Best CFD brokers
CFD, short for contract for difference is taking over the trading space and there are traders who are taking advantage of the change to diversify their portfolio. Like every other trading opportunity, you will need a broker. Since CFDs might be relatively new to the newbie trader, it is only
normal that we delve into the world of CFDs and make you understand them.

What are CFDs? 

The contract for differences (CFD) offers traders and investors an
opportunity to profit from price movement without owning the underlying asset. It's relatively simple security calculated by the asset's movement between trade entry and exit, computing only the price change without consideration of the asset's underlying value.

This is accomplished through a contract between client and broker and does not utilize any stock, forex, commodity, or futures exchange.

Trading CFDs offers several major advantages that have increased
the instruments' enormous popularity in recent times. With CFD, all you have to do is to speculate on the price of an asset without owning the asset in itself and if your speculation is correct, you can earn money off it.

When trading with a CFD broker, the client will try to profit from the asset’s price movement/fluctuation but will never own the asset. In other words, if you are trading Cryptocurrencies with a CFD broker, you will not be able to withdraw the coins you trade.

If you are trading CFD on stocks, you will not actually have a stake in the company that you are trading. Instead, you can withdraw fiat money (USD, EUR, GBP, etc.), assuming you make a profit, of course. 

Who are CFD brokers?

CFD broker is the intermediary between traders and the market, which provides with a trading platform and necessary services to conduct trading. The brokers act as the go-between for the market and the trader.

As a rule of thumb, the CFD “broker” or “brokerage” is a firm or company that allows traders to buy and sell Contracts For Difference (CFD) on specific assets (currencies, cryptocurrencies, stocks, indices, and commodities). Choosing the best CFD brokers there is can, therefore, give you a huge advantage in the market. Since your broker determines what happens in the market, you should opt for only the
best CFD brokers. 

What should you look out for in a CFD
broker? 

User Friendliness:  The best CFD brokers have
websites that are well-structured, with easy to use the information and
translated in more than one language (the more the better). Check out if the broker has a trading platform or allows users trade use the Meta traders available, you must also careful attention to its functionality and ease of use.

Range Of Markets, Spreads, And Leverage:  Range of markets refers to
how many underlying assets are available for trading. The more assets, the more points. Spreads are an important part of trading because they will directly affect your profits, thus high spreads should be avoided (remember that you will pay spread on each of your trades). 

Last but not least, leverage lets you control a bigger position with only a fraction of the investment. For example, if the leverage is 1:2, it means that with 100 bucks you can open a 200 bucks position. Usually, the best CFD brokers offer much higher leverage than just 1:2 but this can be a double-edged sword because it increases your risk as well.

Fees And Support: You must factor in fees, this
is not limited to deposit/withdrawal and inactivity fees (if any). Of course, the best CFD brokers try to keep their fees as competitive as possible.

Support is another important category because sometimes you run into a problem and you want it solved quickly. You also need straightforward answers to your questions and that’s why it’s necessary for CFD brokers to have a solid support system, including Live Chat.

Extra Features: Things that are not commonly encountered
on all CFD brokers will go under this category. It could be a very low minimum deposit (or very high), maybe huge leverage or deal-breaking fees.

CFD brokers usually want to distinguish
themselves from the pack by throwing in a little extra feature just for their client.