CFDs are very popular for trading with high leverage, allowing traders to benefit from prices with a small initial deposit. It has been trendy since it started in the late ’90s. However, it is not good for everybody because CFD is a complex instrument. Furthermore, experts recommend that you have to learn it first, consider all the risks and then start trading. CFD trading is available in many countries but has many regulations. However, CFD offers massive potential for retail traders worldwide.
What Are The Benefits Of CFD Trading?
CFD trading gives you higher leverage as compared to traditional trading. So it will be an attractive package for those who have no capital. It makes CFD trading much more accessible. Also, CFD trading is across many markets that run 24 a day. In addition, CFD trading is not very expensive, irrespective of the fact that the broker does not charge high from you). So it is easy to get addicted to that type of training. In the end, CFD trading does not have very high trading requirements.
Many accounts only need that you have to put $1,000 in your account. However, if you are new to CFD trading, you must sign up with a broker with negative balance protection. So this shows that your balance should not go less than zero if you make a terrible or over-leveraged trade.
What are The Risks Involved In CFD Trading?
All these advantages come with their risks. CFD trading is not much-regulated trading as compared to other trading. Therefore, choose a good broker and CFD trading platforms if you want to succeed in the trading method. CFD trading has margin risks, so it is easy to overexpose you. In addition, you may also take many leverages unintentionally that can be disastrous if your trade does not work.
List of Top 10 CFD Brokers In 2022
Here we will look at the list of the top 10 CFD brokers. Let’s discuss them.
FP Markets
Trading platforms: IRESS, MT4, MT5
Max. Leverage: 1:30
Regulation: ASIC, CySEC
Min. deposit: 100 US$
This brokers trading platform was established in 2005 and operated with professional trading experience. Furthermore, they have 12,000 customers worldwide. Its main strength is FP Market which utilizes actual ECN electronic bridges. Moreover, this increases its proposal with robust, powerful trading technology and invests in innovative technology. In addition, it is a good and safe broker. Sharp obligations confirm the proof of its secure trading. Moreover, one of the strong points of FP Markets is that they develop ECN technology that gives direct access to liquidity providers. However, this technology is the most efficient solution that offers breakneck execution speeds with spreads from 0.0 pips, giving you to chance to take advantage of it.
BDSwiss
Trading platform: MT4, MT5, BDSwiss Webtrader amd Mobile App
Max. Leverage: 1:30 | 1:500
Regulation: CySEC,FSC,FSA
Min. deposit: 100 US$
BDSwiss is an international firm that was established in 2012. It has become one of the largest broker trading groups. Moreover, their clients are now more than 1.5 million from 186 countries. Similarly, BDSwiss is a regulated broker with worldwide coverage, including the US. They also have user-friendly trading conditions and a good reputation.
Additionally, they offer a good choice in trading platforms. However, BDSwiss offers fast account opening with excellent customer services and research tools. However, on the flip, it has one drawback: it depends on the entity, and instruments are limited to CDFs and Forex.
Pepperstone
Trading platforms: MT4, MT5, cTrader, TradingView.
Max. Leverage: 1:30 to 1:400
Regulation: ASIC,FCA,DFSA,SCB,CMA, CySEC, BaFIN
Min. deposit: 200 US$
Pepperstone has gained enormous growth and will soon turn into one of the most extensive CFD and forex providers worldwide. They developed this company in the year 2010. It is a reliable broker with FCA and ASIC licenses. However, the account opening process is entirely digital and has the best trading environment. Furthermore, the education section is excellent, and they have excellent support. One of the drawbacks is that they offer demo accounts only for 30 days and have limited instruments for CFDs and Forex.
HotForex
Trading platforms: MT4, MT5
Max. Leverage: 1:30 | 1:1000
Regulation: CySEC, FCA, DFSA, FSCA, FSA
Min. deposit: 5 US$
HotForex brokerage firm was established in 2010. It is a multi-asset broker that gives Forex and commodities with CFDs trading facilities, with the choice of 7 account types with tight spreads average. They offer trading services with licenses that maintain the Forex industry, delivering trustworthy services. Their trading conditions are user-friendly, with an extensive CFDs and Forex portfolio. They have considerably low fees. On the other flip, one of the disadvantages is that they only offer Forex and CFDs.
