Competition among CFD brokers is high so as finding the best one may prove to be tough. These CFD brokers want your account so they will employ various ways which will make you want to hire them. They will not even rule out tactics like handing ot freebies including cellular phones and some free lessons about CFD trading . However, nothing is for free, so what is the catch? These are five things that you just have look out for in a CFD broker.
- See just the number of stocks will they provide you access to. Ideally, you must have the ability to make minimum trades of top stocks through your chosen CFD broker and you will even find those that offer up to 2000 stocks or even more.
- Find out which model thay follow: is it the direct market access of the market maker. Not one of the two is perfect but they each have their own advantages and disadvantages.
- Find out if their CFD brokering platform is one that is straightforward to operate. Look for very user-friendly platform, you'll find a lot of platforms wherein you'll need to study for two months in order to apply it successfully. Remember to ask your broker about lessons on the basics of CFD software operation. If they do not have that, you could potentially finish up spending plenty of cash.
- And ask about the quantity of stocks that you can short sell. There are some brokers who are very strict on their restrictions on short selling so it is best to learn from the very beginning just what you can trade and which you cannot. Your broker should have a list of the stock that they allow for short selling and you ought to procure that list.
- And finally, check out what things you might have to pay for:
- The CFD broker commissions
- financing rates
- The cost of the CFD platform software
- The ease of accessing the data on particular stocks
Once you've got all of the five basic information in your hands, then now you can ask the right questions and get the data you need to look for the CFD broker you'll work with.