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May 17, 2020 • 5 tweets • 2 min read
CFD trading offers a range of benefits and there's a reason why it's become so popular among retail traders.
But... there are also disadvantages and costs associated with CFDs and in this thread we will see how CFD brokers make money (the charges).
#CFD
cfdspy.com/cfd-brokers/ Image
1. The first cost in incurred by the long term traders and it's the overnight financing. This is the the cost a trader has to pay every night for holding his/her position (it's usually around base currency borrowing rate + 2%).
cfdspy.com/leverage/finan…
2. The spread. The spread is the difference between ask and bid prices or the difference between the prices you pay to buy and sell your market instrument.
Traders incur this cost with every single CFD trade they make.
3. This is not a real cost but rather what you miss out on when you trade CFDs. When you keep your money on your savings account you will probably get measly interest paid for keeping your money there but you won't receive any interest on the money you keep with your CFD broker.
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More from @cfdspy

CFD Spy Profile picture
Oct 14, 2020
CFD trading stands for Contracts For Difference and allows investors to trade on a wide range of markets.
But when it comes to choosing the right broker... What should you look for? What make a great and reputable CFD broker?
#cfd #cfdbroker #forexbroker
cfdspy.com/cfd-brokers/ Image
1. Regulation. Make sure your contracts for difference broker is regulated by FCA or other respected regulatory authority. Remember, you money could be at risk if you trade with a dodgy broker.
2. Competitiveness. Is your broker competitive enough when it comes to spreads and overnight financing charges? Remember, those charges will add up and drain your account so make sure you choose a solid broker.
Read 5 tweets
CFD Spy Profile picture
Sep 12, 2020
Are you already trading in CFD or a beginner? CFD is a popular derivative trading product. It allows you to speculate on the financial markets, which include shares, forex, commodities, etc.
This thread show the advantages of CFDs.
#cfd #cfdtrading
cfdspy.com/guide/cfd-adva… Image
Trading In Rising & Falling Market
When you can trade in both directions, it opens up more trading opportunities for you. For example, if you buy shares, you only make money when the price goes up. With CFD trading, you can also profit by selling shares when the price go down.
Invest In Range Of Markets
Traders get a chance to invest in various financial markets through one singular online trading platform. With CFD, trading in forex, shares, commodities, bonds, and others are possible from a single account.
#market #StockMarket
cfdspy.com/markets/range-…
Read 6 tweets
CFD Spy Profile picture
Aug 11, 2020
When it comes to CFD or forex trading, it's important that you deal only with reputable and regulated brokers; there's no need to cut corners and hope for the best, just go with the best.
Where's what you're looking for:
#CFD #cfdbroker #forexbroker

cfdspy.com/cfd-brokers/ Image
1. How are the spreads? are you satisfied? Shop around as there are so many brokers to choose from. A bit of leg work will save you time and money.
2. Happy with the range of markets? That's where you really have to dig in and investigate. If your CFD or forex broker does not provide the markets you trade then what's the point even if they have low spreads?
Read 8 tweets
CFD Spy Profile picture
Jul 17, 2020
You may often hear professional and successful CFD and forex traders talk about a trading plan. What what is it? Do you really need one?
The short answer is "yes", you need a trading plan.
In this thread we cover a few fundamentals.
#trading #cfds #forex
cfdspy.com/tips/trading-p… Image
1. You need to set up your trading targets. What do you want to achieve trading forex or CFDs (or any other financial market)? You need to set realistic and feasible objectives and adhere to your plan throughout your trading.
#forex #cfd #target
2. Once you're ready to trade, surely you'll need to employ some strategies, they might be short and long term strategies depending on the time you have but it's vital to come up with the strategies you'll be using for your CFD trading.
#strategies
cfdspy.com/strategies/cfd…
Read 5 tweets
CFD Spy Profile picture
Jul 16, 2020
Why is it that some CFD traders manage to make profit consistently when most of the retail traders lose money?
Are experienced traders better at research or sticking to the trading plan?
A few essential CFD trading tips in this thread.
#cfds #trading
cfdspy.com/tips/cfd-tips/ Image
1. Have a trading plan.
What is that you want to achieve? What instruments you want to trade? Do you set out your entrance and exit levels before you enter the trades? It's important to have a trading plan and stick to it no matter what.
#tradingplan #plan
2. Don't over-leverage.
Keep your leverage in check. If you have only enough money to risk 1 trade then you're definitely over-leveraging and just one bad trade will wipe you out. Ideally, you don't want to use more than 5% of your funds on any one trade.
Read 6 tweets
CFD Spy Profile picture
Jun 4, 2020
Currently, there are over 100 forex and CFD brokers on the market, all with their offerings and trading platforms. So how do you find a great broker? What to look for and what what providers to avoid?
cfdspy.com/cfd-brokers/
#cfd #cfdbroker #trading #trader Image
Regulation. Make sure your CFD broker is regulated by some prominent regulator such as FCA (UK), ASIC (Australia), Cysec (Cyprus), or FSB (South Africa), your CFD provider should be regulated by at least one of those regulators.
Avoid unregulated brokers at all costs.
Range of markets. With so many CFD trading companies, you are spoiled with choices and have the right to go for a broker which offers all the financial markets you want to trade but remember, just because a brokerage offers over 10k markets doesn't mean it's the best.
#brokerage
Read 5 tweets

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