Finder makes money from featured partners, but editorial opinions are our own.
CFD trading platforms in Australia for 2024 (ASIC regulated)
Compare fees and trading platforms to find the best CFD broker for you.
{"isComparisonEngineEnabled":false}
Disclaimer: General information only. All forms of investments (and in particular, trading CFDs, commodities and forex) carry significant risk, including the risk of losing more than the invested amounts, market volatility and liquidity risks. Past performance is no guarantee of future results. Such activities are not suitable for most investors.
A contract for difference (CFD) is a tradable instrument that tracks the price of an underlying asset. They are traded across multiple asset classes including foreign exchange, commodities, shares and cryptocurrencies.
Trading CFDs and forex on leverage is high-risk and you could lose more than your initial investment. It may not be suitable for every investor. Refer to the provider’s PDS and consider the risks before trading.
Because CFDs are complex investment products that are typically paired with leverage, they're high-risk and best suited to experienced traders.
Instead of owning the asset itself, investors hold a contract that is attached to a specific asset. The contract stipulates that the buyer of the contract must pay the contract seller the difference between the current price of the asset and the price at the time the contract was sold.
One of the benefits of CFDs is that they can go both "long" or "short", meaning a trader can try to make a profit regardless of the direction of the market. For this reason, CFD trading often becomes more popular during times of market volatility, as traders seek to profit by "shorting" the market when it falls.
Despite their popularity, as many as 8 in 10 investors lose money when trading CFDs.
This guide offers a complete overview of CFDs, including how they are traded, some trading strategies and what risks are involved.
Vantage CFD Trading Offer
Vantage CFD Trading Offer
Enjoy some of the lowest CFD trading fees in Australia when you trade stocks, forex, commodities and cryptocurrencies.
Trade stock and index CFDs, metals, commodities, energy
Disclaimer: Trading CFDs and forex on leverage is high-risk and losses could exceed your deposits.
5 reasons to trade CFDs
There are a few main reasons you might want to trade CFDs:
CFDs allow you to speculate on thousands of financial products and global markets that you may otherwise be unable to access.
You can go long or short, hence you can profit (and also lose money) in both rising and falling markets.
You can hedge your portfolio. Hedging acts as insurance for the rest of your portfolio through CFDs.
You can usually access free demo accounts, as well as charts and trading tools through your broker.
CFD contracts don't necessarily have a fixed expiry date, meaning you can close out your position when you decide.
There are also many reason not to trade CFDs. Before signing up, check out some of the risks of CFD trading further down.
What are the risks?
CFDs are extremely risky, complex products and are ideally only suited to very experienced financial traders. Here are some of the potential risks that you should know about before deciding if CFD trading is right for you:
CFDs are complex. CFDs are very intricate and confusing products. Even if you have a general understanding of what a CFD is, this doesn't mean you're ready to start trading CFDs.
You can lose more than your initial capital. If you gamble on the pokies, the most money you can lose is the amount you put into the pokie machine. This is not the case with CFDs. If you lose a CFD trade, you can lose much more money than you started with, meaning you actually owe the CFD provider money, sometimes hundreds of thousands of dollars.
You don't own the underlying asset. When trading CFDs, all you own is the contract between you and the CFD provider. Therefore, you can't benefit from the capital growth of the underlying asset over the long term.
CFDs depend on how the market performs. Even though you don't own the underlying asset, CFDs are still affected by market conditions. This can increase risks even more in a volatile market.
CFD regulation
In 2021, ASIC extended its product intervention order to impose limits on CFD trading for a further 5 years. This included measures to reduce leverage ratio limits and give negative balance protection, amongst others, and saw a 91% reduction in aggregate net losses by retail client accounts, according to ASIC.1 The order will next be reviewed in 2027.
How to choose the best CFD trading platform
The CFD broker you choose will depend on your trading style and what instruments or assets you prefer to use.
If you're looking for the best online platform or app for you, consider the following:
Available markets. Does the broker offer forex, gold, silver, cryptocurrency, stock market indices, global stock CFDs and ASX 200 CFDs?
Direct share CFDs. Not all brokers offer CFD trading on shares. Those that do can charge an additional subscription fee to access them.
Currencies. If you're looking to trade forex, check whether your preferred pairings are being offered.
Commission fees. There's often a brokerage fee charged when trading stock and stock index CFDs, so check to make sure it's not too high. These brokers instead run off a spread model.
