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CFDs have been enjoying increasing popularity for the past years since they are suitable for both institutional traders and retail. Besides this, CFD trading provides a potential for high profits in a concise time frame.
The term CFD stands for Contract for Difference and describes derivative trading instruments that differentiate the buying and selling price of an underlying asset.
CFD Broker – What exactly is that?
There are many different tradable instruments. For this reason, it is not easy for a broker to cover the full range of possibilities. Many brokers specialise in certain products and tailor their range of services specifically to these products.
Such providers focus on trading in contracts for difference – providing the optimal trading platforms for trading CFDs, and the selection of underlying assets is, in most cases, vast.
There are countless CFD brokers, and finding their way in their world is not easy at first. At Pdextrading.com, we want to assist you in your search and allow you to find a trading partner that meets your expectations. Depending on your trading strategies and preferred trading instruments, there may be very few potential CFD brokers suitable for you.
This page provides a CFD broker comparison with Pdextrading using the information provider.
The following are criteria that distinguish reputable CFD brokers.
What are the characteristics of a trustworthy CFD broker?
As CFD trading has become increasingly popular in recent years, the number of CFD brokers continues to grow. All trading providers can show specific characteristics in terms of services, costs, and conditions. How can one distinguish a good CFD broker from a bad one despite the many differences? And are there universal characteristics that stand for the excellent quality of an offer? Yes, they exist, and if you are looking for a good broker, you should ask yourself the following questions to fully evaluate an offer.
REGULATION AND SEAT OF THE BROKER
One of the essential features of a broker’s integrity is its regulation with financial regulators.
The Financial Conduct Authority (FCA) regulates UK-based brokers. Cyprus Securities and Exchange Commission (CySEC) is an appropriate authority for EU countries.
Also, it is worth finding out how long the CFD broker has been on the market because a long-term provider was already able to convince through its offer and thus remain in need for a long time.
WHAT ARE BASIC VALUES AVAILABLE TO ME?
A good CFD broker knows that different traders’ needs and preferences are individual and therefore endeavours to provide you with the most comprehensive and most diverse range of underlying assets available for trading. What’s the use of 3,000 different stocks if you prefer to trade indices?
And you, too, would certainly keep your hands off a broker if you do not have the opportunity to trade your preferred underlying asset. So a good CFD broker always strives to expand its product range to meet customers’ needs.
WHICH SPREADS DOES THE BROKER OFFER?
Spreads are the most critical differentiator for a CFD broker comparison. You will have to pay these fees on each trade, and if you plan to trade frequently, you should pay particular attention to the level of spreads. A good broker will not focus on your profit in the first place. Instead, he will endeavour to offer the customer attractive spaces.
WHAT OTHER COSTS ARISE?
A worthy broker offers his customers a free trading account and allows for the trading platform’s free use. The broker also provides traders with free real-time quotes and does not charge deposits and withdrawals fees.