CFD Providers

Here are some things to think about with CFD brokers:

1. A CFD broker will determine your market prices

When trading CFDs, they are essentially a market made price. They do reflect the underlying share or stock price, but depending on the CFD provider made have slightly different spreads.

When trading liquid stocks, these should be similar, and when trading illiquid stocks, the spread may be larger as it is in the underlying stock. But what you should do is to see on their trading platforms what the spreads are and if these are fine.

Some CFD provieders are DMA (Direct Market Access) providers and may offer you market prices but this also depends on the speed of execution so check it out always on the platform you are looking at and make sure you are happy with it.

2. Your CFD brokers have the various instruments that you’re trading.

If your CFD trading system trades on the S&P500 or the NASDAQ100 or ASX CFD’s such as the AUSSIE top 200 and CFDs on other international shares and indices, then check to see that they are available.

We can back up a step and check that you do have a CFD trading system that you trade with, with or without backtesting. So see their list of tradable instruments, whether it is share CFDs, index CFDs, commodity CFDs and also forex.

Trading involves a plan and money management.

3. The trade types you can place

Check that you can place the types of orders you need to. For example, market orders, limit entry orders (long or short), stop entry orders, (long or short), stop loss orders, guaranteed stop losses and others.

If these types of orders are used, then check on their platform (demo account and real account) that you can place them.

A note on long and short: Check that the stocks (number and type) that you want to short are available. Not every stock will be shortable, but if you do a lot of short trading, then check that there is enough there to trade with.

Finally, check that the provider has a good reputation and customer comments as well.

Remember that trading involves risk and that you should seek financial advice before investments and trading.

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