The big trading comparison
Welcome to Broker-Review.co.uk
We are an independent comparison site for online financial products. On our pages, we are dealing extensively with the financial instruments Forex Trading and CFD Trading. We explain the functions of these popular trading instruments and show how they are traded. In addition, we provide helpful tips and information. We have thoroughly examined all well-known brokers and thoroughly tested them. Through our clearly structured and clear comparison tables, beginners as well as experienced traders can find a suitable broker.
What is Forex trading?
The Forex (Foreign Exchange Market), the German currency market or foreign exchange market, is the most important and largest financial market in the world. The average daily turnover is over 4 trillion US dollars. In the case of Forex trading, trading is just below the market participants, as in the case of binary options. The various trading participants carry out exchange transactions with numerous international currencies. Because of the relatively simple functioning and the lucrative profits, the Forex trading enjoys a huge popularity. The market participants buy and sell currencies from a particular country against the currencies of another country. All Forex Forex trading is always in the form of currency pairs. Key currency pairs include the dollar (USD) against the euro (EUR), the dollar against the Japanese yen (JPY) and the euro against the British pound (GBP). In general, the currency pairs are divided into majors and minors. Among the majors are primarily the above mentioned couples, while among the Minors exotic currency pairs. Forex newcomers should at least initially restrict themselves to trading with major currency pairs. The price of a particular currency is always dependent on supply and demand and is influenced by economic, political or rate adjustments. In general, the Forex traders have only two choices to make. You can either go long (buy) or go short (sell). Compared to the traditional trading instruments, the Forex Trading system can generate returns not only with rising but also with falling currency rates. The trader will make a profit if the price of a currency against the exchange rate of another currency in reality is as it was expected. This is just one of many advantages over trading traditional financial instruments. With Forex Trading, the market participants are not bound by any fixed opening hours and can therefore trade almost around the clock. The forex market is very liquid because of its size and larger price gaps occur much less than in the classical trade. The well-known currency pairs are characterized by a high degree of volatility and therefore there are also major price movements in a shorter period. For this reason, traders can generate very high profits or losses in a short time. In general, the potential profits (returns) in the Forex trading are much higher than in the traditional trade. Forex Trading is suitable for any type of investor because of the freely selectable trading volume. Both beginners with low financial potential as well as professional traders with a million-dollar trade account get their money’s worth.
What is CFD trading?
In addition to trading with binary options and the Forex trading, CFD trading is also one of the most popular trading types in the world today. CFDs (Contracts for Difference) are differential transactions and also differ significantly from traditional financial instruments. While traders acquire real assets in the securities or commodity trading business, you only speculate on the performance of different commodities in CFD trading. This saves the traders the cost of a depot. The most important underlying assets are commodities, equities, indices and currencies. In general, the CFDs offer retailers a number of advantages compared to traditional trading instruments. The trade itself is based on a relatively simple mode of operation and is suitable for beginners as well as for experienced traders. The traders can go on ascending courses (long go) as well as on falling courses (short walking). Since trading is not in the official financial markets, but directly between the provider (broker) and trader, this is possible at almost any time. Trading is carried out exclusively through the trading platform of a broker. Depending on the provider, the traders can use a computer software, directly through your web browser or even with their mobile devices. The financial leverage is one of the most important characteristics of CFD trading. By using a high leverage, very lucrative profits can be achieved in trading with relatively small bets. These are, of course, accompanied by a greater risk of loss. The prices of the CFDs are based 1: 1 on the real rates of the respective economic goods. For example, if the price of a particular share increases, then the price of the CFD is also rising equivalently. The traders purchase the CFDs of stocks, commodities or currencies at the current rate. If the price of the economic goods increases, then the traders can sell their differential contacts with profit. On the other hand, the traders can also rely on falling courses. If this happens, they also receive a return. In general, fees and commissions from CFD trading are significantly lower than for traditional trading. In addition, much higher profits, but also losses, are possible in a short time. The prerequisites as well as the minimum capital inserts are very low and therefore the CFD trade is also suitable for beginners without restrictions.
What are binary options?
Binary options are also referred to as digital options. The new financial instruments that are traded over the Internet and enjoy great popularity. As the term “binary” already indicates, only 2 scenarios can occur during trading with the options. Either increase the options or drop them. For this reason, the traders (dealers) just have to decide is whether an option at their maturity has increased or decreased. Thus the traders can put on both rising (call) and falling prices (put). Once the trader makes the right decision, he gets an attractive return. This depends on the broker and is usually between 81 percent and 89 percent. If the dealer was wrong, he loses his bet. Thanks to a loss insurance system provided by many brokers, a loss can be mitigated. Compared to traditional financial instruments, the binary options offer some advantages and are also suitable for beginners. This is due in particular to the low prerequisites, to the ease of use and functionality, and to the low minimum use. In conventional options traders acquire the assets at the end of the term. In the case of the binary options, traders only rely on the course of an asset.Binary options are traded on the underlying stocks, commodities, currencies and indices. While classic options are traded directly on the financial markets, binary options are traded in OTC trading. Only one broker and one trader are involved in the over-the-counter trading. Through the broker the trader is given access to a trading platform and the options can be traded comfortably. For traders with binary options, the traders do not need huge investment and not much time. With a few clicks the dealers can buy a call or put option. If this option has a runtime of only one minute, the trader has earned or lost money very quickly.
