I am relatively new to the world of trading and am in need of advice form the more experienced.
Before I start my part-time career day trading Brent crude I will need to set up account with a reputable broker - this has been an absolute nightmare for me for the past 2 months. Everytime I thought I'd found an ideal broker I would discover something about them that wasn't desirable and the search would carry on.
So could anyone recomend a broker who can:
- offer me DMA access to CFD Brent crude and WTI oil (I don't want a broker who secretely takes the otherside of my trades)
- That hedges ALL the trades.
- Has sound financial backing and isn't at risk or collapse.
- Protects my money in a seggregated account
- Offers a software package people are happy with
There's probably many other considerations to look for but as I said I am relatively new.
Since I am based in the UK I originally thought I might set up a CFD account with Barclays, but the reviews aren't great and their prices are high. Then I considered IG Markets, their costs are low and they claim to offer DMA for CFDs, so I opened an account then read the small print - it clearly states they will take the other side of my trades, they are in effect a bookie. Also IG reviews aren't great.
I thought I'd finally found the ideal broker with FP Markets, they offer CFD DMA, low fees, great software, Hedge EVERY trade - - but they dont provide access to Brent Crude -Arghhh!!
I am now considering Global Futures, but I don't know much about them - Can anyone suggest suitable Brokers?
Not many people on this forum trade CFD's as most people on here are from the US, and CFD's are banned in the US. You might be better off trading the futures contract for Brent Crude. I have used IG in the past and had no problems with them. And I have heard that FP Markets are also good.
If you are going to start trading futures for the first time you should start with Index futures contract like the FTSE before you give commodity's ago like Crude Oil for example which is more suited to a more advanced trader.
Most new Futures traders start off with a broker like Interactive Brokers.
another good one would be Optimus or maybe AMP futures.
If you have some prior background/experience trading CFD's or Futures successfully then I would recommend opening an account with a futures broker. There are plenty to choose from in the US (NinjaBrokerage / AMP / Stage5 / Optimus etc etc) and they are cheaper than UK brokers comms wise. My money sits in a segregated GBP account too so there's no real transaction costs until you want to withdraw funds (convert $ profits/losses into £).
That said, if you are inexperienced and would like to trade small size as you learn the ropes then you could always open a spreadbetting account. For us UK residents it's tax free but you pay ridiculous spreads hence why in my opinion it's better to trade on exchange if possible.