CFD trading is an over-the-counter (OTC) high risk type of cfd trading platform uk that allows you to speculate on the price movement of underlying financial markets without taking ownership of the asset. If the market moves in your favour you will earn a profit, and if it moves against you you will incur a loss. You realise your profit or loss when you close your position, for example by selling the number of CFDs you bought at the outset.
You should choose a UK regulated CFD broker, which means it is licenced by the FCA (Financial Conduct Authority). This will ensure that your funds are held separately from the broker’s money and that your broker has robust compliance systems in place to protect you as a trader.
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A good CFD trading platform will have a comprehensive range of features that cater for all types of traders. The key functions include a good selection of trading instruments to trade, and the ability to set stops and limits. Many CFD brokers also offer demo accounts, which you can use to test their platforms before committing real cash.
The best cfd trading platform uk for you will depend on your priorities and needs. Pepperstone is a popular choice, with competitive spreads and a wide variety of markets to trade. It is also one of the few brokers to offer a MetaTrader 4 suite, as well as a powerful mobile trading app. Its range of 5,000+ assets to trade includes shares, forex, cryptocurrencies and commodities.