Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
CFDs typically have 10:1, or 20:1 Margin, often with better overnight rates.
The only reason not to trust CFD's is if you're trading a Market maker model that's taking the otherside of your trade or using some indirect hedge. DMA models( like IB's) are generally quite transparent, as your order is physically hedged in the book( you can see the order for yourself) so their CFD markets trade 1-1 with the underline- You're basically trading the NBBO. If you're trading liquid stocks eg AAPL, FB etc then a typical retail trader isn't going to see any real difference in order fills/ execution. The only disadvantage is that illiquid stocks might not always have shares available, there can be delays in modifying orders( it might take seconds instead of ms), and you can't route to a specific exchange.
"Free markets work because they allow people to be lucky, thanks to aggressive trial and error, not by giving rewards or incentives for skill. The strategy is, then, to tinker as much as possible and try to collect as many Black Swan opportunities as you can"
