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How to Trade: CFD Trading Strategies in 2019

One of the most exciting aspects of CFD trading is the amount that can be done with it. Whether you are looking to diversify a portfolio, leverage some better margins on an investment, or simply begin your trading journey, CFDs offer a wealth of options. With many people choosing CFDs as one of their asset types, there is plenty on offer, and all of this can be incorporated into your trading strategies.

  • Find the strategies that suit you best
  • Choose how much time you want to invest
  • Look for what technologies can benefit you
  • Discover which brokers have competitive pricing
CFD Highlights

Read around before you start trading

 

When picking your CFD broker, it is worth looking at a broker comparison to see what is out there. As well as checking up on the best commissions, fees and charges, you can also find out what everyone else is saying about them. After all, not all brokers will be offering the same thing, and when you are trying to hone your CFD trading strategy, you want to be able to execute it almost exactly as you envision it. To do this, you need to be able to figure out in advance exactly what you are after. Do you plan to be a passive trader? Maybe you are someone who will pore over every tiny detail in order to get the best results? Either way, the surer you are about your intentions, the easier it is to find a broker that will suit what you are after. If you end up with a broker that cannot implement everything you had in mind, it can be a bit of a waste of time. Equally, if they have a lot of fancy things that you will never use, it is not worth considering these either. Broker review sites can be so useful, especially ones that bring in the thoughts of other users, to help you get a clearer overview of what they are really like.

Top 3 CFD Broker Comparison

1
of 21 CFD Broker FXTM
FTSE spread 1.0 Point
Dep. Protection € 20.000
Max. Lever 1:30
Min. deposit £ 5
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 21 CFD Broker AvaTrade
FTSE spread 1.5 Points
Dep. Protection € 50.000
Max. Lever 1:30
Min. deposit € 250
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 21 CFD Broker Pepperstone
FTSE spread 1 Point
Dep. Protection £ 50000
Max. Lever 1:30
Min. deposit $ 200
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.

See what technology is out there

One of the most exciting aspects about many of these brokers is how much they have invested in their own technological development to stay ahead of the curve. This is great news as it means that all of them will be aiming to be the first to deliver a new tool or piece of platform development that can really enhance your trading potential. There really are a large number of tools to consider when investigating new CFD trading strategies. With guaranteed stop loss, for example, you can set how much of your funds you are willing to lose in order to ride out some market movement – if you come back after a day away without checking it, you will not have lost all your funds.

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  • Find the tools which help you make the best gains
  • Look for brokers who are clear about what they offer
  • See what others are saying about the best tools
  • Keep an eye on the latest developments to see what is out there

Equally, it means that if you think that it is not worth exiting a market straightaway just because of a bit of a slide down in value, and you are confident of the recovery, you will be able to give it a chance to recover. These aspects may seem basic, but these particular CFD trading tips can really enhance your returns by utilising what they make available.

Discover what tech can help your trading strategy

This is a rapidly developing sector that primarily runs on good technology, so your CFD trading should be backed by this. This is why it exists in the first place, and why we no longer use pens, paper and phone calls to trade the majority of our assets. Other exciting new tools offered by some brokers include the chance to cancel deals within a certain period in case you make a move and immediately a big piece of market news emerges. It can be awful when poor timing by a matter of minutes can seriously affect things to the point where all the value in a deal has gone, and being able to recall it is really helpful. Similarly, some brokers will give you the chance to freeze the price on something for a short period while you see what happens in the next few minutes and figure out which way the market is turning. Not every market move will work out in the same way, and the little touches like this can really help you to know if it is a good idea to trade with it or not. These aspects are the ones that can elevate some brokers above others, and they are worth looking out for.

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Look for what shortcuts can help you out

CFD trading is a bit of a minefield if you do not know where to begin. Some work more like social channels that offer trading, so you can see the people who have made the biggest and best trades over a day, a week, or a month and find out about the latest strategies. Some will then allow you to simply copy these strategies and implement them how you wish. You may choose to imitate them directly, or just borrow some of the best aspects that you believe will help to drive your returns. Not every aspect of trading has to be kept secret, and the prevalence of online and data sharing habits means that it is now a lot easier to find out new things and learn from the best without it feeling too exclusive. This is why CFDs in general seem to have proliferated – it no longer just seems like a virtue of investment bankers far away, and is something that anyone with spare capital and some idea about the market can get involved with right away.

