If you’re looking for a CFD trading platform to trade with, then have a look at this article.
When you’re trading contracts for difference (CFDs) the trading platform and the broker is an important part of your trading strategy.
1. Your CFD broker’s trading platform determines which CFDs are available to trade. When you get a demo account, check to see which stocks and share CFDs or index CFDs are available, as they differ between providers. The AUSSIE 200, S&P 500, NASDAQ 100, HangSeng, NIKKEI and SGX are examples of instruments that CFD trading brokers may offer. The top shares by volume are usually more liquid anyway, but check the range of instruments to check that your system can be traded.
2. See which trades are possible. Do you do market orders, stop loss orders, limit orders, stop entry orders, take profit orders? If so, then check that you can place these. For example if you absolutely need to do stop entry orders whether long or short, then check that a stop entry for long or short is possible, not just a limit entry order to enter a CFD. It depends on your trading strategy or trading system. If the trade type is not possible, ask for help in case it is not obvious how to place them or if the terminology is a bit different.
3. How easy is it to use the trading platform? Practice placing entry orders, exit orders, contingent orders such as take profit or stop losses, and changing trade sizes, good til cancelled or good for day, and see if you can easily see what positions you’re in and what orders are pending. Also see your account details and margins. Most CFD platforms are relatively easy to figure out, and they are all slightly different.
Remember that even though leverage and margin is available on CFDs doesn’t mean that you have to use it. You can use whichever percentage of margin you want and don’t need to maximise it.
So the CFD brokers you are considering will be improving and updating platforms often and the software you download may need to be updated, and this can take several minutes. So when you log in the morning, do so several minutes before you need to trade to allow time for this.
Your CFD trading system ultimately dictates which CFD trading platforms is suitable to use.
But when evaluating and choosing a cfd trading platform also involves looking at the about us page of the provider and checking that they are stable and reliable and ideally regulated as well in the financial services industry.
As a CFD trader or forex trader or any other type of financial instrument trader, you want to keep these points in mind when choosing a platform.