CFDs can be very lucrative, but they are incredibly complex financial products that may not be suited to everyone’s risk appetite. If you are aware of the possible risks involved and ready to start trading CFDs, check out our list of the 8 top-rated CFD brokers in the country plus tips on how to choose the best CFD trading platform in Australia.
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The Best CFD Trading Platform in Australia: A Quick Glance At The Top 8
- eToro: Best CFD broker in Australia
- Capital.com: Low-Fee CFD Broker
- CMC Markets: Best For Forex CFDs
- Plus500: Specialist CFD Platform
- IG: Best for Variety of Markets
- Interactive Brokers: Best All-in-One Broker
- City Index: Best for Trading Tools
- AVATrade: Biggest Selection of CFD Trading Platforms
The Best CFD Trading Platform in Australia: Top Options Compared
Keep in mind that most of these brokers offer other products in addition to CFDs—to find out which, be sure to check our list of best trading apps in Australia.
Disclaimer: Always take into account your own individual circumstances before making any investment decisions, and don’t rely on the information presented here alone. We highly suggest that you consult with an expert before applying for any product or service mentioned on our site.
1. eToro Review: Best CFD broker in Australia
- CFD assets: Forex, commodities, stocks, indices & crypto
- Regulated in Australia: Yes
- Minimum balance: $50
- AUD deposit methods: Credit/debit card, PayPal & POLi
- Withdrawal fee: $5
- Trading platforms: eToro platform
- Customer support: Ticketing system
- Average spread:
- Currencies: from 1 pip
- Commodities: from 2 pips
- Indices: from 0.75 points
- Stocks & ETFs: from 0.15%
- Crypto: 1%
There are several reasons why eToro stands out as the best CFD provider in Australia.
- Currencies: from 1 pip
- Commodities: from 2 pips
- Indices: from 0.75 points
- Stocks & ETFs: from 0.15%
- Crypto: 1%
First off, with this multi-regulated broker, investors get access to a wide range of markets, covering 49 currency pairs, 70+ crypto assets and over 200 stocks and ETFs.
What’s more, eToro does not charge commission and has ultra-tight spreads starting from 1 pip on forex and 2 pips on commodities. The platform’s popular social and copy trading features are free to use as well, allowing you to not only to connect with other investors but copy their trades too.
One downside is that there is no access to the MT4 trading platform, although the eToro CFD platform is just as easy to use and comes with powerful research and trading tools, such as live interactive newsfeeds, pro charts and real-time alerts. It also features risk management tools, including customisable stop loss and take profit orders, that can help you protect your investment.
To read more about this CFD broker, read our full eToro review.
PROS:
- 25m+ users
- $100k demo account
- Tons of educational resources
CONS:
- No live chat in Australia
2. Capital.com Review: Low-Fee CFD Broker
- CFD assets: Forex, indices, commodities, shares & cryptocurrencies
- Regulated in Australia: Yes
- Minimum balance: $20
- AUD deposit methods: Debit/credit card, PayPal, POLi, ApplePay & bank transfer
- Withdrawal fee: None
- Trading platforms: Capital.com web trading platform, MT4, TradingView
- Customer support: Live chat, phone & email
- Average spread:
- Currencies: from 0.00006
- Commodities: from 000.5
- Indices: from 0.8
- Stocks: from 0.50
- Crypto: from 0.70
With Capital.com investors can trade CFDs on more than 6,500 world-renowned markets, including major forex pairs, popular cryptocurrencies and global stocks.
- Currencies: from 0.00006
- Commodities: from 000.5
- Indices: from 0.8
- Stocks: from 0.50
- Crypto: from 0.70
It is also one of the cheapest CFD brokers in the country—Capital.com has some of the tightest spreads around and charges no brokerage fees.
Investors can choose from three trading platforms, including Capital.com’s own award-winning platform that features some of the fastest execution speeds on the market (an average of 0.022 seconds). It also provides investors with all the research and charting tools they need to keep track of the market and their trades, starting from 70 technical indicators and instant price alerts to personalised watchlists and more than 1000 advanced charts.
One potential drawback is that you cannot open live CFD accounts in AUD, although there are several deposit methods available that will automatically convert your Australian dollars into one of the trading account currencies.
