Providers
CFDs Trading and Brokers
When trading the global markets, specialization means better information and better performance.
What is a CFD?
A CFD (Contract for Difference) is a derivative product that allows investors to trade the direction of any global market (Forex, Equities, Cryptocurrencies, Commodities), without the need to owe any physical units. CFDs are easy to trade and offer the opportunity to speculate on the future market movements of a wide variety of underlying assets.
- By trading CFDs, you can speculate on any financial instrument, without the need to own it
- Trade 24/5 rising or falling markets, choose among a wide variety of trading orders
- Trade via a simple WebTrader, or the more advanced MT4/MT5 platforms
- Availability of thousands of different financial assets (Forex, Indices, Stocks, Crypto, Commodities, etc.)
- CFD brokers usually don't charge commissions, they charge a trading spread (1 pip minimum)
Compare Popular CFD Brokers
These are some regulated CFD brokers offering segregated client bank accounts. All the following companies have been operating in the market for at least 5 years.
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CFD BROKER |
SAFETY OF FUNDS |
TRADING TERMS |
PLATFORMS / ASSETS |
ACCOUNT INFO |
BROKER'S INFO |
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■ TITANFX
US TRADERS: NO ISLAMIC ACCOUNTS: NO EXECUTION: ECN/STP |
REGULATION:
ACCOUNT SEGREGATION:
CORPORATE INFO: The broker was founded in 2014 and it is based in Vanuatu CUSTOMER SUPPORT:
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SPREADS EURUSD: 0.2 GBPUSD: 0.57 USDJPY: 0.33 COMMISSIONS: $7.0 per full traded lot SCALPING: YES AUTOMATED TRADING: YES SLIPPAGE: (N/A) |
PLATFORMS:
PAMM: NO DEMO: YES (Including Competition) FREE VPS: YES Welcomes scalpers and algorithmic traders ASSETS:
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MIN. DEPOSIT: $200 DEPOSIT FUNDS:
TRADING PROMOTIONS:
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KEY POINTS
Review Broker: |
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■ ROBOFOREX
US TRADERS: NO ISLAMIC ACCOUNTS: YES EXECUTION: ECN/STP |
REGULATION:
ACCOUNT SEGREGATION:
CORPORATE INFO: The broker was founded in 2009 and it is based in Belize CUSTOMER SUPPORT:
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SPREADS EURUSD: 1.3 GBPUSD: 1.4 USDJPY: 1.4 COMMISSIONS: No SCALPING: YES AUTOMATED TRADING: YES SLIPPAGE: 0.3 pip |
PLATFORMS:
PAMM: NO DEMO: YES FREE VPS: YES RoboForex welcomes scalpers and algorithmic traders ASSETS:
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MIN. DEPOSIT: $10 DEPOSIT FUNDS:
TRADING PROMOTIONS:
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KEY POINTS
► Open a Real/Demo account with RoboForex
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■ FXDD
US TRADERS: NO ISLAMIC ACCOUNTS: YES EXECUTION: ECN/STP |
REGULATION:
ACCOUNT SEGREGATION:
CORPORATE INFO: The broker was founded in 2002 and it is based in Mauritius and Malta (EU) CUSTOMER SUPPORT:
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SPREADS EURUSD: 0.3 GBPUSD: 0.7 USDJPY: 0.5 COMMISSIONS: $7.0 / lot SCALPING: YES AUTOMATED TRADING: YES SLIPPAGE: (N/A) |
PLATFORMS:
PAMM: YES DEMO: YES FREE VPS: NO Welcomes scalpers and algorithmic traders ASSETS:
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MIN. DEPOSIT: $100 DEPOSIT FUNDS:
TRADING PROMOTIONS:
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KEY POINTS
► FXDD Real Account Registration Review Broker: |
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■ IC MARKETS
US TRADERS: NO ISLAMIC ACCOUNTS: YES EXECUTION: CFD Provider
Note: IC Markets will not allow European Traders and traders from Brazil. |
REGULATION:
ACCOUNT SEGREGATION:
CORPORATE INFO: The broker was founded in 2007 and it is based in Seychelles. CUSTOMER SUPPORT:
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SPREADS EURUSD: 0.0 GBPUSD: 0.0 COMMISSIONS: $7.0 / lot SCALPING: YES AUTOMATED TRADING: YES SLIPPAGE: 0.8 pip |
PLATFORMS:
PAMM: NO DEMO: YES FREE VPS: YES (100 round turn lots per calendar month are required) ASSETS:
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MIN. DEPOSIT: $200 for the MT4 account and cTrader accounts. FUND METHODS:
TRADING PROMOTIONS:
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KEY POINTS
► Register a Real or Demo Account with IC MARKETS
Note: IC Markets will not allow European Traders and traders from Brazil.
