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CFD trading platforms allow you to trade hundreds of financial instruments without owning an asset which offers investors a wide range of possibilities. CFDs are an interesting option for those who would like to trade by speculating on an asset’s value rising. Our review will consider the best CFD trading platforms for 2022. Moreover, we will take a look at all the aspects you need to know to choose the best alternative that sufficiently suits your needs.

Your money is at risk.

Best CFD Trading Platforms In UAE (List)

  1. eToro – Overall Best CFD Trading Platform For 2022 In The UAE
  2. Alvexo – Outstanding CFD Trading Platforms For Beginners
  3. Coinbase – Best Place For Crypto CFD Trading
  4. Ava Trade – Convenient 0% Commission CFD Trading Platform To Invest In The UAE
  5. FXTM – Best CFD Trading Platform For Low Spreads & Account Types

Best CFD Trading Platforms In UAE – Reviewed

1. eToro – Overall Best CFD Trading Platform For 2022 In The UAE

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The most popular online trading platform in the online trading space is eToro, with over 20 million investors. The provider offers plenty of CFD markets, traditional shares, and ETFs. Stocks, cryptocurrencies, forex, and commodities are all also included. Regardless of the CFD instrument, you choose to trade, eToro does not charge a commission.

It is worth mentioning that no ongoing maintenance fees are involved, and the spreads are often reasonable and tight. The major forex pairs’ spreads range from 0.008% to 0.009% upwards.

What is cfd trading

All the best CFD trading platforms in the online space include leverage, and eToro is no different. However, your chances of getting leverage will vary depending on your location. Furthermore, traders on a budget will appreciate that the minimum stake size also starts at just $50.

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eToro also has a Copy Trading feature, which lets you copy the trades of an experienced CFD trader. Each buy/sell position placed by a trader will be mirrored in your eToro account. The feature is free, but there is a $200 investment requirement per trader.

Getting started is extremely simple and fast. Opening an account, uploading ID information, and making a deposit usually take less than a few minutes. It is possible to make payments using several popular methods such as debit/credit cards, bank transfers, and e-wallets. The trading platform is licensed under the FCA (UK), ASIC (Australia), and CySEC (Cyprus).

Pros:

  • Easy-to-use online broker and trading platform
  • Offers a wide range of assets at competitive spreads
  • Commission-free 
  • Debit/credit cards, e-wallets, and bank accounts can be used to deposit funds
  • Social trading and copy trading are supported
  • Regulated by the FCA, ASIC, and CySEC

Cons:

  • Not suitable for advanced traders

67% 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.

2. Alvexo - Outstanding CFD Trading Platforms For Beginners

Cfd trading dubaiAlvexo is a regulated online trading broker with an emphasis on providing traders with a friendly trading environment. They were established in 2014. Using Alvexo's technology, traders can conduct trades instantly, a feature that appeals to traders regardless of experience level.

The platforms main function is to provide CFD brokerage services. Therefore, commissions are built into the spreads quoted for every asset. In certain accounts, the spreads are variable, but a classic account could have a spread as low as 2.9 pips. No additional transaction fees are charged to the trader, as the spread is the only commission charged.

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It is possible to trade through the Alvexo WebTrader platform, which is very versatile. The platform is browser-based and is extremely fast at processing orders. Here you can use several tools to analyze charts and trade the individual markets conveniently. Alvexo has its own mobile app, which you can also use to trade. By doing so, you can keep up to date with market developments on the go.

Pros:

  • Commission-free stock CFDs are available
  • Supports a wide range of deposit methods
  • Based on the level of capital, there are different account types
  • CFDs with different underlying assets
  • Regulated and highly secure platform

Cons:

  • Compared to competitors, Alvexo’s offer is manageable

Your money is at risk.

3. Coinbase - Best Place For Crypto CFD Trading

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Coinbase is another interesting option that traders could consider when looking at CFD trading platforms. Coinbase serves over 70 million clients as an online cryptocurrency exchange and investment platform. Many investors are attracted to Coinbase because of its simple and hassle-free investment platform. Opening an account is easy, taking no more than a few minutes.

