholder rights.
• Profits from CFD trades are subject to capital gains tax.

Are CFDs legal in the U.S.?

No, CFDs are not legal in the U.S., and CFD trading is not permitted for U.S. residents. In the U.S., CFDs are classified as derivatives and must meet specific licensing requirements set by the U.S. Commodity Futures Trading Commission (CFTC). If you are a resident of another country, you can trade CFDs if they use forex brokers that accept clients from their home country.

The CFTC also regulates forex trading on the spot market in the U.S. Americans who want to trade forex must use brokers regulated in the U.S. You can find such brokers through guides like the Best U.S. Forex Brokers.

Brokers offering forex trading to U.S. retail clients need to have a Retail Forex Exchange Dealer (RFED) license and must also be members of the National Futures Association (NFA). U.S. residents can’t trade CFDs, but they do have access to other types of exchange-traded products through U.S. brokers. These include forex, futures, options, and securities, which offer similar opportunities to invest in underlying assets. For instance, many U.S. forex brokers offer micro-futures contracts from the CME that allow trading on indices, metals, commodities, and forex futures.

Can CFD trading be profitable?

Yes and no, it totally depends on one’s experience; profitability is an individual matrix and cannot be answered in general. However, by answering the question directly, it is possible to make a profit through CFD trading. However, it’s crucial to understand that most CFD traders end up losing money each year. In fact, many top CFD brokers report that over 70% of retail CFD accounts lose money annually, and sometimes this figure is even higher.

Successful CFD traders manage to earn profits consistently over many trades and extended periods. They achieve this by adopting trading styles that reduce risk and strategies designed to keep their average losses smaller than their average profits. However, accomplishing this is challenging.

For success in CFD trading or in my opinion in any kind of trading, hhaving a clear, consistent strategy and a robust risk management plan is essential. It’s also important to choose the right CFD platform that matches your trading style and offers a comprehensive range of tools and features.

Is CFD trading a good idea for beginners?

No, CFD trading is not a good idea for beginners. CFDs might not be the best choice for beginners due to the extra risk of trading with leverage from a margin account. Trading from a margin account is riskier than traditional investing, whether you are trading CFDs, forex, or other instruments or derivative products. Trading with leverage can increase your investment capital’s risk/reward potential and even result in a negative balance in some cases.

If you already have experience with traditional investments like stocks or ETFs and want to learn how to trade from a margin account, a demo account can be a good place to start. Demo accounts allow traders to experiment and familiarize themselves with trading software without risking investment capital. The software is largely the same, but the demo account uses virtual funds; a “live” account is one where you fund the account with real money.

There is a wide range of CFD platforms out there, but not all of them are suited for beginner traders. If you are just getting started and you’re looking for a CFD trading platform, check out my beginner’s guide to trading forex and CFDs.

How risky is CFD trading?

Compared to non-leveraged trading instruments, CFD trading is risky. CFDs have many benefits, including access to a wide range of markets with little capital needed upfront and the ability to bet on falling as well as rising markets, making them very popular with online traders. However, they come with a high risk of losing your money.

The biggest risk comes from using leverage. Leverage means borrowing money from your broker, which allows you to spend more money on opening a position than you otherwise would. It’s also called margin trading, where the margin is the percentage of the total value of the trading position you must put down.

For example, with leverage of 100:1, you can control a $1,000 position with just $10. While this can magnify your profits, it can also amplify your losses significantly if the market moves against you.

Several other risks are involved, such as inexperience, whereby beginners are bound to make expensive mistakes. There is the risk of choosing an unreliable provider and losing your money if it goes bust. Markets are risky by definition due to volatility and many unexpected events that affect them.

To limit these risks, you should only trade CFDs if you fully understand them, including risk management tools like stop-loss and take-profit orders. A lot of brokers offer a good selection of educational materials. Also, you should practice trading on a demo account with virtual funds first to avoid risking your capital. Only trade live when you are fully confident.

To better understand CFDs and the risks involved.

How Is CFD Trading Regulated in the UAE?

The United Arab Emirates (UAE) is a federation of seven emirates (Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah). Online trading regulation in UAE has two regions: the Dubai International Financial Centre (DIFC) and the rest of the UAE.

Dubai International Financial Centre (DIFC) is an economic free zone in Dubai, founded in 2002. It is regulated by the Dubai Financial Service Authority (DFSA). The DFSA oversees all financial activities in the area, including CFD trading. It enforces compliance with market regulations and ensures that true Islamic swap-free accounts obeying Sharia laws are available. 

Regulatory requirements for CFD brokers imposed by DFSA are listed below.

• Limited leverage – Retail traders can only trade with up to 30:1 leverage and professional traders with up to 500:1 leverage.
• Margin close-out –  If an account falls below 50% of the required margin, the broker closes out all positions.
• Negative balance protection – Traders cannot lose more money than they deposit.
• Marketing restrictions – Brokers must disclose what percentage of their clients lose money and cannot promote CFDs as a get-rich-quick scheme. 

The rest of the UAE is regulated by the Securities and Commodities Authority (SCA). The SCA is a federal government agency established in 2000. It is issues licences to CFD brokers in UAE that meet their regulatory requirements including minimum capitalisation, risk management, client fund segregation, reporting and disclosure.

Video Recap

A summary of the highest rated CFD brokers and platforms is available in the video below.

Conclusion

With the various online brokers in UAE offering different platforms and features, it can be hard to find the ideal choice for individual needs. Comparing and evaluating the services of different providers requires time and knowledge.

This guide does the hard work by evaluating top providers for different types of traders and investment goals. The results of our analysis and comparison of broker offering the best CFD trading platforms in UAE are wrapped up in the table below.

Leveraged and speculative product. Not suitable for all investors. You should consider whether you can afford to take the high risk of losing your money. Capital is at risk.

Stefan Grasic

Stefan Grasic is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level.

Read more about Stefan Grasic