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How do CFDs work?
A CFD contract is designed to track the price movements of any financial instrument. That means that a CFD contract can mirror the price fluctuations of almost every traded financial asset. When a new position is opened, the profit/loss is determined based on the price movement of the underlying asset.
A CFD trade can close in three ways:
(i) If the price of the underlying financial instrument touches the take-profit price (pre-determined profit)
(ii) If the price of the underlying financial instrument touches the stop-loss price (pre-determined loss)
(iii) The trade can also manually be closed by the trader (anytime he wants to)
Example of a CFD Trade on EURUSD (Calculating the Profit/Loss)
For example, it is assumed that a Forex trader buys 1 lot of EURUSD at 1.1002, and later sells it at 1.1022
- Initially, EURUSD is bought and sold at 1.1000 / 1.1002 (bid/ask)
- To buy 1 standard lot (100,000 USD of value), the trader needs to have about $500 in his account (that means leverage 200:1)
- As the position is opened the trader notices that his account is charged with about $20. This is due to the difference between ask and bid (in our example 1.1000 / 1.1002, which means 2 pips spread)
- As EURUSD moves 20 pips higher, the trader decides to close his position
- The new Ask/Bid is 1.1022 / 1.1024
- The trader closes his position at 1.1022
- The profit is calculated as 1.1022 – 1.1002 = 20 pips
- 20 pips of profit equal about $200
CFDs and Cost of Trading
These are all the fees and commissions charged by CFD brokers that you should know about before starting a new account.
(1) Trading Spreads
Where can you find information about the trading spreads? at each CFD broker's website or via 3rd parties specialized in comparing spreads
The spread is the difference between ask and bid. The great majority of CFD brokers charge trading spreads without any trading commissions. The minimum spread when trading CFDs is about 1.0 pip on EURUSD. A clever way to reduce your trading costs is to join a trading rebate plan.
Be aware of Re-Quotes (if you plan to trade intraday)
A re-quote means that when you open a trade position the price you pay is worse than the one you have entered. That means extra cost. Re-quotes usually occur in fast-moving markets, such as markets after important news announcements. You can protect your account from re-quotes by placing a pending order (limit order) and not an instant execution order. When you place a limit order, you state that you are willing to open a trade position at a specific price or better.
(2) Trading Commissions Charged
Where can you find information about the commissions? at each CFD broker's website
CFD brokers usually don't charge trading commissions. When they do, these commissions are calculated on a round-lot basis.
(3) SWAPs / Overnight Financing
Where can you find information about the SWAP rates? at CFD broker's website
- The SWAP rates exist to balance the overnight cost of money.
- When you open a long or a short CFD position, it becomes the subject of interest rate charges as any other cash transaction. This is because FIAT money offers different interest rates. The difference in positive/negative rate charges depends on the asset you are trading, and on the direction you are trading.
- The SWAP cost applies every calendar day at the end of each trading day at midnight (according to your broker's server time). The SWAP rate amount is tripled on Wednesdays to cover Saturday and Sunday. That means the SWAP rates are applied 365 days per year.
- The SWAP rates can be either positive or negative. For example, if you trade a Forex pair such as AUDUSD or NZDUSD the difference is positive and it is credited to your trading account. If you trade USDZAR the difference is negative and it is removed from your trading account.
Explanation of SWAP Rates in Forex
As currencies are traded in pairs, each time a transaction occurs, one currency is purchased and one currency is sold. There are quite a few currencies offering high-interest rates (NZD, AUD, etc.) and other currencies offering low-interest rates (USD, EUR, etc.). When you trade any Forex pair, the difference between the two interest rates may be positive or negative:
(i) If the difference is positive, then a swap amount is credited overnight
(ii) if the difference is negative, then a swap amount is debited overnight
Note, that if you trade commodities or equities, the SWAP rates will be always negative.
TIP: Avoid paying SWAP fees by trading CFDs on Futures
A very smart way to avoid paying SWAP rates is to buy CFDs on Futures. For example, if you buy the USD30 Index via a CFD on Futures you will pay a greater spread but you will not pay any SWAP charge until the contract ends. Usually, CFDs on Futures last 2-3 months and mirror the price movement of the underlying asset exactly the way a simple cash CFD contract mirrors it. If you are a swing or a long-term trader, CFD on Futures is your best weapon to make money.