There are various ways to use Coinbase, including on the web and your iOS or Android device. Coinbase has an easy-to-use platform that facilitates the purchase and sale of cryptocurrencies such as Bitcoin, making it a wise choice for first-time crypto investors and traders.

What is cfd trading

Coinbase is considered one of the safest exchanges on the market. The company's digital funds are stored in cold storage, all new customers' identities are verified, and all account holders must set up two-factor authentication. Further, Coinbase has a full-time security team to safeguard your account around the clock.

Users a required to pay 3.99% for debit/credit card transactions. It is also possible to deposit funds via ACH on Coinbase- after the funds are credited, simply pay a commission of 1.49% to complete the transaction. Comparatively, though, this exchange is still considered to be expensive.

Pros:

  • More than 100 cryptocurrencies are supported
  • Suitable for beginners
  • The platform is simple to use
  • There are tons of crypto-related educational resources
  • Live support available 24/7
  • Bank cards and debit cards are supported
  • Exceptional mobile app

Cons:

  • It does not offer copy trading or social trading
  • Only supports crypto – cannot invest in stocks or other assets.

Your money is at risk

4. Ava Trade - Convenient 0% Commission CFD Trading Platform To Invest In The UAE

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In the fourth place of our best CFD trading platforms in the UAE, is AvaTrade, a provider specializing in CFDs. The platform offers 0% commissions across all supported markets, making it particularly suited for day traders, and provides leverage as high as 5:1 for stock CFDs and 30:1 for currencies. AvaTrade also offers six base currencies and a fast account opening process.

There are more than 1,250 tradable markets on AvaTrade across various asset classes. Stocks, ETFs, hard metals, energies, bonds, and agricultural products are included. In addition, AvaTrade offers a comprehensive forex trading platform.

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The platform is accessible through the company's primary web trading platform and third-party providers such as MT4 and MT5.

The top-rated platform is fully regulated. With AvaTrade, $100 is the minimum deposit required to get started. Bank wire transfers and credit/debit cards are accepted payment methods. This platform does not charge deposit fees.

Pros:

  • Regulated by several bodies
  • Requires only a $100 deposit - and there's no transaction fee
  • Supports leverage and short-selling
  • Opening an account is quick and easy
  • Highly rated mobile app

Cons:

  • Few crypto markets are available
  • It is best suited to seasoned traders

Your money is at risk

5. FXTM - Best CFD Trading Platform For Low Spreads & Account Types

Cfd trading meaningFXTM is one of the most prominent CFD brokers on the market, as it offers both instant execution and market execution based on the account type. In addition, trading stocks and copy trading is possible, although the asset selection is somewhat limited.

With over 250 assets to choose from, FXTM is primarily a CFD broker, giving clients access to over 250 assets to trade as CFDs, including stocks, metals, and indices. Based on your account type, the forex and CFD spreads start at 0 pips overall. On major forex currency pairs like USD/GBP and EUR/GBP, the spread is on average 0.5.

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You can trade on both MT4 and MT5 with this account. This is ideally suited if you keep spreads low and don't mind a wider spread and an additional commission.

As part of the platform's features, you will find educational tools to improve your currency trading skills. The site offers a variety of webinars and seminars that are conducted regularly and cover various topics in extensive detail. FXTM also offers a free demo version through its mobile app, online, or on a computer. It only requires a $10 deposit to get started.

Pros:

  • It offers a wide variety of educational resources
  • Perfect for market research and insights
  • Supports multiple account types
  • Comprehensive forex department
  • No commissions on forex trades
  • Highly regulated

Cons:

  • Few stocks to trade

Your money is at risk

How To Choose The Best CFD Trading Platform

Regulation

Your money must be properly secured since real-world funds are used to deposit and trade. Therefore, market regulation is essential to maintain investor confidence and guarantee a fair deal for traders when transacting with CFDs to protect investors and ensure a level playing field for everyone.

Different countries have different regulations when dealing with CFD trading. In some countries, like the United States, it is permitted, while in others, it is not. So it is a good idea to make sure that the provider has the legal authority to work in your country since there may be some special protections for you.

