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. Not all trading apps will allow investors to take part in CFD trading as it is considered risky. Learn more about the CFD trading market from our research below.
According to Finder research, less than 1% of Brits trade CFDs, making it the least popular investment type. On the other hand, 26% of Brits have invested in stocks and shares.
| Investment type | I have current investments |
|---|---|
| Stocks and shares (inc. ISAs) | 26% |
| Bonds | 15% |
| Index funds | 14% |
| Cryptocurrencies/ digital tokens | 12% |
| Ready-made portfolios | 10% |
| Options/Futures | 11% |
| Forex (foreign exchange) | 10% |
| ETFs (exchange-traded funds) | 10% |
| ESG | 8% |
| CFDs (contracts for difference) | 8% |
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, Between 51% and 77% of retail CFD investors 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.
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 2025, CFD trading is illegal in the US, Brazil, Belgium and Hong Kong. Many countries only allow regulated firms to trade CFDs.
Sophie Barber
Communications Manager
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A quarter of UK adults (26%) have a stocks and shares ISA as of 2026, while almost half of Brits (46%) have a cash ISA, according to Finder.