(4) Funding (Deposit/Withdrawal) Fees
Where can you find information about these fees? Use each CFD broker's live chat service
Funding fees may be charged on deposits and/or withdrawals.
(5) Maintenance/ Inactive Fees
Where can you find information about these fees? Use each CFD broker's live chat service
A few CFD brokers may charge fees for inactive accounts. These fees are called Maintenance/Inactive fees.
Some Important Tips When Trading CFDs
These are some key tips when you are trading CFDs:
(1) Limit your deposits
- Don't deposit too much in your trading account. Deposit exactly as much as you need to cover your initial positions.
(2) Limit your portfolio risk
- Don't use capital leverage more than 5:1. Capital leverage increases your risk more than the average trader can anticipate.
- Also, don't risk more than 2% on any individual position. If you hold USD10,000 then don't risk more than $200 on any individual trade.
(3) Place small pilot orders
- Pilot orders are very useful if you are a beginner.
- If you want to risk $200 on a single trade, you can open a small pilot position (i.e. 0.01 lot) and check the amount of loss that covers your stop-loss. If you see that the 0.01 lot trade results in a $20 risk then you know that you need to open an additional position of 0.09 to risk no more than $200.
- An alternative is to use a demo account and place your pilot orders there before you execute them on your real account.
(4) Trade what you know
- Traders enjoy greater success when they trade assets they already know. Therefore, avoid trading unknown financial instruments, and when you do, use pilot orders.
- Most professional traders are specialized in particular instruments. For example, they may trade only Gold, Crude Oil, US30, or EURUSD. Specialization means better information and better information means better performance.
■ CFDs Trading and Brokers
TradingFibonacci.com
COMPARE TRADING SIGNAL SYSTEMS
-COMPARE SYSTEMS-
A trading signal can be seen as a sign of an important upcoming market movement. This sign alerts traders to instantly buy or sell the market at an early stage of the market movement.
A trade signaling service usually operates as a monthly subscription service. But there are also trading systems that are programmed to generate trade signals based on their complex algorithms. These systems are purchased ones and can be used in unlimited MT4/MT5 accounts.
These are some popular MT4/MT5 trading signal generators.
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TRADING SYSTEM |
ASSETS |
SIGNALS / PLATFORMS |
DELIVERY METHODS |
COST |
LINKS |
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◙ 1000 PCS
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■ Foreign Exchange ■ 6 Forex pairs |
◘ Trading signals for beginners and advanced traders ◘ 15-minutes to 4-hour charts ◘ Rule-based and fully mechanical trading algorithm ◘ Precise trade specifications |
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> 97.00 USD (One-time fee) |
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◙ EA BUILDER
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■ Foreign Exchange ■ Energy ■ Metals ■ Stocks & Indices |
◘ Create custom trading signals ◘ All timeframes ◘ Advances Technical Analysis tools ◘ Money Management ◘ Convert your ideas into Expert Advisors (EAs) ◘ Education (tutorials & videos) ◘ MT4 / MT5 / TradeStation |
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> Free for creating indicators > 97.00 USD (One-time fee) for creating EAs
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◙ FOREX TRENDY
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■ Foreign Exchange ■ 34 Forex pairs |
◘ Trading signals for beginners ◘ 9 timeframes ◘ Trend Analyzer ◘ Custom Interface ◘ All trading platforms ◘ Recognizing Triangles, Flags, Wedges, and Trendlines |
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> 37.00 USD / 3-Months
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Trading Signal Categories
A trading signal that is based on technical analysis can take various forms (intraday, daily, swing signal). These signals are usually triggered by price breakouts, reversal/continuation patterns, etc. But a trading signal can also be generated via the use of fundamental analysis. For example, due to unexpected fundamental changes, the price of gold is expected to move 3-5% higher.
In general, trading signals can be categorized based on their delivery method (manual and automated trading signals).
- Manual Trading Signals
Manual trading signals are delivered via email, SMS, on-screen, or even via Social Media.
- Automated Trading Signals
Automated trading signals are delivered via a copy-trade mechanism on MT4, TradeStation, and similar trade platforms. There are hundreds of automated signal providers online.
MORE: » ONLINE FOREX BROKERS COMPARISON
■ Trading Signals
TradingFibonacci.com