There are a lot of good CFD brokers in Australia, their constant marketing and promotions make it difficult to choose which one is best, some have advantages over the others but more often than not it’s their expensive marketing and advertising that makes you decide on your CFD provider.
When you sweep away all the fog and evaluate each of the best CFD brokers on several key metrics you will in next to no time realize which CFD broker genuinely fits your trading requirements.
There are some core key metrics that you ought to evaluate your CFD broker on, they are:
1. DMA or Market Made
2. Web based or Download able trading platform
3. Product Variety
DMA or Market Made
It is important to make sure that you realize the differences between DMA and Market Made CFDs and the pro’s and con’s of each. DMA CFDs offer a few advantages in that they allow you to trade in the opening and closing phases of the market in addition to enabling you to take part in the market depth. DMA CFDs are preferred by scalpers and day traders but aren’t so common with traders needing exposure to indices or forex and wanting to place guaranteed stop loss orders, this is where Market Made CFDs have considerable advantages over their DMA cousins.
Web Based or Download able trading platform
It can be quite confusing when picking a CFD brokers platform as each trading platform has their benefits and drawbacks. It is imperative to consider where you will be trading from as this will decide whether you utilize an internet based or download able platform. If you intend to trade from work it might be better to go for a web based platform for the simple reason that web based platforms do not require a download, this means that they can’t be blocked by the firewall in an office, however web based trading platforms have some downsides in that they tend to lack much of the sophisticated charting functionality of download able platforms. Download able trading platforms are more suitable for home use as they offer significantly more sophisticated charts and order types along with added features such as back testing and customizable multi monitor layouts. Professional day-traders and scalpers often prefer using download able trading platforms whilst casual traders are more likely to choose web based platforms.
It’s important that when deciding on the best CFD broker for your needs you ought to examine the products that they provide to make certain they can offer a range of CFDs that fit your trading plan. Some CFD brokers only offer CFDs on Australian Equities however others offer CFDs over stocks, indices and forex. If your trading plan covers all of these products you must make sure that you choose a broker that does not limit you to Australian share CFDs only.
Obviously when deciding on the best CFD broker for your trading requirements you will want to analyze all of the metrics above and make your determination according to whether the CFD broker can offer you what you need to execute your trading plan. It is also advisable to download a number of demo trading platforms available in the market, this will help you to better become familiar with whether the trading platform is suitable for your requirements and trading approach.