New to CFDs - Brokers?

[bostos]

Hi
I'm new to this forum and new to the stock market
I'm interested to do CFD however i'm having trouble looking for a good broker/market maker with low fees
At the moment I'm considering CMC market, ComSec and Etrade
Anyone have experience with any of them?

Thanks

 

[Trembling Hand]

Re: new to CFD

I'm .........new to the stock market

Then why use leverage??

As for your question do a search for the companies you mentioned.

 

[AlterEgo]

Re: new to CFD

Avoid CMC. CMC is a 'Market Maker'. It's preferable to use someone who uses the 'Direct Market Access' (DMA) model rather than the 'Market Maker' (MM) model. Google, or do a search on here for an explanation of the differences.

But I agree with TH above. Why expose yourself to the extra risks of using leverage if you are new to the stock market?

 

[acedrum]

Hi
I'm new to this forum and new to the stock market
I'm interested to do CFD however i'm having trouble looking for a good broker/market maker with low fees
At the moment I'm considering CMC market, ComSec and Etrade
Anyone have experience with any of them?

Thanks

I've been investing for a while and trading CFDs for about a year and have used IG Markets and City Index. CMC markets platform only worked on Windows last time I looked (I'm a Mac user) They both offer similar features. If you're trading indexes I think City Index offers smaller contracts on some of them but I may be wrong.

Make sure you read as much as you can on CFDs and trading in general. You'll find ideas on this forum. The most useful one I've read so far is Nick Radge's book Adaptive Analysis. It may be a bit over your head if you're completely new to this though. Every-day Traders is a good read. Louise Bedford's books are helpful too.

Be prepared to lose money!!!

 

[sammy84]

I use macquarie prime and find them excellent. $20 brokerage, no extra fee's for triggers and no phantom trades(so far).

 

[beamstas]

Re: new to CFD

Avoid CMC. CMC is a 'Market Maker'. It's preferable to use someone who uses the 'Direct Market Access' (DMA) model rather than the 'Market Maker' (MM) model. Google, or do a search on here for an explanation of the differences.

But I agree with TH above. Why expose yourself to the extra risks of using leverage if you are new to the stock market?

cfd's come with no extra risk -- if you know what you are doing..


Thanks
Brad

 

[stash]

Any comments on Comm SEc? JUst about to sign up with them?
Also just thought who uses guaranteed stop lossess?

 

[glenn_r]

Re: new to CFD

cfd's come with no extra risk -- if you know what you are doing..


Thanks
Brad

Actually CFD's do carry more risk than Equities IMHO, firstly there is third party risk from the provider (read their PDS) and when trading equities all you can lose is what you have paid (barring debacles like BCSCA) but when trading CFD's without using a guaranteed stop loss you can lose a lot more than the margin you have paid if it gaps due to bad news, takeovers etc.

The actual mechanics of trading equities and CFD's are the same giving the impression of when you use the same risk management you will also have the same risk.

 

[beamstas]

Re: new to CFD

Actually CFD's do carry more risk than Equities IMHO, firstly there is third party risk from the provider (read their PDS) and when trading equities all you can lose is what you have paid (barring debacles like BCSCA) but when trading CFD's without using a guaranteed stop loss you can lose a lot more than the margin you have paid if it gaps due to bad news, takeovers etc.

The actual mechanics of trading equities and CFD's are the same giving the impression of when you use the same risk management you will also have the same risk.

You got me glen --
I was thinking more along the lines of risk management.
My mistake, total oversight by me

Brad

 

[beamstas]

Any comments on Comm SEc? JUst about to sign up with them?
Also just thought who uses guaranteed stop lossess?

Most MM's (market makers) have GSL facilities, i think even some DMA's do too..

I'm with IG Markets right now and they definitly have them

Brad

 

[johenmo]

I was told today it can depend on the market - US, Oz, etc. I'm looking into MF Global and IB for CFDs. I use CommSec atm for equities but am informed their CFD "list" is rather limited - not qualified in any sense to say if this is right. Look at their websites. DYOR.