trading cfds

[danny]

I am new to CFD's and analyzing whether or not I should start trading CFD's.

My first question is what is the usual minimum trade that each company requires you make - or is there a minimum?

Secondly, what kind of balance do you need to open an account?

[nadine]

I presume you mean number of trades a month. If so, then there is usually no minimum number of times that you have to trade.

With Deal4Free you need £5000 to open an account

Hope this helps.

[danny]

Cheers for that - most helpful

i also wondered if someone out there could give some impartial advice. I have 2000 to invest and want to start doing some CFD trading (i know 2000 is not enough). Basically I am not sure which provider to go with. Apart from deal4free, there are no firms out there who provide a no commission service - but i do not have sufficient funds to open an account with CMC.

So could anyone give some advice as to the best provider to use. I have been looking at selftrade and they look ok but £9 a trade - pretty expensive!!!!!!!!

Any help much appreciated

[davidfx]

Have a look at IG Markets. Not sure about minimum account opening amount but they have a wide range of CFD mini-contracts commission-free (eg £1 per point on FTSE100 - 4 point spread). Plus a slick and reliable dealing interface.

[millionarepopcorn]

The CFD minimum is £2000 with deal4free so if that's what you have and they look the best then go for them.

PS I used them for a couple of years and for £2k starting pot i think they would be a good choice as with the 0 commission you can trade smaller amount and scale in and out without worrying about commission eating into your trades too much.

All just my opinion though

[danny]

I have also seen a lot written about Capital Spreads who also charge no commission - any thoughts on them??

[ahmed]

This is something that struck me recently, you can minimize your risk exposure by trading the equivalent of a single share using CFD's, as opposed to a minimum of 100 shares with most SB co's, great for testing a new strategy on a limited budget. Obviously you're still liable to CGT, but this is unlikely to be the primary concern if one is trading such minimal size.

The only hindrance to one with a relative lack of 'proper' trading experience, such as myself, is opening an account. A certain minimum level of experience is required, presumably an @rse covering exercise due to the FSA, however what is this level? 5 yrs of losing cash, 1 yr of astronomical gains, a fortnight of fixed odds type stuff?

[nadine]

Who is going to check what you put on the form?
Not that I am advocating such action

[SJCFDs]

The only hindrance to one with a relative lack of 'proper' trading experience, such as myself, is opening an account. A certain minimum level of experience is required, presumably an @rse covering exercise due to the FSA

I have to disagree with you there Ahmed - i have worked for numerous CFD/SB firms over the years and there is no fixed "experience level" needed to open an account or start trading.

The only reason why such questions are asked, are in order for the firm to satisfy certain FSA compliance rules. The question of trading experience are related to the FSA regulations regarding "Know you customer" (KYC). They need an overview of your background in order (theoretically) to offer you a "suitable" service. The rules are there to protect you - and the firms have to abide by them to protect themselves.

One question they always ask is "do you understand the concept of leveraged products?".

etc etc etc - but my point is, no "trading experience" is necessary - all that is necessary is that you understand certain risk concepts and relay this fact to the firm providing you with an account. When you think about it - you really SHOULD understand the risks before you start throwing cash around.

Other than that - anyone can open an account and start trading

[forexhitman]

has anyone tried onecfd, they a a cfd broker ive got a demo accoutn with, but they also do cfds!!!! hope it might help