Ranking of brokers with access to CFD
The Forex market (from English FOReign EXchange -. Foreign exchange) exists for international exchange operations. But brokerage firms serving individual traders with small capital, seeking to provide them with access not only to the foreign exchange market, but also in the shares of the various companies. For this purpose, a special trading tools, which are called CFD contracts. On this page is a list of the best forex brokers, providing its customers with access to CFD for the purchase and sale of shares. The shares are less volatile asset than the currency pair and the price change is not as intense. At the same time they provide a high enough profit in the short-term trading. But of particular interest for most traders is medium and long term investment in these securities. To avoid complex registration transfer of ownership rights for each transaction in shares and to reduce the margin requirements are very good contracts for difference (Eng. Contract For Difference, CFD), trading in which the seller and the buyer does not own the securities transferred. The subject of the transaction is the difference in the price of the asset at the time of its conclusion and at the end of validity of such a contract. Exchange trade with CFD's is highly attractive to most traders. The main reasons for the popularity:
- Shares of large companies reflect the processes in the real economy, and more predictable methods of fundamental analysis than the fluctuations of currency pairs, which are very influenced by political factors.
- Margin requirements when trading stocks are 10-20 times higher than with the CFD, which enables traders to invest in them, having a relatively small capital, that is, these trading tools more accessible and comparable in this currency pairs.
- Since CFD trading does not take place of actual transfer of the right to own shares, at any time, you can freely make transactions and complete them in full without any complicated formalities.
contract for difference are not just for large companies shares. These tools allow synthetic successfully market trade gold, palladium group metals, nickel, copper, oil, or cotton, for example, cocoa. But we should remember that the price of these assets are tied to the time of the largest exchanges, and trading suspended at the time of their closure.