Ryan Posted May 15, 2020 Share Posted May 15, 2020 Hello, I have currently in the process in joining CFD. However, I need to be ready and aware of what to expect. So, I kindly request that you enlighten me of the kind of information I should expect from my CFD provider. Quote Link to comment Share on other sites More sharing options...
0 Josh Posted May 16, 2020 Share Posted May 16, 2020 Hello Ryan, CFD providers need to educate their clients on how to operate in a CFD market. The information they provide should be free from material misstatements and should also be fair. This information should also be comprehensive and should include what services the CFD providers offer and the risks that the clients will face while investing in such a market. They should also include the costs that these investors will incur so that they can understand the nature of this kind of investment and its risks. This will help the investors make proper decisions depending on the information they have. Since dealing in CFDs is a bit complex. Investors should, therefore, get comprehensible and unprejudiced information about how particular products function and what risks they will have to face. If CFD investors are not able to know the risks that they will be facing and the costs they are likely to suffer while trading, then they may end up suffering losses in the course of their business. Quote Link to comment Share on other sites More sharing options...
0 penninah Posted May 18, 2020 Share Posted May 18, 2020 Hi Ryan, Your CFD provider must educate you on how to operate in the CFD market. Dealing in CFDs is complex. As such, your broker must always present you with comprehensive and unbiased information regarding each product. Commission or spread effectively refers to the costs of each trade. It’s a critical value to help you pick a broker. Demand spread figures on assets you intend to trade most. Expect clear deposit or withdrawal options from your provider. Insist on ensuring your preferred methods to withdraw from or fund your account are available. Leverage or margin is that percentage of an overall trade value you commit. Making a £1,000 on a GBP/USD currency pair requires a £50 deposit but exposes you to £1,000 in risks. Your broker needs to warn you of this risk since losses could exceed an initial deposit. Your broker presents margin in multiples such 200:1. That indicates leverage as 200 times your deposit, or an equivalent 0.5% margin. Regulatory bodies like ESMA and FCA restrict leverage amounts on CFD trading as your protection. Therefore, your broker should refrain from irresponsible leverage offers like 1000:1. Your trading platform needs to be easy to use and familiar. Expect from your provider a platform whose usability, feel, and looks meet your personal preferences. That way, you avoid missing prices or making errors due to an unsuitable trading platform. Requisite information should include the best researching tools, charts, and technical analysis features. Also, expect educational materials like webinars and eBooks about the market. Quote Link to comment Share on other sites More sharing options...
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Ryan
Hello, I have currently in the process in joining CFD. However, I need to be ready and aware of what to expect. So, I kindly request that you enlighten me of the kind of information I should expect from my CFD provider.
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