The Trading Offer – what does the CFD Brokers offer?
Trading in contracts for difference has become one of the trading options used by more and more traders. The supply of CFD brokers in the market has increased accordingly. It is not easy for traders to get an overview. One criterion that is particularly important in choosing a broker is the trade offer. The versatility in this area is an interesting factor even for beginners. The focus is on tradable underlyings. What does the broker actually offer? Some financial service providers are specialized in stock CFDs. However, if you want to broaden your scope as an investor, this is not enough.
From indices to raw materials
A broker is convincing if his offer is as broad as possible. Many suppliers score points in the test, as it is often possible to trade contracts for difference on indices, commodities, foreign exchange and equities, four assets that are especially popular. They provide a very good basis for trading. However, in a comparison, you should take a closer look and get an idea of how the broker is positioned in the individual assets with respect to the underlyings.
- Some brokers specialize primarily in equity CFDs.
- Which assets are available for CFD trading?
- Make sure there are enough interesting Underlyings in each asset class.
Conditions: Costs of CFD trading
In a broker comparison it is particularly important to have a look at the fees. The spreads are relevant in the first place. These are the fees that are due for each trade. The broker usually lists the spreads on the website, so you can see directly whether they are fixed or variable spreads. This has the advantage for you that you already have an overview of the approximate costs before you register. In a CFD broker comparison you should take care to scrutinize the spreads of the most common underlying assets very carefully.
Possible additional fees
Trading costs are not always listed in a transparent way. In addition to the spreads you should inform yourself about possible commissions. Some providers charge a commission only for certain products. In addition, any fees for the trading account are of interest. As a rule, the accounts are free of charge, but some brokers charge an inactivity fee. This should be noted in the terms and conditions. A good comparison should show if additional costs are to be expected.
- In a CFD Broker Comparison the trading account costs matter.
- You should also compare the providers
- Not all fees are always transparent – a look in the terms and conditions is recommended.
CFD brokers with multiple account models
It is quite possible that a CFD broker offers different account models. Traders may benefit from this, as the costs and advantages often vary and are tuned to different levels of experience. Several accounts are especially interesting if, for example, there are accounts with fixed spreads. In that case, the more active you trade, the lower the cost of trading, so it may be interesting in a comparison whether different account models are available. Pay attention to other points, such as whether a better service or other services are available depending on the account model.
The minimum deposit is another criterion that to be included in the comparison. Although it gives no indication of whether the broker is reputable, it is a clue for many traders deciding whether they want to open an account. CFD trading is especially interesting for small investors. Therefore, a high minimum deposit can be considered a significant disadvantage. Since brokers usually know that CFDs appeal primarily to retail investors, they usually set a small minimum deposit. On average, you might expect 100 euros.
- Get an overview of the available account models.
- Compare the terms and benefits of the accounts.
- Some brokers require a minimum deposit, which is usually not too high.
CFD trading platforms and mobile trading
The trading platform is a particularly important aspect, so make sure that the available software is powerful, reliable and easy to use. It should allow for a concise overview of your activities and also provide assistance in developing a strategy. Advantages of a good trading platform are:
- Intuitive handling even for beginners
- The widest variety of tools possible
- Customizable interface
Some brokers may provide multiple trading platforms, but many rely on a proprietary one, as they have made the experience that they can better respond to clients‘ needs. The tool selection, too, is often much better with proprietary software. Nevertheless, the majority of vendors also offer proven trading platforms such as the popular MetaTrader 4. If you want a good CFD experience, you should check the respective services to see if the software will meet your needs. Most brokers also provide apps and mobile software solutions to give their customers as much flexibility as possible. Thus trading is also possible on the go, via smartphone, tablet or iPad.
- Many brokers offer a choice of several trading platforms.
- Learn about the features and tools of the software.
- Nearly every broker also facilitates trading via app or web version.
Usability of the CFD broker‘s website
One of the criteria in a comparison is the user friendliness of the broker’s website. With the question “Who is the best CFD provider?”, the focus is not on usability, but as a first point of contact for a trader the website is part of the customer service. The most important information should be easy to find and answer initial questions traders might have. Make sure that all relevant content is available in a language that you understand. The following information should be available within a short time:
- About account models and platforms
- Spreads and other fees
- Contact details and information on regulation
Many brokers are based overseas and operate internationally, so the website is often English-speaking. But as a rule, if you are not automatically directed to the English language version, you should have the option of selecting your language in the header area of the website. It is advisable to take a closer look at the some areas; at least legal documents, the price-performance-overview and support should be available in your language.
- Navigation and website design should be user-friendly.
- Is the information on the website easy to find?
- The most important content should be available in your language.
Customer support – contact in case of emergencies
Customer service is a topic of particular interest in CFD trading whenever you have a problem. Basically, the first questions should be clarified on the website. Some brokers provide a FAQ section, which usually gives you some helpful answers. Since this is not always sufficient, it is advisable to test the support before logging in. Of particular interest here are the contact paths, the times of availability and the competence of the customer service staff.
In order to be the best CFD Broker for you in the field of customer service, a provider should be available at those times when you primarily use the services. Some providers are available 24 hours a day, others only on weekdays or at fixed times until the early evening. Moreover it is recommended to take a closer look at the contact options: A live chat is particularly convenient and has the advantage that meanwhile you can continue to trade without needing to open an extra mail or a form. Besides, you’ll usually receive an answer directly. But even a hot-line can be a good solution for communication – just be sure to check in advance if there are any charges.
- Consider the contact options in a comparison
- Is support available during your preferred trading hours?
- Test in advance whether the support answers swiftly and competently.
