Are you interested in CFD trading? If you are, the first thing you need to do is find the right broker that offers the best platform to trade an underlying asset. As you know, a broker serves as the “middleman” for all CFD transactions.
In addition, brokers are needed since they provide the help needed by traders to trade as the partial owner of the underlying asset, such as forex, shares, and commodities. So when the contract has been made, you should trade the way you expect to.
Unfortunately, that’s not always the case. Sometimes, some brokers don’t value their clients well, and some brokers are just pretending to be one.
So if you want to succeed in CFD trading, below are some tips for finding the right provider.
1. Credibility
If you’ll search online, you’ll find various brokers offering CFD trading. However, you can’t be sure they’re credible to take care of your trades and money. So before choosing one, take some time in searching for reviews and looking at the portfolio of their clients.
Meanwhile, it’ll be helpful if they have rules and regulations that confirm that your funds are safe with them.
In addition, it’s even more appealing if they’re offering a platform that suits your trading capabilities. For instance, if you prefer a specific platform, it should be included on their website, otherwise, you’re just wasting your time getting to know a broker that would be impossible to work with.
2. Easy access to the trading platform
When considering a broker for CFD trading, they should also be updated on the latest development in the trading world. One of which is the ability of various trading platforms to be accessed in various ways— desktop, web, and phone.
If a trading platform can be accessed in various ways, it’s easier for traders to manage and track their trades, anytime and anywhere they want. In addition, since most people always have their phones on them, the app can notify them of real-time updates about the trades and news.
In addition, the platform your chosen broker offers should have a user-friendly interface so that even beginners can work their way to start trading.
3. Trading features
Not all brokers offer the same trading features. Some include live streams, trading signals, and free market analysis. On the other hand, others do not include additional features that can help traders improve.
So before choosing a broker, you should have a list of all the trading features you need when trading, including those you need to improve your wins. Moreover, it’s best if you can compare one platform to another to get to know the best features to look for.
And, of course, it should be one of your requirements to look for a broker and trading platform that includes a demo account. If they don’t have, it would be hard to test everything you need to know.
4. Fees and commissions
CFD brokers usually make more money on spreads than with commissions. However, it can still depend on the regulations of the broker. But before you start trading, it’s best if you know the rate of the commission and the spread. Some brokers advertise upfronts that they don’t get commissions, but they charge a percentage on spreads.
In the spread, brokers sell more than they paid for. Furthermore, the spread can be narrowed down or get wider depending on certain situations. So you should take this into account first before choosing a broker.
5. Options for withdrawals and deposits
Nowadays, there are various ways to pay or get your money. And when you pick a broker, they should be able to provide various ways where you can withdraw your money and deposit it in your account.
As a trader, there are certain situations when you need to act right away. For instance, if you’re about to get a margin call, you should be able to deposit funds as soon as possible before your account closes.
On the other hand, when it comes to withdrawing money, it’s understandable that there are certain procedures and times allotted before they release your money. It’s also helpful since you’re assured that other people can’t easily withdraw your money.
6. Customer service
Sure, you can get all excited about the rules and regulations of the broker, the platform they offer, and the fees. However, you shouldn’t forget to take customer support into account when deciding on a broker.
Whether you’re a professional or beginner trader, there are times when you need to ask for customer service. And if they don’t respond quickly, you might lose money and damage your portfolio.
So even if they have the best tech in the world, a broker should still know how to care for their clients.
We hope this article helps you get to know some tips about finding the right CFD broker and platform. Let us know if you have concerns about this article by leaving a comment below!
ABOUT THE AUTHOR
Aliana Baraquio has more than 5 years of experience as a writer and market analyst. She specializes in developing beginner-friendly trading techniques and tutorials. Additionally, she suggests FP Markets as the top broker for trading CFDs and Forex.