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CFD Broker with high leverage » Comparison 2020

When choosing a broker, an aspect that is particularly important is the trade offer. Versatility in this area is a vital factor even for beginners – with the focus being on tradable underlying assets. What does the broker actually offer? Some financial service providers specialise in stock CFDs. However, if you want to broaden your…

Trading Offer

When choosing a broker, an aspect that is particularly important is the trade offer. Versatility in this area is a vital factor even for beginners – with the focus being on tradable underlying assets. What does the broker actually offer? Some financial service providers specialise in stock CFDs. However, if you want to broaden your scope as an investor, this will not be enough.

From indices to raw materials

A broker is attractive if their offer can be as broad as possible. Many suppliers score points on this in our broker tests, as it is often possible to trade contracts for difference on indices, commodities, foreign exchange currencies and equities – four assets that are especially popular and provide a very good basis for trading. However, in a comparison, you should take a closer look to get an idea of how the broker is positioned with respect to the underlying assets.
CFD Broker with high leverage

CFD Broker with high leverage

Conditions & Costs

In a broker comparison it is particularly important to have a look at the fees, and the spreads are highly relevant here. These are the fees that are due for each trade. The broker usually lists the spreads on their website, so you can see whether they are fixed or variable spreads. The advantage here is that you can achieve an overview of the approximate costs before you register. In a high leverage broker comparison you should take care to scrutinise the spreads of the most common underlying assets very carefully.

Possible additional fees

Trading costs are not always listed in a transparent way. In addition to the spreads, you should inform yourself about possible commissions. Some providers charge a commission for some products but not for others. In addition, check for any extra fees on the trading account. As a rule, the accounts are free of charge, but some brokers charge an inactivity fee, which should be noted in the terms & conditions. A good comparison should highlight any additional costs, if they are expected.

account models

It is quite possible that a broker will offer different account models. Traders may benefit from this, as the costs and advantages often vary, and are relevant to different levels of experience. Some accounts are especially interesting if, for example, the account offers trading with fixed spreads. In that case, the more actively you trade, the lower the cost of trading, so it may be an important point to pay attention to in a comparison. Pay attention to other points as well, such as whether a better service or other services are available depending on the account model.

Minimum deposit

The minimum deposit amount is another criteria included in the comparison. Although it gives no indication of whether the broker is reputable, it is important for many traders when deciding whether they want to open an account. High leverage trading is especially interesting for small investors looking for high returns. If that describes you, a high minimum deposit can be a significant disadvantage. Since brokers know that high leverage appeals primarily to retail investors, they usually set a small minimum deposit. On average, you might expect it to be around 100 euros.

platforms and mobile trading

The trading platform is a particularly important aspect for any broker, so make sure that the available software is powerful, reliable and easy to use. It should allow for a concise overview of your trading activities and also provide assistance in developing a strategy.

Advantages of a good trading platform are:

  • Intuitive handling even for beginners
  • The widest variety of tools possible
  • Customisable interface

Some brokers may provide multiple trading platforms, but many rely on a proprietary platform that allows them to design a custom experience and better respond to clients‘ needs. The tool selection is often much better with proprietary software too. Nevertheless, the majority of vendors also offer proven trading platforms such as the popular MetaTrader 4. If you want a good CFD experience, you should check to make sure the software will meet your needs. Most brokers also provide apps and mobile software solutions to give their customers as much flexibility as possible. As such, trading is usually also possible on the go, via smartphone, tablet or iPad.
Contentgrafiken Vergleich CFD

Contentgrafiken Vergleich CFD

Usability

Further criteria in a broker comparison is the user-friendly aspect of the broker’s website. With the question ‘who is the best provider?’ in mind, the focus is not just on usability, but also in assessing the site as a first point of contact for a trader. The most important information should be easy to find and any initial questions that traders might have should be answered. Make sure that all relevant content is available in a language that you understand.

