The best online CFD brokers need to give traders all of the trading options the market allows. Transactions should be handled in real time and with constant market updates, so the trader has the full range of information. Commissions and fees should be low, while the CFD trading software needs to be up to date with advances in computing devices over the past few years. One particular requirement is CFD trading site in the year 2014 needs to be able to support mobile trading with smart phones and tablet computers, because many CFD traders have to log on using wifi in order to buy and sell throughout the day from wherever their professional and personal lives take them. Most of all, an Internet CFD trade service provider needs to be trustworthy.
Over the course of this article, I want to provide some of the best online companies for brokering CFD transactions for 2014. These various companies are going to have their own strengths and weaknesses relative to one another, but overall have a strong service to provide. First, I want to give a broad overview of the CFD market. NB – for those newbies out there: CFD trading is different to trading binary options.
What Is a CFD?
CFD is short for “Contract For Difference“, which is a type of derivative. Unlike Forex derivatives and binary options, the CFD transaction is based on the opening and closing price of an asset. Two parties exchange the difference between the opening and closing value.
Plus500 is a leading CFD provider. New applicants can get a $25 bonus for registration – terms and conditions will apply. Transactions are subject to fixed or dynamic spreads, which Plus500 keeps competitive. With the ability create a free demo account to learn the software and how to buy and sell CFDs, the trader has no excuse for trying out the Plus500 website.
Plus500 are based in London and regulated by the Financial Conduct Authority.
Markets.com have their own CFD trading interface. The company allows for mobile trading and virtual online trading, but to do this, you’ll need to download their site software. Markets.com offers product diversity, high liquidity on competitive spreads, commission-free CFD trading, and a low margin requirement between 2% and 5%. Those who want to use leverage can do so up to 100:1.
Spread.co uses the Saturn trading platform for all Forex, shares, and CFD trading on their site. Advantages to using Spread.co is it’s safeguarded by the FSA, which means it’s regulated and therefore trustworthy. The spreads on the site are as low as 0.8%, adjusted on a 24-hour basis. With 64 different language options, the community is international in scope and therefore trading is brisk 24 hours of the day.
Forex Trading Site
You might think a website named “Forex” is only going to deal with the foreign exchange, but Forex’s CFD trading support is substantial. Their CFD platform gives you the ability to trade Forex CFDs, index CFDs, and commodities CFDs. The Forex trades include high volatility assets with tight spread. You can trade over 300 pairs, while leveraging up to 400:1. Indices also let you leverage up to 400:1, with over 30 global indices accessed and therefore exposure to the full global economy. The commodities traded include energies, metals, and softs. Leveraging ranges up to 200:1.
More Virtual CFD Trading Services
Online CFD traders have all sorts of options for service providers, but those above are my favorites at the moment. Be careful to choose the service which fits your needs the closet, because you should never have to compromise your trading style for the sake of a website. Other fine services include Saxo Capital Markets, City Index, Selftrade Markets, UFX, InterTrader, Trade.com, or Halifax. If you want a company which specializes in CFD trades, try Capital CFDs. Those who want live Reuters industry news feeds, give IG CFD a try. As you can see, each service offers a slightly different product. While the fee structure and ease of navigation are the chief considerations I give when grading an online CFD trading website, you might have other criteria.