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This step by step guide will show you how to start trading CFDs. Which CFD provider should I trade with, how do I choose a suitable CFD provider?

It can be very intimidating when you are trying to choose the right CFD trading company. Many important questions need to be answered. These include what do I want in a CFD trading platform or what type of service am I after?

Firstly identify the oldest and most recognised CFD providers, research their history and any articles you can find about them. Because of the leverage aspect of CFD trading it is important to trade with a secure provider.

Make a shortlist of the most suitable CFD providers, and then read more about their products and services via their websites.  Be thorough and focus on points that will affect your trading experience, this includes costs and range of markets.

It is also important to make sure you will be comfortable using their trading platform. Check whether the trading platform they offer is browser-based or downloadable. Browser-based platforms tend to more popular for the on-the-go trader as you can login to check your CFD positions via any internet connection.

Trial accounts are very common among most CFD companies, these can be very useful as they give you the opportunity to test out their platform and the products and services that go with it. Spend time getting to know the different areas and markets you would use while trading. A trading platform you are comfortable with is very important in building your foundation as a CFD trader.

It is also important to understand the type of risk management tools each CFD provider offers. As CFDs are a margined trading instruments, meaning you can lose more than your initial deposit, it is important  you utilise risk management methods to protect your trading capital.

After concluding your research you can now decide which CFD provider you will sign up with

How do I apply for a CFD trading account?

Most major CFD providers offer quick and easy online applications. These should take just a few minutes via an automated form and be available 24 hours a day. Just visit their website and follow the detailled instructions.

Major CFD providers should offer a number of different types of accounts, each suited to varying levels of experience and risk capital. If you are new to CFDs you may wish to consider a Limited Risk Account, where Guaranteed Stop Losses must be attached to all trades so that you know exactly how much money is being risked on each CFD trade
My CFD account is active, what now?
After your CFD account has been activated and you have been sent your login details, login to the platform and add money to your new CFD account.. Once funds are in your account, simply select the instrument you would like to trade and take a CFD position.

{Conclusion}  

The best CFD provider is the one that provides a perfect fit for your CFD trading requirements. Generally that will be a combination of the provider and their trading platform.

Make sure the CFD provider offers a whole host of risk management tools including guaranteed stops of protect your trading capital.

A recognised and secure CFD trading company is IG Markets, Australia’s Number 1 CFD Provider*.  They offer a huge range of markets, free education and market analysis resources and a demo account to get you started.

{* Largest provider by primary account among current CFD traders, Investment Trends June 2009 CFD Report}

Remember that CFDs are a leveraged product and can result in losses that exceed your initial deposit. CFD trading may not be suitable for everyone, so please ensure that you fully understand the risks involved.

Tags: cfd, CFD Trading, cfds, online cfds