Best CFD Brokers 2025

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Pros and Cons

Pros
  • Wide Range of Assets Many CFD brokers offer a broad range of assets, including forex, commodities, stocks, and indices, allowing for diverse investment strategies.
  • Leverage Availability CFDs often provide access to significant leverage, enabling traders to maximize potential returns with a relatively small capital outlay.
  • Access to Global Markets CFD trading firms typically provide access to numerous global markets from a single account, facilitating diversification.
  • Advanced Trading Platforms Most brokers offer advanced trading platforms with robust analytical tools, charting features, and real-time data.
  • Demo Accounts Many brokers provide demo accounts, allowing traders to practice strategies and familiarize themselves with the platform before investing real money.
  • No Expiration Date Unlike options or futures, CFDs do not have an expiration date, allowing traders the flexibility to hold positions as long as they want.
Cons
  • High Risk of Loss: The use of leverage in CFDs can result in significant losses, potentially exceeding the initial investment.
  • Regulatory Concerns: Some brokers may operate in jurisdictions with limited regulation, posing risks related to transparency and protection.
  • Overnight Fees: CFDs often come with overnight fees for positions held open, which can accumulate over time and impact profitability.

Introduction to CFDs: An overview of contracts for difference

Contracts for Difference (CFDs) are powerful financial instruments that allow traders to speculate on the price movements of various assets, such as stocks, commodities, indices, forex, and cryptocurrencies, without actually owning the underlying asset.

A CFD is a contract between a trader and a broker to exchange the difference in the price of an asset from the time the contract is opened to when it is closed.

They have become popular due to their flexibility, potential for profit in both rising and falling markets, and accessibility to a wide range of markets.

Its main advantage is that they allow investors to leverage their positions, which means that they can gain significant exposure to a financial market with a relatively small amount of capital.

However, while leverage can amplify potential profits, it also magnifies losses, making CFD trading inherently risky.

This overview will explore the mechanics of CFDs, their benefits and risks, and the key considerations when choosing a broker.

CFD trading offers a unique way to speculate on the price movements of financial instruments without owning the underlying assets. This flexibility, combined with leverage, provides both opportunities and challenges for traders.

Understanding how CFDs work

CFD trading involves several fundamental elements that users need to understand using these instruments effectively:

Opening a position

A CFD position can be opened in two ways: buying (going long) if the trader believes the price of the underlying asset will rise, or selling (going short) if they expect the price to fall.

To open a position, the trader is required to deposit a fraction of the full value of the trade, known as the margin.

The margin is typically a small percentage of the total trade value, allowing anybody to gain more exposure to the market with less capital.

Leverage and margin

Leverage is a key feature that enables people to control a larger position than their initial investment.

For example, a leverage ratio of 1:100 means that for every $1,000 deposited as margin, the trader can control a position worth $100,000.

While leverage can magnify profits, it also amplifies losses, making it a double-edged sword.

Therefore, investors must use leverage carefully, understanding both its benefits and risks.

Cons
High leverage can lead to substantial losses, especially if the market moves against the trader’s position. Therefore, it’s crucial to use leverage responsibly and employ effective risk management strategies.

 

best-brokers -cfds

 

Calculating profit and loss

The profit or loss from a CFD trade is determined by the difference between the entry price and the exit price of the underlying asset, multiplied by the number of CFDs held.

If a trader goes long and the price of the asset rises, they will make a profit. Conversely, if the price falls, they will incur a loss.

The opposite is true for short positions. It is also important to account for any fees or commissions charged by the broker, such as spreads or overnight financing fees.

Costs and fees in CFD trading

Trading CFDs involves several costs, including the spread, which is the difference between the buy and sell price of the asset, and commissions that may be charged on certain trades or accounts.

Additionally, users may incur overnight financing fees (also known as swap rates) if they hold positions overnight.

Understanding these costs is crucial, as they can significantly impact overall profitability, especially for frequent traders.

Advantages of trading CFDs: Why choose them?

