In this article, TU experts explore CFD trading, a popular method for speculating on asset prices without ownership. It involves leveraging for larger positions with a smaller investment, but this carries risks. In addition to that, the best CFD trading platforms, key features to consider, and the top platforms for successful trading are also highlighted in the article.
What are CFDs?
CFDs, or Contracts for Differences, are financial instruments that enable traders to speculate on asset price movements without owning the asset itself. By entering into a contract with a broker, traders can profit from the difference between the opening and closing prices.
CFD trading platforms in Australia: how to choose?
Choosing the right CFD trading platform in Australia is crucial for success in this high-risk activity. Here are the steps to follow:
- Look for regulation: choose a platform regulated by reputable financial authorities like ASIC, or regulated in the U.K. or E.U. for reliability.
- Consider platform features: ensure the platform has a user-friendly interface, real-time data, charts, advanced trading tools, and educational resources to enhance your skills.
- Check trading assets: the platform should offer a diverse range of assets, including stocks, indices, commodities, and Forex, allowing for portfolio diversification.
- Look at brokerage fees: compare brokerage fees, including commissions, spreads, and overnight financing charges, based on your trading strategy and goals.
- Test the platform: take advantage of demo accounts to test the platform’s speed, reliability, and effectiveness of its features before using real money.
The best platforms for CFD trading in Australia
Several CFD trading platforms are available in Australia, and the optimal choice for an individual will vary based on their specific trading requirements and preferences. Let’s examine the best CFD trading platform in Australia:
- Tickmill: It is a well-regulated CFD trading platform that offers competitive trading fees and a wide range of trading products. It is regulated by reputable authorities like ASIC, FCA, and CySEC. With a minimum deposit of $100, traders can access advanced trading tools and a user-friendly interface.
- IC Markets: It is the largest CFD broker in the world by trading volume, offering low-cost forex and CFD trading. It provides a competitive product selection, including over 2,100 stock CFDs. With flexible fee structures, tight spreads, and reliable trading platforms like MetaTrader and cTrader, IC Markets is a trusted option for CFD trading.
- Pepperstone: It is a highly reputable forex and CFD broker, regulated by top-tier authorities like FCA, BaFin, and ASIC. It offers an expanding array of tradable markets, high-quality research, and compatibility with popular trading platforms such as TradingView, cTrader, and MetaTrader. While a minimum investment of $200 is required, Pepperstone provides excellent customer service and competitive trading fees.
- Admiral Markets: It is a reliable CFD trading platform that offers a wide range of trading assets, including shares, forex, and CFD markets. It integrates advanced tools and software, including the MetaTrader Supreme Edition, to enhance the trading experience. Admiral Markets is regulated by ASIC, FCA, CySEC, and JSC, ensuring a secure trading environment.
- eToro: It is a popular social trading platform that allows traders to copy the trades of experienced investors. With a global presence and multiple divisions licensed by regulators such as CySEC and FCA, eToro offers a user-friendly platform for CFD trading. It focuses on creating a social trading community and provides services to traders in various countries.
- FXOpen: It is a well-established Forex broker that offers a wide range of financial services. With innovative technologies and optimum trading conditions, FXOpen has gained a strong reputation in the industry. It was the first broker to offer trading via the electronic communication network (ECN) based on the MetaTrader 4 terminal. FXOpen provides active and passive trading services to clients from over a million countries.
Traders Union has identified and presented a selection of the best CFD trading platforms in Australia. By carefully exploring the recommended platforms, traders can make informed decisions and engage in successful CFD trading.