You've probably heard that anyone with ambition, some patience and little greed can trade commodities and make a living out of it, with little or no money to start with.
Technological advancement has reduced the barriers that once used to tower high and prevent so many from getting into the market. One of such advances is CFD trading platforms.
A CFD (Contract for Difference
) is an electronic agreement between two parties to exchange the difference in the value of an asset from the time the contract is opened until the time at which it is closed.
With this platform, you never actually get to own the asset or commodity you’ve decided to trade, but you can still potentially profit or lose, depending on whether your predictions of the market movements is correct or not.
With CFDs, you can either take a buy position, also known as ‘going long,' or you can take a sell position, also known as ‘going short.’
There are different markets you can trade in via these platforms, depending on your interests. With markets so interlinked, it's always open trading time somewhere on the globe. This means markets around the globe can be accessed with relative ease. In some cases, no capital may be required as CFDs trading platforms deal with leverages.
Now that you know the usefulness of CFDs trading platforms, there's still the little issue of knowing which one to use for your trading. To be able to select the perfect CFD trading platform, there are some basic things you need to consider. 1. What asset/commodity do you want to trade?
Before you can make a choice as to which CFD trading platform to use for your trading, you need to know what tradable instruments
are being offered by the broker.
You may be interested in products such as precious metals, indices, and other global markets. Whatever it may be, what you want will help you to narrow down your options while searching for a trading platform that offers the features you want. 2. Fees
After you’ve been able to identify what you’re looking for in CFDs trading platform
, the next step is to analyse the fees charged to use them.
This is a very technical aspect and it should be given maximum attention. Different platforms charge different fees. As such, you need to conduct your thorough research to know which one won't punch a hole in your wallet.
Have knowledge of the fees being charged. Are they commission-based, spread based or both? Are there account fees, fees to use the software, etc.? The answers to these questions will help you to determine which trading platform will be perfect for you. 3. Customer care
As with all things tech, there's bound to be downtime. Server crash, technical maintenance, bugs, malfunctions and many more are just some of the things that could go wrong.
And when any of these happen, you need to have someone who can explain things to you and let you know the situation of things. This is where customer care comes in.
Before you choose a CFD trading platform to use, ask around about their customer care services. Are they helpful? Do they respect their customers? What of their response time? How quickly do they resolve issues?
The answers to these questions should play a huge role in determining which platform you settle for.
Trading is one of the most interesting ways to make money. But you also need to ensure that you have the best tools with which to trade. Follow the above tips and see yourself end up with the perfect CFD trading platform for you.