What are CFD Brokers - CFD Broker Meaning

What are CFDs

In essence, CFD meaning is - an agreement between two parties, called a buyer and a seller, to exchange the difference between the initial value of the underlying asset when the contract is opened and the value of the underlying asset when the contract is closed.

CFD Broker Meaning

CFD broker is the intermediary between traders and the market, which provides with a trading platform and necessary services to conduct trading. To better start trading, you can strengthen your trading knowledge by reading our other article on "What is Forex trading and how does it work".

CFD Providers

CFDs are financial derivatives that allow traders to speculate on price movements of the underlying financial instruments. They are traded OTC (over-the-counter) with a broker or market maker, known as a CFD provider.

What is CFD Broker

As mentioned above, CFD brokers serve as intermediaries between traders and the financial market. Clients get access to financial markets through trading platforms, provided by the brokers. Trading terminals are equipped with trading instruments and technical analysis tools that are the necessary tools in trading.

CFD brokers vary by the provided services, trading instruments and trading conditions. Investors choose the one that corresponds to their trading expectations and preferences. To check the reliability of the broker is done through opening a real account, investing a small amount of money and starting trading.

Currently there are a large number of brokers, providing quite similar trading conditions with a wide range of financial instrument, and orienting in such diverse market has become much more difficult. However, after experiencing the provided services it becomes easy to understand whether the company is worth for long-term working.

What are CFD Brokers? What Do They Offer?

It is the duty of each CFD broker to define contract terms, margin requirements and the underlying instruments of trading. CFD trading includes different types of instruments – stocks, indices and commodities. The growing popularity surely makes brokers develop new trading conditions to attract more clients and be somehow different among so many competitors.

IFC Markets is a CFD broker, providing competitive CFD trading conditions for its clients. The commission for trading is very low (commission is for stocks only), clients can trade with 1:400 leverage (1:40 for stocks) - Find out more about What is Leverage in Forex.

The most important thing is that it is possible to trade continuous CFD on commodities and indices without an expiration date that was developed by the company to make trading process more comfortable. Trading CFDs is possible on NetTradeX trading platform and on MetaTrader 4, too. The spread for all instruments, except for stocks is fixed.

IFC Markets is constantly working to improve the provided trading services and providing unique trading conditions to its clients.

IFC Markets is a leading innovative financial company, offering private and corporate investors wide set of trading and analytical tools. The company provides its clients with Forex and CFD trading through its own-generated trading platform NetTradeX, which is available on PC, iOS, Android and Windows Mobile. The company also offers MetaTrader 4 platform available on PC, Mac OS, iOS and Android. You may compare the advantages of both platforms.