For those who are interested in CFD Trading, the most important step is selecting a suitable CFD broker to trade with
But before we start listing out the top CFD brokers available in the UK, there are fundamental factors that traders should be aware of before choosing a CFD provider.
1) is the CFD broker regulated by The FCA.
It is vital to ensure that the broker is regulated by the Financial Conduct Authority(FCA) because it would indicate that they have complied with strict provisions such as ensuring that traders funds are segregated into a separate trust account.
In the event that the CFDs broker is facing insolvency, these segregated funds are protected and cannot be used to finance any other purpose by the broker.
Since CFDs are leveraged products, it is necessary to check out the broker’s margin requirements for the various CFD products.
CFDs brokers make their profit on the spread between the Buy and Sell prices. Different brokers offer different spreads for each underlying asset. A CFD trader should compare the CFDs providers to find which offers the tightest spreads for his favorite assets.
The variety of instruments available to trade on?
Different CFD brokers provide different assortments of markets, assets, and instruments that are available to be traded and so you should check if a broker’s platform has the CFD instrument for your favored asset type.
The trading platform.
The CFDs Trading platform is the traders work interface, choosing the most suitable platform will improve the trading experience.