CFD Brokers come in all shapes and sizes. The information available, the ads, the websites, the flashy banners, do not exactly paint a clear picture as to who is a good broker and who is a bad broker. Moreover, there are many websites that include keywords for which you might be searching, even if they are not the right site for you. You could, for example, search for “CFD Broker for beginners” hoping to find a broker that caters to beginners, novices, people who might have little experience with investments. Then you click on a few pages that seem to have this keyword stuffed everywhere. Not a good sign.
Bad CFD Brokers
Companies like this fall under the “bad” category, at the very least for misrepresentation. They often pay freelancers to stuff keywords all over their site so that they can lure newcomers like yourself. This, of course, isn’t the only thing that makes a broker bad.
CFD broker reviews are important in figuring out the bad CFD broker from the good CFD broker. There are complaint websites, governing body websites, and other review websites where you can find any complaints about a broker. This is where they are filed. You might not be able to find all the complaints registered via one search or one page, but with some digging, you can find out whether or not the broker you are considering has a bad reputation. This is how you determine whether or not they have been involved in scams or otherwise nefarious behavior; angry customers are much more likely to post warnings and post them just about everywhere. Now, that said, take each complaint with a grain of salt. After all, happy or neutral customers do not go out of their way to leave feedback most of the time and angry customers might exaggerate things out of embarrassment or anger.
Another aspect is communication and customer service. Good companies are crystal clear about their operations, where they work, and how to get ahold of them. If you are trying to find information from a broker and they take three to five days to respond to an email, they might not be the best company. Moreover, if they do not have a phone number where you can reach them, take this as a bad sign. There is no excuse today for a modern company not to have a phone number. If they have one, use it. Call customer service just to ask questions. Have a few questions in mind, but only those to which you already know the answers. This can help you gauge whether they are giving you honest responses.
Good CFD Brokers
So what makes a good CDF broker?
Well, for starters, a good broker will be properly licensed where it is necessary. There are different regulatory bodies overseeing different countries around the world. In order to ensure your money and investments are protected, work with someone who has proper licenses or registration with the appropriate regulatory bodies. Make sure, too, that you can legally trade with them given your home country. Sometimes companies have offices in, for example, Bulgaria but residents in that country cannot legally trade with them. Other times the companies are available all over the world save for the United States. So, call them if you are unsure and get answers before you invest. This will protect your money the best and give you an opportunity to lodge official complaints should any illegal activity take place within the company.
Good brokers will have all of their information readily available. This extends beyond mere contact information. This means they will be crystal clear about fees, payment structures, what charges you might face as an investor, if any. One of the biggest complaints online is that people pay under the auspices that they will get a bonus. Often this bonus comes with an investment minimum and people are not informed that they cannot make their first withdrawal until this investment minimum is met. This can be very upsetting for clients who did not read the fine print. That said, a good company will explain these features clearly, before you sign up. Good brokers will also lay out their membership clearly. Stay clear of brokers that refuse to give you information about plans, fees, or costs until after you sign up. This is a very bad sign.
A good CDF broker will also respond quickly and effectively to customer service inquiries. They will make swift processes for deposits and withdrawals. They will also offer multiple payments methods. If you can only use one obscure third party payment system to fund your account or make withdrawals, look elsewhere for your broker.
There are many brokers that have educational information on their sites. This is often under a heading of “educational tools” or “tools” or “learning. Now, these are great resources for beginners. In some cases, even advanced investors can benefit from them. Bear in mind though that you might find an exceptional broker who offers the investments you prefer most but does not have any educational resources or learning tools. In this case, do not let a lack of education turn you off of that broker. You can much more easily find educational resources elsewhere online. If a broker meets all of your other criteria, then go with them and seek out knowledge someplace else.