FD

What is CFD?

A Contracts for Difference (CFD) is a popular financial instrument. CFD trading enables you to trade on the rising or falling markets. You can trade shares, indices, commodities, currencies and treasuries. It provides traders the ability to profit from the price movement without owning the underlying asset.

 

CFD allows you to trade on margin and leverage your positions so you can make higher returns with less money.

If you are new to CFD, check out: What is CFD Contract for Difference

While it can be very profitable, and people can earn a lot of money trading CFDs in a short amount of time, it also comes with a significantly high risk that you should not ignore. CFDs are very volatile, hard to predict, and 60% to 80% of retail CFD accounts lose some or all of their capital.

Best CFD Brokers in UAE

We have researched many CFD brokers in UAE and concluded the following list which we believe that it includes the most trusted, licensed, cost-efficient and the best CFD brokers in UAE.

Forex.com is a global FX and CFD broker founded in 2001 and works in over 180 markets. The parent company of Forex.com is GAIN Capital, which is based in the US and listed on the New York Stock Exchange NYSE:GCAP.

Forex.com offers a wide range of products such as Stock CFDs, Forex, Commodities, Indices and Crypto CFDs.

Check out Forex.com Full review
 

Disclaimer: 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.

XTB’s started in 2002 as X-Trade. In 2004, it merged into XTB group. Currently, X-Trade brokersDM SA in Poland, is one of the biggest Forex and CFD brokers listed on the Warsaw stock exchange. They have offices in 13+ countries, including Poland, the UK, France, Spain and Germany.

Though XTB’s market doesn’t match those of bigger platforms, it outdoes them in crypto trading. Moreover, they run proprietary trading technology that provides traders with quick and reliable trading speeds, full transparency on trades, and no requites.

To affirm their position, they received the ‘Best Trading Platform’ award in 2016 and was voted the top-rated Forex and CFD Broker in 2018 in the Wealth and Finance International Awards.

Check out XTB Full Review
 

Trading CFDs on leveraged basis involves a significant amount of risk

Libertex has been a well-established broker since 1997 and has Headquartered in China, Armenia, Azerbaijan, Belarus, Spain, Cyprus, Ukraine, and the United States. The name Libertex forex broker is a trading name for Indication Investment limited, a subsidiary of the fore Club Group.

The club gives you the ability to trade CFDs, and their platform is ideal for both the beginner and the experienced professional trader.

Check out XTB Full Review

eToro is one of the world’s leading brokers. A social trading network where people can interact, check others portfolios and copy the trades of the best performing investors.

eToro  is amulti-asset platform where users can trade CFDs, currencies, indices, commodities, Stocks and cryptocurencies.

Check out eToro Full Review
 

 

ActivTrades is an independent global FX and CFD broker founded in 2001 in Switzerland as a small broker, then later the company moved the headquarter to the UK in 2005. The company is a market leader in many countries around the world.

ActivTrades offers a wide range of products such as Stock CFDs, Forex, Commodities and Indices CFDs.

Check Out ActivTrades Full Review
 

CFD Trading carries a high degree of risk to your capital. They are not suited to all investors, please ensure that you fully understand the risks involved, and seek independent advice if necessary.

MultiBank group is a global CFD and FX broker founded in 2005 in California USA. Multibank maintains over 25 offices worldwide to cater over 320,000 customers from above 90 countries.

The company offers wide range of financial instruments such as CFDs, forex, indicies, CFD shares and commodities.

Check out MultiBank Full Review

Swissquote is a Swiss investment bank established in 1996. Listed on the SIX Swiss Exchange (symbol: SQN) since May 29, 2000. The Swissquote Group  headquarter is located in Gland (VD) and offices in Zürich, Bern, London, Luxembourg, Malta, Dubai, Singapore and Hong Kong.

Swissquote MEA Ltd. is a subsidiary of Swissquote Bank SA based in Dubai, UAE and has an office in the DIFC (Dubai International Financial Centre).

Check Swissquote Full Review


How to Select a CFD Broker in UAE

Regulated

Reasonable commissions & spreads

Provides variety of CFDs

Offers a flexible trading platform

Points to Consider Before You Start Trading!

❖ The right CFD Broker can help you save a ton on fees and spreads.

❖CFD leverage’ is the use of borrowed funds so that traders can trade in a position that’s bigger than their initial funded amount. However, CFD Leverage can be a double-edged sword as it works in both positive and negative ways. If unsure, always seek professional advice before using ‘LEVERAGE’ in a CFD trade.

❖ When trading in CFD, you will notice that you can choose to trade in micro lots, mini lots, or standard lots. This feature gives you a lot more control over your position sizing and capital exposure, where you will be able to limit your risks when trading.

❖ When you make a CFD trade, be it for currencies, commodities or stocks, you do not own the currency. The CFD broker records your order and then attributes your trade’s profit and losses based on how the current rate fluctuates.

Read more: What is CFD contract for difference?

 

 

How Do We Nominate the Best CFD Broker in UAE?

With so many CFD brokers out there offering different services, how do we choose the best and separate from the others? We used the following criteria to select the best CFD brokers in UAE:

 

❖ Regulations

The first and the most important thing is security, the broker’s credibility, and the protection of your money. Our number one priority is to research whether the broker is regulated or not and where it is regulated from.

 

❖ Ease of Trading Platform

Every broker provides its traders with a software platform that is used for trading CFDs. Our selected brokers provide platforms that are simple and user-friendly. There are some trading platforms that are complex, overwhelming and requires a certain system configuration. We avoided brokers with such platforms.

 

❖ Fees & Overnight charges

Some brokers charge fees on opening trades, or they charge you for keeping your trades open for long periods (overnight or swap fee). Try to choose brokers with minimum to no trade fees. Our selected brokers are researched carefully and well-reviewed from trading cost perspective.

 

❖ Deposits & Withdrawals

We always look for brokers that are known for their easy deposits and withdrawals process. The last thing we want our readers to go through  is depositing their money and waiting for a long time to sight their fund in the trading platform. Also, we avoid brokers that are know to make their users wait for a long time to get their money back after a withdrawal order.

 

Warning: Trading CFDs on a leveraged basis involves a significant amount of risk

Subscribe to stay informed

Subscribe to our newsletter and recieve the latest
personal finance topics