3. CMC Markets Review: Best For Forex CFDs
- CFD assets: Forex, indices, commodities, shares, treasuries & crypto
- Regulated in Australia: Yes
- Minimum balance: None
- AUD deposit methods: credit/debit card, bank transfer, POLi & PayPal
- Withdrawal fee: None
- Trading platforms: CFD Trading (NGEN); MetaTrader 4
- Customer support: email
- Average spread:
- Currencies: from 0.7 points
- Commodities: from 0.3 points
- Indices: from 1 point
- Treasuries: from 2.0 points
- Shares: 0.09% commission
- Crypto: from 3.8 points
CMC Markets is a trusted and reliable online brokerage firm that offers access to more than 10,000 CFD products, including shares, crypto, major global indices, and treasuries.
$54+ monthly investing volume
Interactive resources & In-depth market analysis
24/7 customer support
Cannot open an account in AUD
Currencies: from 0.7 points
Commodities: from 0.3 points
Indices: from 1 point
Treasuries: from 2.0 points
Shares: 0.09% commission
Crypto: from 3.8 points
In addition, there is a huge selection of FX pairs—more than 330 cash and forward currency pairs that cover both majors and minors. Spreads on currencies trading are also super-tight, making this one of the best Australian CFD brokers for forex trading.
Another standout feature of CMC Markets Is the company’s Next Generation trading platform that boasts a 99.9% fill rate, fast execution (orders are processed in under a second), advanced order types as well as professional research and charting tools.
Costs could be lower, though. This broker charges commission on shares starting from AUD$7.00 and there is an added fee of $20/mo to access CMC Markets’ price data for share CFDs.
4. Plus500 Review: Specialist CFD Platform
- CFD assets: Indices, forex, commodities, cryptocurrencies, shares, options and ETFs
- Regulated in Australia: Yes
- Minimum balance: $200-$500
- AUD deposit methods: Debit/credit cards, PayPal, Skrill & bank transfer
- Withdrawal fee: None
- Trading platforms: Plus500 Trading Platform
- Customer support: email & Whatsapp
- Average spread: from 0.00008 on forex
Focusing solely on Contracts for Difference, Plus500 is one of the most popular brokers in Australia for CFD trading. The company offers over 2,800 markets, such as Australian and global shares, crypto and options CFDs through their award-winning proprietary web trading platform.
100% automated execution
Funds held in an FMA segregated accounts
25+ years in business
Commission is a bit high
Leverage of up to 1:30 (as per ASIC regulation) is available, although Pro account holders can access higher leverage limits of up to 1:300, as well as exclusive deals and promotions.
Like other CFD providers in Australia, Plus500 has no brokerage fees. On top of that, there are no deposit or withdrawal fees or charges for rolling, opening or closing your position. However, the minimum deposit is a bit steep—going up to $500 for bank transfers, and the pricing model is not 100% transparent as you can only get access to the average spreads once you open an account.
5. IG Review: Best for Variety of Markets
- CFD assets: Forex, indices, shares, commodities, ETFs, bonds, options, crypto & more
- Regulated in Australia: Yes
- Minimum balance: None
- AUD deposit methods: Credit/debit card, PayPal & BPAY
- Withdrawal fee: None
- Trading platforms: MetaTrader 4, ProReal Time, IG Trading Platform, L2
- Customer support: Live chat, email & phone
- Average spread:
- Currencies: from 0.6
- Commodities: from 0.3
- Indices: from 0.1
- Shares: from 0.1
- Crypto: from 1
IG offers trading in CFDs on over 17,000 markets, more than any other CFD broker in Australia. More specifically, users can access 100+ major and minor indices, 60+ FX pairs and 48 commodities. Plus, you can trade sector CFDs, options and bonds and interest rates—all from one integrated account.
An FTSE 250 company
Demo CFD account available
Fast execution & advanced analytical tools
High minimum balance requirements
Currencies: from 0.6
Commodities: from 0.3
Indices: from 0.1
Shares: from 0.1
Crypto: from 1
Those interested in share CFDs, in particular, will find much to like about IG—the broker gives access to over 10,500 international and domestic shares and ETFs as well as the chance to trade US stocks pre- and post-market thanks to extended hours and weekend trading.
Apart from a variety of instruments, IG boasts fairly competitive spreads (although they could be lower), powerful research & analysis tools, and a wide selection of proprietary and specialist trading platforms.
Last but not least, IG invests a lot in educational resources and materials, ensuring traders of all experience levels acquire the skills they need through online courses, guides, and tutorials.
6. Interactive Brokers Review: Best All-in-One Broker
- CFD assets: Shares, indices, metals & forex
- Regulated in Australia: Yes
- Minimum balance: None
- AUD deposit methods: e-transfer & BPAY
- Withdrawal fee: One free withdrawal a month, every other wire withdrawal $15
- Trading platforms: Trader Workstation & IBKR Mobile
- Customer support: Phone & email
- Average spread:
- Currencies: 0.08-0.20 points
- Metals: from 0.7 points
- Indices: 0.010%
- Shares: 0.03-0.05%
Traders who want to trade CFDs and other investment products from a single integrated platform, won’t go wrong with IBKR.
