Currently, multiple online CFD providers offer Ethereum CFDs. However, there is only a handful of Direct Market Access Brokers authorized and regulated by the UK financial regulator.
With so many unregulated brokers in the market, traders should be aware. Before you even consider trading with a CFD broker, check whether it is regulated. In the UK, we recognize the FCA license, in Europe the Mifid and in Singapore the Monetary Authority of Singapore. When providers are regulated, they are supervised by the government that prevents them from doing any unfair business practices.
Regulation requirements include:
The provider should maintain separate trust accounts for retail customers transactions/
The CFD broker must keep traders funds in trust accounts with a bank in Singapore;
CFD providers should not use customer’s capital for other obligation.
The provider is obligated to perform a daily computation of all assets which are deposited in their custody.
The regulatory institutes impose a minimum margin requirement of 5% of CFD providers
contracts with retail customers; and
Mas requires a base capital requirement of S$5 million for CMS Licence Holders dealing in unlisted derivatives with retail traders.
List of top CFD brokers:
Markets.com- The No.1 Broker