HOW TO CHOOSE CFD BROKER?
When you learn everything there is to know about CFD Trading, next huge step to take in your future trading career is to choose your CFD Broker. By summerizing only the Best CFD Brokers for you, we did make that decision a lot easier, but since every CFD provider offeres his own benefits according to his customer needs, it’s up to you to know your needs and pick the one amonghst them that serves you best. In order to do it properly cfdtradingreview.com will do CFD Broker Review for you and familiarize you with most important aspects of choosing a CFD Broker!
CFD BROKER TYPES
Just like in forex market, CFD providers are also divided in two classes. Market makers and Direct Market Access (DMA) providers.
Market Makers work on traditional spread bets where you trade against CFD provider and their displayed prices. This is how they make money. Being so, commissions and capital requirements are lower, but conflict of interest issues may arise.
With Direct Market Access providers, your CFD orders are sent directly to the order book. This way you avoid paying the spread if another party hits the bid or offer price that you have set, but DMA providers usually charge higher commissions.
Although some CFD Brokers may provide both it’s up to you to choose the one that you prefer.
MARKETS AND ASSETS TRADED
CFD can be traded in many different types on many different markets. Each CFD Broker offers his type of CFDs under his own conditions. Some may offer better stock CFDs some Forex CFDs. No one is good with everything, so it is up to you to think about your area of expertise and choose your broker accordingly.
Although every CFD Broker sets his own margin requirement, in most cases they are between 5% and 20%. Accordingly CFD Leverage is usually about 10 to 1. With lower margins, leverage can rise up to 400. Since margin is a vital part of your risk management strategy, choose the one that suits your trading strategy best.
It is a lot easier to earn money if you trading portfolio is quite some. But what about us that are not so wealthy, but still want to try our skills in CFDs. We can’t afford to pay 1000$ minimum deposit! We would like our ticket to ride to be as lower as possible, wouldn’t we? Especially if you are new to CFD Trading and would like to minimise your loss until you learn to trade. Find the CFD Broker according to your pocket.
CFD TRADING PLATFORMS
There are different trading platforms in use with different CFD Brokers. Some are more complicated and extensive for experienced traders, others are more basic and easy to use. It is very important to choose a CFD platform according to your knowledge and experience level since they are the far most efficient way in becoming a real trader.
Since CFD Trading has become highly popular, Best CFD Brokers often offer ridiculously high bonuses in order to attract as many customers as they can. This means that a new customer will get a certain amount of money on his trading account as a reward. It is often expressed as a percentage of the deposit. Great thing about bonus is that it comes free meaning that it can be transfered off the trading account. Although the available bonuses might not be the most important thing while choosing your CFD Broker, it is certainly something to take into consideration.
All the Best CFD Brokers that we choose for you are highly regulated! Otherwise they wouldn’t be on our list. However, not all of them are regulated by same institution and have the same regulations. Every CFD Broker has his own set of regulations and are often displayed as a part of their services. It is not a bad thing to familiarize with them.
For those traders that have little or no experience at all, many CFD Brokers offer Demo Account as vital part of their services. It is an account funded by fake money to place fictitious trades in order to give you the opportunity to try out broker’s trading platform prior to using your own money to trade. If you think you need more practice, this certainly helps you to familiarise with CFD Trading before you think you are ready to open a real account and start earning real money.
STAY ON TOP OF THINGS
The thing about any market, especially one as big as CFD Market is that it is highly volatile. Being so, no one, not even biggest CFD experts in the world can stay on top of things all the time. But with cfdtradingreview.com team at your side, constantly analysing and reviewing CFD Market and Brokers for you, you can definitely rest assured that right informations will always find its way on our CFD News section.