How to Choose the Best Online Broker for CFD Trading
Making the decision on which CFD Trading Broker is best, can be quite a daunting task. Since there’s is a lot of competition in the trading industry in addition to the numerous brokers to choose from, it is best to make an informed decision by comparing your options. The needs of a fx trader may change as you become more confident and advanced, but for beginners, we have a few suggestions to keep in mind as you make your decision:
Every country has a regulatory body, such as the Financial Conduct Authority (FCA) in the UK. The governing body creates policies, rules, services and programs to help protect and maintain the integrity of the market, traders, investors and the brokers themselves. They help members meet legislative responsibilities, and because of potential safety concerns with regards to the deposit, you will want to be sure that your accounts are with a regulated trading firm.
While selecting the best CFD Trading Broker for you, it’s possible just to concentrate on CFDs. However, you should keep in mind there are many types of investment alternatives offered as well, such as Currencies, Forex (FX), Stocks, ETFs, or trading in futures or options.
Online trading takes place 24 hrs a day, so you will want to make sure that customer support is available at all times, should the need arise. Particularly for CFD trading beginners, you may find it easier to receive on the spot local UK phone support rather than waiting to receive answers via email. Check out the customer service center to see what type of customer service they provide, by giving them a call. Take note of the time required to receive the help you need and look into the representative’s ability to answer your questions about the various features and trading basics.
An ideal broker should offer you either multiple account options or they should have the option to customize accounts based on your needs. Try looking for an online Brokerage that offers competitive spreads and has easy and straightforward deposits/withdrawals.
A CFDs trading broker should be able to provide you with the necessary information with regards to the interest charged on leverage. Even though the interest rates do not change drastically between brokers, you may want to check out what they offer with regards to interest.
There are different online CFD trading platform types. Depending on what your needs are, you will want to see what each broker offers. If you do most of your trading on the go, you will want to make sure that the platform has a mobile option.
For more information on CFD Trading, please see our tutorial: The Basics of CFDs