Day Trading & Forex Forum

ridders

I am new to CFD's and analysing whether or not I should start tradeing CFD's.

My first question is what is the usual minimum trade that each company requires you make - or is there a minimum?

Secondly, what kind of balance do you need to open an account?

Cheers

FTSE Beater

Hi Ridders

Welcome to T2W

I presume you mean number of trades a month. If so, then there is usually no minimum number of times that you have to trade.

With Deal4Free you need £5000 to open an account

Hope this helps.

ridders

Cheers for that - most helpful

i also wondered if someone out ther could give some impartial advice. I have 2000 to invest and want to start doing some CFD trading (i know 2000 is not enough). Basically I am not sure which provider to go with. Apart deal4free, there are no firms out there who provide a no commission service - but i do not have sufficient funds to open an account with CMC.

So could anyone give some advice as to the best provider to use. I have been looking at selftrade and they look ok but £9 a trade - pretty expensive!!!!!!!!

Any help much appreciated

peterpr

Have a look at IG Markets. Not sure about minimum account opening amount but they have a wide range of CFD mini-contracts commission-free (eg £1 per point on FTSE100 - 4 point spread). Plus a slick and reliable dealing interface.

Peterpr

awoodj

The CFD minimum is £2000 with deal4free so if thats what you have and they look the best then go for them.

PS I used them for a couple of years and for £2k starting pot i think they would be a good choice as with the 0 commision you can trade smaller amount and scale in and out without worrying abuot commision eating into your trades too much.

All just my opinion though

ridders

I have also seen alot written about Capital Spreads who also charge no commission - any thoughts on them??

Simon

This is something that struck me recently, you can minimise your risk exposure by trading the equivalent of a single share using CFD's, as opposed to a minimum of 100 shares with most SB co's, great for testing a new strategy on a limited budget. Obviously you're still liable to CGT, but this is unlikely to be the primary concern if one is trading such minimal size.

The only hindrance to one with a relative lack of 'proper' trading experince, such as myself, is opening an account. A certain minimum level of experience is required, presumably an @rse covering excercise due to the FSA, however what is this level? 5 yrs of losing cash, 1 yr of astronomical gains, a fortnight of fixed odds type stuff?

neil

Simon,
Who is going to check what you put on the form?
Not that I am advocating such action

__________________
neil
Education is an admirable thing but it is well to remember, from time to time, that nothing that is worth knowing can be taught.
(Oscar Wilde)