A contract for difference commonly referred to as CFD is one of the most popular forms of trading around right now. It allows the trader to speculate on the prices of financial markets such as forex. The contract is between two parties, the buyer and the seller, where the difference between the opening price and closing price is exchanged. One of the major benefits of CFD trading via City Index, for example, is that you can trade against price movements, without buying assets.
To begin with, somebody who is planning on trading with CFDs will need a top broker to make this a reality, and there are plenty out there to choose from. So, what should you be looking for when it comes to selecting a CFD broker? Well, first you will need one who offers a good fee structure. You could find that a CFD trade is considerably higher with one broker when compared to another and this is often down to the fees involves, so it’s always best to see who is offering the most financially friendly deal.
As a trader, you will be transferring money to and from your account on a pretty regular basis and therefore you don’t want to be kept waiting any longer than is necessary. It’s always a good idea to go with a broker who ensures your deposits and withdrawal are quick and hassle-free, as well as cheap too. Otherwise, a trader could miss out on a legitimate opportunity while they wait for a process to be completed.
You’ll also find that some brokers have a minimum deposit required to use their platform, which can be a stumbling block for a number of traders. Some brokers, for example, will require a minimum $10,000 investment for first-time depositors, which can be a deal breaker in some circumstances, so it’s always worth shopping around and finding out which CFD brokers require what.
A lot of trading takes place on what is known as a web trading platform. It’s important that the trading platform is user-friendly with ease of use being the number one priority, but it must also be equipped with all the tools needed to making trading successful. As a trader will be using a trading platform regularly, it’s important to find the one which suits them and their needs the best as it will increase trading comfort.
There’s also a need for a good trading app too from a broker, as this allows a trade to do things on the go. It really brings a whole lot more convenience to trading and CityIndex is one broker who has got their apps spot on so far. Their apps are available for users to download on Android, iOS, and Windows from their respective markets, providing users with a secure way to trade on the go 24 hours a day. There’s also the live streaming of prices as well as a Reuters news feed and economic calendar.