A share CFD lets you trade a stock’s price with leverage and without owning it, which is a different thing from buying the share, and confusing the two is the most expensive mistake here. For trading share CFDs in Australia, IG Markets has the widest range, FP Markets is the best route to ASX share CFDs through IRESS, and CMC Markets has the strongest platform. Retail leverage on shares is capped at 5:1, and you pay overnight financing to hold a position.
The best share CFD brokers right now
- IG Markets, widest share CFD range. IG lists share CFDs across the ASX and major global exchanges, 13,000+ in total, which is the broadest I found. It suits traders who want one account for Australian and overseas stocks. Cost sits mid-pack, so range is the reason to choose it.
- FP Markets, best for ASX share CFDs. FP Markets routes ASX share CFDs through IRESS, giving genuine Level 2 depth on Australian stocks that MetaTrader brokers cannot show. If you trade ASX shares as CFDs, this is the account I would open first.
- CMC Markets. A large share CFD range on Next Generation, with the best charting of the group. Strong for traders who want tools alongside breadth.
- Pepperstone. Share CFDs via MT5, which suits forex traders adding equities to an existing account rather than share specialists.
- Plus500. Simple share CFD trading for newcomers, with a clean platform and guaranteed stops on request.
- eToro. Offers both real share investing and stock CFDs; be clear which you are using, since the leverage and tax treatment differ.
- Interactive Brokers. Direct market access to global equities for advanced traders; note where it offers the underlying share rather than a CFD.
Comparison table: share and stock CFD brokers
| Broker | Share/stock CFDs (approx count) | Markets (ASX / US / global) | Max retail leverage | Commission model | Overnight financing | Platform | AFSL |
|---|---|---|---|---|---|---|---|
 IG Markets | 13,000+ | ASX / US / global | 5:1 | Per share | Yes | IG web, L2 Dealer, ProRealTime | 515106 |
 FP Markets | 10,000+ (IRESS) | ASX / US / global | 5:1 | Per share | Yes | IRESS, MT5 | 286354 |
 CMC Markets | 10,000+ | ASX / US / global | 5:1 | Per share / built into spread | Yes | Next Generation | 238054 |
 Pepperstone | 1,000+ | US / global | 5:1 | Per share | Yes | MT5, TradingView | 414530 |
 Plus500 | 2,500+ | ASX / US / global | 5:1 | Built into spread | Yes | Plus500 WebTrader | 417727 |
 eToro | 2,800+ | ASX / US / global | 5:1 | Built into spread | Yes | eToro web, app | 491139 |
 Interactive Brokers | 8,000+ (underlying access) | ASX / US / global | 5:1 (CFD); underlying differs | Per share | Varies | Trader Workstation, GlobalTrader | 453554 |
ASIC caps retail leverage on single-name share CFDs at 5:1. Counts and pricing taken from each broker’s current Australian disclosure; re-verify before relying on any figure.
Share CFDs vs buying shares
A share CFD tracks the price of a stock so you can go long or short with leverage, but you never own the share, you pay financing to hold it overnight, and you get no franking credits. Buying the share through a broker like CommSec or Stake gives you ownership, dividends, franking credits and no financing cost, but no leverage and no easy way to short. CFDs suit short-term trading and hedging; owning shares suits long-term investing. This page is about the CFD.
| Attribute | Share CFD | Buying the share |
|---|---|---|
| Ownership | No | Yes |
| Leverage | Up to 5:1 | None |
| Short selling | Yes, directly | Hard for retail |
| Dividends | Cash adjustment only | Real dividend |
| Franking credits | No | Yes (Australian shares) |
| Overnight cost | Yes (financing) | None |
| Time horizon | Short-term | Long-term |
ASIC leverage cap on share CFDs
ASIC caps retail leverage on share CFDs at 5:1, the lowest tier alongside other single-name underlyings. A A$1,000 margin controls up to A$5,000 of share exposure. This is deliberately conservative because single stocks can gap hard on news. Professional clients can access more but lose retail protections like negative balance protection and AFCA recourse.
Share CFD brokers reviewed
The displayed number on each card is a Share CFD Fit Score out of 100, weighted on range, ASX depth, platform quality and AU-specific execution. It is the page’s ranking metric, not the broker’s overall site score, and decreases monotonically with rank.
1. IG Markets: widest share CFD range
1. IG Markets — Widest Share CFD Range
Share CFD Fit
96
Share CFDs (count)
13,000+ across ASX, US, global
Trading Platforms
IG web, L2 Dealer, ProRealTime, MT4
Minimum Deposit
$0
Why We Recommend IG Markets
IG lists the widest set of share and stock CFDs I tested, 13,000+ across the ASX and the major global exchanges, in both cash and (for indices) futures form. It suits traders who want a single account for Australian and overseas stocks rather than juggling two brokers. Cost sits in the middle of the pack on share CFDs, so range is the reason to pick it. ASIC AFSL 220440 since 2002, LSE-listed parent.
2. FP Markets: best route to ASX share CFDs through IRESS
2. FP Markets — Best For ASX Share CFDs
Share CFD Fit
94
Share CFDs (count)
10,000+ via IRESS
Trading Platforms
IRESS, MT5
Minimum Deposit
$100
Why We Recommend FP Markets
FP Markets routes ASX share CFDs through IRESS, which is the institutional platform most full-service brokers use for direct market access to the ASX. The advantage is genuine Level 2 depth on Australian shares, which MetaTrader brokers cannot show. If your focus is ASX names rather than US giants, this is the account I would open first. ASIC AFSL 286354 since 2005, Sydney-headquartered.