CFDs offer several benefits that make them an attractive choice:

  • Access to a wide range of markets: CFDs allow users to access a diverse range of markets, including forex, stocks, commodities, indices, and cryptocurrencies, from a single account. This flexibility enables investors to diversify their portfolios and take advantage of various market opportunities.
  • Leverage and margin trading: One of its primary advantages is the ability to trade on margin, which means traders can control larger positions with a relatively small capital investment. Leverage can potentially increase profits, but it also comes with higher risk.
  • Profit from both rising and falling markets: Unlike traditional investing, where profits are only made in rising markets, CFD trading allows anybody to profit from both upward (going long) and downward (going short) price movements. This flexibility is particularly useful in volatile or uncertain market conditions.
  • No ownership of the underlying asset: With CFDs, individuals do not own the underlying asset, which can result in lower costs and fees. For example, they may avoid stamp duty on shares or storage costs for commodities.
  • Advanced trading platforms and tools: Most trading firms offer advanced trading platforms, such as MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader, equipped with powerful tools for technical and fundamental analysis, automated trading capabilities, and real-time data feeds.
  • Flexible trading hours: Many CFD markets operate 24 hours a day, five days a week, or even 24/7, allowing individuals to participate outside of regular market hours. This flexibility is particularly appealing to those who cannot trade during standard market hours.

Risks associated with CFD trading: What traders need to know

While CFDs offer numerous advantages, they also come with significant risks that traders must consider:

  • Leverage risk: Leverage is a double-edged sword that can amplify both profits and losses. While it allows market participants to control larger positions with a smaller initial investment, it also increases the potential for significant losses if the market moves against their position.
  • Market volatility: CFDs are highly sensitive to market volatility, and prices can change rapidly, especially in times of economic or geopolitical uncertainty. Sudden price movements can result in substantial losses, particularly for those who are not prepared for such volatility.
  • Counterparty risk: When trading CFDs, traders enter into a contract with their broker, and the broker acts as the counterparty to the trade. If the firm is not regulated or has financial difficulties, there is a risk that they may not be able to honor their obligations.
  • Overnight fees: If a trader holds a position overnight, they may incur overnight financing fees, which can accumulate over time and impact profitability. These fees are based on the value of the position and the duration for which it is held.
  • Regulatory risk: Different countries have varying regulations governing CFD trading, and some markets may impose restrictions or bans on certain products. Investors should be aware of the regulatory environment in their country and the jurisdictions in which their company operates.
Understanding the risks associated with CFD trading is crucial for managing potential losses and developing effective risk management strategies.

Key factors to consider when choosing a broker

Selecting the right broker is a critical decision that can significantly impact a trader’s success.

Here are some key factors to consider:

Regulation and security

A trustworthy company should be regulated by recognized authorities, such as the Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC).

Regulation ensures that the firm adheres to strict standards regarding client fund protection, transparency, and fair trading practices.

A regulated company is more likely to provide a secure trading environment and protect clients’ interests.

RegulatorRegionKey Requirements
FCAUnited KingdomSegregated client funds, capital adequacy, transparent pricing, regular audits
ASICAustraliaClient fund protection, leverage restrictions, reporting requirements
CySECEuropean Union (Cyprus)MiFID II compliance, client fund segregation, transparency, capital adequacy
FSASeychellesBasic client protection, less stringent oversight compared to FCA or ASIC

Range of tradable assets

The diversity of assets offered is an essential consideration.

A broad range of CFDs on various assets, such as forex, stocks, commodities, indices, and cryptocurrencies, allows for greater flexibility and portfolio diversification.

Traders should choose a broker that offers the markets and instruments they are interested in trading.

Trading platforms and tools

The trading platform is the trader’s primary tool, and it should be intuitive, user-friendly, and equipped with advanced tools for technical and fundamental analysis.

Many brokers provide access to popular platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader, along with their proprietary platforms.

These platforms offer a wide range of features, including real-time data, customizable charts, and automated trading capabilities.

Fees, spreads, and commissions

Understanding the cost structure of trading is crucial.

Users should consider spreads (the difference between the buy and sell prices), commissions, and any additional fees, such as overnight financing fees.

Transparent and competitive pricing is a hallmark of a reputable firm.

Leverage and margin requirements

Different brokers offer varying levels of leverage and margin requirements.

Individuals should choose a company that offers leverage in line with their risk tolerance and trading strategy.

It is also important to understand how margin calls work and the implications of holding leveraged positions.

Customer support and service quality

Quality support is essential for resolving issues quickly and ensuring a smooth trading experience.

Look for those that offer multiple support channels, such as live chat, email, and phone support, and have a reputation for responsiveness and helpfulness.

Additionally, companies should provide prompt and accurate responses to queries and offer support in multiple languages if necessary.

Educational resources and research tools

Brokers that provide comprehensive educational resources, such as webinars, tutorials, market analysis, and trading guides, help clients develop their skills and make informed decisions.

Access to high-quality research and analysis tools can also enhance a trader’s ability to identify opportunities and manage risk effectively.

