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Your Guide to the Finding the Best CFD Broker

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Your Guide to the Finding the Best CFD Broker

More and more investors are turning to contract for difference (CFD) trading to diversify their portfolio and benefit from the possibilities it offers. But, as with any investment, the advantages also come with their risks, so it’s important to know you are trading on the best platform possible. In this guide, we will take you through how to ensure you are using the right CFD broker to conduct your trading and investments.

CFD trading explained

A contract for difference allows investors to open a position on a variety of markets, including stocks, indices, forex, and commodities, without owning the underlying instrument. Instead, the investment is based on the speculation of their price movements.

The CFD acts as an agreement between the investor and the broker, with the investor entering the CFD on a quoted price. The profit or loss is then based on the difference between the quoted price and the price of the CFD at the time of closing the position, mirroring that of the underlying asset.

These exchanges do not take place in a physical place, like other traditional forms of trading, but are traded through online CFD platforms. The prices of the CFDs are reflective of the base markets, with the organization of the supply and demand of CFDs, determined by a network of CFD brokers.

The best CFD brokers

In order to find the best CFD broker online, there are certain advantageous features that platforms can offer that you should look for before finalizing your decision and opening an account. Here’s a checklist of the benefits that the best platforms will offer you:

Leverage – This is a tool offered by CFD trading platforms, and enables investors to access larger exposure to the market, with a lesser amount of initial capital. Essentially, the value of the position in the market is based on the amount borrowed from the CFD broker, with any losses or profits reflective of that increased value.

When looking for the best CFD broker, you should ensure that they have good ratios of leverage. These ratios determine the value of your position in relation to the amount of capital. For example, a ratio of 1:30 means that a deposit of £100 is worth £3,000 of investment.

Free Demo Account – The best CFD brokers should offer you the option of practicing trade through a demo account before opening an account using real money, and this notably should be a free option for you to partake in.

Through a demo account, you have the opportunity to get to grips with the workings of your chosen market, develop your trading style and grow in confidence. You can also test out the success of any strategies or techniques before applying them to the financial market with real cash.

Risk management tools – There is usually plenty of information and tools you can utilize on a good CFD trading platform. You should be able to apply a Stop Loss or Stop Limit when opening a position in the market, or if you choose to edit your current position. A Stop Limit works in order to protect your profits, whereas a Stop Loss aims to minimize your losses, closing your position at the specific rate you have set.

A Guaranteed Stop can also be added to your position, and this applies an absolute limit on your potential losses. This however can only be used for some instruments, so it’s worth checking what your chosen CFD broker has to offer.

Access to a variety of instruments and markets – A good investor will have a diverse portfolio, so a relative CFD trading platform should have a wide range of instruments available that you can trade-in, as well as grant you access to markets around the world.

The benefits of a good CFD broker mean that you can invest in different assets and markets, all from the same account. For example, on a site such as you can monitor all the major currency pairs in the forex market and keep up to date with the fluctuations in value.

The benefits of CFD trading

When using the best CFD broker, you can gain all the benefits of CFD trading. This includes the option of using leverage, as aforementioned, as well as implementing relevant trading strategies. Since owning the underlying asset isn’t a requirement, you can open a position on both a rising and falling market, for example. If you do also happen to own the asset in question, you can open a CFD to hedge the risk and offset the losses that occur in a falling market, as well as from one market to the other.

As with any investment, always do your research into the market and assets you wish to partake in, as well as find the best CFD trading platform to embark on your trading journey.


4 Questions You Should Consider Before Giving Abroad

Whether you’ve traveled to distant parts of the world and were inspired by the inventiveness of the communities you visited, read about an issue in a news article, or maybe just feel a special kinship with a given place, the desire to help somehow can quickly move to the top of your priority list. Supporting the efforts of nonprofits working on issues you most care about is a great way to take action. But giving across the world can also be daunting. Luckily there are lots of resources to help make sure you’re achieving what you want with your generosity.

Regardless of whether you’re considering a one-time donation or sustained support to a charity across the world, there are a few questions you should consider before giving abroad:

1) Where would you like to donate?

There are plenty of issues around the world that could use, and are deserving of, your help. But which of those do you feel passionately about? Rainforest conservation in Brazil? Great! Schools for girls in Kenya? Fantastic! The first step is narrowing it down.

Do some research to find out which charities might align with your giving goals. A quick glance at most charities’ websites will tell you the impact the charity has had in the past and how it is working toward its mission today.

This research can sometimes be more challenging than a simple web search. Some foreign organizations have a great online presence with translations into English and clear information. However, this is not always the case. In these instances donors can rely on a few resources:

There are a number of 501(c)(3) organizations that facilitate international grantmaking and who provide extensive databases of organizations eligible to receive funding through them (see, for example, the CAF America Database). Some countries have national registries of charities such as the UK Charity Commission and the CRA List of Charities in Canada that can serve as good country-specific resources.

2) How do you make sure you’re not breaking any rules?

As you might imagine, giving to charity across borders¾like any financial transaction¾is subject to specific regulation and oversight from the U.S. and foreign governments, which makes cross-border giving more complex than simply writing a check and dropping it in the mail. There is a complicated matrix of regulations that donors are required to follow. These regulations are designed to defend people and organizations who donate against money laundering, terrorism and organized crime.