Effective risk management tools
Real-time news & price alerts
48+ years in business
Spreads are not the most competitive
Currencies: 0.08-0.20 points
Metals: from 0.7 points
Indices: 0.010%
Shares: 0.03-0.05%
Started in 1993, Interactive Brokers is a global company that covers 150 markets in 33 countries and currently has over 1.9 million users. In addition to shares, indices, forex and metals CFDs, clients can trade in futures, options, stocks and ETFs, all from a single account and the same trading window.
IBKR also supports 24 currencies, making it incredibly convenient for investors to deposit or withdraw AUD from their account without paying high conversion fees.
Speaking of fees, IBKR is not the cheapest CFD provider in Australia. Unlike most CFD brokers, they charge brokerage fees—the pricing structure for index and metal CFDs is fixed, while forex and shares CFDs are subject to a volume-tiered pricing structure. This works out great for active traders who will pay lower rates and commission, but not so much for low-volume traders.
7. City Index Review: Best for Trading Tools
- CFD assets: Indices, shares, forex, commodities, cryptocurrencies, bonds & interest rates
- Regulated in Australia: Yes
- Minimum balance: $150
- AUD deposit methods: Credit/debit card, EFT, BPAY, PayID or PayPal
- Withdrawal fee: None
- Trading platforms: WebTrader & MT4
- Customer support: Live chat & email
- Average spreads:
- Currencies: from 0.5
- Commodities: from 0.06 points
- Indices: from 1 point
- Shares: from 0.09% commission
- Crypto: from 50%
- Bonds & interest rates: from 0.02 points
Founded in the UK in 1983, City Index is a global forex and CFD broker, giving access to over 6,300 markets (including low-risk investment bonds and interest rates CFDs), super-tight spreads (starting from 0.5 points on FX) and a wealth of educational resources.
Earn up to USD 2.58% in interest
IB SmartRouting provides accurate pricing
Up to 60% lower margin rates
Complex account opening procedure
Currencies: from 0.5
Commodities: from 0.06 points
Indices: from 1 point
Shares: from 0.09% commission
Crypto: from 50%
Bonds & interest rates: from 0.02 points
However, where this CFD trading website really shines is the wide range of professional analysis and trading tools. In addition to price and order alerts, advanced charts and customised indicators, City Index also offers intelligent tools. These include Performance Analytics, which lets you set up and monitor a personal trading plan, and SMART Signals, the company’s AI-powered trading feature that delivers stats-backed analysis of major global markets.
Users will also get the latest market news, inclusive analysis and in-depth reports live in-platform, so they can stay up to date with the ever-changing market and refine their trading strategy.
Interested in trading cryptocurrencies? Here is a list of the best crypto trading apps in Australia.
99%+ of trades executed in under a second
Extended hours on US share CFDs
No market data charges
Not a lot of cryptocurrencies available
8. AVATrade Review: Biggest Selection of CFD Trading Platforms
- CFD assets: Forex, stocks, commodities, indices, ETFs, crypto & bonds
- Regulated in Australia: Yes
- Minimum balance: $100
- AUD deposit methods: Credit/debit card & wire transfer
- Withdrawal fee: None
- Trading platforms: WebTrader, AvaTradeGo, MT4, & MT5
- Customer support: Live chat, email & phone
- Average spread:
- Currencies: from 0.9
- Commodities: from $0.0015
- Indices: from 0.03
- Stocks: from 0.13%
- Crypto: from 0.20%
- Bonds: from 0.03
AvaTrade is a globally-renowned broker offering over 250 financial instruments through several online trading platforms.
- Currencies: from 0.9
- Commodities: from $0.0015
- Indices: from 0.03
- Stocks: from 0.13%
- Crypto: from 0.20%
- Bonds: from 0.03
In addition to MetaTrader 4 and MetaTrader 5, the two most popular trading platforms in the world, AvaTrade partners can use WebTrader, one of the best-known FX platforms and AvaGO, the company’s intuitive app. Users can get access to automated trading platforms as well, where they can copy the trades of more experienced users.
AvaTrade does not charge commission or deposit and withdrawal fees, but the spreads are a bit higher than what you’d find with other brokers.