The following information should be easily available:

  • Underlying assets
  • Account models and platforms
  • Spreads and other fees
  • Contact details and information on regulation

Many brokers are based overseas and operate internationally, so the website is often English-speaking. But as a rule, if you are not automatically directed to the English language version, you should have the option of selecting your language in the header area of the website. At the very least, legal documents, the price-performance-overview and support should be available in your language.

Customer support

Customer service is a topic of particular interest in high leverage trading whenever you have a problem. Basically, the most important questions should be clarified on the website. Some brokers provide a FAQ section, which usually gives you some helpful answers. Since this is not always sufficient, it is advisable to test the customer support options. Of particular interest here are the contact paths, the times of availability and the competence of the customer service staff.

In order for a broker to excel in the field of customer service, a provider should be available at those times when you will primarily need their services. Some providers are available 24 hours a day, others only on weekdays or at fixed times until the early evening. Moreover, it is recommended to take a closer look at the contact options – a live chat option is particularly convenient and has the advantage of allowing you to continue to trade without needing to open an extra mail window or a form. Besides, you will usually receive an answer directly. A hotline can also be a good solution for communication – just be sure to check in advance if there are any charges.

Payment methods

If you have found a broker who could be the best provider for you, a closer look at the methods of payment is in order. Making a deposit into your account with the CFD broker is the first step to start trading. As a rule, a wide variety of payment options are accepted.

Common methods include:

  • Deposit by credit card
  • Deposit through online services such as Skrill, Paypal or Neteller
  • Deposit via SOFORT transfer

Most brokers give their customers a lot of flexibility here. Many traders still like to use a credit card as a means of payment, as transactions are quick and safe. Payments by bank transfer are very secure too – though this is not always the first choice due to the longer processing time. Neteller, Skrill and SOFORT transfer are now also available at many brokers. When you consider the payment methods, keep in mind that it is sometimes important to be able to act quickly. Other important aspects to consider are possible fees and limits, which you should check in advance.

Additional offers

Those who want to establish themselves as the best broker for beginners nowadays need to offer extra incentives – such as a demo account, and further education options such as e-books, webinars, video courses, tips on strategies or lexicons. However, quantity is not always crucial here – and not only beginners, but also advanced traders may benefit from offers such as these. It is also a good idea to check which trading tools and extras are available, such as business calendars or automatic trading systems.

Take advantage of a demo account

If you want to gain experience in trading without investing your own capital, a demo account is the answer. A demo account allows you to familiarise yourself with the platform and try out trading. A demo account is very useful for testing strategies. Some brokers make their demo accounts available for only a limited time. This should not exclude them from your options, but an unlimited account is particularly advantageous. The amount of virtual credit offered is also an incentive – you should make sure that you trade with real trading conditions in the test account, so it is as similar as possible to a real trading account.

Regulation and deposit insurance

With financial tools such as , fraud can never be completely ruled out, but regulation at least provides information on whether a provider’s activities are controlled, and action is taken if necessary. To obtain a licence, a broker must meet certain requirements. Regulation is the responsibility of the respective financial regulator at the headquarters of the broker. If a broker offers services in other countries as well, it is usually also registered with local authorities in those countries.
Contentgrafiken Vergleich CFD

Contentgrafiken Vergleich CFD

Security of client funds and data

In order to prevent CFD fraud, it is advisable to use your broker comparison to identify a provider who offers encrypted data transfer. Without this, there is always a risk that your data could be intercepted and abused by hackers. However, this is not the only consideration when searching for the best CFD provider. In addition to encryption and regulation, deposit insurance is particularly important. You should check if your deposits are insured, and up to what amount. It is also advisable to know whether the broker keeps assets and client funds in separate accounts, which is usually the case.

Therefore, in your broker comparison, the following points should be considered:

[list_info_box item1=’Deposit insurance’ item2=’Regulation’ item3=’Data encryption’]

trade press and awards

Once you think you’ve found a provider that meets your requirements, it might be interesting to see if the broker is mentioned in the media or has received any awards. Specialist magazines conduct regular tests, giving out awards and titles such as ‘Best CFD Broker’. A look at current reviews may also be worthwhile. They show up-to-date information on a broker, the offers they provide and how they are rated by the press. Usually, brokers will refer to press coverage on their websites and link to various relevant reports.

