Trading Providers

Before you start trading, you need to choose a trusted trading provider, which can cause some headache as it can be difficult to know how to proceed to find information. But it important to spend time thoroughly reviewing the brokers.

To facilitate the search, we at Tradecfd have compiled information on five reputable brokers; AvaTrade, eToro , Plus500, Fortrade and HYCM. All are licensed for trading which means that these companies are licensed to offer financial services to customers. The regulators constantly check so the companies adhere to the set requirements.

Online Brokers/Trading Providers


Trading in commodities and stocks was long limited to a small group of investors, but in the early 1990s, when computers began to appear in every home, the global market opened up to the public. As technological development progressed, brokers began to establish themselves online and provide traders with electronical trading platforms.

As brokers began to offer investment opportunities on financial instruments, more people became aware of the new way trading with underlying instruments. The biggest advantage for the traders was the opportunity to speculate on the instrument's price development and not have to worry about owning for example ten tons of wheat and all the problems that come with reselling it. The trader also gained access to the entire world market instead of being referred only to the local market. The access to the global market was a huge hit among traders all over the world

The disadvantage of trading online through global brokerage firms is the risk of fraud. To avoid unscrupulous brokerage firms, it is important to only hire reputable trading provider firms that are licensed by trusted regulators.

What is a Licensed Broker?

In order to have a successful trade, it is important that you choose a serious and reputable broker. The first thing that indicates that the company is legitimate is to check that it is licensed by a European control body such as CySEC (Cyprus Securities and Exchange Commission). CySEC is a well-known control body that issues licenses to reputable companies that want to operate within the EU and the EEA or by the UK FCA (Financial Conduct Authority) whose goals include protecting customers through regulation and licensing of financial companies.

Before a company receives a license, it must comply with a number of rules and regulations and when all the requirements have been met, the company is under constant control of the supervisory authority. Any irregularities are punished with fines and, in serious cases, a revoked license and a ban on operating on the market.

The brokers recommended on this site are licensed and have the right to offer trading online with CFDs. However, we urge you to always check that a broker is licensed before you start trading because there is always a risk that a company has been deprived of its license.

Choosing a Trading Provider

When we looked for the top five trading providers/brokers in online trading, we looked at the following facts that are important to consider when choosing a broker:

  • Licensed broker. It is important that the company follows laws and regulations so you as a customer do not get into trouble.
  • Website in English. It is important that you as a customer receive information in your mother tongue in order to be able to make the best possible decisions.
  • Customer service. It should be easy to contact the company and get support when needed.
  • Education. In the financial industry, something happens all the time and a good broker provides his clients with recent news and training in various strategies.
  • Real-time price. A broker must follow real-time price development.
  • Free demo account. Being able to train yourself with a test account is worth its weight in gold before you decide to invest your own money, so take the opportunity to try different strategies with a free demo account.

The First Step

Once you have chosen a broker, be sure to open a demo account so you can feel if it is the right choice for you. Familiarize yourself with the trading platform and put some positions with the virtual money that comes with the demo account to learn how to trade. Also make sure to contact customer support with any questions.

If you feel that the broker meets your expectations and you feel secure with both the trading platform and support, you can invest your own money, but if you feel that the broker does not suit you, just open a demo account with another broker and test if it is a better option. It is important that you can be comfortable with the broker before you invest your own money.

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