While you might think most of these regulations exist on the receiving end of charitable contributions, these responsibilities impact the donor—whether an individual, a corporation or an organization. The bottom line is that if you are initiating the financial transaction, you are responsible for making sure that funds are used appropriately.  This seems intimidating, but working with an intermediary grantmaker or another U.S. public charity can take the guesswork out of following the rules. An experienced intermediary organization can conduct the necessary due diligence and protect the donors reputations, ensure regulatory compliance and eliminate possible risks.

3) Are there tax benefits to giving abroad?

When you’re passionately looking for a solution to support the charity that impressed you with their work on ocean conservancy, getting a tax break is probably the last thing on your mind. But it is not a bad thing to consider, because a tax deduction ultimately means that more funds are available to donate and more good can be done.

Not all charitable donations are tax-deductible, and in fact donations made directly to charitable organizations outside of the U.S. do not qualify. That said, there are several U.S. charities that can allow you to receive a tax deduction while supporting charitable work overseas. For example, you can opt to support the international projects of U.S. charities that run programs abroad. If you would prefer that your donation be directed to the foreign charity, you can opt to make your gift through a U.S. intermediary organization. Intermediary organizations are U.S. public charities that often assume the inherent risks in making donations to organizations outside of the U.S. and allow the donor to receive a tax receipt at the time of their donation. Your gift is to the intermediary; however, you will be able to recommend a specific foreign charity to be supported with your donation.

Donors should check how the specific intermediary organization they choose to work with operates, as there will be differences among them regarding the due diligence they perform, the fees they charge, etc.

4) What impact would you like to make with this donation?

Whether you’d like to effect change with a long-term impact like paying for a child’s education or in a more immediate way like supporting a community after a disaster, it is important to think about your expectations at the outset. Clarity about what you’d like to accomplish with your donation helps set expectations between you and the charity.

Giving outside of the U.S. is complicated, but luckily there are a number of organizations that specialize in cross-border giving, making it accessible for Americans to support charitable causes in nearly any country. With the assurances of a comprehensive due diligence and foresight, giving internationally can be a fulfilling experience. By considering the needs on the ground and the goals of your own good intentions, you can take full advantage of the immense capacity to do good provided by charities around the world.

TED HART, ACFRE, CAP® is the President and CEO of CAF America and brings over thirty years of experience in advising global philanthropy. He is the editor of Cross-Border Giving: A Legal and Practical Guide, Workbook Edition (Charity Channel Press, 2019). For more information, please visit, and connect on Twitter, @cafamerica.

More US Businesses Mull Trading in China’s RMB

New York, NY – German and French companies are using renminbi to trade (RMB) and now, increasingly, American businesses are too, according to a recent HSBC global survey of international business decision makers in 11 countries.

“More US businesses are using RMB to settle trade and more plan to use it amid expectations by business leaders that their trade with China will increase in the next 12 months,” the survey found.

Seventeen percent of US businesses leaders said their companies had used RMB to settle trade this year, up from nine percent last year.

With the global average of RMB use at 22 percent, this places US businesses just behind French (26 percent) and German (23 percent) businesses in terms of RMB use outside of China, Hong Kong and Taiwan.

Furthermore, the survey found, 22 percent of US businesses, who aren’t already using RMB, said they plan to use it within the next six months to five years, up from eight percent a year ago.

Globally, an average of 32 percent of leaders said they planned to use RMB in the future.

“As China continues to internationalize its currency, there are more opportunities and considerations in trade, investment, cash management and funding for US companies,” said Steve Bottomley, Group General Manager, Senior Executive Vice President, and Head of Commercial Banking for North America, HSBC Bank USA.

US-based businesses, he said, “are becoming more comfortable using RMB and are increasingly making it, or looking to make it, a part of their competitive strategy and planning.”

Trade with China Set to Grow

US business leaders may have good reason to do so as 55 percent said they expect trade with China, the world’s largest trading nation, to grow over the next 12 months, though that percentage is down from last year’s survey, when76 percent said it would.

American businesses now sell about seven percent of their exports to China, compared to just one percent a decade ago. HSBC expects that to increase to 14 percent by 2030 with a third of China’s trade settled in RMB by 2015 and the currency fully convertible by 2017.

Still, the survey found most US businesses surveyed said they don’t use RMB because they don’t understand or aren’t aware of the benefits of using it.

However, two-thirds of companies in mainland China and Hong Kong said foreign firms doing business with China gain financial and relationship advantages from using RMB, including receiving discounts on RMB-denominated transactions.

“Hedge Against Fluctuations”

Additionally, global leaders said the top reasons for using RMB were meeting demand from counterparties, minimizing foreign exchange risks and increased convenience.

“US businesses can use RMB to hedge against fluctuations and potentially reach additional suppliers,” said HSBC’s Executive Vice President and Head of Large Corporate, Commercial Banking, Martin Brown.

“It may also improve business relationships by making it more convenient for their Chinese counterparties, who may be reluctant to take on dollar exposure because their cost base is denominated in renminbi,” Brown said.

When asked what might help non-RMB users reconsider trading in the currency, those surveyed suggested more simple procedures, further liberalization of the exchange rate; expansion of RMB eligible transactions; and the availability of more guidance.

The HSBC survey was conducted by Nielsen and involved business executives from 1,304 international companies that currently do business with Mainland China or are a business in Mainland China that imports/exports outside of the region.

The research surveyed international businesses in Australia, Canada, China, France, Germany, Hong Kong, Singapore, Taiwan, the UAE, the UK, and the US.