Marketsforu Education - CFD Trading
Contracts for Difference (CFD's) are over-the-counter instruments that derive pricing from major international markets, offering leveraged access to price action on a wide range of asset classes.
Marketsforu's range of CFD markets include Oil and other Energy contracts, Agricultural Commodities and Precious Metals, and Bonds and Treasuries as well as global equity market indices from the UK's FTSE 100 and American S&P 500 to emerging markets.
Why CFD Markets
CFD contracts provide a popular vehicle for day traders and frequent scalpers to access a diverse array of financial markets from a single platform, utilising high maximum leverage to capture short-term volatility opportunities.
Traditionally, CFD markets were provided by brokers who internalised customer trades, resulting in a natural conflict of interest as the brokers effectively held opposite positions from the trader.
Marketsforu operates a true STP model in which trades are executed on a pass-through basis as a neutral order processing venue.
Low Margin Requirements
The structure of the CFD markets allow traders to access much lower margin requirements (and, consequently, much higher leverage) than the underlying market products.
Note: While Marketsforu offers high leverage on many products in order to provide the trader with freedom and flexibility, we strongly recommend that all traders exercise proper risk management based on your particular trading strategy, time frame, and style. Over-leveraging for your approach can amplify losses at dangerous levels.
Through strong institutional relationships, Marketsforu is able to offer CFDs offer with extremely tight, competitive spreads with lightning-fast order fills.
Flexible Trade Sizes
CFD contracts can be traded with as low as 0.01 of a standard lot for each contract. Depending on the nature of the underlying market, the size of the standard lot may vary. In any case, the flexibility to trade a hundredth of the standard adds an excellent level of freedom and accessibility for beginners or FX traders looking to branch out into other markets.
Zero Commission Trading Available
CFDs are often offered on a "zero commission" basis. However, traditional CFD brokers typically do this with a widened spread as well as internalising customer trade flows (meaning the broker holds a conflict of interest against the trader's potential for profit.)
Marketsforu offers zero commission CFD trading with no conflict of interest in the form of STP (Straight-Through Processing) accounts. As with any "zero commission" business model, the spread is slightly widened in order to compensate the company for providing market access. The spreads are, however, extremely competitive. And, most importantly, all trade exposure is passed on to external liquidity providers so Marketsforu does not trade against our customers.
For traders who prefer tighter spreads, we also offer an ECN account with a low commission in place of widened spreads. Depending on the depth of liquidity on our technology platform's aggregation system at any given time, the spreads are often the same or similar to the spreads on the underlying market.
While CFD markets provide a diverse selection of markets to trade, Marketsforu offers a transparent solution to serious traders.