CFD brokers have revolutionized the financial industry, giving the public very easy access to a variety of asset portfolios, providing convenient, cost-effective and regulated access to stocks, stock indices, foreign exchange and commodities。

What is a contract for difference？

For example, if you negotiate with a broker and decide to cooperate, if you buy $2,000 in gold, its value rises to $2,250, and then sell it, you will make a profit of $250。

You can withdraw the entire $2,250 fund and leave, or reinvest it in another position.。

If gold trades against you and the price of gold falls and you decide to sell for $1,600, your account balance will be debited to $400。The market will determine the "difference" between the opening and closing prices of the transaction, while the "contract" ensures that both parties fulfill their respective trading obligations.。

Using the CFD principle, your broker will "create" markets involving assets such as oil and Apple stock。These can be accessed online through a high-tech trading platform that allows you to track real-time prices。

When you trade in the market, your relationship with the broker is crucial.。

Key criteria for comparing CFD brokers

If you are considering trying CFDs, it is highly recommended that you first use a ready-made free demo account。It's safer to use virtual money in the first place, and the firsthand experience is unparalleled。

The trading experience is a key part of trading, but there are other factors to consider when building the most suitable CFD trading platform for you。

• Education and learning - whether you are a newcomer or an experienced trader looking to learn about new markets, the support materials provided by the broker are essential。Brokers with the highest scores in this area offer materials in multiple formats, including video and text
  Research and analysis - when it comes to investing money, you need to develop a thoughtful strategy。Some brokers offer more material than others to help you identify trading opportunities。IG stands out because it offers an all-round trading philosophy based on fundamentals and technical aspects。The FP Markets "Week Ahead" video, released on Sunday night, is also a valuable resource。
  Spreads, commissions and fees - transaction costs have fallen in recent years。New technologies and competition among brokers mean traders can build positions in the market at ultra-low cost。Even small costs can accumulate, and paying close attention to the fees charged by brokers can help you get a better net return。
  Customer support - this can be measured by quality and accessibility。Pepperstone provides a good benchmark, you can contact its award-winning customer support team 24 / 5 by phone。Considering that you may be less certain about real-time trading positions, it is important that you are satisfied with the level of support provided by the broker。
  News Service - There are many free market news sources available。Some brokers offer tailor-made services for individual traders。XTB offers free market audio as part of its service; IG has its own TV-style broadcast; FX Pro offers a daily newsletter covering all industries。
  Mobile Trading - Great Platforms Now Offer Customers Apps and Browser-Based Platforms。Markets change rapidly, so any tool that helps you keep track will be welcome。
  Customer protection - this is one of the most important features of the selection process。It is best to choose a broker that is regulated by a primary regulator, such as the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC).。

Finding the right broker for you needs to know your priorities, different brokers offer different strategies to suit different lifestyles。

All of the following brokers are highly rated, but in any case, try the free demo account to better understand their services。The demo account can be set up in just a few minutes, can be used for free, and there is no risk when you trade virtual funds。Based on the above indicators, we recommend that you compare CFD brokers with these well-known brands:

XTB

XTB is an established broker with a reputation in the CFD trading community, offering competitive prices and reliability, as well as simple innovative features。It is now one of the world's largest stock exchange-listed CFD and forex brokers, with offices in more than 13 countries around the world, providing secure and convenient services.。

xStation 5 proprietary platform is a strong competitor for best-in-class platforms。If only to determine its advantages and disadvantages, it is very worthwhile to try it out with a demo account。

• Customer Protection - XTB Limited is authorised and regulated by the Financial Conduct Authority (registration number 522157)

Pepperstone

If customer service is important to you, Pepperstone is worth considering。The company is customer-centric, as evidenced by its numerous industry awards for supporting customers。

It offers a variety of trading platforms and enough CFD markets for you to choose from, giving you access to a range of asset classes。

• Customer Protection - Pepperstone Limited is authorised and regulated by the Financial Conduct Authority (registration number 684312)。

