CFD trading allows traders to make profits on both sides of the market (bullish or bearish). Therefore, regardless of market conditions and trends, traders will find opportunities to make profits. This is a striking difference between CFD trading and trading underlying assets. However, not all brokers are reliable and suitable for all types of audiences. The following article explains how to choose a CFD broker and introduces a list of the most reliable CFD brokers today.
How to choose a reliable CFD broker?
When choosing a CFD trading platform, there are several points that traders need to consider as follows:
Regulatory and Legal: A reputable broker is licensed and regulated by legal authorities such as FCA, CySec,…. This ensures the safety of the invested capital and minimizes the risks for users. Many brokers are scams. Therefore, the trader has to research different brokers, find out their information on Google along with terms like a scam, and then evaluate the results. Alternatively, traders can also find out if a broker is trustworthy or not by searching through the reviews of individual users and well-known websites.
Trading Fees: Commissions and spreads are the most important factors when choosing a CFD broker because they affect trading profits. Low transaction fees help traders save some money, especially for frequent traders. Usually, CFD brokers charge a spread when a trader opens an order. However, the spread between brokers is not the same. Therefore, traders need to choose CFD brokers with lower/moderate commissions.
Influence: Leverage is one of the advantages that CFD brokers offer traders, allowing traders to open orders with a larger volume than actual capital. However, traders must also learn to manage risks when using leverage and use leverage appropriately.
T Rading Platform: An intuitive and easy-to-use trading platform will help traders quickly familiarize themselves and avoid unfortunate mistakes. In addition, various indicators and support tools will make trading and analyzing traders more accurate and convenient.
Asset Types: Some brokers may limit the number of CFD assets. Before choosing a broker, a trader must determine whether that broker offers the types of assets he wants to trade.
Risk management tools: Hedging tools such as stop-loss are provided to control losses when the market is volatile. Most brokers offer this tool. However, traders should also check before trading.
List of the most reliable CFD brokers
- Capital.com
Capital.com is the world’s leading CFD broker, allowing you to trade a wide range of assets from stocks, indices, forex to cryptocurrencies, commodities and ETFs. With a simple, easy-to-use interface, low spreads,… Capital.com has won many awards and is highly appreciated by users on TrustPilot, Google Play and Apple Store.
Benefits of trading on Capital.com:
- Register and verify accounts quickly and easily.
- Separate trading platform friendly, easy to use even for newbies.
- Wide range of trading instruments from stocks, indices, cryptocurrencies, forex, commodities, ETFs.
- Low and commission-free spreads compared to most other CFD brokers.
- High leverage, adjustable for each individual asset class.
- Free and diversified deposit/withdrawal methods.
- Provide risk management tools (stop loss, take profit).
- Connect with MT4 and Tradingview.
- It has its own trading guide app (Investmate) – which allows users to access knowledge about financial investments.
- The 24/7 customer support service is efficient and fast. Usually, it only takes a few seconds to get an answer from Capital.com.
Capital.com has developed a separate trading platform that is easy to use and allows users to connect directly with MT4 and Tradingview.
2. XM.com
XM was founded in 2009 with over 1.5 million users from 196 countries. XM is ranked 170th out of 353 in DailyForex’s list of best brokers with many advantages on trading platforms and professionalism and reputation.
Benefits of trading on XM
- Register and verify accounts quickly and easily.
- The trading platform is simple to use and easy to use.
- A trusted broker with FCA registration and CySec regulation.
- It offers high leverage of up to 888:1.
- Instant transaction execution, no latency.
- 24/7 customer support by phone, email or live chat.
- Register and verify accounts quickly and easily.
- The trading platform is simple to use and easy to use.
- A trusted broker with FCA registration and CySec regulation.
- It offers high leverage of up to 888:1.
- Instant transaction execution, no latency.
- 24/7 customer support by phone, email or live chat.
- Fast withdrawal processing
- An extensive list of account types and trading products.
3. eToro
Many investors have known eToro as one of the brokers that allow a 0% commission to buy shares. In addition, eToro is also famous for a unique feature called social trading, which makes eToro known as the world’s first social investment network.
Advantages of trading on eToro.
- Friendly interface, easy to use even for newbies.
- Professional graphic designers.
- No need to install and use complicated trading software
- Many different investment assets.
- The tracking, calculation and reporting system is extremely intuitive and easy to understand.
- The flexible leverage system allows traders to easily increase profits, you can choose the leverage for each transaction.
- The social network is open to the transactions of all members, traders can easily learn, trade, copy trade other members.
4. ICMartket
ICMarkets is an Australian broker with the slogan “True ECN”. This means that ICMarkets will fully place a trader’s trading order on the money market (with an ECN account type). This can be considered an advantage of ICMarkets, as well as a diversified product system with good spreads.
Advantages when trading on ICMarket:
- ICMarket is a reputable company regulated by AFSL and ASIC.
- Customer deposits are kept completely separate with Westpac Banking Corporation and National Australia Bank. These are the largest banks in Australia.
- ICMarket uses ECN technology – by helping clients to access the market directly, investors can trade in a real way in the market, avoiding the situation of being held off the floor or correcting orders.
- Extremely low spreads: The average spread of EURUSD is 0.1 and USDJPY is 0.2; the lowest on the market.
- Fast order execution. The speed of order matching is extremely fast, without requotes.
- No limits to trading: Traders can trade Scalping, Hedging or Automated Trading from robots without any restrictions.
- Various deposit/withdrawal ports.
- Fast and dedicated customer support.
Conclusion
Above are some criteria for choosing CFD brokers and some reliable brokers today. In general, CFD trading is quite flexible but also carries a lot of risks. Depending on their trading needs, traders can choose a suitable broker for them.