Therefore, you should only consider a CFD broker if the financial body that regulates them is reliable and trustworthy. It is an easy process since several tier-one regulators exist in this field. Examples are the FCA in the UK, CySEC in Cyprus, and ASIC in Australia.

By ensuring that your funds are held on separate accounts from the CFD platform, these regulators ensure that you won't be offered leverage greater than what is allowed in your location.

CFD Assets And Supported Markets

What is cfd trading

Due to their flexibility, CFDs can be traded by practically anyone for various financial instruments. Moreover, CFDs can be traded for many types of assets that are less common. For instance, a CFD can be traded to follow a real estate price or even the value of an item of art.

As a result, there is usually a wide disparity between the assets available on CFD trading platforms. However, among the most popular CFD types are:

  • Stock CFDs
  • Forex CFDs
  • Commodity CFDs 
  • Cryptocurrency CFDs
  • ETF CFDs
  • Bond CFDs

When it comes to assets, eToro stands out from its competitors. The online broker allows you to trade currencies, commodities, the best new cryptocurrencies, and indices for which CFDs are available. This platform is a significant feature because it does not charge commissions but only charges spread with values significantly lower than the rest of the market.

Your money is at risk

Fees

Most of the brokers who deal in CFDs do so with zero commissions. Therefore, you won't pay a flat fee of lots of money per trade when trading CFDs in the UAE.

Unfortunately, trading CFDs isn't completely free, as there are some fees involved. Usually, a CFD trading Dubai platform that offers commission-free trading charges a spread. Depending on the broker charges, this spread can range from less than 0.1% or more than 5%.

If you plan to trade stock CFDs with leverage, you might also need to pay an overnight financing fee. It will happen if you keep the CFD position open overnight, as the name suggests. These are calculated based on an annualized interest rate and broken down daily. So if you are placing a trade, you should know the exact cost before initiating the transaction.

Commissions

Since commissions usually influence investors' decisions about which online broker to choose, you should consider this critical factor to determine the most suitable CFD broker for your specific needs. It shouldn't be too expensive and shouldn't feel like losing lots of money.

Some CFD brokers may charge a commission. If that's the case, the fee is usually calculated as a percentage. When there are no commissions, this is often accomplished by the spread. Despite this, you can obtain commission-free CFD trading and very competitive spreads at the best CFD brokers.

Spreads

Spread is defined as the difference between the ask and bid price of the asset CFD. It is usually displayed by the best CFD brokers, respectively, as a 'buy' price and a 'sell' price. So no matter which platform you decide on, you'll want to ensure that it provides competitive spreads. This is not the least because this will add to the final price you end up paying for your trades.

It may therefore be necessary to perform some calculations on your own. To do so, calculate the percentage difference between the bid (buy) and ask (sell) prices for the financial instrument you are interested in simply by determining the bid price and ask price for the instrument.

Minimum Deposit

Investors may deposit a minimum amount to begin trading on any platforms outlined in this guide. However, depending on their location or the payment method they prefer to use for depositing, it may change.

On eToro, the minimum deposit for investors in the UAE is $50, which can be paid with popular methods such as debit/credit cards, e-wallets, or bank accounts.

You should also consider that almost all brokers require that you maintain a minimum account balance relative to the value of your CFD positions. As a result, you might be forced to add more money to your account to maintain an open leveraged trade. In other words, your broker might sell your position at a loss.

Withdrawal Fees

As well as the minimum deposit variant mentioned above, charges for withdrawal requests may vary from provider to provider. While some may be free, others may charge a small fee. For example, all withdrawal requests are subject to a $5 fee on eToro. While any withdrawals sent in currencies other than USD will be subject to conversion fees on this exchange.

Trading Tools And Features

The best CFD platforms will have many tools and features to enhance the trading experience. These are a few of the most important tools you should consider:

Leverage

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The reason behind the popularity of CFDs among share traders could be that you can open positions with leverage, which is perhaps the biggest benefit of CFDs. By leveraging your positions, you are borrowing money from your broker and thus increasing the size of your positions.

The advantage of using leverage is that it increases your potential profit if the asset you choose rises in price. For example, if you are using a 10:1 leveraged CFD position, every 1% change in the price of the underlying asset will change the value of your CFD position by 10%. This means that you can multiply your returns if you are successful in your trade. You can even diversify your portfolio without adding more capital to your account since you need less money for every trade.

