The best stock trading apps and platforms in the UK
We’ve tested, analysed and scored trading apps to find the 10 best trading platforms in the UK, who they’re best for and the pros and cons.
Read more…CFD stands for “contracts for difference”. It allows traders to speculate on financial instruments without owning the underlying asset, making CFDs a derivative product.
Assets that utilize CFD include shares, commodities, indices and forex. Learn more about the CFD trading market from our research below.
According to Finder research, 7% of investors trade CFDs, making it the least popular investment type. This equals almost 3% of the population or around 1.5 million people. On the other hand, stocks are exchanged by 43% of all investors and are the most popular investment type.
Investment type | Percentage |
---|---|
Stocks/shares | 43.21% |
Funds | 23.51% |
Cryptocurrencies (e.g. Bitcoin) | 22.96% |
Bonds | 21.20% |
Forex | 13.59% |
ETFs | 11.55% |
Ethical investments | 11.55% |
Ready-made portfolios (such as Moneybox, Nutmeg etc.) | 11.55% |
Options/futures | 9.65% |
Contracts for difference (CFDs) | 7.47% |
Not sure | 6.66% |
Other (please state) | 1.09% |
CFD trading is recommended for expert investors as it is a complex instrument with high risk exposure. However, our research found that just 6% of investors consider themselves advanced. On the other hand, almost 3 in 4 (73%) investors consider themselves to be beginner or intermediate investors.
Most CFD traders do not have a high success rate. In fact, 82% of CFD traders lose money and the average loss amounts to £2,200 when trading these products. To address this issue, the FCA increased measures to protect consumers in 2019 and it expected to save retail consumers between £267 million and £451 million per year. Despite campaigns aimed at protecting investors, 45% of self-directed investors do not see “losing money” as a potential risk of investing in high-risk, high-return types of investment like CFDs.
Between 2012 and 2022, search popularity on Google for “CFD trading” increased by 137%, showcasing long-term growth in CFD trading interest over the last 10 years. Search interest peaked in 2020 and has been falling since then. In 2022, search popularity for CFD trading had shrank by 58% compared to 2020.
Year | Average search interest on Google |
---|---|
2004 | 5.09 |
2005 | 7.33 |
2006 | 5.67 |
2007 | 10.67 |
2008 | 7.08 |
2009 | 10.08 |
2010 | 8.58 |
2011 | 9.92 |
2012 | 8.50 |
2013 | 8.08 |
2014 | 11.25 |
2015 | 11.25 |
2016 | 11.25 |
2017 | 18.25 |
2018 | 18.17 |
2019 | 18.00 |
2020 | 48.33 |
2021 | 32.67 |
2022 | 20.17 |
CFD trading is legal in the UK. However, many countries around the world have banned CFD trading due to the high level of risk involved. As of 2023, CFD trading is illegal in the US, Brazil, Belgium and Hong Kong. Many countries only allow regulated firms to trade CFDs.
We’ve tested, analysed and scored trading apps to find the 10 best trading platforms in the UK, who they’re best for and the pros and cons.
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