What Is The Best CFD Trading Platform?

By Nathalie Okde

2024 January 29

What Is The Best CFD Trading Platform

CFD (contract for difference) trading is a type of derivative trading that allows individuals to speculate on the price movements of certain assets (crypto, energy, shares, etc.). CFD traders don’t own the underlying asset; they just bet on its price modifications in the market. As you can guess, this type of trading is very risky. In fact, according to the European Securities Markets Authority (ESMA), 70% to 80% of all traders end up losing money with CFDs. Therefore, you must know what CFD broker to entrust with your money. So, what is the best CFD trading platform in 2024?

What Is A CFD Trading Platform?

A CFD trading platform is an online platform that enables you to trade CFDs. There are specific platforms on which you can bet on asset price movements. There are also “CFD brokers,” online trading platforms that act as the middleman between the trader and the CFDs.

Usually, these brokers offer individuals access to various tradable instruments. At XS.com, we offer you access to commodities, crypto, energy, futures, indices, currencies, metals, and shares.

To trade CFDs, you enter an agreement with the broker to exchange the difference in the value of an asset from the time the contract is opened to when it is closed. If you want an in-depth explanation, we’ve already explained CFD trading in a previous article.

What Makes The Best CFD Trading Platform?

CFD trading, as we’ve already mentioned, is very risky. But, on top of the tricky nature of the trading, the space is plagued with scams and fraudulent websites. So, when you want to place your funds somewhere, how do you know if that platform is trustworthy?

You have to look for the following criteria when looking for the best CFD trading platform:

  • Regulatory compliance
  • Security measures
  • Insurance
  • Transparency and fees
  • Demo account
  • Reviews, feedback, and word-of-mouth

1. Regulatory Compliance

Legit brokers or trading platforms should be regulated by reputable financial authorities in multiple jurisdictions. It’s a major red flag if a platform has no license from well-known regulatory bodies because it means they are not following any rules. Would anything work without some sort of rule or guideline?

We at XS.com are compliant with multiple regulations:

  • Australian Securities and Investments Commission (ASIC) with license number (374409).
  • Cyprus Securities and Exchange Commission (CySEC) with license number (412/22).
  • Financial Services Authority of Seychelles (FSA) with license number: (SD089).

2. Security Measures

When looking for the best CFD trading platform, seek platforms that use strong security measures to safeguard their users' money and private information. These measures usually include firewall protection, two-factor authentication (2FA), encryption techniques, and routine security assessments.

For example, we employ top-tier data encryption across our website and application. And we have a team of experts dedicated to monitoring and dealing with any irregularities in online payment activities. We also offer two-factor authentication that you should activate when opening your account.

3. CFD Trading Platform’s Insurance

CFD trading platforms should have an insurance set to protect your funds. Otherwise, they will likely steal your money and blame it on company failure, hacks, or malicious activity. There are different ways brokers can insure your money.

Our clients’ funds are protected against financial losses up to USD 5,000,000 due to errors, fraud, negligence, or service-related failures at no extra charge. This insurance is underwritten by Lloyd's of London. We also segregate our users’ funds in accounts separate from the company’s within reputable financial organizations worldwide.

4. Transparency and fees

You should see the platform’s transparency first and foremost. Don't put your funds there if you navigate a website or an app but can’t find anything about their account types, leverage, spreads, funding methods, withdrawals, etc. A lack of transparency often implies a lack of security.

You can check our website and find all the details your heart desires. We also send emails whenever we update something to ensure all our users know about our latest changes.

5. Demo CFD Account

Respectable CFD trading platforms offer the option of a demo account so that individuals can practice with virtual funds. This tool enables traders to test their trading techniques without having to risk real money and become acquainted with the platform's functionality. We indeed offer a demo account option.

6. Reviews, feedback, and word-of-mouth

After doing your routine check on the CFD trading platform, you must check what traders are saying about this platform. Google reviews, feedback, Reddit, and social media. You can better understand the platform’s legitimacy through the experience of others.

For example, if you search for XS.com reviews, you’ll see how satisfied users are with our platform. Moreover, we have a solid global presence, and we’ve won multiple awards in different countries, some of which are:

  • BEST MULTI-ASSET BROKER AFRICA– The Traders Fair & Award, Vietnam, December 2023.
  • TOP TRUSTED FINANCIAL BROKER – Middle East Awards Ceremony Smart Vision, September 2023.
  • BEST B2B BROKER – Forex Traders Summit Smart Vision, May 2023.

So, What Is The Best CFD Trading Platform?

A legitimate and reliable CFD trading platform should have licenses from known regulatory bodies, solid security measures, insurance, transparency, and demo account options.

Moreover, to know if the platform is what it claims to be, always look for reviews and user experience. Previous users are usually your insiders for any broker.

Based on the detailed criteria outlined in the provided information, XS.com seems to be one of your best picks for online trading platforms. It’s no coincidence that we’re mentioning ourselves, as we perfected our services to provide you with an excellent and safe trading experience.

Positive reviews, feedback, and prestigious awards validate our commitment to legitimacy and reliability in providing a superior trading platform experience. Put your worries aside, and join us now!

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