In this case, bear in mind that leverage not only has the power to boost your profits - it also can boost your losses. Hence, proceed with caution and learn what the risks are beforehand.

Copy Trading

Copy trading involves using another trader's research, market analysis, and placing orders that match theirs. In other words, you can trade actively without having to research, analyze, and trade yourself.

This effectively allows you to engage in active CFD trading UAE without having any prior trading experience. Through it, investors can gain access to global markets in a completely passive manner.

There are no restrictions on the types of assets you can use for copy trading. This is because it is essentially copying another trader, so you aren't limiting what you can do. To do so, you must use the available assets on the copy trading platforms of your choice. However, when it comes to the most user-friendly, accurate, and safe method to do this, eToro has proven to be the most appropriate option.

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On eToro's Copy Trading feature, you will have access to thousands of verified CFD traders worldwide through the regulated CFD trading platform.

Trading Orders

When you are looking to invest in CFDs, you will generally have the option of choosing between different order types through your online trading platform. We can find the following among them:

  • Buy/sell orders
  • Stop-limit orders
  • Stop orders
  • Market orders
  • Limit orders

You can also place stop losses and take profits. A stop loss is a price at which your broker will sell your CFD position if the current market price falls below the stop-loss price.

There is no action taken immediately when a stop loss is set. However, it should be noted that in the case of a considerable drop in the value of your position, your broker will automatically sell it on your behalf. This will limit your losses.

The benefit of stop-loss orders is that you can keep a portion of your profit using them. Set your stop-loss higher than what you paid for the CFD, so you don't lose anything.

On the other hand, multiple buy and sell orders would be beneficial if your CFD broker doesn't charge commissions on your trades. You can mitigate risk by buying and selling multiple times rather than executing a trade in one go.

As long as the provider in question is compatible with the third-party platforms, MT4/5 and cTrader are alternative options if you cannot find the order types that meet your needs on your chosen online CFD trading Dubai platform.

Education, Research And Analysis

Cfd trading meaning

When starting out trading CFDs, you should partner with a broker that offers educational resources to help you learn the ropes. Consequently, the best CFD trading platforms offer an extensive range of educational resources, which you can use to maximize your knowledge. There are also many options for beginners interested in CFD trading meaning, from how-to guides to video lessons and live webinars.

On the other hand, if you want to be successful in your CFD stock trading endeavors, you will need to learn how technical indicators work to perform an accurate market analysis. Therefore, technical analysis is valuable for analyzing stocks, forex, and other assets.

This analysis looks at an asset's past price behavior and predicts where it will be in the next few years. The most important thing to remember is that while you should never rely exclusively on one indicator, combining several technical indicators and price charts with building a trading strategy can provide you with important information to develop a winning CFD trading strategy.

This will ensure that you can interpret pricing trend and read it accurately. Typically, the best CFD brokers provide dozens of technical indicators within their trading platforms and MT4 compatibility. However, it is worth checking nevertheless.

User Experience

CFD trading platforms can be difficult to navigate. Because of this, the end-to-end user experience provided by the platform is a crucial metric to consider. When you navigate a provider's website for the first time, you will get a sense of whether or not the platform is suitable for your needs.

The most effective way to find out if a CFD trading platform is user-friendly is to test it out yourself to understand whether or not it is intuitive. Traders can test out trading platforms with a demo account to better understand about how they work. Also, they can be used to test new trading strategies and fix bugs in the trading automation possibilities. 

All this is being provided to you so you can test the platform before committing yourself to use it. Additionally, there is also another key consideration to consider when picking a CFD platform, which is the ease at which you can deposit and withdraw money from the platform.

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Payment Methods

It's a smart idea you check the CFD broker's website to determine which payment methods they accept before you place an order. Make sure you do this. Since you will be putting in and withdrawing real money, you must be comfortable with it.

There are many different payment methods to choose from. However, the specific ones may vary from provider to provider. Some of the most popular ones include debit cards, credit cards, bank account transfers, PayPal, Skrill, and Neteller.

