Contract for Difference Broker

A Broker is a person or organization (Brokerage Company) that acts as a mediator in conducting deals on the market, i.e. a Broker represents trader interests on the market.

CFD (Contract for Difference in prices of goods or assets) is a derivative financial instrument that allows trading assets and goods without delivery or purchase of goods and assets. Contracts for difference are used for company stocks, stock indexes, commodities, etc. A Contract for Difference Broker is a mediator for conducting CFD deals.

Contract for Difference Broker: the Difference between CFD and Forex Trading

Trading Contract for Difference is similar to trading currency pairs on Forex markets. You also profit from speculative trading, i.e. earn on price change of assets and commodities. The difference of trading CFDs form trading actual assets and goods is that there is no actual delivery or purchase of commodities or assets.

Contract for Difference Broker: Popularity of CFD Trading

Currently, commodity trading on Contract for Difference becomes increasingly popular. This trading has a number of advantages compared to traditional trading. Today, almost all Forex companies offer an opportunity to trade CFD on different types of assets including indices, stocks and commodities.

While choosing a broker for CFD trading, one should adhere to certain criteria. One of the most important criteria is reliability. A reliable financial intermediary is a broker with long working history, license, controlled by regulatory bodies. Other important criteria are working conditions. High quality working conditions traditionally include precise quotes, competitive spreads, trading with guaranteed execution of pending orders and a modern trading platform.

Particularly, one should pay attention if a company has its own trading terminal. The presence of such terminal means that the company is not an ephemeral one, which is going to disappear from market with the money. Another important criterion is the fact of transferring percentages on the trading account of the client.

IFC Markets is a leading innovative financial company, offering private and corporate investors wide set of trading and analytical tools. The company provides its clients with Forex and CFD trading through its own-generated trading platform NetTradeX, which is available on PC, iOS, Android and Mobile. The company also offers MT4 platform available on PC, Mac OS, iOS, Android, Mobile and Smartphone. For comparison of the platforms, you can observe the advantages of both.