5 things to look for when choosing your CFD broker


Contracts for Difference, also known as CFDs, are an increasingly expanding market in the trading world with an increased amount of interest and investment from global retail traders. A CFD is essentially an agreement between two different parties wanting to trade the difference between the opening price and closing price of a contract.

You can use CFDs to deal and surmise the developments and movement of over thousands of financial markets, regardless of whether they are gaining financial momentum or dropping in value. According to leading broker platform, XTrade, trading CFD’s is an exciting experience and understanding that trading with a superior broker is an important tool for trading with confidence.

Below are 5 of the most important things to identify when choosing the best CFD broker for you.


When selecting a broker, support and training as well as advice and ease of platform navigation are key factors in the process. When selecting your broker make sure to check that these things are on offer. Support and assistance, such as webinars, how to videos, trading assessment and a resource library are the type of support features top trading brokers will provide for you to have the best trading experience.

Regulator Approvals

When trying to find the best CFD broker internet searches can come up with a host of conflicting sources offering market information and trading advice, with little guidance on credibility and feasibility. Online sources, such as Xtrade Academy provides accurate l information that ensures you make the trade that suits you best as well as information as well as how to use it. The key is to make sure the broker you select is legitimate, above board, and follows appropriate laws and regulations when handling trades. One way to do this is to check their regulatory approvals and reviews

Trading Platforms

Top brokers, offer products across the global markets, this is something to look out for as it means traders can easily trade any market while that market is open from their broker’s platform. Make sure you navigate the site and familiarize yourself with the software used on their trading platform, this will help you to get an idea of how it will work for you and whether is has all of the information you need available to you in real time. The site should include price information, charts, and news feeds and it should be easy to make trades, and place a stop loss or take profit order. Different brokers offer different platforms, these can include, desktop, web or mobile – each has their own benefits – but be sure to look out for the platform that suits you best.

Commission Charges: Professional Execution With No Fees 

According to a variety of different sources,  one of the primary reasons CFD trading has become so popular is due to the fact that it eliminates many of the brokerage and exchange-associated fees, CFD brokers offer many of the same order types as traditional brokers including stops, limits and contingent orders such as “One Cancels the Other” and “If Done”, yet very few, if any, fees are charged for trading a CFD. Make sure to double check this information on the trading platform – nobody likes “hidden costs”.

Markets Covered

Different brokers can handle CFD trades on different markets. For instance, you may be interested in CFDs based on corporate stocks, market indices, commodities, currency exchange rates, or interest rates. Once you know the type of CFDs you are interested in trading, you can find a broker that offers those options. The range of CFDs offered and the markets and indices covered are also frequently used as part of the trader’s checklist. The more CFDs that can be traded through the broker you select, the better it is for you. Ideally you should find a broker that will go after the top 300 CFDs to make trading dynamic and beneficial to you.

Margin Requirements

Before you start trading make sure you understand the margins that your CFD broker offers. More often than not the margins will stay at about 10%, varying anywhere between 5% and 20%. The leverage in this case is usually at about 10 to 1. These figures should give you the option of attaining higher profits while using the CFD, especially if placed side by side with different shares or stocks. Should you find your broker offers substantially higher margins you might want to avoid using them.