The choice of available markets is also not as extensive as the competition either, for instance, Capital.com offers over 6,500 markets and IG offers more than 17,000. On the plus side, AvaTrade has an ample selection of educational material, including insightful articles, detailed tutorials and ebooks, making this a great trading partner for both beginners and more experienced investors.
What Is CFD Trading and Is It Legal in Australia?
CFD, i.e. a contract for difference is a derivative that lets you speculate on the price movement of a financial instrument, whether it’s shares, commodities, currencies or indices.
A wide range of educational resources
0 brokerage fees
Manual & automated trading platforms
Not a wide range of tradable instruments
Unlike the US, CFDs are completely legal in Australia and there are several domestic and international providers offering this financial product.
However, before you sign up for an online investment platform, keep in mind that CFDs come with huge risks and a large portion of investors end up losing money.
They are also not recommended for absolute beginners as trading CFDs requires in-depth knowledge of the market and a great deal of speculation, skills that newbie investors might not have developed yet.
So, before choosing this suitable investment for you, it is always good to learn about the risks and benefits and how CFDs compare with other financial derivates.
What to Look for in the Best CFD Broker in Australia?
These are the key considerations when choosing a CFD broker in Australia.
1. Availability of financial instruments
Most CFD brokers offer indices, forex and commodities CFDs, as well as international stocks and ASX200 CFDs, but you still need to check if the broker offers your preferred asset class before signing up.
Related reading:How to sell BTC? How to buy Tesla shares in Australia?
2. Educational platform
Look for a CFD broker that provides guidance for traders through high-quality and interactive educational materials like in-depth articles, beginner-friendly courses, webinars and more. Also, check if the platform has a demo account available so you can hone in your trading skills without losing any of your capital.
3. Privacy and regulation
This is one of the biggest priorities, so make sure that the broker you choose employs advanced security measures such as 2FA, verification checks and encryption technology.
Also, look into whether the broker is regulated by ASIC—you can do this by checking the bottom of the page or by going to the ASIC website and searching for the provider.
4. Payment options and fees
The CFD broker you choose needs to offer competitive and transparent pricing, which includes being upfront about inactivity fees, deposit and withdrawal charges and overnight funding fees.
You should consider deposit and withdrawal methods as well—look for platforms that accept AUD deposits to avoid paying high conversion fees when funding your account.
5. Trading tools and execution
CFDs are more profitable when the market is volatile, which means you need a CFD trading platform that provides low latency, fast execution of CFD products and advanced trading in order to keep up with market fluctuations.
Sophisticated trading tools (such as charting and drawing tools) and access to live stock market data are a must as well if you want to stay ahead of the game.
6. Customer support
CFDs are complex financial instruments and you need a trading partner who is available 24/7 for any issues or queries through live chat or phone support.
What are the risks involved with CFDs?
All investments come with risks so it is crucial that you know all about them before you prepare trading strategies and start investing.
- CFDs are leveraged products that can lead to huge losses since you are basically investing with borrowed capital. Even though in Australia leverage is limited up to a 30:1 ratio for retail clients, you could still end up in debt.
- CFDs are complex and require knowledge of the market you are trading in. Understanding how CFDs work doesn’t mean that you are ready to start trading.
- You don’t own the underlying asset so you can’t cash in on the capital growth of the asset over the long term.
Are there any benefits from trading CFDs?
CFDs give you access to asset classes that you might not otherwise be able to access, such as global shares and options. Costs are also lower, you only put up a fraction of the initial capital required, there are no commissions (you only pay the spread) and the same margin requirements apply for short and long positions.
Lastly, CFD trading also gives you a chance to hedge your portfolio, thus acting as insurance for your investment.
Final Words
Use the factors outlined above to compare CFD brokers in Australia and choose the one that best fits your needs and budget. Remember, CFDs are not for everyone and it is crucial that you carefully consider all the risks before investing in this financial product.
1. Can you trade CFD in Australia?
Yes, CFD in Australia is legal and there are several brokers that specialise in this financial product, offering indices, crypto, commodities and stock CFDs.
2. What is the cheapest trading platform in Australia?
Considering the withdrawal fees, minimum first deposit, commission and spreads, Capital.com is the cheapest CFD provider in Australia.
3. Is CFD trading taxable in Australia?
Yes, you need to pay tax for your CFD trading. At the end of the financial year, you must report your overall profits and losses from CFD trading to the ATO.
4. Which trading platform is best for beginners in Australia?
The best CFD trading platform in Australia for beginners is eToro thanks to its straightforward interface, risk management tools and copy trading feature that lets you duplicate the trades of the platform’s more experienced users.
