How to Choose Best CFD Forex Trading Platforms
Choosing a good CFD trading platform is a most important factor to make successful trading. But it’s not an easy task. Here are top 3 points to select a best platform:
How your stop loss orders are placed
One of the benefits of CFDs above stocks is that you can place automatic stop loss orders for CFDs. But first, verify the details of order placement for stop losses for the CFD provider you want to trade with. Your trading system will determine what you're looking for. E.g.:
- a) Can you place an "if done" stop loss order connected to a pending order to enter a CFD?
If you can, you can place your order to enter the CFD and its stop loss simultaneously each day. Especially for working people during the day, this is handy as they can do all their trading in the evenings. With these "if done" stop loss orders just mentioned, they are usually of two types.
If you're using a limit order to enter a CFD, you can specify the stop loss at a specific price.
Two, if you're using a "enter on open" kind of order, you will be able to specify your stop loss at a particular distance from the entry price, whatever the entry price may be. Again, exactly what you can do will depend on the provider, so check out their website, and if it's not clear, email or call to ask them.
- b) When placing these stop loss orders, are there any limitations on how far the stop losses can be from the entry price? Some providers have no limitations, while some do have limitations, in that you have to have a minimum distance away.
- c) Note that if you're using a provider to place a market order only during market hours, then you'd usually need to place a stop loss just after you have entered the trade.
So, the above points won't apply to you, except for checking how far from the current price spread you can place your stop loss order, similar to point b) we just mentioned.
How easy their charts are to use?
Some traders use the charts on the CFD brokers platforms to fine tune their entry, especially if they're day trading CFDs
Though Many people trade with a system that does not require them to be there when the market is open, in this case, the charts are relatively less used. But you do want to have some decent charts so you can tell what is going on if you need to.
Their account management logbook
Have a look at the account management logbook of the platform, which is where you keep track of your account, your profits and losses from trades, and the costs of trading, such as commissions and interest charges or payments. This should be quite clear and understandable. You do, after all, want to keep track of your trading results.
Note that these are not the only factors to consider when choosing a CFD broker or dealer.