How to find a suitable broker?
Binary options trading, Forex currency pairs and CFDs are much more popular than trading in traditional financial instruments. All 3 new commercial instruments have only few prerequisites and are also suitable for beginners. In addition, trading takes place exclusively via a broker or through its trading platform. Before the trader can start trading, he must first choose a suitable provider (broker). Due to the huge popularity of modern instruments, there are many brokers. This makes the search for a reputable as well as individually suitable provider not an easy task.
Broker for Binary Options
Due to the great popularity of binary options, there are now numerous brokers. These differ in different points from each other. When looking for a suitable broker, some criteria must be considered. Most beginners find it difficult because of the large selection and they often do not know what to look for. Minimum deposit and minimum trading are definitely among the most important criteria when choosing a broker. With most providers, already 100 euros for a deposit are sufficient. The lowest possible minimum payment is particularly advantageous for beginners and also for traders with lower capital. The minimum trading volume per trade varies greatly from provider to supplier. Under this amount, the trader can not trade binary options. Depending on the broker, this amount is between 10 and 25 euros. As with the minimum payment, the minimum trading volume should be as low as possible. The number of trading types and commodities must also be taken into account when choosing a broker. The trading platform of the broker plays a particularly important role. This should be clear and easy to use. In addition, the vendor should provide its customers with various trading resources, such as webinars, e-books or instructions. Brokers with fast and responsive customer support are also beneficial. These important tools are particularly beneficial for beginners. Most brokers attract new customers with bonus offers and VIP programs. These two factors are not as important as the other criteria, but they should also be included in the decision-making process.
Without a suitable Forex provider trading on the foreign exchange market is not possible. As Forex trading is also one of the most popular trading types in the world today, new Forex brokers are constantly being added. While experienced traders usually know what to look for when choosing a broker, newcomers usually find the decision much more difficult. No trader should choose directly for the first vendor. First, the most important criteria must be considered. Providers working with the so-called “Market Maker Model” are particularly suitable for Forex beginners. Most traders pay attention to the lowest possible trading costs and these are mainly determined by spreads. For the most popular pairs of currencies, the minimum spread is between 0.8 and 1. The minimum deposit and the leverage ratio should be taken into account when choosing a broker. Many brokers require only 50 euros as a minimum deposit. The higher the leverage ratio, the less money the traders need to use from their own pocket. With a leverage ratio of 1: 100 a trader with only 100 euro own capital can trade a total of 10,000 euros. The trading platform of the broker plays an important role in the decision-making process. The trading platform has to be easy to use, clearly arranged and provided with many useful functions. Many brokers offer a demo account to potential customers. This allows a free trade without risk and is therefore particularly interesting for beginners. By the large mass of brokers a strong fight for new customers burned. That’s why traders benefit from bonuses and extras for many brokers. For example, you receive a financial bonus when you make a deposit or receive improved conditions from a high trading volume.
Traders can also choose from a wide range of different providers when trading with the popular CFDs. In the meantime, there are more than 100 CFD brokers. In order to find a suitable and serious broker in this enormous mass, the most important decision-making criteria have to be considered. The impeccable seriousness of the provider is most important. Serious brokers have their seat within the European Union at one of the established financial centers. They are regularly checked by a strict supervisory authority (eg FSA or BaFin) and are permanently regulated by them. Customers do not have to worry about their capital with serious brokers, because this is protected by a deposit guarantee against loss. The level of spreads and commissions and the selection of different underlying assets should be examined next. A large selection of many different underlying assets is advantageous for each trader. However, the level of spreads should always be within a normal range. Many beginners value a free demo account and the lowest possible minimum payment. Traders can quickly draw conclusions about the outsourcing of a broker. This makes a professional as well as transparent impression. The trading platform of the CFD broker must meet the requirements of the trader and must be clear and easy to use. Traders who like to trade on the go prefer brokers with mobile trading apps.
Individual provider comparison for binary options, forex and CFDs
On our website, traders not only find a lot of helpful information and explanations, but also a broker comparison for binary options, forex and CFDs. We have thoroughly tested all current brokers and examined them with regard to the most important decision-making criteria. Traders can sort our broker comparison according to their own wishes and key decision criteria. Within a very short time each dealer will find a suitable supplier with our current broker comparison.