The easiest way to get access to any of the world’s popular investment markets is to use a broker, and the easiest way to get access to as many markets as possible is to use a CFD and forex broker. Unlike a stock or commodity broker, a CFD broker opens the door to several markets on the same platform. Although finding the right broker is easier said than done, especially if you’re trying to find a broker on your own, which is why we suggest you take a look at the tips we can offer for your selection process
At this stage you have two choices – you can either follow our advice on how to best evaluate the available brokers or you can just go with one of our recommendations. It’s completely up to you, but the latter option is obviously the most practical one.
Benefits of CFD Trading
Before we get into more details about brokers we want to clarify why you want to trade CFDs in the first place. In our humble opinion, there are three reasons why CFD trading is superior to all other forms of trading.
- Availability to several markets on the same platform keeps you focused and helps you avoid boredom. We are advocates of diversified portfolios, and CFDs are perfect for that.
- All CFDs are leveraged products which helps increase your potential profits in exchange for higher risks.
- Compared to other types of trading, CFD trading is easy to use and relatively quick to master.
How To Find a Suitable Broker
There are several things you have to consider if you’re looking to find a broker on your own and we’ll walk you through the process.
Licenses and Regulation
Our first tip and the most important aspect in the evaluation process is to figure out if a broker is licensed or not. We do not recommend anyone use a broker that is not regulated since you will expose yourself to too much risk. A regulated and authorized broker is obligated to protect you and all of their clients, and they have to offer a fair product. An unregulated broker, on the other hand, can do what they want without consequences.
Luckily, there is a good number of regulated brokers that you can choose from and we have put together a complete list of regulated CFD brokers for your convenience.
Please remember to never use an unregulated broker!
The Best Assets
After you’ve confirmed that the broker you’re evaluating is regulated you want to take a look at the assets the broker offers. What are your intentions and goals? Do you want to trade forex, cryptocurrencies, stocks, commodities, or a combination of them all? Maybe you’re looking for a specific asset only. There are brokers on the market today that offer everything from 250 assets up to several thousand instruments in several asset classes.
Naturally, you want to find a broker that provides the assets you’re looking for, but it is also beneficial if they offer others too since you might end up changing your focus in the future.
A Platform That You Feel Comfortable With
So you’ve found a regulated broker that has the assets you’re looking to trade and you are now halfway through the selection. The next step is to evaluate which platform the broker offers and whether or not you like it. Today, most brokers have more than one platform that you can choose from, and some of them even have the same platform.
The MetaTrader 4 is the best forex trading platform in the world, and it is used by multiple brokers. In addition, the MetaTrader 5 is one of the best CFD trading platforms, and that too is used by multiple brokers.
Moreover, brokers can develop their own platforms which give them the opportunity to add their own unique features and analytic tools. When a broker really puts an effort into developing a good platform they often come out better than MetaTrader’s software.
In today’s market, the most common setup is to offer one proprietary platform as well as one of MetaTrader’s platforms.
It’s important that you find a platform that is easy to navigate and that you feel comfortable with and the best way to test that is to open a CFD trading demo account, more about that in the section below.
And don’t forget to check how mobile-friendly the broker is in case you would need to keep an eye on your positions while on the go.
Account Types to Fit Your Needs
The last step in the process is to check what types of accounts the broker offers. In our opinion, a regular trading account plus a demo account is mandatory, and everything on top of that is considered a bonus.
- A regular trading account is what most people use to trade on a broker’s platform. Typically, the account gives you access to all of the features and tools that you will need to invest but you shouldn’t count on any personal perks.
- A demo account is a trading account where you use virtual money to trade, meaning the trading is risk-free and perfect for beginners. You can learn a lot from using a demo account, but you will never be able to pocket any of your virtual profits.
If you’re a professional trader that has a lot of available funds to trade with, you need to make sure that the broker can accommodate your needs. Is there a professional account with fewer fees and higher limits? Do you get any perks by starting a professional account? As a high roller, you want to make sure that you get offered the perks you deserve, and you really shouldn’t settle for less.
Using The Best CFD Brokers
Does it seem like a lot of work to evaluate all of the above criteria on your own? Well, you’re right about that. Finding a good broker is a tedious task that quickly becomes overwhelming, and that is why we started BullMarketz.com.
We all have extensive experience from the industry and have spent the last few years trading with all of the best and some of the worst brokers and everything in between. Based on this experience we have selected the top brokers in the industry and written detailed and completely unbiased reviews about them. So instead of you having to check all the brokers on your own, you can just go to our reviews and find all the necessary information in one place. Before you know it you’ll find a regulated broker that is perfect for you.
Below is a summary of the 5 best CFD and forex providers on the market today with a direct link to our detailed broker reviews where you will find more information about each one. You can also check our list of the best brokers to see even more options.
- IQ Option is a great pick for people looking to trade forex and cryptocurrencies, although there are several other assets you can choose to invest in. In addition to being a CFD and forex broker, IQ Option allows you to buy actual cryptocurrencies on their platform as well as from their brand new cryptocurrency wallet and exchange called Hodly. An IQ Option trading account gives you access to Hodly as well. Read our complete IQ Option review to learn more about the broker.
- eToro has focused all of their energy on providing the best social copy trading platform the world has ever seen. You can trade on your own with the eToro platform, but we recommend that you use the copy function to maximize your profit. Choose between hundreds of stocks, exchange-traded funds, currencies, cryptocurrencies, and more. Learn everything you need about copy trading in our eToro review and don’t forget to keep an eye open for their upcoming cryptocurrency exchange.
- 24Option has a long history of offering binary options and CFD trading to hundreds of thousands of clients all over the world. 200 financial instruments in five asset classes, a combination between the MT5 and their own platform, and a trading account for any and every trader are what makes this broker one of the best in the world. Discover more in our 24Option review.
- Out of all the brokers we recommend, IG Markets has the most extensive experience. IG Markets is owned by IG Group which is one of the leading financial firms in the United Kingdom with over 40 years of experience. In addition, IG Group owns one of the very few American binary options brokers called Nadex. In our review of IG Markets, we go into details about the broker and their services.
- Plus500 is an Israeli broker based in England, and they are the perfect broker for anyone looking to trade stocks and forex. This CFD broker is one of the largest ones in the industry based on active customers and daily trading volume. We consider the Plus500 trading platform to be one of the top three platforms in the world and you can read all about it in our Plus500 review.