FxPro

FxPro offers CFDs across six asset classes: Forex, Equity, Spot Index, Futures, Spot Metals and Spot Energy。It brings clients to the heart of the market by providing them with top-level liquidity and advanced trade execution without desk intervention.。

The transaction infrastructure is of high quality and can support institutional and retail investors from more than 170 different countries.。

• Customer Protection - FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number 509956)。

eToro

With 13 million users, eToro's popularity speaks for itself, offering the most user-friendly trading experience。From logging into the demo account to making the first trade, the whole process is smooth and simple。

eToro offers a wide range of markets, but the real advantage lies in the documentary trading function。The platform has thousands of traders willing to share their trading ideas。This can be done by visiting each market's chat room or applying their trading instructions to your account。

• Customer Protection - eToro (Europe) Ltd is authorized and regulated by CySEC, Cyprus Securities and Exchange Commission (license 109 / 10)。eToro (UK) Ltd is authorised and regulated by the Financial Conduct Authority (FCA) (licence number 583263)。

IG

With over 17,000 markets to trade, IG is one of the truly "multi-asset" brokers。It offers markets from options and bonds to ETFs and 24 / 7 indices。

The in-house platform is a user-friendly but powerful piece of software that brokers are hard to beat when it comes to research and analysis and customer service.。

• Customer Protection - IG is the trading name of IG Markets Ltd and is authorised and regulated by the Financial Conduct Authority。(Registration number 195355)。

Tickmill

Tickmill Focuses on Trading Experience。Customers have access to the market-leading MetaTrader 4 trading platform, which is known for facilitating fast, reliable and cost-effective trading。Some markets in Tickmill have a bid-ask spread of 0.0 point。In addition, its research and analysis component is particularly popular due to its very trade-oriented。

• Customer Protection - Tickmill is the business name of Tickmill UK Ltd and is authorised and regulated by the Financial Conduct Authority (registration number 717270)。

FP Markets

FP Markets leads in the number of stock markets offered。This scalping-oriented operation has somewhat bucked the trend, providing a market of more than 10,000 stocks and 19 major indices.。

FP Markets Named "Best Trade Execution Quality" Broker for 2019 by Investment Trends。

• Customer Protection - First Prudential Markets Ltd is regulated and authorized by CySEC of the Cyprus Securities and Exchange Commission (license number 371 / 18)

Important tips on how to profit from CFD trading

No matter which broker you choose to use, there are some general principles that apply。

• Develop clear strategies - The broker platform is a great place to find trading ideas based on technical and fundamental analysis, and also provides information about different trading strategies such as scalping, momentum, breakouts and reversals。
  Risk Management - Stop Loss and Take Profit Orders are position built-in orders that limit your losses to a certain amount。If they make a certain profit, it will also ensure that you close your position。
  Develop a trading mindset - successful trading requires the right mindset。Be disciplined when trading, "boring" transactions will drain your account。In addition, please try to eliminate emotions from trading and trade on a small enough scale so that you can objectively consider trading decisions。
  Learn from others - some brokers will allow you to adopt other people's ideas。Documentary trading is the application of signals from other traders to your account; social trading allows you to access online groups and share ideas there。
  Keep an eye on the economic calendar - market sentiment can shift in an instant。Some triggers are known in advance, and monitoring upcoming announcements (such as interest rates) can help you manage your position。
  Planning well - realistically considering how much time you can offer to trade CFDs, choosing the type of strategy that fits your existing commitments is a good place to start。
  Waiting for an opportunity - the old saying goes, the best deal is exactly what you didn't make。There is nothing wrong with staying away from the market and waiting for the best opportunity。
  Mock Trial - Whether you're a novice or experienced trader, it's a good idea to keep your demo account running。This way you can try out new ideas without risking your money。

Conclusion

The best way to know if CFD trading is right for you is to try it out with a demo account。If you perform well and start trading in real time, start small to ensure you keep the right approach。

Whether you make a profit depends largely on your skills and methods, but a CFD broker can also help you。They have a slightly different focus, so compare and test in real time to find the most suitable one that can pay off for your trading。