Investors continue to explore markets to discover new profit opportunities. There has been a significant spike of interest in Contract for Differences, popularly known as CFDs, due to immense profit potential.
Traders Union has evaluated hundreds of platforms using a set of comparison strategies to produce a trusted ranking for the Best CFD Trading Brokers of 2023.
The platforms have been evaluated based on their technologies, minimum deposit requirements, leverage, spread, trust management, deposit bonus offers, types of assets that can be traded, and the availability of license to operate issued by reputable sources.
Topping this year’s list as the Best CFD Trading broker is Roboforex, also declared as Traders Union’s best broker for beginner traders.
Operating since 2009, Roboforex specializes in trading automation solutions and bot builders. It supports more than 12,000 CFDs across different markets namely stocks, currency pairs, indices, and exchange-traded funds.
An important competitive advantage of the brokerage firm is its low minimum deposit at $10, and $100 for traders wanting to get started with its R StocksTrader.
Roboforex holds an international license to operate from FSC Belize, one of the most trusted regulators of financial services worldwide.
Second on the CFD Trading Brokers ranking is Pocket Option, offering access to trade CFDs on currency pairs, stocks, indices, commodities, and cryptocurrencies on MT5.
Pocket Option has been hailed as the best choice for novice traders and professional investors, lauded for its maximum leverage of 1:500. It is known for its flexible approach in calculating swaps, giving traders the opportunity to earn from carry-trade on a wider set of currency pairs compared to its competitors.
Third on the list is Tickmill, with a track record for having an innovative approach to trading since its entrance in the market in 2014. The platform offers attractive low spreads and comfortable trading conditions, while traders enjoy the protection from its UK Financial Conduct Authority license.
Other CFD brokers that recorded stellar performances during the period are Exness and IC Markets, both licensed to operate by the Cyprus Securities and Exchange Commission (CySec).
TU Research conducted a research among 2,000 profitable traders to find out how CFDs are traded within this demographic, and which CFD classes bring the highest returns.
Findings show the majority of Forex brokers in the market offer four main types of CFDs namely commodity CFDs, cryptocurrency CFDs, index CFDs, and other types of CFDs such as bonds, stocks, and exchange-traded funds.
In terms of monthly deposit growth in a 12-month period, 3% of participants achieved up to 15% monthly growth and 18% reported a maximum of 10%. Meanwhile, 28% saw their investments improving by 5% every month, 31% on an up to 3% margin, and 20% achieved a maximum of 1% monthly growth.
The TU Research also found 52% of traders use short term strategies while 48% are doing it for long term.
Around 1130 or 38% of participants voted in favor of trading commodity CFDs, 238 or 8% voted affirmative to cryptocurrency CFDs, 1219 or 41% answered their preference to index CFDs, while 387 or 13% of respondents are into other types of CFDs.
TU survey participants are 76% male and 24% female. In terms of age, 44% are between 18 to 30 years old, 35% between 30 to 45 years old, 6% are aged 45 to 60, and 5% are older than 60.