The Top 5 Sites To Trade Stocks With CFDs & ETFs
Trading stocks and securities via the Internet has become a powerful tool reducing costs and decreasing the barriers of entry to becoming a trader. Whether utilising CFD (contract for difference) methods or ETFs (exchange-traded funds), there is indeed a massive opportunity for both individuals and institutional traders. While there is always a level of risk involved and losses can occur from time to time, the latest platforms are able to provide the insight and clarity required to make the most informed choices at the appropriate times. Let us now take a look at what many consider to be the top five regulated brokers for trading stocks online through CFDs and ETFs.
ETX Capital was founded in 2002 and since this time, it has become another massive online broker. One notable benefit with this service is that there are three different types of trading platforms available. These are:
- MetaTrader 4
- ETX Trader Pro
- ETX Binary
Alongside this flexibility, ETX Capital offers competitive spreads that are seen as being some of the best in the business. As it is possible to activate an account for as little as $100 dollars (or the domestic currency equivalent), this site is ideal for those who are on a tight budget. Note that indices and commodities are also provided within CFD trades. A few other interesting additions to this website include guaranteed stop losses and limit orders, leverages of up to 1:400, one-click executions and demonstration accounts.
IronFX has been an online broker famous for its fixed spreads (as low as 0.03 pips) and amenable commission rates (approximately 0.10 per cent for most CFD positions). With well over 50 stocks available, many astute traders will take advantage of such profitable positions. It should be mentioned that IronFX currently provides five different platforms to choose from which include:
- MetaTrader 4
- PMAM (Personal Multi-Account Manager).
- WebTrader 4
- Social Trader
Some common stocks include Cisco Systems, Citigroup, Bank of America, IBM, General Electric and Exxon Mobil Corporation. Leverages as high as 1:500 will help investors to further capitalise on such positions although it should once again be noted that increased leverages can equate to mounting losses within a short period of time. A handful of other amenities associated with IronFX include a minimum account size of $500 dollars, access within over 180 countries, the ability to follow experienced professionals and applications for both Android and iOS systems.
Although CMC Markets has become famous throughout the world for an unrivalled access to Forex trades, it also offers an extremely impressive choice of CFD trades. According to their website, there are currently no less than 943 different shares available to members. Please note that these also include EFTs. Users can become involved with popular choices such as Lloyds Banking Group, Tesco, Rio Tinto and Apple shares (to name but a few examples). Spreads as low as 0.10 per cent will enable profits to accrue over time. Notwithstanding the variety of products offered, CMC Markets also utilises an extremely efficient trading platform. Over 80 different technical indicators, numerous charting tools, mobile-friendly access and a highly intuitive layout have all made this broker a popular choice.
Ayondo was first launched in 2009 and many have placed this virtual broker at the top of their list. A minimum deposit of only €100 euros is required to open an account while a demonstration version is available for up to 30 days before an investor is asked to join. Ayondo uses the TradeHub platform and this is seen as being an extremely user-friendly interface. Another unique feature in regards to CFD trading through Ayondo is that the traders themselves can become signal providers after having reached various benchmarks. This is a useful tool for others to employ, for it can augment the existing social media software.
A variety of stocks are available such as blue chips, mid-cap shares, large-cap shares and small-cap holdings. The major advantage with this wide spectrum is that traders can employ multiple positions to hedge against any perceived market volatility. Some of the countries and indices used include the United Kingdom, the United States, Germany, Ireland, Italy and Spain. Although spreads are generally around .12 per cent (slightly higher than some other brokers), these are mainly attached to large-cap shares. On a final note, Ayondo provides numerous different educational tools such as webinars, trading tips, frequently asked questions and an online manual for those unfamiliar with TradeHub.
Hargreaves Landsdown was founded as far back as 1981 and boasts a solid reputation. Over 6,000 individual shares are active and commissions can be as low as 0.1 per cent. Although the number of shares may not be as high as some other brokers, it always needs to be mentioned that a highly intuitive platform and regular access to news updates are two major benefits. Hargreaves Landsdown pays particular attention to the fluctuations within the FTSE 100 market, so this broker could be an excellent option for those who mainly want to focus upon blue-chip shares out of the United Kingdom. A knowledge centre covers such topics as the principles behind ETF trading, investment trusts, split-capital trusts and many other useful tools. Although the overall platform may appear to be a bit “bare” when compared to Meta Trader 4 and similar systems, such clarity can actually enable trades to be carried out with extreme clarity. A dedicated application is available for iOS and Android smartphones.
These are considered to be the top five stock trading websites for the coming year. Although each offers an opportunity to make considerable profits, markets can and will fluctuate. Therefore, only capital that can afford to be lost should be risked. Thanks to such modern trading tools, such risks have nonetheless been mitigated to a large extent.