CFD trading is considered one of the most reliable and secure types in today’s market. Let’s explain what it represents as a whole.
What is CFD ?
CFD is an agreement between two sides (buyer and seller) about acquiring a certain asset instead of its direct acquisition. It means that the contract allows not to own the asset directly and it’s maybe the main advantage of the trading way.
Via contract for difference, you can trade with all assets from stocks and currency to commodities and cryptos.
How CFD works?
The online trading world has been changing at a rapid pace, with more and more people turning to CFDs. But how does the mechanism of CFD work? Well, the thing is that since none of the sides directly owns a real asset, accordingly, no one is connected with the market.
One side predicts the changes in the cost of prices, while the other side agrees or disagrees with it. In case of mutual agreement, the transaction is completed.
PC trading platforms for CFD trading 2022
We selected 3 trading platforms that are more suitable for CFD trading via PC.
Let’s go through the list and get acquainted with it.
Metatrader 4
MT4 is the most famous “creation” of Metatrader software. This proven and multilingual platform allows traders worldwide to experiment with strategies, draw charts and analyze financial markets in their own language – whether they’re beginners or experts.
The Metatrader 4 platform is powerful and fast to use, but the resources needed for it can be minimal.That’s why many traders use MT4 download for PC, which provides them with all of the tools they need in one place while leaving out any unnecessary stuff. It is definitely the right decision.
Metatrader 5
MT4 and MT5 are nearly identical, but those who prefer to trade manually will find that MT5 is more powerful than its predecessor.
The latest version of the trading platform allows CFD traders to trade even more efficiently. Although the interface of MT4 and MT5 is almost the same, the latter is more powerful and multifunctional. Thanks to the MQL5 programming language, automated trading is top notch.
The main features that Metatrader 5 surpasses the previous version are:
- economic calendar
- more timeframes
- limitless number of charts
Thus, Metatrader 5 also has all the possible tools and charts for CFD trading and even more.
NinjaTrader
In the fight for the title of the best trading platform, NinjaTrader is not inferior either. Like the previous ones, it also offers demo accounts for testing the platform. It operates under the two brands “NinjaTrader” and “NinjaTrader Brokerage”, which allows it to open trading with futures, currencies, stocks and CFD contracts.
NinjaTrader is a great platform for traders who want to monitor market fluctuations and test different strategies. It offers a number of services that are both helpful and diverse.
Pros and Cons of CFD trading
Let’s go through the pros and cons of the CFD trading as well.
Pros of CFD trading
- High leverage opportunity
- Low transaction costs
- Speed
Cons of CFD trading
- Quite risky
- Expenses for saving positions at the end of the day
- Taxes levied for closing every CFD
- Weak reguliation
Conclusion
Despite the fact that CFD trading is a process independent of financial markets, it is nevertheless quite efficient and, most importantly, simple. And if you choose a good trading platform and constantly monitor economic changes and price fluctuations in the market, CFD trading can be quite profitable for you.
