How to Find the Best CFD Broker
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail client accounts lose money when trading with this provider. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.
How do I choose a CFD broker?
When zeroing in on the best cfd broker, there are a slew of factors to consider: regulation, costs, tradable asset classes and the trading platforms offered. It is crucial to only use regulated brokers as they are held to strict protocols that protect traders from internal company fraud or bankruptcy.
For example, UK-based IG Markets is a well-rounded international broker that offers forex and CFDs. Their CFD product catalog features more than 50 currency pairs and 14 precious metals. They also offer high levels of leverage, up to 1:500, which allows you to invest a much smaller amount and expand your trading horizons. They are an excellent choice for experienced traders who want to diversify their portfolios with a new trading instrument.
Traders can also invest in shares and ETFs on a wide range of global stock exchanges through US-based Interactive Brokers. Their Trader Work Station (TWS) and forex-specific FX Trader systems provide competitive spreads and commission rates. Their CFD product catalog is solid too, with competitive offerings in stocks, indices, forex and even commodities like gold and crypto assets. This broker is a smart pick for traders focused on cost and margin requirements.