Comparing the top CFD brokers in 2025

With so many firms available, it can be challenging to choose the right one.

Here is a detailed comparison of some top brokers in 2025 based on their features, trading conditions, and overall reputation.

XM

XM is a highly regarded broker regulated by CySEC, ASIC, and the IFSC.

The firm offers over 1,000 trading instruments across various asset classes, including forex, stocks, commodities, indices, and cryptocurrencies.

XM provides both the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, which are known for their reliability, user-friendly interfaces, and comprehensive suite of trading tools.

XM is particularly popular for its competitive spreads, with no re-quotes and low minimum deposit requirements.

The company also offers negative balance protection, ensuring that customers do not lose more than their deposited amount.

Additionally, XM has a range of account types, including Standard, Micro, and Zero accounts, catering to people with different levels of experience and risk tolerance.

Key features of XMRegulationCustomer support and education
XM offers competitive spreads, access to multiple trading platforms (MT4 and MT5), and a wide range of assets. It also provides negative balance protection and multiple account types to suit different trading needs.
Regulated by CySEC, ASIC, and IFSC, ensuring compliance with international standards and offering a secure trading environment for clients.
XM provides 24/5 customer support through multiple channels, including live chat, email, and phone. The broker also offers a comprehensive range of educational resources, such as webinars, video tutorials, and market analysis.

eToro

eToro is a leading social trading platform that allows users to copy the trades of experienced investors.

This unique feature makes eToro particularly attractive to beginners who wish to learn from professionals.

Regulated by the FCA, CySEC, and ASIC, eToro provides a secure trading environment and access to a wide range of CFD instruments, including stocks, forex, commodities, indices, and cryptocurrencies.

eToro offers a proprietary trading platform that is highly intuitive and user-friendly, catering to both novice and intermediate users.

While the platform charges no commissions on stock CFDs, it does have spreads and overnight fees.

The social trading aspect of eToro is one of its main selling points, allowing traders to engage with a community of investors, share insights, and learn from each other’s strategies.

IC Markets

IC Markets is well-known for its low spreads, fast execution, and suitability for high-frequency and algorithmic trading.

The company is regulated by ASIC, CySEC, and the FSA, providing a secure trading environment with a focus on transparency and fairness.

IC Markets offers a wide range of CFDs on forex, commodities, indices, stocks, and cryptocurrencies.

The firm provides access to multiple trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader.

These platforms are highly regarded for their advanced charting tools, automated trading capabilities, and real-time data feeds.

IC Markets’ raw spread accounts offer spreads starting from 0.0 pips, with a commission per trade, making it an attractive choice for active traders.

Exploring different CFD trading strategies

Successful CFD trading requires implementing effective strategies tailored to the trader’s goals, risk appetite, and market conditions.

Here are some popular trading strategies:

Day trading

Day trading involves opening and closing positions within the same trading day to avoid overnight exposure.

Day traders aim to profit from short-term market fluctuations, typically using technical analysis, chart patterns, and momentum indicators to make decisions.

Due to the fast-paced nature of day trading, it requires a disciplined approach, quick decision-making, and an in-depth understanding of the market.

Swing trading

Swing trading involves holding positions for several days or weeks to capitalize on medium-term market movements.

Swing traders rely on both technical and fundamental analysis to identify potential entry and exit points.

This strategy is suitable for those who prefer a more relaxed approach than day trading, allowing them to avoid the stress of minute-to-minute monitoring.

Scalping

Scalping is a high-frequency trading strategy that involves making numerous small trades to capture minor price movements.

Scalpers typically hold positions for seconds or minutes and require a broker with low spreads, fast execution, and minimal slippage.

Scalping can be highly profitable, but it also demands a significant time commitment, precision, and a stable internet connection.

Hedging

Hedging involves opening multiple positions to offset potential losses.

For example, a trader may take a long position on an asset while simultaneously opening a short position on a related asset to minimize risk.

This strategy is often used during periods of high volatility or uncertain market conditions.

Traders should choose a strategy that aligns with their risk tolerance, market knowledge, and trading goals. It is also essential to continuously monitor and adjust strategies based on changing market conditions.

The role of technology in CFD trading

Technology plays a pivotal role in the world of CFD trading, enabling users to access markets and execute trades efficiently.

The integration of advanced trading platforms, algorithmic trading, and mobile trading apps has significantly enhanced the trading experience for both novice and professionals.

Trading platforms

Popular platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader provide powerful tools for technical analysis, automated trading, and risk management.

