Interactive Brokers (in Europe) is the sort of firm you should be looking to deal CFDs, they offer DMA (ie same prices as the cash market). I'd advise you look at them before some smaller broker and if you ever get called by a firm regulated out of Cyprus, RUN.
DMA = Direct Market Access. That means the pricing o the CFDs is exactly the same as the pricing on the shares on the cash market. For example, if you wanted to buy 1,000 HSBA in the cash market the price might be 400-401. If you wanted to buy those same shares using a CFD the price would also be 400-401. A broker who doesn't offer DMA CFDs would price the shares for you and they might even offer the deal 'commission free'. Nothing is ever free in the markets. Interactive Brokers and similar brokers will offer DMA CFDs, those are the ones to go with because it keeps the game clean.
Forgive me i seem to be a little confused. if the brokers are offering DMA CFDS and then how do they make money? I thought the spread was their mode of profit.
Commissions and financing charges generally. The spread profit (or loss) is for the market makers or whoever is making the price but with a DMA broker that won't be them (unless they are also market makers but that price is available to the whole market, not just you).