ASX live data. Does it charge a fee to access live stock market data from the ASX and other stock market indices?
Minimum opening balance. Some brokers require a high minimum opening balance before you start trading – consider trialling the demo version first if it has one.
Platforms and software. Which trading platforms does it offer and can you add on software or analytics tools such as PsyQuation?
Other types of trading. Do you also want to invest directly in shares, ETFs, forex or managed funds?
Look for a broker with both a mobile and desktop platform... A mobile app means you can place trades on the go and not miss out on any opportunities. Make sure the app is feature rich and easy to use. Many brokers have very simplified and restricted apps that don’t provide a good user experience. Go for a broker with a mobile platform as good as its desktop platform, and make sure they’re integrated!
Some of the most common markets you can access with CFDs are shares, indices, forex, bonds, cryptocurrencies and commodities like oil or gold.
If you want to trade CFDs, you need to fully understand how the CFD itself works as well as the underlying asset.
If you have no experience trading shares, for example, it's not a good idea to buy a shares CFD.
CFDs vs stocks
While CFDs and stocks are both used by traders, they're very different investment products.
When you purchase a stock, you're buying a small part of a business and are a part owner. As a shareholder, you get a number of perks including voting rights of the company and dividend payments.
On the other hand, CFDs are simply contracts tied to the performance of an underlying asset. That asset could be almost anything, from a stock to a currency pair or a commodity like gold. When you purchase a CFD, you never actually own the underlying asset. You've simply entered a contract that will deliver either a profit or loss depending on the asset's price movements.
This means if you purchase a share CFD, you wont get any of the perks that shareholders typically receive - because you are not a shareholder.
Where CFDs gain an advantage over traditional share owners is they can trade on the price movements in either direction. This means they can profit (and lose) from both a rising and falling share price.
If you're trading CFDs over shares you're also facing greater risks. This is because CFDs are normally paired with leverage. This means using borrowed funds to amplify both profits and losses. It also means that you can lose more than your initial investment, unlike when you purchase shares directly.
How do forex and CFDs differ?
Forex trading involves trading one global currency against another in order to make a profit.
CFDs are contracts where you can trade any number of underlying assets, including forex. In Australia, most forex brokers are actually CFD brokers. With CFD forex brokers, you're not trading currencies directly, but trading contracts that speculate on the price movements of a currency pair.
The main difference between trading forex directly and CFDs on forex is how the price of an asset will change. When you're trading CFDs the price is largely determined by the underlying supply and demand of the currency. When you're trading via the forex market, the price will swing based on the fundamentals of the currency.
There's also the difference in the purpose of each market. Forex was originally created to help countries trade with each other. CFDs are not involved in international trade but instead are used by traders to gain a profit or hedge against losses.
CFDs are not recommended for beginners given they are riskier than traditional investment products and are complicated. This is especially the case when leverage is involved.
Instead, CFDs are more suited to experienced traders or those that are considered sophisticated investors.
If you're new to trading and want to learn, many brokers offer free demo accounts and educational resources. These can help you learn how the markets work as well as test your strategies prior to risking your own money.
Are CFDs right for you?
CFDs are more suitable if:
You are an experienced trader.
You have a strong understanding of not only CFDs but many financial products and markets.
You possess a high tolerance to risk and are not at all risk-averse.
You can afford to lose quite a bit of money (it's not guaranteed that you will, but you need to be able to afford it if you do).
You have some level of legal expertise to understand the complexity of CFDs.
You are not interested in owning the underlying assets.
You understand the measures available to minimise your risk and are experienced using these tools, for example, stop-loss orders.
You have conducted plenty of research – trading CFDs is not a decision that should be taken lightly.
Can you make money trading CFDs?
While the majority of retail investors actually lose money, it is certainly possible to make money trading CFDs.
Like anything though, becoming a successful trader can take some time, as you will need to learn the basics, control your emotions and build up your trading skills. As such, you’re better off starting with a demo account. This way you can practice your trading without risking your capital.
Why you can trust Finder's share trading experts
We're free
Our comparison tables are completely free to use. We link you directly to the brokers' secure application page. On a regular basis, we update the fees and conditions of all share trading platforms in our database.
We're experts
We've researched and rated 40+ trading platforms and brokers as part of our Finder Awards. We've published 100+ guides, and our in-house experts regularly appear on Sunrise, 7News, and SBS News.
We're independent
Unlike other comparison sites, we're not owned by a bank, insurer, or broker. That means our opinions are our own, and you can compare nearly every share trading platform and broker in Australia on Finder.
