Contracts for Difference, or CFD trading, is CFDs It is one of the most complex types of financial assets that are traded through different trading platforms and companies, and because of this, many unlicensed platforms and companies have appeared that present themselves as reliable trading companies, but unfortunately they have exposed many traders to huge losses, therefore, we will show you the correct mechanism to start This type of trading is by choosing a safe broker.
Trade CFDs with licensed companies
It became difficult to choose a safe and licensed CFD platform until some reliable sites appeared that evaluate these companies. Among the most famous of these sites was the Thiqa site that specializes in evaluating different trading companies, and when speaking with Mr. Issa Al-Banna from the site team, We asked him to present the mechanism for evaluating these companies and the best companies for us, and to understand the mechanism of ranking the trading companies approved by Thiqa, as it became the best site for evaluating this type of companies according to the questionnaires in different countries.
What are licensed CFD companies?
Licensed CFD companies are companies that hold local or global licenses that allow them to manage complex financial contracts, such as Contract for difference. Under these licenses, companies are allowed to provide these services to individual investors and financial institutions alike.
The most famous licensed company in the region, AvaTrade, which holds licenses from the United Arab Emirates and from different countries around the world, and this platform is considered in the ranking of a trusted site, one of the best Licensed trading companies in the UAE that can be handled.
When talking about the local bodies that license trading, we are talking about:
Abu Dhabi Global Market – ADGM
Dubai Financial Services Authority – DFSA
Securities and Commodities Authority
Thus, it is always necessary to ensure that local companies hold the correct licenses, and not to approve any trading license that is not listed on the trading companies evaluation site, such as Thiqa.
What is the difference between CFD trading and stock trading?
CFD trading differs from stock trading, or currency trading (exchange market) is that when trading contracts for difference, the mechanism is speculative on the current market price without the need to own the original contract, so the investor is more flexible in the buying and selling process when trading these contracts.
Most of the trading companies that provide CFD service as well, offer their trading services with a leverage system that allows “raising the investment” through a complex process that is understood by those who have sufficient experience in understanding the mechanism of trading these contracts.
How can I get experience in CFD trading?
It is known about trading in general, that it needs experience or the trader is a person who speculates on the market price and exposes himself to risks without this experience, having experience in trading is not difficult, the experience can be fully acquired by opening demo trading accounts with companies such as AvaTrade And take advantage of the educational materials and materials that are published on a daily basis on these platforms.
Many companies hold weekly seminars to explain trading and speculation, so there is an opportunity to learn trading for free through these seminars.
What financial assets are traded via CFDs?
Contracts for Difference allow trading of many different financial assets. The most famous of these assets that are speculated on a daily basis in the local and global financial markets are:
Always remember, when trading CFDs and opening buy or sell positions. You do not own the original contract, but only speculate on the price of the financial asset according to what is listed on the various global stock exchanges.
How to choose a safe CFD platform?
In short, you can choose a reputable company like AvaTrade that was mentioned at the beginning of this article, or you can go to the Thiqa website and search for companies that match your financial aspirations and are licensed in your country or at least allowed to deal with them.
The most important things that must be available in a licensed trading broker are:
Ease of withdrawal and deposit
Full technical/technical support
Having strong licenses
Having powerful platforms compatible with different devices
If the broker has all of these elements, it is possible to start trading with the broker completely and securely. Bearing in mind that these things should be checked personally by the trader himself as there are a lot of unsafe brokers who send fake license pictures.
With that, we have finished with you this interesting and complete article about safe CFD trading companies and how to choose them, we wish you safe trading and abundant profit.