You should check whether any fees are associated with transactions once you have determined which form of payment you wish to use. It is also imperative to investigate how long your chosen CFD broker processes withdrawals and if there is an associated minimum cashout threshold.

Your money is at risk

How To Start CFD Trading In UAE

Let's go through the steps to fully equip you with the information needed to get started if you are a beginner in CFD trading. All the phases involved in making a deposit, placing your first order, and opening an account are included.

Are you interested in starting to trade CFDs in just a couple of minutes? Then, let us explain how you can start trading with eToro as soon as possible.

Step 1: Open A Trading Account

Whenever you open a new account, as with any regulated CFD broker, you must provide certain information about yourself.

To register an account with eToro, you must go to their home page and click the 'Join Now button. You will be asked to create a username and password to access your account. Then complete a few details such as your name, date of birth, email address, and phone number.'

What is cfd trading

Step 2: Provide Identity Verification

It is also necessary to verify your identity to comply with eToro's safety regulations. The first thing you must upload is a copy of your driver's license or passport and a copy of a recent utility bill or bank statement.

They must get verified from eToro within a few minutes since they use top-notch technology to verify documents.

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Step 3: Deposit Funds

Once you have created your account, you will need to deposit funds. The minimum deposit amount for eToro is $10, which you can make using several different methods. These include debit cards, credit cards, and e-wallets, to name a few.

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Step 4: Chose A CFD Trading Market

With eToro, it is easy to identify the CFD markets you are interested in. In addition, you can find any financial instrument you are interested in using a search engine by simply typing its name in the search box.

Clicking the 'Trade Markets' button on the left-hand side of the dashboard also allows you to view all the assets available on eToro. Depending on the asset class, you may be able to further segment it through stocks and commodities, for example.

 Cfd trading meaning

Step 5: Place A CFD Trade

As soon as you've found an asset, press "Trade" and a new order form will appear.

The next step is to enter the amount of money you would like to trade. Also, you can set a stop loss or take the profit level for your trade, which you can use to manage the risk. Finally, if you want to use leverage as part of your trading strategy, you can do so by defining it here.

Click "Trade" to begin your CFD position once you have completed your order.

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Best CFD Trading Platforms UAE - Conclusion

Buying shares, foreign currencies, cryptocurrencies, and various other financial instruments through CFD trading has become more popular than ever. When you trade CFDs, you do not have to own the underlying asset, and you can use leverage to increase your position size.

Choosing the right CFD broker for our individual needs can make all the difference in our trading. However, besides the regulatory standing and reputation of the broker, you also need to ensure that you cover other metrics like the assets that can be traded, fees, commissions, spreads, and payments at the broker in your research.

Click the link below and get started with CFD trading in less than 5 minutes!

What is cfd trading

67% 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.

FAQs

What is CFD trading?

CFD trading is a form of derivatives trading. In other words, you trade a contract instead of directly trading an asset, which means that the asset's value will determine the contract price's value. So, for example, instead of acquiring and disposing of assets outright, you opt to do so by acquiring and disposing of a contract based on the underlying asset's price.

How to start CFD trading in UAE?

CFD trading is a form of derivatives trading. In other words, you trade a contract instead of directly trading an asset, which means that the asset's value will determine the contract price's value. So, for example, instead of acquiring and disposing of assets outright, you opt to do so by acquiring and disposing of a contract based on the underlying asset's price.

How to place a CFD trade UAE?

For instance, when using our top recommended broker, eToro, you should press Trade as soon as you find an asset, and you will be taken to a new form. Next, you need to enter the amount of money you wish to trade. Then, you can set stop-loss and take-profit levels to manage your trading risk. If you'd like to use leverage in your trading strategy, you can do so here. Once you have completed your order, click the trade button to begin your CFD position.

What is a CFD trading platform?

CFD trading platforms are brokers that can expose you to a broad range of financial markets. In addition, they allow you to receive a higher return on your investment capital. CFD trading is a widespread way to speculate on the market price movements of underlying assets such as stocks, indices, and commodities. This is done in ways that are more efficient and convenient.

About Omar Ortiz
About Omar Ortiz

Radio producer, interested in international media, long distance communications, technology and world cultures.