Broker awards

In the financial press and on the various websites that provide trading coverage, brokers regularly receive awards. Often the support, the platform, the trade offer or the complete package are evaluated. First place goes to the provider who is outstanding in these respective areas. Look for titles such as ‘Best Trading Platform’ or ‘Best Broker’. You’ll also find customer opinions about the respective brokers, but these are subjective and should not be as crucial to your decision as anything the financial press have to say about the broker.

Market overview & outlook

CFD trading has experienced a significant upswing in recent years. Many small and inexperienced investors appreciate the ease with which they can become active in the cash markets or futures markets. As the number of underlying assets also increases, the market is sure to become more attractive to experienced traders. Although interest is high, traders should be aware that CFDs are speculative products and are always risky. However, CFDs offer a significant advantage – traders have the opportunity to act much more effectively than if they invest directly in the underlying assets. The possibility for diversity is significant, and the increasingly popular cryptocurrencies market is accessible with CFDs too.

Assessing future developments

Trading on the stock exchange, and also outside the stock exchange, has developed in recent years. With more and more brokers offering the possibility to trade online, there are increasing possibilities. But what about the future of CFDs as products? Since they are a very transparent financial instrument and offer the possibility to trade high volume with low capital expenditure, it can be assumed that the development of CFDs will continue to be positive, making them a suitable future investment.

Using comparisons and reviews when choosing a broker

Our comparisons and awards will guide you to the providers that have convinced us, as well as our readers, in our CFD broker test. Nevertheless, a broker should meet your individual requirements. When making your decision, consider the criteria important to you and make a shortlist. After that, we recommend a broker comparison to take a closer look at all aspects of the brokerage – such as regulation and deposit insurance, costs, trading offers and software.

Being active in high leverage trading does not mean that other types of investment won’t be of interest to you.

If you are informed about the various high leverage brokers and are interested in trading cryptocurrencies, then a crypto broker comparison might be useful. With some providers, you can speculate on the prices of Bitcoin and other digital currencies via CFDs. AskTraders provides a wealth of information on a range of trading opportunities. Take advantage of our free comparisons and browse our broker experience reports to find the right high leverage broker for you.

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Don’t Count On JPY Correction; Staying Long GBP/JPY

The path of the potential pace of the JPY decline may still be underestimated by markets, which continue trading the JPY long.

While the 10% USDJPY advance from September lows looks impressive from a momentum point of view, it may no thave been driven by Japan’s institutional investors reducing their hedging ratios or Japan’s household sector reestablishing carry trades.

Instead, investors seemed to have been caught on the wrong foot, concerned about a sudden decline of risk appetite or the incoming US administration being focused on trade issues and not on spending. Spending requires funding and indeed the President-elect Trump’s team appears to be focused on funding. Here are a few examples: Reducing corporate taxation may pave the way for US corporates repatriating some of their USD2.6trn accumulated foreign profits. Cutting bank regulation could increase the risk-absorbing capacity within bank balance sheets. Hence, funding conditions – including for the sovereign – might generally ease. De-regulating the oil sector would help the trade balance, slowing the anticipated increase in the US current account deficit. The US current account deficit presently runs at 2.6% of GDP, which is below worrisome levels. Should the incoming government push for early trade restrictions, reaction (including Asian sovereigns reducing their holdings) could increase US funding costs, which runs against the interest of the Trump team.

Instead of counting on risk aversion to stop the JPY depreciation, we expect nominal yield differentials and the Fed moderately hiking rates to unleash capital outflows from Japan.The yield differential argumenthas become more compelling with the BoJ turning into yield curve managers. Via this policy move, rising inflation rates push JPY real rates and yields lower, which will weaken the JPY. Exhibit 12 shows how much Japan’s labor market conditions have tightened. A minor surge in corporate profitability may now be sufficient, pushing Japan wages up and implicity real yields lower.

