This step by step guide will show you how to start trading CFDs. Which CFD provider should I trade with, how do I choose a suitable CFD provider?
It can be very intimidating when you are trying to choose the right CFD trading company. Many important questions need to be answered. These include what do I want in a CFD trading platform or what type of service am I after?
Your first step should be to identify the most established providers, who have been in the market for a long period of time and more importantly have been successful as this shows that people are trading with them.
Make a shortlist of the most suitable CFD providers, and then read more about their products and services via their websites. Be thorough and focus on points that will affect your trading experience, this includes costs and range of markets.
It is also important to make sure you will be comfortable using their trading platform. Check whether the trading platform they offer is browser-based or downloadable. Browser-based platforms tend to more popular for the on-the-go trader as you can login to check your CFD positions via any internet connection.
Trial accounts are very common among most CFD companies, these can be very useful as they give you the opportunity to test out their platform and the products and services that go with it. Spend time getting to know the different areas and markets you would use while trading. A trading platform you are comfortable with is very important in building your foundation as a CFD trader.
Online CFD trading is a flexible way to back your judgement on a range of financial markets. However, without an effective risk management strategy, it can also lead to substantial losses. It is therefore important to understand what risk options each company has available to their clients.
After concluding your research you can now decide which CFD provider you will sign up with
How do I apply for a CFD trading account?
All major CFD providers offer quick and easy online application processes, just visit their website and follow the instructions step by step.
Major CFD providers should offer a number of different types of accounts, each suited to varying levels of experience and risk capital. If you are new to CFDs you may wish to consider a Limited Risk Account, where Guaranteed Stop Losses must be attached to all trades so that you know exactly how much money is being risked on each CFD trade
My CFD account is active, what now?
Once your CFD trading account has been approved and you have obtained your login details, simply login and fund your new CFD account. This will allow you to start trading immediately. After you have funds on your account you are free to enter the market. If your CFD providers’ platform is browser-based, login via the website, select the market you wish to trade and take a position. .
{Conclusion}
The right CFD provider for you is the one the provides the service and platform the suits your trading requirements.
Make sure the CFD provider offers a whole host of risk management tools including guaranteed stops of protect your trading capital.
A good place to start is with the Australia’s Number 1 CFD provider, IG Markets*. They offer a free demo account and a huge range of free education resources to help your trading.
{* Largest provider by primary account among current CFD traders, Investment Trends June 2009 CFD Report}
Remember that CFDs are a leveraged product and can result in losses that exceed your initial deposit. CFD trading may not be suitable for everyone, so please ensure that you fully understand the risks involved.