Methods for deposit and withdrawal
If you have found a broker who might be the best CFD provider for you, another look at the methods of payment is in order. The deposit into the account with the CFD broker is the first step to start trading. As a rule, a wide variety of payment options are accepted. Common methods include:
- Deposit by credit card
- Deposit through online services such as Skrill, Paypal or Neteller
- Deposit via SOFORT transfer
Most brokers give their customers a lot of flexibility here. Many traders still like to use the credit card as a means of payment, as transactions are quick and the credit card is safe. But payments by bank transfer convey a sense of security, too, though this is not always the first choice due to the longer processing time. Neteller, Skrill and SOFORT transfer are now also available at many brokers. When you consider the payment methods in your rating, keep in mind that it is sometimes important to be able to act quickly.
Another important aspect in terms of payment terms are possible fees and limits that you should check in advance.
- Various deposit and withdrawal methods
- Check possible fees and limits
- Consider duration of transfer
Additional offers: CFD demo account, webinars & more
Those who want to establish themselves as best CFD broker for beginners nowadays need to offer something – like a demo account, further education options such as e-books, webinars, video courses, tips on strategies or lexicons. However, quantity is not always crucial here – and not only beginners, but also advanced traders may benefit from such offers. It is also a good idea to check which tools and extras are available, such as business calendars or automatic trading systems. Besides, a demo account is a big advantage.
Take advantage of the CFD demo account
If you want to gain CFD experience in trading without investing your own capital, a demo account is the answer. A CFD demo account allows you to familiarize yourself with the platform and try out trading and is useful for testing strategies. Should a broker make the demo account available only for a limited time, this is not an exclusion criterion, although an unlimited version is particularly advantageous. In addition to the validity, the amount of virtual credit is interesting – and you should make sure that you trade at real trading conditions in the test account, the environment thus corresponding to the real trading account.
- Is there a training and education area?
- Tools and extras, such as an economic calendar
- Demo account is useful for both beginners and advanced traders
Regulation and deposit insurance – is the CFD Broker reputable?
While with financial instruments such as CFD fraud can never be completely ruled out, regulation at least provides information on whether a provider’s activities are controlled and action is taken if necessary. To obtain a license, a broker must meet certain requirements. Regulation is the responsibility of the respective financial regulator at the headquarters of the broker. If he offers his services in other countries as well, he is usually also registered with local authorities.
Security of client funds and data
In order to prevent CFD fraud it is advisable to choose a provider who in the broker comparison offers encrypted data transfer. If this is not the case, there is the risk that the data will be intercepted and abused by hackers. However, this is not the only consideration when considering who might be the best CFD provider. In addition to regulation, deposit insurance is particularly important. You should check if and up to what amount your deposits are insured. It is also advisable to know whether the broker keeps assets and client funds separate, which is usually the case.
In the broker comparison, therefore, the following points should be considered:
- Deposit insurance
- Data encryption
Brokers put to the test: Reviews in the trade press and awards
You have found a supplier that convinces in most important areas and meets your requirements? Then it might be interesting to see if the broker is mentioned in the media or has received awards for certain achievements. Specialist magazines conduct regular tests, giving awards and titles such as “Best CFD Broker”. A look at current reviews may be worthwhile, too. They show what changes there are with a broker, the offers he makes and how he is rated by the press. Usually brokers themselves refer to press coverage on their websites and link to various relevant reports.
In the trade press and on various portals dealing with the CFD trading brokers repeatedly receive awards. Often the support, the platform, the trade offer or the complete package are evaluated. First place goes to the provider who can do very well in the respective areas. Look for titles like “Best Trading Platform” or “Best CFD Broker” – and pay attention to the actuality. For sure you’ll also find customer opinions about the respective brokers, but these are subjective and should therefore not be crucial for your decision.
- Are there trade press reviews and expert opinions?
- Ratings of other traders are generally subjective and therefore not critical.
- Check if the broker of your choice has already received awards.
Market overview and market outlook
CFD trading has experienced a significant upswing in recent years. Especially newcomers to the market as well as small investors appreciate the opportunity to become active in the cash markets or futures markets. As the number of underlyings also increases, the market will become more attractive to experienced traders. But although interest is high, traders should be aware that CFDs are very speculative products that are always risky. However, CFDs offer the great advantage that traders have the opportunity to act much more effectively than if they invest directly in the underlying assets. The diversity is enormous, and the increasingly popular trading in cryptocurrencies is possible through CFDs, too.
Assessing future developments
Trading on the stock exchange and also outside the stock exchange has developed somewhat. With more and more brokers offering the possibility to simply go online for trading, the upturn is hard to beat. But what about the CFDs as products? Since they are a very transparent financial instrument that has no time value loss and also offers the possibility to trade high volume even with low capital expenditure, it may be assumed that the development of CFDs will continue to be positive, making them a quite suitable future investment.
Using comparisons and reviews for choosing a broker
Our comparisons and awards may provide guidance, to help you find out which provider was able to convince us as well as our readers in the CFD Broker Test. Nevertheless, a broker should meet your individual requirements. When making your decision, you can consider various criteria to make a shortlist. After that, we recommend a broker comparison to take a closer look at some aspects – such as regulation and deposit insurance, costs, trading offer and software.
Being active in CFD trading does not mean that other types of investment can not be of interest to traders. Many brokers therefore provide a very broad range of offerings and, in addition to CFD trading, for example, enable stock trading or forex trading. If you are informed about the various CFD brokers and are interested in trading cryptocurrencies, then a crypto broker comparison might be useful. With some providers, you can speculate on the prices of Bitcoin and others by CFD. AskTraders provides a wealth of information on the various trading opportunities. Take advantage of our free comparisons and inform yourself in the broker experience reports to find the right CFD broker for you.