  • Consider copy trading as a place to begin
  • Find out what others are doing for their strategies
  • Research on the latest trading habits of popular traders
  • Discover what the brokers are promoting as their exciting new tools

When it starts becoming more open, the brokers facilitate it in this way, and some of them pride themselves on their transparency above everything else.

See what research has been done on the subject

Many brokers have now decided to compete in what they can offer from a research and education perspective. Not content with fighting it out for custom over the best technology and platforms, plenty of them will aim to deliver a CFD trading guide that can help turn novices into confident investors in a relatively short space of time. While not all of them will do this, a significant number have introduced seminars, webinars and an academy structure to allow you to progress from lesson to lesson. If you are wondering why they would go to such lengths to help traders, remember that the majority make money from every trade that you make, though some only make it when you profit. This means that they have a vested interest in giving you CFD trading tips and everything else they offer on their platform, and some of these education series have won awards, which shows how valued they have become. This aspect usually includes a whole heap of up-to-date market information, and ways to watch others trading on the site. One other really useful thing to bear in mind is that most of these brokers will offer what are called demo accounts, which will let you try it all out for free with virtual funds.

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Find out what algorithms can guide your analytics

When working with CFDs, you do not have to be around all the time for it to work, and many traders will not be able to do so anyway. Rather than this being an obstacle that gets in the way of trading how you want, it can in fact be used to your advantage. Enlist some of the tools that they have available, set it up on a platform with your preferred strategies and watch it work itself out. Some algorithmic trading is at the very latest point of technological development, and is used by some of the best in the business. The democratic feel behind it means that anyone can use these tools to the same effect, and nobody is excluded once they have an idea of how they work. If you have some ideas in mind for the day, and know that some financial results are due to be released, or you want to leverage a volatile market, then you can set up everything and head out for the day, safe in the knowledge that you are still trading within the parameters that you set up. When you know that there is only one of a few outcomes, it can take away the stress of trading, and you do not need to check the news every five minutes.

