Posts Tagged ‘CFD broker’
Cfds: Who Is The Best Broker In Australia
September 26th, 2010
There are many first-class CFD brokers in Australia, their active marketing and promotions make it difficult to choose which one is best, some have advantages over the others but most of the time it is their extravagant marketing that makes you select your CFD broker.
When you sweep away all of the smoke and mirrors and consider each of the best CFD brokers on a handful of key metrics you will soon discover which CFD broker genuinely fits your trading requirements.
There are a small number of key metrics that you ought to evaluate your CFD broker on, these are:
1. DMA or Market Made
2. Web based or Download able platform
3. Product Variety
DMA or Market Made
It’s essential to ensure that you realize the differences between DMA and Market Made CFDs and the pro’s and con’s of each. DMA CFDs offer a few advantages in that they allow you to trade during the opening and closing phases of the market along with enabling you to participate in the market depth. DMA CFDs are preferred by scalpers and day traders but are usually not so popular with traders needing exposure to indices or foreign exchange and wanting to place guaranteed stop loss orders, this is where Market Made CFDs have significant advantages over their DMA cousins.
Web Based or Download able trading platform
It can easily be quite confusing when selecting a CFD brokers trading platform as each trading platform has their benefits and drawbacks. It’s important to think about where you’ll be trading from as this will decide whether you use an internet based or download able trading platform. If you plan to trade from work it would be better to pick an internet based trading platform for the simple reason that web based platforms don’t require a download, this means that they can not be blocked by the firewall in an office, however web based platforms come with some draw backs in that they have a tendency to lack much of the sophisticated charting functionality of download able platforms. Download able platforms are more appropriate for home use as they provide considerably more sophisticated charts and order types as well as added features such as back testing and customizable multi screen layouts. Skilled day-traders and scalpers often choose download able trading platforms whilst casual traders have a tendency to select web based trading platforms.
Product Range
It’s important that when deciding on the best CFD broker for your requirements you ought to assess the products that they provide to ensure they can provide a range of CFDs that suit your trading plan. Some CFD brokers only offer CFDs on Australian Shares however others offer CFDs over stocks, indices and forex. If your trading plan covers all these products you must make sure that you pick a provider that doesn’t limit you to Australian share CFDs only.
Of course when picking the best CFD broker for your trading requirements you’ll need to evaluate all of the metrics above and make your determination based on whether the CFD broker can offer you what you need to implement your trading strategy. It is also highly recommended to download a few demo trading platforms available in the market, this may help you to better understand whether or not the platform is suitable for your needs and trading style.