We're here to help
Since 2016, we've helped over 300,000 Australians find the right stockbroking account by comparing fees and account features. We'll never ask for your personal information. We're here to help you make a decision.
When you trade CFDs, you never own the actual underlying asset. Instead, you bet on its price movements. In short, what you actually purchase is a contract. However, when you invest in shares, you buy and sell the shares themselves.
Some of the underlying assets that you can trade CFDs on include Australian and international shares, indices, commodities, foreign exchange and treasuries.
Trading CFDs is not recommended for casual investors. Because of the specialised knowledge required and high level of risk involved, this type of trading is best left to expert investors.
Wrong. Because you are trading with leverage, it's possible to end up losing significantly more than your initial investment amount.
The best way to find a good trading platform is to do plenty of research. As well as right here at Finder, you can find plenty of useful information on blogs, forums and the websites of individual providers. Examine the features and benefits each trading platform offers and open a demo account if possible to try before you buy.
While you can certainly learn useful information at a training seminar run by a reputable financial or training organisation, attending a course is by no means all you need to do to fully prepare you to trade CFDs.
No, CFD trading is risky and far from a steady investment option. If you're looking for safe and secure returns on your money, consider other investment opportunities.
ASX exchange-traded CFDs are CFDs that are listed on the ASX. These are no longer offered by the ASX as of 2 June 2014.
When you buy shares in a company, you are usually entitled to dividends. Although trading CFDs means you never actually purchase shares, you can still take advantage of some of the benefits of ownership. Your trading account will be credited with a certain amount of money that reflects the dividend amount an ordinary shareholder would receive when you buy a CFD. When you sell a CFD, your account will be debited a similar amount that will be paid to the counterparty.
No, there is no real minimum limit when you trade CFDs.
The exact process for buying and selling CFDs will vary depending on the trading platform you choose. Contact your trading platform operator for detailed information and instructions.
Yes there is, but this differs between trading platforms. A commonly quoted minimum limit is $5,000.
If you're residing in Australia, you're required to declare all your global income, which includes earnings from CFD trading, for tax purposes. On the other hand, if you're a non-resident trader, you only need to report the income you've earned within Australia. It's important to get a clear understanding of your tax residency status and its implications before you start trading CFDs.
CFD and share trading glossary
Ask or ask price. This is the price at which a CFD trader can open a sell position or close a buy position.
ASIC. This is the Australian Securities and Investment Commission.
Bid or bid price. This is the price at which a CFD trader can open a buy position or close a sell position.
CFD (contract for difference). This is a contract entered into by 2 parties who agree to exchange money according to the change in value of an underlying asset.
Contract currency. This is the currency in which a particular asset is traded.
Dealing. Dealing is when you open or close a CFD position.
Derivative. This is a financial instrument whose price is derived from an underlying asset.
Going long. This is when you open a buy position.
Going short. This is when you open a sell position.
Hedging. This is taking an opposite position to reduce the risk associated with an initial position.
Initial margin. This is the minimum initial amount of money a CFD trader must outlay to open a position.
Leverage. Leverage allows you to trade a larger-value asset than the worth of your initial investment. This is sometimes also referred to as gearing.
Open interest. This is the interest rate that applies to all CFD positions that are held open overnight.
Stop-loss. A stop-loss order can be placed when a CFD position is opened and is triggered when the price reaches a specified level. These orders are used to close out positions that have resulted in a loss and aim to prevent further loss.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs. See full bio
Kylie's expertise
Kylie has written 148 Finder guides across topics including:
Cameron Micallef was a utilities writer for Finder. He previously worked on titles including Smart Property Investment, nestegg and Investor Daily, reporting across superannuation, property and investments. Cameron has a Bachelor of Communication and Media Studies/ Commerce from the University of Wollongong. Outside of work Cameron is passionate about all things sports and travel. See full bio
Cameron's expertise
Cameron has written 177 Finder guides across topics including:
CMC Markets provides online trading services to Australian customers who can enjoy low commissions and the features of an award-winning trading platform.
Hi Mahen, all of the CFD brokers displayed on this page are regulated in Australia. You can sign up by clicking on the “Go to site” button on the table.
Feedback
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How can I get an Australian CFD broker?
Hi Mahen, all of the CFD brokers displayed on this page are regulated in Australia. You can sign up by clicking on the “Go to site” button on the table.