Finance
Best CFD Brokers in the World
Let’s get to know what is meant by CFD and how it all works. Then let’s check out The Best CFD Brokers in the World.
What are CFDs?
A Contract-for-Difference or CFD can be defined as a contract between two parties (eg. the buyer and the seller of that contract), to exchange the difference in the current price of a particular asset and its price at expiration of the contract. In other words, a CFD is a trade contract entered into by a buyer and a seller, for the price difference between the opening and closing price of a trade contract in that asset to be exchanged between both parties. The differences in price are settled via cash payments (as opposed to physical delivery).
The difference between CFDs and futures contracts is as followsrr5r: in futures contracts, there is physical delivery of the asset on contract maturation. For CFDs, there is cash delivery in lieu of the physical delivery of the assets.
CFDs can be traded in both directions: traders can assume long positions if the expectation is that the expiry value will be higher than the value on contract open. In the same way, traders can go short if the expectation is for prices to fall from contract open to contract maturation.
XTB
XTB is an award-winning CFD platform that supports Forex, indices, commodities, stock CFDs, ETF CFDs, and cryptocurrencies. For Forex, XTB supports 48 currency pairs with low-cost spreads. Customers of XTB can choose between trading on the xStation 5 or MT4 platforms. For leverage accounts, this brokerage offers leverage of up to 200:1.
Stock and ETF CFDs all attract a fixed commission of 0.08% per lot across the two types of accounts.
XTB was founded in 2002 with headquarters in Warsaw. It is regulated in markets across Europe by the IFSC, FCA, KNF, and CySec. XTB has a free demo account and a Trading Academy set of courses for beginner and intermediate traders.
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Markets.com
Markets.com was founded in 2008 and was rebranded in 2019 to MarketsX, alongside the introduction of Marketsi in 2020 to invest in real stocks and shares. The broker is part of the TradeTech Group which is a constituent of Playtech PLC, an FTSE 250 company listed on the London Stock Exchange.
The Markets.com group offers regulation from the Cyprus Securities and Exchange Commission (CySEC), the British Virgin Islands Financial Services Commission (FSC), the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC) and the Financial Sector Conduct Authority of South Africa (FSCA).
With MarketsX users can trade commission-free on more than 2,200+ CFD instruments covering Shares, Indices, Bonds, Blends, Commodities, Currencies, ETFs and Cryptos. Users can also invest in real stocks and shares via a Marketsi account which comes with an innovative Investment Strategy Builder tool.
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IC Markets
IC Markets was founded in Sydney, Australia in 2007 and is regulated by the Australian Securities and Investments Commission (ASIC), as well as the Seychelles Financial Services Authority (FSA). According to the broker’s website, they processed $646 billion worth of trading volume in April 2019 alone.
While the broker offers services and features designed for both beginner and professional traders, the company promote themselves as the ‘go-to’ choice for high volume traders, scalpers and trading algos due to their New York Equinix NY4 data centre – processing over 500,000 trades per day.
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TMGM
TMGM is authorised and regulated in various jurisdictions including the Australian Securities and Investments Commission (ASIC) and the Vanuatu Financial Services Commission (VFSC). It also holds an Australian Financial Services Licence and segregates client funds from its own, holding them with tier 1 Australian banks Westpac and National Australia Bank.
With TMGM, users can trade on more than 15,000+ financial CFD instruments covering 7 asset classes including Forex, Metals, Energies, Cryptocurrencies, Commodities, Indices and Shares from the US, Australia and Hong Kong. This can be done from 2 types of trading accounts. The Edge Account offers commission-based trading of $7 per round turn and raw spreads from 0 pips while the Classic Account offers commission-free trading with spreads from 1 pip.
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GO Markets
GO Markets Pty Ltd an ASIC regulated broker has been in operation since 2006. The head office is located in Melbourne, Australia. GO Markets offers forex, share CFDs, indices, metals and commodities for trading on the MT4 and MT5 trading platforms.
It offers over 250 forex/CFDs assets for trading on its MetaTrader platforms and the maximum leverage offered on all accounts is 1:500. A dedicated account manager is assigned to all account holders. The account currencies are AUD, USD, EUR, GBP, NZD, CAD, SGD, CHF and HKD.
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FP Markets
FP Markets is the brokerage arm of First Prudential Markets Pty Ltd, an Australian firm that was established in 2005. In over 14 years of brokerage operations, FP Markets has grown to become a foremost online forex and CFD broker.
The Head Office is located in Sydney, Australia. The brand has won multiple industry awards in areas like; customer service, trader education and trade execution.
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BDSwiss
BDSwiss was founded in 2012 and offers trading accounts regulated under the Mauritius Financial Services Commission and the Cyprus Securities and Exchange Commission.
Users can trade on more than 250+ financial CFD instruments covering Forex, Commodities, Cryptocurrencies, Indices and Equities, on 3 account types called Classic, VIP and Raw on the MetaTrader 4 and MetaTrader 5 trading platforms and the broker’s own BDSwiss Web Trader and BDSwiss Mobile App.
The broker also offers educational events via live analysis and educational webinars and seminars, as well as a beginner to advanced courses in its Trading Academy. Users can also access AutoChartist and live trading alerts via Telegram, depending on account type. Customer service is offered 24/5.
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Tickmill
Tickmill was founded in 2014 and is regulated by the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Seychelles Financial Services Authority (FSA).
The broker provides more than 80+ CFD instruments to trade on covering Forex, Indices, Commodities and Bonds through three core trading accounts called the Pro Account, Classic Account and VIP Account. They also offer a demo trading account and Islamic swap-free account.
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Plus500
Plus500 is a leading CFD trading platform with support for stocks, indices, cryptocurrencies, and Forex. This commission-free brokerage charges very low spread-rates and offers fast trades on a great platform. Plus500 supports complex trades, includes negative balance protection, and makes trading an educational and hopefully profitable venture.
You can start with a free demo account to test the platform and any trading strategy. Real money accounts offer leverage of up to 1:30. This broker is based in Israel and regulated by the Financial Conduct Authority (FCA) in the UK.
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FXCM
FXCM Group is an international online forex and CFD brokerage brand. Founded in 1999, The company is based in the UK. The brokerage firm also maintains offices in several jurisdictions such as Australia and South Africa.
In terms of tradable products, FXCM offers trading in the spot forex markets, cryptocurrencies, Treasury bond (the bund) and Contract for Difference (CFDs) for market indices and commodities. Due to the new ESMA regulation, the maximum leverage offered by FXCM is now restricted to 1:30 for major currency pairs.
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For more information refer: https://www.fxempire.com/brokers/best/cfd
