The process of choosing a CFD trading platform can be almost as complicated as learning to trade CFDs, but it shouldn’t be! Comparing CFD trading platforms for things like charting, technical indicators, risk management tools, leverage, and more, becomes quite the case of having a huge swathe of tabs open and cross checking the best platforms for trading CFDs you have found so far.
With this guide, we will give you an overview of the main features you might want to pay attention to when choosing your own top CFD trading platform, and we have put together a list of FSCA regulated platforms for you to run the rule over afterwards, which you can find here now, or at the end of the page once you are done.
CFD Trading Platform Intro
To start with, we are going to hit the basics that I hope you will know if you are at the point of considering the best CFD trading platform.
A CFD trading platform is a type of online trading platform that allows you to trade contracts for difference (CFDs). Make sure you have had an introduction to CFD trading and the specifics of how this type of trading works, as there are some fundamental differences between derivatives and traditional assets that you will want to be aware of.
With a CFD trading platform, you can trade a wide variety of financial instruments including indices, forex, commodities, and shares. CFD trading platforms also work with leverage, which means you can trade with a smaller amount of capital than you would need to buy the underlying asset outright.
Most CFD trading platforms offer a variety of features and tools to help you make the most of your trading. These can include charting tools, news and analysis, and educational resources. When choosing between CFD platforms, it’s important to find one that suits your individual trading style and needs. Most importantly, you will want to make sure the platform you choose is regulated by a reputable financial authority.
10 Things To Consider When Choosing A CFD Trading Platform
1. The types of financial instruments you can trade
When choosing a cfd trading platform, make sure it offers the types of financial instruments you’re interested in trading. For example, if you want to trade forex, make sure the platform you choose supports this. We have put together a list of 20 top instruments to trade as CFDs that you might find of use when considering asset classes to trade.
2. The leverage ratio
Most cfd trading platforms offer leverage, which means you can trade with a smaller amount of capital than you would need to buy the underlying asset outright. It’s important to be aware of the risks involved with leverage before using it.
3. The fees charged
Some cfd trading platforms charge commission on each trade, while others only charge a spread. Make sure you’re aware of the fees charged by the platform you choose so there are no surprises.
4. The features and tools included
When choosing a cfd trading platform, make sure it offers the features and tools you need to make the most of your trading. These can include charting tools, news and analysis, and educational resources.
5. The platform’s user interface
The platform you choose should have a user-friendly interface that’s easy to navigate. It should also be compatible with the devices you use, such as your computer, tablet, or smartphone.
6. The customer support offered
If you have any problems with the platform you’re using, you should be able to get help from customer support. Make sure the customer support team is available 24/7 and can be reached by phone, email, or live chat.
7. How safe and secure it is
When you’re trading online, it’s important to make sure the CFD trading platform you’re using is both safe and secure. Look for platforms that use encryption to protect your personal and financial information.
8. The reputation
Make sure the cfd trading platform you’re considering is reputable by reading online reviews. You should also check if the platform is regulated by a financial authority.
9. The platform’s account minimums
Some cfd trading platforms have account minimums, which means you need to deposit a certain amount of money before you can start trading. Make sure you’re aware of any account minimums before you open an account.
10. The withdrawal process
When you want to withdraw money from your account, make sure the process is easy and straightforward. The best platforms will let you withdraw your money quickly and without any fees.
The Best CFD Trading Platform Features To Look For – The Summary
When choosing a CFD trading platform, there are several key features to look for. Firstly, the platform should be easy to use and navigate. It should have a clear and user-friendly interface that makes placing trades straightforward.
The platform should also offer a variety of different markets to trade in, as well as a range of tools and features to help you analyse the markets and make informed trading decisions. For example, some platforms offer live market news and data, charting tools, economic calendars, and more.
A good CFD trading platform will have plenty of chart functionality, and trading indicator overlays that can be used, in a clear and intuitive way.
Note to watch :
Some of the more advanced trading platforms offer a range of additional features and tools that can be very useful for traders, but they are very difficult to navigate. You will want to find a CFD trading platform that has both the options to have advanced features, with the display functionality still retaining a good level of user experience. After all, it is no good having the best tools at your disposal, if you do not know how or where to use them!
Features to look for on charts include multiple timeframes, the ability to draw on charts, and a wide range of indicators. Tools that can be useful include order tickets that are pre-populated with your trade details, so you do not have to re-enter them each time; stop-loss and take-profit levels that can be set up in advance; and trailing stops that will automatically adjust your stop-loss level as the market moves in your favour.
Some brokers also offer mobile CFD trading apps, which can be very useful if you want to trade while on the go. These should be easy to use and have all the same features as the desktop version of the platform, but are usually very slightly stripped back to allow for the processing differences, and the screen size variance you will typically have between an optimal day trading setup, and mobile trading.
Finally, it is important to choose a platform that is reliable and secure. Make sure to check that the platform is regulated by a reputable financial authority such as the Financial Services Conduct Authority (FSCA) in South Africa, or the Financial Conduct Authority (FCA) in the UK. This ensures that your funds are safe and that you will be able to trade in a fair and transparent environment.
Now you know what to points to pay attention to, you can check out of list of top CFD trading platforms and see how they measure up for your needs.