1
of 22 Forex Broker FXTM
Currency pairs 51 Currencies
Max. Lever 1:30
Trading size Micro-Lot
Minimum deposit $ 5
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 22 Forex Broker AvaTrade
Currency pairs 47 Currencies
Max. Lever 1:30
Trading size Micro-Lot
Minimum deposit $ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 22 Forex Broker Pepperstone
Currency pairs 70 Currencies
Max. Lever 1:30
Trading size Mini-Lot
Minimum deposit $ 200
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 22 Forex Broker Cityindex
Currency pairs 84 Currencies
Max. Lever 1:30
Trading size Mini-Lot
Minimum deposit € 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 22 Forex Broker Plus500
Currency pairs 61 Currencies
Max. Lever 1:30
Trading size Depends on underlying
Minimum deposit $ 100
Go to Broker
CFD Service. 80.6% lose money
1
of 6 ETF Broker IG
ETFs w/ discount 1200
Custody fee 0 GBP
Min. deposit £ 0
Trading from 5 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 6 ETF Broker Fidelity
ETFs w/ discount 93
Custody fee 0 GBP
Min. deposit £ 2.500
Trading from 25 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 6 ETF Broker AJ Bell Youinvest
ETFs w/ discount
Custody fee 0 GBP
Min. deposit £ 0.00
Trading from 1,50 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 6 ETF Broker Bestinvest
ETFs w/ discount 216
Custody fee 0.4% annually
Min. deposit £ 500
Trading from 0 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 6 ETF Broker DEGIRO
ETFs w/ discount 740
Custody fee 0 GBP
Min. deposit £ 0
Trading from 1,75 GBP + 0,004%
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 9 Stock Broker IG Stock
National fees £ 8,00
Custody fee £ 8,00
Intl. fees 10 EUR
Dep. Protection 50,000 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 9 Stock Broker Interactive Investor
National fees 10.00 £
Custody fee 22.50 £ quaterly
Intl. fees 10.00 £
Dep. Protection 50.000 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 9 Stock Broker Calamatta Cuschieri
National fees £ 7.50
Custody fee £ 0.00
Intl. fees £ 7.50
Dep. Protection 100.000€
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 9 Stock Broker Hargreaves Lansdown
National fees 11,95 £
Custody fee 0,00 £
Intl. fees 11,95 £
Dep. Protection 50.000 £
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 9 Stock Broker Fidelity
National fees £ 10,00
Custody fee 0,35%
Intl. fees £ 10,00
Dep. Protection 50,000 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 21 CFD Broker FXTM
FTSE spread 1.0 Point
Dep. Protection € 20.000
Max. Lever 1:30
Min. deposit £ 5
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 21 CFD Broker AvaTrade
FTSE spread 1.5 Points
Dep. Protection € 50.000
Max. Lever 1:30
Min. deposit € 250
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 21 CFD Broker Pepperstone
FTSE spread 1 Point
Dep. Protection £ 50000
Max. Lever 1:30
Min. deposit $ 200
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 21 CFD Broker Plus500
FTSE spread Variable
Dep. Protection £ 50.000
Max. Lever 1:30
Min. deposit $/€/£ 100
Go to Broker
CFD Service. 80.6% lose money
5
of 21 CFD Broker City Index
FTSE spread 1.0 Point
Dep. Protection £ 50.000
Max. Lever 1:30
Min. deposit £ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 14 Crypto Broker IG
Crypto currencies 6
Max. Lever 1:2
Min. deposit £ 250
BTC spread 65 points
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 14 Crypto Broker IQ Option
Crypto currencies 13
Max. Lever 1:1
Min. deposit $ 100
BTC spread 6 percent
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 14 Crypto Broker CC Trader Crypto
Crypto currencies 5
Max. Lever 1:1
Min. deposit € 0
BTC spread 0
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 14 Crypto Broker City Index
Crypto currencies 5
Max. Lever 1:2
Min. deposit £ 0
BTC spread 40
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 14 Crypto Broker Plus500
Crypto currencies 10
Max. Lever 1:2
Min. deposit £ 100
BTC spread variable
Go to Broker
CFD Service. 80.6% lose money
1
of 6 Social Trading Broker ZuluTrade
Underlying assets 0
Dep. Protection 0
Min. deposit € 0
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 6 Social Trading Broker eToro
Underlying assets 866
Dep. Protection 50000
Min. deposit $ 200
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 6 Social Trading Broker Ayondo
Underlying assets 90
Dep. Protection 1000000
Min. deposit £ 2000
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 6 Social Trading Broker Tradeo
Underlying assets 122
Dep. Protection 20000
Min. deposit £ 250
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 6 Social Trading Broker FXTM
Underlying assets 247
Dep. Protection 20000
Min. deposit £ 5
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 9 Spread Betting Broker IG
FTSE spread 1 Point
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 0
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 9 Spread Betting Broker City Index
FTSE spread 1 Point
Dep. Protection 50000
Max. Lever 1:20
Min. deposit £ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 9 Spread Betting Broker ETX Capital
FTSE spread 0.1 Points
Dep. Protection 50000
Max. Lever 1:30
Min. deposit $ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 9 Spread Betting Broker Core Spreads
FTSE spread 0.8 Points
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 10
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 9 Spread Betting Broker OANDA
FTSE spread 1 Point
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 0
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.

Work with lots of different assets

One exciting aspect of CFDs is that you can choose to do something completely different with each of your asset types. While you may choose to sell short on some forex CFDs, you can also enable overnight holds on some big stocks, so you can hold the position to see how things work out. This degree of flexibility means that there is so much more to be done with trading now. There is no need to wait to see how things develop if you do not want to, while there is also the option to see how the market moves. The idea that you can go long with some aspects and short with others also allows you to diversify your portfolio more specifically, so you can ensure that you are less exposed in case something goes wrong that you had not taken into account. As with all investing, it is impossible to see the future, and anything can happen, but by introducing a range of trades with your CFDs, you can make yourself well covered regardless of the overall result. This is how you can stay happy even if what you regarded as a sure thing does not pay off.

Conclusion:

In conclusion

Using these CFD trading tips, and with an increased understanding of the underlying CFD trading strategies, you should now be ready to utlilise them to their full potential. As trading goes, CFDs are one of the most exciting types out there as they offer so much potential to do different things. There are very few people who are likely to do exactly the same trades side by side, and this is what makes it so interesting. If one day goes badly, you can simply switch it up the day after, and introduce new tactics and strategies to try to elicit some better results. With many brokers offering a great selection of updated information, charts, key indicators and tools to help spot the right patterns, it is always possible to improve on the results of the previous week. This kind of mechanism make you feel like there is always more to achieve, so whatever your aims are, you can learn as you go and find new ways to get returns from the market, while always feeling in control of the situation.

CFD Highlights