3. CMC Markets: deep range plus Next Generation charting
3. CMC Markets — Deep Range + Charting
Share CFD Fit
92
Share CFDs (count)
10,000+ across ASX, US, global
Trading Platforms
Next Generation, MT4
Minimum Deposit
$0
Why We Recommend CMC Markets
CMC lists a deep share CFD range on Next Generation, with the strongest charting of the group. Strong for traders who want analysis tools alongside breadth. The trade-off is mid-pack cost; you pay for the platform features. ASIC AFSL 238054 since 2002, ASX-listed parent.
4. Pepperstone: share CFDs alongside an active forex account
4. Pepperstone — Share CFDs + Forex
Share CFD Fit
88
Share CFDs (count)
1,000+ (US / global focus)
Trading Platforms
MT5, TradingView
Minimum Deposit
$0
Why We Recommend Pepperstone
Pepperstone offers share CFDs via MT5, which suits forex traders adding equities to an existing account rather than share specialists. The range is narrower than CMC, IG or FP Markets but works for a few US large-caps alongside your forex book. ASIC AFSL 414530 since 2010, Melbourne-founded.
5. Plus500: cleanest beginner platform for single-stock CFDs
5. Plus500 — Cleanest Beginner Platform
Share CFD Fit
84
Share CFDs (count)
2,500+ across ASX, US, global
Trading Platforms
Plus500 WebTrader, app
Minimum Deposit
$100
Why We Recommend Plus500
The cleanest entry point for someone new to share CFDs. Plus500 lists 2,500+ share CFDs on its own platform with a simple interface. Guaranteed stops are available on request, which limits downside on volatile single stocks. ASIC AFSL 417727, FTSE 250-listed parent.
6. eToro: real shares plus stock CFDs on the same platform
6. eToro — Real Shares + Stock CFDs
Share CFD Fit
80
Share CFDs (count)
2,800+ across ASX, US, global
Trading Platforms
eToro web, app
Minimum Deposit
$50 USD
Why We Recommend eToro
eToro is unusual in offering both real share investing and stock CFDs from the same interface. Be clear which one you are using, since the leverage, tax treatment and dividend handling differ. CFD versions of the same stocks carry the social and copy layer. ASIC AFSL 491139 since 2018.
7. Interactive Brokers: direct market access for advanced traders
7. Interactive Brokers — DMA For Advanced Traders
Share CFD Fit
78
Markets (underlying)
8,000+ across ASX, US, global
Trading Platforms
Trader Workstation, IBKR Mobile, GlobalTrader
Minimum Deposit
$0
Why We Recommend Interactive Brokers
Interactive Brokers provides direct market access to global equities for advanced traders. Where it offers the underlying share rather than a CFD, the protections, tax treatment and execution are different. Check the instrument type before assuming it is a CFD. ASIC AFSL 453554, NASDAQ-listed parent.
ASX vs US and global share CFDs
ASX share CFDs are the local lens: you trade Australian companies in AUD during Sydney hours, with the same earnings cycle and ASX-specific events (dividends, capital raises, takeover bids) that affect the underlying. FP Markets through IRESS is the strongest route here.
US share CFDs let you trade US-listed names overnight (Sydney time), with the depth and liquidity of the largest equity market in the world, but you carry currency conversion on every trade since they price in USD. IG and CMC have the broadest US ranges.
Global share CFDs (UK, European, Asian) round out the offering for traders who want a single account covering more than one market. IG leads on geographic spread.
How share CFD costs work
Three costs sit on a share CFD trade: the spread or commission (small for liquid names, wider for small-caps), the overnight financing on positions held past rollover (charged daily on long positions, sometimes credited on short positions when rates are positive), and a currency conversion on non-AUD share CFDs if your account base is AUD.
For a long position held more than a few days, financing usually exceeds the entry cost, which is why share CFDs suit short holds rather than long ones. Run the financing maths for the hold you actually plan before opening.
Tax treatment of share CFD profits
Share CFD profits are generally taxed on revenue account as ordinary income, like other CFDs, rather than as capital gains. You do not receive franking credits because you do not own the share. Losses can usually be deducted against income. This is different from owning the share through a broker like CommSec, where dividends carry franking credits and disposals are usually a CGT event. The treatment depends on your circumstances, so confirm with the ATO or a tax adviser before relying on it.
When a share CFD beats buying the share, and when it does not
A share CFD beats buying the share when you want short-term exposure, the ability to short, or leverage to hedge an existing holding, and you accept the financing cost and the loss of franking. Buying the share beats the CFD when you want long-term ownership, dividends and franking credits, and you do not want leverage or overnight financing eating returns. Many investors use both for different jobs.
FAQs
What is a share CFD?
Are share CFDs the same as buying shares?
What leverage can I use on share CFDs in Australia?
Can I trade ASX share CFDs?
Do I get franking credits or dividends on a share CFD?
Related pages
About the author
Justin co-founded CompareForexBrokers in 2014 and has traded forex since 1998. Based in Melbourne, he has tested every ASIC-regulated broker on this site personally and has written for Forbes, Kiplinger, Finance Magnates, the Australian Financial Review and The Age. He holds a Bachelor of Commerce (Honours) and a Master's in Marketing from Monash University. Justin is the Strategic Head of Research for the site.