BlackBull Markets
Trading platforms: MT4, MT5
Max. Leverage: 1:500
Regulation: FMA, FSA
Min. deposit: 200 US$
They started this company in 2014. The brokers give many trading solutions as financial services providers have advanced software to aggregate excellent trading performance with competitive prices. In addition, BlackBull Markets established a leading broker also provides retail trading solutions and maintains its services across the world trading centers. However, many possibilities have diverse conditions, learning materials and many programs for the active traders.
BlackBull Markets is a fully regulated broker that gives quality trading opportunities. BlackBull Markets is one of the best brokers that provide good trading facilities and high leverage lowest spreads depending on our research and professional trading. However, on the other hand, one drawback is that it has no 24/7 assistance for the customers, and they have slightly limited tools.
Axiory
Trading platforms: MT4, MT5, cTrader
Max. Leverage: 1:777
Regulation: FSC, FSC
Min. deposit: 10 US$
Axiory was established in 2011. They offer global traders a friendly, savvy, and a great environment to access the forex and CFDs markets. Moreover, the main ideas of Axiory are based on transparent offers to their customers and trading circle. Furthermore, Axiory has a good trading technology; cTrader and MetaTrader platforms are efficient for beginners and for those who are active traders. The drawback of Axiory is that instruments are very limited to CFDs and Forex. On the other hand, traders will get the well-developed technology to gain much success.
FBS
Trading platforms: MT4, MT5, FBS trader, CopyTrade.
Max. Leverage: 1:30
Regulation: CySEC, FSC, FSCA, ASIC
Min. deposit: 1 US$
FBS has served in more than 150 countries worldwide since 2009. They have shown their excellence by achieving many prestigious awards. They will help expand their services for both professional and newbie traders. So they aim to provide you with suitable trading conditions, including copy trading on MetaTrader 5 and 4. Spreads are very low that is based on research. However, the education section is very wise as well. One of the drawbacks is that their trading instrument is very limited to CFDs and Forex. However, their trading condition varies with each entity.
EightCap
Trading platforms: MT4, MT5
Max. Leverage: 1:30
Regulation: ASIC, SCB
Min. deposit: 100 US$
EightCap has given you transparent prices since 2009. They have low rates of variable spreads. Apart from their services to retail customers, this broker also provides technological benefits and partnership opportunities with IBs, affiliates, and influencers. Furthermore, they also give you access to the most in-demand financial instruments. However, its drawback is that it has no good learning content for beginners and no 24/7 customer support centers. So EightCap will serve you with a trading platform for MT4 and MT5 traders and hopes to offer them the best trading experience.
HYCM
Trading platforms: MT4, MT5
Max. Leverage: 1:30
Regulation: FCA, CySEC, DFSA, CIMA, FSC
Min. deposit: 100 US$
HYCM is one of the leading forex brokers. It has 40 years of experience in this field. This company was established in 1977. They have strong trading capabilities, which gives you an advanced range of trading instruments and helps its customers with dedicated support. In addition, this company has strict regulations.
They have effortless account opening services at a low cost. However, you can use different options for the deposition and withdrawal of your money. However, the negative side of this broker is that there is no 24/7 customer support system, and their trading instruments are only limited to CFDs and Forex.
TMGM
Trading platforms: MT4, MT5, IRESS
Max. Leverage: 1:30 | 1:500
Regulation: ASIC
Min. deposit: 100 US$
It is a global broker. It offers traders access to CFDs in Metals, Forex, Indices, Energies, Shares, and CryptoCurrencies. However, at the starting, TMGM started its services in Australia in 2013. In 2013, it received its license from ASIC to serve OTC derivatives and forex tradings. Also, with many years of progress, this company brings reliable and consistent DMA (Direct Market Access) without any human interference.
Bottom Line
In the end, CFD trading has many positive effects; also, it comes with some risks involved. You have to know your choices to maximize the profits carefully. Keep in your mind the regulations and hazards of CFD trading.
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