An overview of the best CFD trading platforms

Adding a CFD contract (CFD) to your portfolio can reduce risk and boost your return by diversifying. The typical CFD trading platform allows you to trade thousands of financial instruments and commodities without having to hold the asset you trade. Let’s find out about the best CFD trading platform

CFDs allow you to speculate on the movement of prices in investment, be it commodities, stocks, cryptocurrencies, or forex, offering you the possibility of diversifying your investment across various assets. Remember that trading with CFD contracts is not available for trading through U.S. residents.

In the next post, Benzinga reviews the best CFD platforms currently available to trade and considers the most critical aspects like commissions, markets, payment, and regulations.

Best Overall: Interactive Brokers

Interactive Brokers provides some of the lowest fees and commissions that retail traders can get, in addition to the best quality features, research, and other services that traders can avail of. Interactive Brokers is also among the most flexible and professional online brokers currently accessible for retail traders who can afford the substantial initial deposit of $10,000 or its equivalent.

Interactive Brokers operates in 150 markets across 33 countries. Additionally, signing up for an account with them in 25 different currencies is possible. Interactive Brokers is listed by all major world exchanges and markets, and the majority of regional commodities, stock and options exchanges. The major regulators monitor the broker across the globe. Although the company is U.S.-based, its CFD trading operations are based on the U.K. You should also know the best forex broker in India

Interactive Brokers placed second on the list of Benzinga’s best CFD platforms due to its extensive research tools, excellent trading platform, and access to many tradable assets.

  • Forex: Trade over 80 currencies CFD pairs through Interactive Brokers with access to real-time information for the 14 most reputable forex-dealing banks. This feature, along with a low-cost, transparent commission, will avoid conflicts of interest like those found in the case of brokers who handle their customers’ accounts. Interactive Brokers’ order book allows you to place orders in or away from the market within the electronic communication network (ECN) structure. Additionally, you can use FXTrader, the only optimized interface that offers specially-designed tools to trade on the forex market.
  • IndicesTrade every primary global equity index in quantities as low as 1X the index. CFDs based on indexes do not expire like the underlying futures contracts, which may reduce rollover and other expenses.
  • Metals Deal CFDs for London silver and gold. The stated CFD price is derived from quote streams from around ten banks. The IB SmartRouting system obtains the most competitive price, which then becomes the price used to determine trading in the CFD trade. Gold comes with a 0.015 percent fee per trade for silver transactions, while silver trades carry the 0.03 percent fee and a minimum $2.00 cost.
  • Share CFDsTrade about 8,000 diverse share CFDs in the significant market in the U.S., Europe, and Asia. Share CFDs represent the quoted exchange price for the shares in the base with IB SmartRouting technology used to determine the CFD reference price. Retail customers must meet a minimum 20% margin requirement; however, commissions start at 0.05 percent with lower commissions for active traders.

Pros:

  • Trade CFDs and the underlying assets in the same account. check the screen
  • Fees and margins are low, as are the fees and margins.
  • Trader Workstation desktop trading platform
  • Resources for technical and fundamental analysis

Cons:

  • Limited CFD selection
  • High initial deposit amount
  • CFD trading is not available to U.S.-based traders

Best for Crypto CFD Traders: Capital.com

Capital.com is a multinational company with seven branches in the U.K. and elsewhere. The broker is managed by FCA, CySEC, ASIC, Seychelles’ FSA and the Belarus NBRB. The minimum amount to create an account with Capital.com is only $20 however bank transfer deposits have to be at minimum $250. The NBRB-regulated accounts allow you to leverage commodities, cryptos such as forex currency pairs, commodities and indices with an inverse of 100:1, whereas shares can be leveraged up to 20:1.

Capital.com comes out with the best range of CFDs for cryptocurrency that don’t require a wallet or key to access the cryptocurrency. It is possible to trade CFDs with over 6,100 of the underlying assets offered by this broker.

  • Indexes: trade 17 of the most extensive stock indexes in the world. Leverage ratios typically are 20% for FCA and ASIC/CySEC-regulated accounts.
  • Shares: You can trade up to 1700 share CFDs across the major stock exchanges in the world. You can trade significant stocks on global sales, with leverage ratios typically 5:1 in FCA and ASIC/CySEC registered accounts.
  • Commodities: Trading CFDs for things like precious metals, energy, and agricultural commodities, using leverage ratios of 10:1 except for gold, which has a 20:1 leverage ratio for FCA and ASIC/CySEC-regulated accounts.
  • Forex You can trade CFDs for seven major, five minor, and six exotic currency pairs, with the typical leverage ratio of 30-to-1 for FCA and ASIC/CySEC-regulated accounts.
  • Cryptocurrencies Trade 25 cryptocurrencies and CFDs in 450 crypto pairs. With leverage of 2:1 on an ASIC/CySEC-regulated account.

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