Compare the Top Online CFD Brokers and Choose Wisely

Online CFD brokers offer you much more today than every before. Because competition and higher demands from traders have shaped the CFD industry into a much more competitive part of the financial markets. New CFD retail traders are actually former Futures traders and spot market traders and investors. They all came to the CFD market because of the unique benefits that CFD liquidity brings to the table. All ideas and concepts, even the best forex trading strategy can be perfectly implemented through CFDs trading. Traders test various CFD brokers, and at the same time learn forex basics as ideas implemented through enhanced CFD methodology. In today’s financial world, anybody who knows how to trade, has benefited through CFDs. Futures don’t even come close to the efficiency of CFDs. While classic stock dealing is also primitive, too costly and tricky compared to CFD stock dealing. Online CFD brokers will continue to evolve as a result, and their clients can expect even better services in the future. Because nobody else cares about retail traders more than CFD brokers do. All other brokers are focused on either large size traders and investors, or on classic brokerage methods. Which are necessary for large investors and institutional traders, but fail to meet the needs of the small independent trader.

Online CFD Brokers Have Shifted the Odds in the Trader’s Favor

it’s not exaggeration to say that online CFD brokers, as a whole, have collectively improved liquidity so much. That the average wise retail trader stands a better chance of surviving trading the markets, through these brokers. As long as the trader is wise, and has a basic winning methodology, the odds are further enhanced through the CFD advantages. If one doesn’t know how to trade at all, they will fail no matter how they trade and which broker they trade through. And it is common practice for early losing traders to blame their day-trading failures on their brokers. But actually, the traders themselves are to blame. Moreover, you should never start your trading career in day trading, because the odds of success are very low there. Rather, if you are a beginner trader you should focus on day to day and week to week trades, through a small CFD account. Then, you will be able to objectively see and assess the CFD instruments in real life. The idea of trading online made easy by brokers is not really true. Brokers cannot make things easier for you, if you don’t know how to trade. What CFD brokers have done, is provide enhanced trading platforms and liquidity. And these allow already profitable traders to dramatically increase their profits.

CFD trading broker provides better trading conditions for two main reasons. First it provides superior liquidity, and hence a better filling price. And second, it provides linear trading conditions. CFD trading brokers are often misunderstood and many new traders focus too much on leverage and trade affordability. But really, leverage is no big deal nowadays, all kinds of brokers offer high leverage. Upon detailed examination and comparison, it turns out that CFDs are much better than any other instrument. When it comes to retail size trading CFD trading brokers are the best option there is. Superior liquidity is priceless, especially during volatile trading times. Linearity on the other hand is naturally better since it allows traders to capture short lived price action in the markets. All other instruments, such as spread bets, futures and options fail miserably when it comes to fast, linear trading. And half of the market move is lost because instrument pricing is not following market price closely as CFD do. A CFD trading broker allows wise traders to implement their multi-strategies. And to really profit from various moves in the markets. Even a very good trader who chooses to trade through futures, will end up making good money. But they will be at least 30% less profitable compared to implementing the same trades through CFDs. Even during normal, day to day trading conditions, without extreme volatility, CFDs can boost profitability by 30%. So why doesn’t everyone trade CFDs? Because CFDs are not suitable for very large trading such as investment banks and large traders do. CFDs are suitable for retail traders, trading up to $100 per point / pip. All good things have limits, and superior liquidity has limits too.  And naturally in the financial markets, large traders provide liquidity to the smaller ones during extreme volatility.