Which Cfd Broker Is The Best In Australia

Posted by Finance Professional on September 28, 2010 under Stock Market News | Be the First to Comment

There are numerous first-class CFD brokers in Australia, their constant advertising and promotions make it difficult to pick which one is best, some have advantages over the others but more often than not it’s their expensive advertising and marketing that makes you decide on your CFD provider.

When you sweep away all the smoke and mirrors and consider each of the best CFD brokers on several key metrics you will quickly discover which CFD broker genuinely fits your trading requirements.

There are a couple of key metrics that you should judge your CFD broker on, they are:

1. DMA or Market Made
2. Web based or Download able platform
3. Product Choice

DMA or Market Made
It’s vital to make sure that you realize the differences between DMA and Market Made CFDs and the pro’s and con’s of each. DMA CFDs offer a few advantages in that they permit you to trade in the opening and closing phases of the market as well as allowing you to participate in the market depth. DMA CFDs are preferred by scalpers and day traders but are not so popular with traders needing exposure to indices or forex and wanting to place guaranteed stop loss orders, this is where Market Made CFDs have noteworthy advantages over their DMA cousins.

Web Based or Download able trading platform
It can easily be quite perplexing when choosing a CFD brokers trading platform as each platform has their benefits and drawbacks. It is imperative to think about where you’ll be trading from as this will determine whether you use an internet based or download able platform. If you plan to trade from work it might be better to select a web based trading platform for the simple reason that web based platforms don’t require a download, which means they can’t be blocked by the firewall in an office, though web based trading platforms come with some downsides in that they tend to lack much of the advanced charting functionality of download able platforms. Download able platforms are more suitable for home use as they offer considerably more sophisticated charts and order types along with added features such as back testing and customizable multi monitor layouts. Professional day-traders and scalpers often choose download able platforms whereas casual traders will usually prefer using web based platforms.

Product Range
It is important that when picking the best CFD broker for your needs you should assess the products that they offer to make certain they can provide a range of CFDs that fit your trading plan. Some CFD brokers only offer CFDs on Australian Stocks however others offer CFDs over stocks, indices and forex. If your strategy covers all these products you must make certain that you choose a provider that doesn’t restrict you to Australian share CFDs only.

Naturally when selecting the best CFD broker for your trading needs you’ll need to examine all the metrics above and make your determination according to whether the CFD broker can offer you what you require to execute your trading plan. It is also highly recommended to download a few demo trading platforms available in the market, this may help you to better understand whether the platform is suitable for your needs and trading approach.