JPY dynamics are diametrical to last year . Last year, the JGB’s “exhausted”yield curve left the BoJ without a tool to push real yields low enough to adequately address the weakened nominal GDP outlook. JPY remained artificially high at a time when the US opted for sharply lower real yields. USDJPY had to decline, triggering JPY bullish secondround effects via JPY-based financial institutions increasing their FX hedge ratios and Japan’s retail sector cutting its carry trade exposures. Now the opposite seems to be happening. The managed JGB curve suggests rising inflation expectations are driving Japan’s real yield lower. The Fed reluctantly hiking rates may keep risk appetite supported but increase USD hedging costs.Financial institutions reducinghedge ratios and Japan’s household sector piling back into the carry trade could provide secondround JPY weakening effects

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Daily Financial News

Mexico raises interest rates, cites Trump as risk

The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane” sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike

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Financial News

Africa’s first Fairtrade certified gold co-operative offers hope to gold miners living in poverty

Syanyonja Artisan Miners’ Alliance (SAMA) has become the first artisanal small scale mining co-operative in Africa to become Fairtrade certified, bringing much needed hope to impoverished communities who risk their lives to mine the rich gold seam that runs around Lake Victoria.

SAMA is one of nine previously informal groups from Uganda, Kenya and Tanzania which has benefitted from a pilot project launched by Fairtrade in 2013. This innovative program aims to extend the benefits of Fairtrade gold to artisanal miners across East Africa.

In that short time, SAMA has undergone training in business and entrepreneurship, as well as safe use of mercury, internal control systems, labour rights and better working conditions, health and safety and more. Previously, daily contact with toxic chemicals used to process gold meant members risked disease, premature births and even death.  Fairtrade gold was first launched in 2011, and SAMA now joins Fairtrade certified gold mines MACDESA, AURELSA and SOTRAMI in Peru.

The co-operative produces just 5 kg gold per year, but nevertheless has the potential to significantly benefit many people in the local community through better conditions through certification. It is expected that Fairtrade and organizations like Cred Jewellery will support the miners, ensuring their gold can be refined and made available to jewellers in the UK and other markets.

Gonzaga Mungai, Gold Manager at Fairtrade Africa said: “This is a truly momentous and historical achievement and the realisation of a dream that is many years in the making. Gold production is an important source of income for people in rural economies. Congratulations to SAMA, it sets a precedent which shows that if groups like this can achieve certification, then it can work for others right across the African continent.”

The Fairtrade Gold Standard encourages better practice and changes to come in line with international regulation around the production and trade of so-called ‘conflict minerals’. Under the Standard, miners are required to:

  • Uphold a human rights policy preventing war crimes, bribery, money laundering and child labour
  • Clearly represent where the minerals were mined
  • Minimise the risks of conflict minerals through robust risk assessments and collaboration across supply chains
  • Report to buyers and trading partners regarding the risks of conflict minerals

Now in its second phase, the programme will focus on supporting other mining groups in the region to access affordable loans and explore a phased approach to accessing the Fairtrade market, allowing more mining co-operatives across Africa to participate in the programme.

Gonzaga added: “Sourcing African metals from smallscale miners in the Great Lakes Region is the responsible thing to do. For a long time companies have avoided buying gold from this region, with devastating consequences for impoverished communities who were already struggling. It has driven trade deeper underground, as unscrupulous buyers pay lower prices and launder illegal gold into legitimate supply chains. That’s why we have chosen to work with these groups to help them earn more from their gold within a robust compliance system that offers social, environmental, and economic protections.”

The Fairtrade gold programme offers a small but scalable solution to sustainable sourcing of gold from the region in line with Section 1502 of the Dodd-Frank Act in the US, OECD Due Diligence Guidance and recent EU Supply-Chain Due Diligence proposals which could come into effect in 2016. This means that up to 880,000 EU firms that use tin, tungsten, tantalum and gold in manufacturing consumer products could be obliged to provide information on steps they have taken to identify and address risks in their supply chains for so-called ‘conflict minerals’.

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