These platforms offer real-time data, customizable charts, and various order types, enabling traders to implement complex strategies effectively.

Algorithmic trading

Many brokerages support algorithmic trading, allowing users to use automated trading systems based on pre-defined criteria and rules.

Algorithmic trading can help eliminate emotions from trading decisions and improve execution speed, which is crucial for high-frequency trading strategies like scalping.

Mobile trading apps

Most brokers offer proprietary mobile apps that enable market participants to monitor and manage their positions on the go.

Mobile trading has become increasingly popular, providing convenience and flexibility for those who want to stay connected to the markets at all times.

Comparison of top CFD brokers in 2025

The table below can be scrolled horizontally. Please swipe left or right with your finger to view all the details.
BrokerRegulationSpread TypeCommissionDeposit MethodsTrading InstrumentsMobile Trading AppCustomer Support
XMCySEC, ASIC, IFSCVariableNo commission on most accountsBank Transfer, Credit/Debit Card, E-walletsForex, Stocks, Commodities, Indices, CryptosYes (iOS and Android)24/5 Live Chat, Email, Phone
eToroFCA, CySEC, ASICVariableNo commission on stock CFDsBank Transfer, Credit/Debit Card, E-walletsForex, Stocks, Commodities, Indices, CryptosYes (iOS and Android)24/5 Live Chat, Email, Phone
IC MarketsASIC, CySEC, FSARaw Spreads$3.5 per lotBank Transfer, Credit/Debit Card, E-walletsForex, Commodities, Indices, Stocks, CryptosYes (iOS and Android)24/7 Live Chat, Email, Phone
FBSCySEC, IFSCFixed and VariableNo commission on standard accountsBank Transfer, Credit/Debit Card, E-walletsForex, Metals, Energies, Stocks, CryptosYes (iOS and Android)24/7 Live Chat, Email
ExnessFCA, CySEC, FSAVariableNo commission on standard accountsBank Transfer, Credit/Debit Card, E-walletsForex, Metals, Energies, Indices, CryptosYes (iOS and Android)24/5 Live Chat, Email, Phone
PepperstoneASIC, FCA, DFSARaw Spreads$3.5 per lotBank Transfer, Credit/Debit Card, E-walletsForex, Commodities, Indices, Cryptos, ETFsYes (iOS and Android)24/5 Live Chat, Email, Phone
TickmillFCA, CySEC, FSAVariable$2 per lotBank Transfer, Credit/Debit Card, E-walletsForex, Stocks, Indices, Metals, CryptosYes (iOS and Android)24/5 Live Chat, Email, Phone
RoboForexIFSCVariableNo commission on standard accountsBank Transfer, Credit/Debit Card, E-walletsForex, Commodities, Stocks, Indices, CryptosYes (iOS and Android)24/7 Live Chat, Email, Phone
OctaFXCySECFixed and VariableNo commission on standard accountsBank Transfer, Credit/Debit Card, E-walletsForex, Metals, Indices, CryptosYes (iOS and Android)24/7 Live Chat, Email
IQ OptionCySECVariableNo commissionBank Transfer, Credit/Debit Card, E-walletsForex, Stocks, Options, Cryptos, CommoditiesYes (iOS and Android)24/7 Live Chat, Email
XTBFCA, KNF, CySECVariableNo commission on stock CFDsBank Transfer, Credit/Debit Card, E-walletsForex, Stocks, Commodities, Indices, CryptosYes (iOS and Android)24/5 Live Chat, Email, Phone
FXTMFCA, CySEC, FSCAVariableNo commission on standard accountsBank Transfer, Credit/Debit Card, E-walletsForex, Metals, Indices, Commodities, CryptosYes (iOS and Android)24/5 Live Chat, Email, Phone
DerivFSC, VFSCVariableNo commissionBank Transfer, Credit/Debit Card, E-walletsForex, Commodities, Indices, CryptosYes (iOS and Android)24/7 Live Chat, Email
EightCapASIC, VFSCRaw Spreads$3.5 per lotBank Transfer, Credit/Debit Card, E-walletsForex, Stocks, Commodities, Indices, CryptosYes (iOS and Android)24/5 Live Chat, Email, Phone
NordFXVFSC, CySECVariableNo commission on standard accountsBank Transfer, Credit/Debit Card, E-walletsForex, Stocks, Cryptos, CommoditiesYes (iOS and Android)24/5 Live Chat, Email
AdmiralsFCA, CySEC, ASICVariableNo commission on stock CFDsBank Transfer, Credit/Debit Card, E-walletsForex, Stocks, Commodities, Indices, CryptosYes (iOS and Android)24/5 Live Chat, Email, Phone
VantageASIC, FCA, CIMARaw Spreads$3 per lotBank Transfer, Credit/Debit Card, E-walletsForex, Stocks, Commodities, Indices, CryptosYes (iOS and Android)24/7 Live Chat, Email, Phone
LiteFinanceCySEC, VFSCVariableNo commission on standard accountsBank Transfer, Credit/Debit Card, E-walletsForex, Metals, Indices, Stocks, CryptosYes (iOS and Android)24/5 Live Chat, Email, Phone
AxiFCA, ASIC, DFSARaw Spreads$3.5 per lotBank Transfer, Credit/Debit Card, E-walletsForex, Commodities, Indices, Cryptos, ETFsYes (iOS and Android)24/5 Live Chat, Email, Phone
HF MarketsFCA, CySEC, FSCAVariableNo commission on standard accountsBank Transfer, Credit/Debit Card, E-walletsForex, Metals, Energies, Indices, CryptosYes (iOS and Android)24/5 Live Chat, Email, Phone

