Trading CFDs carries considerable risk of capital loss. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Navigating the world of CFD and forex brokers can be a daunting task, given the multitude of options. The first rule of thumb is to select a broker that’s well-regulated, significantly reducing the risks of falling victim to scams or fraudulent practices. Regulations provide a layer of security for your investments.
Here is a selection of CFD brokers curated by our team. Let’s delve into a comparative analysis of these brokers.
For traders within the European Union, there’s an extra layer of protection, as all EU-regulated brokers are mandated to offer negative balance protection for retail traders. However, it’s vital to be aware that the maximum leverage is capped at 30 to ensure your trading experience remains within manageable risk levels.
Lastly, a critical reminder: never, under any circumstance, engage with an unregulated broker. The well-known regulators in the forex and CFD market, including CySEC (Cyprus), the FCA (UK), and ASIC (Australia), offer a safety net for traders. Keep in mind that CFDs are leveraged products, and with leverage comes a heightened risk factor. While the potential for profit is greater, so is the potential for loss. You may even incur losses exceeding your initial deposit if your broker does not provide negative balance protection.
In essence, trading CFDs or forex is not a one-size-fits-all endeavor; it carries its own set of risks. Make sure you fully comprehend the complexities before taking the plunge into this dynamic world of trading.
The decision-making process doesn’t stop after you’ve found well-regulated brokers. You must also consider the specific features you need on a trading platform, the minimum deposit requirements, and even the counterparty risk involved in trading with a particular broker.
You’ll want to know if your chosen broker offers additional support, such as webinars, seminars, educational resources, daily market analysis, or trading signals. These can be invaluable tools to help you make informed decisions in the fast-paced world of trading.
Managing your funds should be straightforward, and for many, a Skrill account is the go-to choice, widely accepted by most brokers for funding and withdrawals.
Every country has an organisation which regulates the financial services industries. We only list brokers that operate in an officially regulated environment. List of possible regulators:
* Plus500 UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909).
Plus500 CY LTD is authorised and regulated by the Cyprus Securities and Exchange Commission (License No. 250/14).
Plus500AU Pty Ltd, ACN 153 301 681, AFSL # 417727, issued by the Australian Securities and Investments Commission is authorized to issue these products to Australian residents. Derivatives issuer licence in New Zealand, FSP #. 486026 authorises Plus500 to issue these products to New Zealand residents. Plus500AU Pty Ltd, is also an authorized Financial Services Provider in South Africa, FSP 47546.