Competition in the CFD broker field is extremely strong and today we’re going to have a look at a CFD Broker Comparison to get the ball rolling on what to look out for when it comes to finding the right Contracts for Difference broker.
The main thing to look out for when doing a CFD broker comparison is to work out whether you would prefer a Direct Market Access CFD/ Forex brokers or a Market Maker type model. The main difference between the two is how they execute your orders into the market and what degree of market transparency that you get. A Direct market Access CFD provider will allow you to trade directly into the underlying market and you get the benefit of the exact market depth that is available there, whereas a Market Maker trades very closes to the underlying market but can make the market with their own prices.
Forex brokers which model is better?
When running your CFD broker comparison it’s important to note that neither of the two are better, it just depends on what your needs are and what level of transparency you require. The reality is that most professional CFD traders use multiple Contracts for Difference brokers as no one provider has everything they require.
Use their Free Forex brokers / CFD Trading Education to get you started
The critical thing to look out for when starting out is to determine your trading needs. You might want to consider the type of education that is being offered from the CFD brokers as that also adds to the overall package. You’ll find some of them offer free training courses with ongoing CFD trading education which also comes in handy. This is another reason to consider opening up multiple CFD trading accounts as you get the benefit of everyone’s education.