Conclusion

Choosing the best CFD broker is a critical step for any trader looking to succeed in the competitive world of financial markets.

With a wide range of options available, it is essential to consider factors such as regulatory status, range of assets, trading platforms, fees, and customer support.

Companies like XM, eToro, and IC Markets offer diverse offerings, robust platforms, and competitive trading conditions, making them popular choices among CFD traders.

Ultimately, the right broker should align with the trader’s objectives, risk tolerance, and specific needs.

By thoroughly researching and comparing trading firms, traders can find a partner that provides a secure and supportive environment, enabling them to achieve their trading goals in the dynamic world of CFD trading.

Frequently Asked Questions

What is a CFD?

A Contract for Difference (CFD) is a financial derivative that allows anybody to speculate on the price movements of various assets without owning the underlying asset.

How do I choose the best broker for CFDs?

Consider factors like regulatory status, range of assets, fees, trading platform features, and customer support when selecting a broker.

Is trading CFDs risky?

Yes, trading CFDs involves significant risk, particularly due to the use of leverage, which can magnify both gains and losses.

Can I trade CFDs on any asset?

Most brokers offer CFDs on a wide range of assets, including stocks, commodities, forex, and indices, but availability varies.

Are CFD profits taxable?

Tax regulations vary by country; it's essential to consult local tax authorities to understand any tax obligations related to CFD trading.

What are the costs involved in trading CFDs?

Typical costs include spreads, overnight fees, and possibly commissions, depending on the broker.

Do all brokers offer leverage?

Most firms provide leverage on CFDs, but the amount of leverage offered can vary significantly by company and region.

User Reviews

“I’ve been trading CFDs for over a year now, and I found the experience to be quite engaging. My broker offers an excellent range of assets and tools that help me analyze the markets effectively. The customer support is responsive, but the spreads could be a bit tighter. The platform is intuitive, and I’ve never had any issues with execution speed.”
Samuel K.
“I chose my CFD provider because of the variety of global assets available. The leverage options are great for someone like me who doesn’t have a massive amount of capital. However, the overnight fees are a bit annoying. Still, the user-friendly platform and educational resources make it a good fit for my trading style.”
Laura P.
“Trading has been a mixed bag for me. On the one hand, my broker’s platform is advanced and offers plenty of analytical tools. On the other hand, I’ve had a few issues with customer support, especially during high-traffic times. The leverage options are great, but they do come with a high risk, so be careful!”
David G.
“I started CFD trading to diversify my portfolio, and it’s been a decent experience so far. My broker provides great educational materials and a demo account that helped me get started. However, I wish the spreads were lower and the mobile app more reliable.”
Emily S.
“CFD trading offers good opportunities, but you need to be cautious with leverage. My broker has been reliable overall, with a fast execution and a decent range of markets. The downside is the lack of 24/7 support and occasional server downtime.”
Mark R.

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Last updated: September 7, 2025

• No Commission on stocks and ETF
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INVEST WITH XTB: 0% COMMISSIONS
INVEST WITH XTB: 0% COMMISSIONS
• No Commission on stocks and ETF
• Largest Stock Exchange-Listed Broker.
• Highly Regulated
20 years in the market.
• More than 1 million customers
and 5,000,000 APP downloads

• Free Deposits and Withdrawals.
• No Minimum Deposit required.