In recent times, trading is becoming more and more popular. Everyone wants to trade or start investing their money, but not all of them are into stocks. There are several other ways to trade, such as ETFs or CFDs. Trading in CFD can be tricky and finding the best broker can be difficult for a person because of several providers.
Plus, before registering on the platform, it is essential to know about it and get some information about it. In this guide, you will get important information which is the Best CFD trading platform related to regulation, deposits, and withdrawals.
What is CFD Trading?
CFD trading or Contract for Difference trading is usually explained as the buying and selling of CFDs. It is a derivative as it helps users speculate about the financial market, such as FOREX, shares, commodities, and indices, without taking ownership of the assets.
Trading in CFD means you agree to exchange the difference in the asset’s price from when the contract is opened and when it closes. The best part about CFD trading account is you can speculate on any price movement or go in any direction. The profit or loss that you may get will depend on your forecast.
Why Should You Trade CFDs?
- Leverage- CFDs will take your investment further; you need to deposit the fraction amount to help you open a position. The deposit amount you must put in is known as the margin. The amount you need to deposit depends on the position’s size and the margin factor for your market.
- Can Go Short or Long- CFD trading is quite different from other forms of trading because CFD trade does consist of an agreement to exchange the difference between the opening and closing positions. When you invest in this, there will be two prices: the buy price and the selling price. One can trade at a buy price, and when the price goes up, one can sell at a selling price.
- Trade With Huge Market Range- You can also use the contract for the difference because it trades more than 18000 markets, including commodities, FOREX, indices, shares, options, and more. A person can also trade some markets outside the trading hours that announce the company.
CFD platforms You Can Choose For Trading in 2023
Choosing the right CFD stock broker is essential, but it can be tricky because of several providers. Here, you will learn about the broker who suits you best and will be according to your needs. Before registering here, you must explain what CFDs are and what they are used for. You can compare different platforms and then make the decision.
1. eToro
eToro has been attracting new traders since 2007 and has more than 13 million users worldwide. A person who chooses this option can benefit because it is an innovative trading platform and is also considered as number #1 broker in social trading with the help of a trading function.
The platform is quite a simple and intuitive trading platform and a mobile application, making it suitable for beginners and experts. It also allows its users to copy and automatically replicate the investors’ transactions.
You can find several CFD varieties when it lacks options and have low initial fees, which make them affordable for users. One can also get the premium or specialized platform.
Pros
- include economic calendar
- 24/7 market hours because of the wide reach
- Easy to use and create an account quickly
- Several materials for training, such as blogs or webinars
- Funding or copy-trading tools
Cons
- Though it allows good CFD options, options or assets are less
- High fees for withdrawal for small-time traders
2. XM
XM is the leading broker for CFD trading and is part of the parent company Trading Point Holding. It was founded in 2009 and regulated by the three financial market regulators such as the Australian Securities and Investment Commission, The Cyprus Securities and Exchange commission.
XM is suitable for novice and experienced traders and offers several advantages to the broker to use automatic trading strategies. A person can trade on this platform in 2 different ways via real and demo accounts. It has MetaTrader 4 and MetaTrader 5 is compatible with Android and iOS that give you access to the market through your mobile
Pros
- Free $100,000 demo account
- Micro trading account
- MT4/MT5 trading platform
- Personal support
- Scalping and Hedging allowed
- Regulated CFD Broker
- Minimum deposit of $5
Cons
- Limited products
- No protection for an investor for non-EU clients
3. Avatrade
Ava Trade is the most suitable online CFD trading platform for traders as it allows m to trade with more than 1250 assets. The platform offers its traders an opportunity to trade from around the world, so you can trade with popular trading platforms such as Metatrader 4. It is an excellent way with low fees, fast order execution, multiple account types, various payment methods, etc.
It is a multinational broker headquartered in Dublin, Ireland, and has many other offices. The broker suits several traders regardless of their knowledge or experience in trading. The platform is going to offer you an opportunity to trade online in many markets. It allows the users to rapidly order execution because the quotes are connected to the market directly.
Pros
- More than 1250 asses
- Minimum deposit of $100
- STP and OTC broker
- 24/7 customer support
- Easy and quick account opening
Cons
- Average FOREX fees
- Only offer FOREX, CFDs, and crypto
- Highly inactivity fees
4. Plus 500
Plus500 is one of the regulated CFD brokers that one can find on the list of CFD trading platforms. It is an online brokerage company listed on the London Stock Exchange. It is a reputable company with a stock exchange that has a highly-rated mobile application on Apple App Store, Google Play, and a rounded chart system as you can read in this Plus500 review.
The broker allows the users to speculate a wide range of assets: stocks, ETF options, FOREX currency pairs, and cryptocurrency in the CFDs form. The platform is intuitive, easy to use for trading, and best for professional traders and beginners.
Pros
- Can access more than 2000 assets
- Need a minimum deposit of only $100
- 24/7 customer support
- PayPal, electronic wallets, wire transfers, and other regulated methods of payment
- No hidden costs
- Intuitive mobile trading application
Cons
- Average CFD fees
- Mediocre research tools
5. IG
IG is the best CFD trading platform that you can find in the world, which was first founded in 1974. It has become a huge name in the trading business and features an extensive trading product along with the competition.
It allows its users to benefit from rising and falling market opportunities without buying the underlying assets. In UK and Ireland, the platform is quite popular and allows you to benefit from tax exemption and offer more profits. IG is generally listed on the London Stock Exchange, and its office is usually in the world’s financial districts.
It offers you advanced trading tools, low prices, and competition that will allow the users to access the market with trading platforms.
Pros
- Over 16,000 markets to negotiate
- Spread betting
- Free demo account
- Bank transfer, credit cards, and PayPal for deposits and withdrawal
- Multi-regulated broker
Cons
- High rate of finance
- High stock trading fees
6. Interactive Broker
Interactive Broker is a platform suitable for both beginners and advanced traders. It offers you every trading tool you have ever imagined; it offers you pair of applications for mobile and desktop devices that are intuitive and similar and is an excellent choice for several people.
It also includes low commission costs and tools that will help you grow your trading experience. It offers a wide range of tradable securities at a very low margin. It makes everything so easy to control and helps in making better decisions.
Pros
- Provide several analytical tools for market choices and portfolio
- Huge amount of tradable securities
- The trading platform is quite powerful and user-friendly
- Trading software covers everything one can imagine
- Free ad subscription that is based on data offerings
Cons
- So many regional restrictions
- Maintenance fees also exist
Criteria for Choosing CFD Platform
Trading is not limited to brokerage firms, top institutions, and large investors. With the help of new technological advancements, every trader can do trading easily through their mobile firm. But to do that, they require a highly reputed and best CFD trading platform which is not easy to find. A few factors that you should consider before you choose the right platform are-
- Fair trading data and top-quality charts
- Regulation through an official financial regulator
- Professional customer support in a different language
- Quick withdrawal of profits
- Reliable and secure method of payment for deposit and withdrawal
- Chance to open a demo account or free with visual money
Conclusion
Irrespective of the fact, whether you want to trade in Stocks, FOREX, commodities, or cryptocurrencies, CFD broker can be the best platform one can choose. Each broker has their unique feature, which makes it different from others, such as asset class preference, leverage, and more.
But the trader must test the best CFD trading platform without the risk and ensure that the broker is serious and has all the attributes you are looking for!
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
