I'm new to this so I'm probably wrong but from what I understand, Brokers offer selected cfds. If this is true I'm after some recomondations as to which brokers offer the broadest range.
Take ib for example, they offer cfds on the Nasdaq 100 and liquid small caps over 250 million in the uk. They didn't seem to have the cfds I wanted in the demo.
IB currently offers approximately 3800 Share CFDs covering the principal markets in the US, Europe and Asia. The constituents of the major indexes listed below are currently available as IB Share CFDs. In many countries IB also offers trading in liquid small cap shares. These are shares with free float adjusted market capitalization of at least USD 250 million and median daily trading value of at least USD 300 thousand. Please see CFD Product Listings for more detail. More countries will be added in the near future.
United States S&P 500, DJA, Nasdaq 100, S&P 400 (Mid Cap), Non-Index Mid Cap
United Kingdom FTSE 350 + Liquid Small Cap (incl. IOB)
Germany Dax, MDax, TecDax + Liquid Small Cap
Switzerland Swiss portion of STOXX Europe 600 (48 shares)
France CAC Large Cap, CAC Mid Cap + Liquid Small Cap
Netherlands AEX, AMS Mid Cap + Liquid Small Cap
Belgium BEL 20, BEL Mid Cap + Liquid Small Cap
Spain IBEX 35
Portugal PSI 20
Sweden OMX Stockholm 30
Finland OMX Helsinki 25
Denmark OMX Copenhagen 30
Japan Nikkei 225
I originally wanted to trade stocks but my starting balance would be under 25k so I would be hit by the sec day trading rule. I was also considering using an offshore broker to bypass this rule until I found a few sites offering cfds. Which seemed like a good alternative and simpler than moving money offshore.
What is wrong with cfds? Don't the brokers just profit from the spread?