10 things to look for when choosing a CFD provider in England?
In the UK, plenty of companies offer Contracts for Difference (CFD), including a range of derivatives to track or profit from stocks, indices, and commodities. Every CFD provider has a slightly different offering (check this here), which can make it quite confusing when you first start looking to open an account with a company.
Here are ten things you should look out for when opening an account that could be helpful and signs that you might not want to go ahead with the company.
1. Check the provider’s licensing and accreditation
When looking for a CFD provider in England, it is essential to ensure that they are licensed and accredited by the proper authorities. The Financial Conduct Authority (FCA) is the main regulatory body for financial services in England, so any CFD provider worth considering will be FCA-approved.
2. Compare costs and features
Not all providers offer the same services or charge the same fees, so it is essential to compare what is on offer before deciding. Make sure you understand the features of each product and what each fee covers – there can be a lot of variation between providers!
3. Look at customer reviews.
Online customer reviews and ratings can be a great way to find out how satisfied customers are with the products and services offered by CFD providers. Read through these reviews carefully because they will often highlight problems or highlight great deals.
4. Choose a CFD provider which offers good customer service
It is essential to choose a CFD provider who offers outstanding levels of customer service; this could make all the difference between having an easy trading experience and finding it challenging to get assistance when you need it! Even if prices are low, bad customer service could render them useless. Look for providers that offer 24/7 telephone support, email support, demo accounts (where available) and other resources. Customer testimonials can also provide insight on the quality of customer service provided.
5. Make sure you understand deposit requirements
Each CFD provider has different rules on how much money is required to open an account. There are usually minimums for each currency, so look around before opening an account with any particular company. You can also compare minimum deposits between providers, making it easier to find a good deal (don’t forget that not all currencies require the exact deposit amount). The best way to avoid surprises when opening your account is to do your research beforehand!
6. Look for market analysis tools
The more tools available, the better! Tools like ladder trading allow traders to access instant information about their assets and make informed decisions about whether to trade (and how much). Market analysis tools like these can increase profits and keep trading costs low, making them invaluable for traders.
7. Choose the best platform
When choosing a CFD provider in England, selecting the best forum possible is essential. Look for providers who provide good platforms (MetaTrader 4 is usually considered the most reliable), with advanced features like ladder trading, charting software and more. The better the platform offered by your chosen CFD provider, the smoother your trading experience will be. Make sure you test out any available free trials before opening an account!
8. Consider mobile options
Most CFD providers offer their mobile apps these days – if you prefer trading on the go, use the app to keep an eye on market fluctuations and make transactions wherever you are!
9. Don’t focus too much attention on bonuses
Bonuses can be very appealing, but they can also be a form of hidden commission. If brokers do not list all associated fees (some CFD providers claim that their bonus money doesn’t require any extra deposit or withdrawal, which is not true). Generally speaking, bonuses should not be the main factor in making your decision; make sure you know what your chosen provider requires before opening an account.
10. Get proper advice before opening an account
This might seem like common sense – but many people choose to ignore it! It is essential to only open an account with a CFD provider after doing your research and reading independent reviews. This way, you’ll avoid any nasty surprises later on.