What is CFD trading?
Contract for Difference or CFD trading for short, is one of the most popular ways to trade on online. The majority of the best online trading platforms will offer this typeof trading. A CFD allows
you to speculate on the rising and falling of the prices on the global financial markets. These markets include FX (AUD/ USD), indices (ASX200), shares/ equities (Qantas), cryptos (Bitcoin) and commodities (gold). 1 CFD is the equivalent to 1 physical share in equity.
Most of the best online trading platforms for beginners offer education to make sure you start your trading informed. They also provide demo accounts so you can practice with virtual funds with no obligations.
Risk management is an important factor when it comes to trading and the CFD trading platforms we list on this page make sure you have the tools to prevent losses. When you trade CFDs you can place a ‘Stop loss order’ which allows the platform to close your position/ trade once it reaches a certain level set by you when opening the trade. This can be set at a price just below the trade opening price to make sure you minimise any losses.
CFD trading has many benefits, these are the key ones:
- Easy to understand
- Trade on margin (you can trade multiple times more than what you deposit, giving you more leverage)
- You can go short (sell) as the prices go down and go long (buy as the prices rise).
Best Online Trading Platforms for Beginners
| Website | Broker Rating | Cryptocurrencies Available | Trading Method | Fees | Location/ Licence | Visit |
|---|---|---|---|---|---|---|
| Bitcoin, Bitcoin Cash, Ethereum, Litecoin & Dash | CFD and FX (capital at risk) | Free to join, competitive spreads | Australia / ASIC |
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| Bitcoin, Bitcoin Cash, Ethereum, Litecoin & Ripple | CFD & FX (capital at risk) | Free to join, fixed spreads | Australia / ASIC |
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| Bitcoin, Bitcoin Cash, Ethereum, Litecoin & Ripple | CFD and FX (capital at risk) | Free to join, competitive spreads | Australia / ASIC |
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How to CFD trade
- Sign up to a trading platform (for free)
- Choose a market
- Decide to buy or sell
- Select your trade size
- Add your stop loss (risk management tool to prevent losses)
- Monitor your trade via the mobile app on the go or your computer.
- Close the trade
These are the best CFD trading platforms for beginners in the market. They’re all free to sign up with no obligation to deposit or trade.