CFD Brokers
This rating contains the best companies in 2024 year in the «CFD Brokers» section. On 15.09.2024 71 proposal is available. You can use sorting by positive and negative reviews, rating and other criteria.
We would like to present you the rating of the CFD brokers, which offer an opportunity to earn on the difference of the prices (for various assets: raw materials, metals, currencies, etc.) without the obligatory purchase of these assets. If you familiarize yourself with detailed reviews of CFD brokers, you will be able to choose the suitable broker, study reviews of traders, get a quick registration and make profit from the difference of assets’ prices today.
Contract for difference, CFD (Contract for difference is a derivative financial instrument for an underlying asset, which allows you to earn income on an increase/decrease in the price of the underlying commodity or security. Read more on Wikipedia. It is based on an asset, and traders participating in such a contract make profits or suffer losses due to changes in its value. Such contracts between two parties (i.e., buyer and seller) are especially popular today; they assume that the seller must pay the buyer the difference between the current value and the value “at the time of the contract”. If the difference in the value of the asset turns out to be negative, the buyer must pay the seller.
В CFD contracts in fact, there is no discussion of the purchase or sale of assets, there is no question of transferring ownership rights to them, which facilitates the interaction of interested parties in the market, it is only a contract between the trader and the broker. Such a simple mechanism of interaction allows to use the advantages of contracts: both when the value of assets increases (long positions) and when it decreases (short positions).
It is interesting, that CFDs originated in approximately 1980-ies in England, in those years they were concluded only on shares and were not available for a wide range of investors. Today, everything has changed: such contracts may be concluded for any instruments and any trader may trade them, all you need is to use our current rating of CFD brokers, choose the suitable broker, register with him and start earning good money with the help of leverage option.
Usually on forex (the whole truth about forex here) Traders work more with currency pairs, the appearance of CFDs significantly expands opportunities for making money, while the entry threshold to the “game” is significantly lowered, which makes such trading available to a large number of users. The assets may be any tradable financial instruments: shares, indices, oil, metals, contracts on bitcoin and other cryptocurrencies, etc. For the CFD contract to function in this case, it is important that its value and settlement conditions should be clear to both parties of the transaction.
In CFD, thanks to the possibility of using leverage (that is, borrowing capital from the broker), the trader can earn even more income, but in this case it is important to remember not only about the decent income, but also about the rather large risks of such trade.
Advantages of CFD trading:
- No commissions, because the trader does not buy the asset and has no obligation to it;
- Low threshold to enter the market, which makes CFD trading accessible to all traders;
- The possibility of CFD trading with leverage, which will significantly increase profits;
- CFDs do not go out of circulation, they do not lose relevance, they will always be on the market;
- The possibility of hedging transactions – that is, the trader can open an oppositely directed transaction, if the initial bet will lead to losses;
- A wide range of trading instruments, including CFDs on bitcoin and other popular cryptocurrencies (find out how to make money on cryptocurrency here);
- Trading protection legislation (if you have chosen a reliable forex broker from the rating we offer).