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Trading

Learn more about trading, the associated risks, and comparisons across different trading platforms on the market.

Introduction

​In this comparison table, we present some of the best places on the market for people looking to trade. We’ve covered things like asset class offerings, fees, and more so you can easily compare providers from right across the market,  in one place.

What is trading?

First things first. Trading is very different from investing. Trading is the process of buying derivatives of much of the same assets as investing, such as stocks, with the aim of making a short-term financial return (instead of a longer-term one when it comes to investing). Traders could be buying and selling investments monthly, weekly or even daily, often with the use of leverage - making it generally, much higher risk than investing, and usually for those more experienced in financial markets.


Why do people trade?

 

Generally, for much of the same reasons people invest - to generate a return. Traders look to achieve this goal in a much shorter time frame and speculate in a high-risk, potentially high-reward way by leveraging their positions.  Leverage essentially involves borrowing money from a broker, to open much larger positions. While this could mean higher profits, it also means amplified losses if the market moves against you.

 

What do people trade?

Some of the main markets available to trade are:

Foreign currencies - sometimes known as FX - trade
rs speculate on currency pairs like GBP, USD and more.
Indices  - major global indices like the FTSE100, or S&P 500 are just some of the main indices people trade.

Commodities - coffee, sugar, wheat, cocoa and more. 
Stocks - trade on the price movements of world stocks (not in the same way as investing).
Metals - gold, silver, palladium and more.
Energy - oil, gas and other major energies.


 

Please read our Advertiser Disclosure

Name
Min. deposit
Assets
Link
$100
CFD stocks, forex, indices, commodities, bonds
$100
CFD stocks, forex, indices, options
$5
CFD stocks, forex, indices, energy, metals, commodities
$100
CFD stocks, forex, indices, commodities, options
$100
CFD stocks, forex, indices, energy, metals, futures
$100
CFD stocks, forex, indices, energy, commodities, bonds, futures, options
£1
Shares, ETFs, ISAs, CFDs, forex, indices, commodities
$50
Shares, ETFs, crypto, forex, commodities, indices, CFDs

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Capital at risk. T&Cs apply. Fees may apply. There is a high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Capital at risk. T&Cs apply. Fees may apply. There is a high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Capital at risk. T&Cs apply. Fees may apply. There is a high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Capital at risk. T&Cs apply. Fees may apply. There is a high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Capital at risk. T&Cs apply. Fees may apply. There is a high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Capital at risk. T&Cs apply. Fees may apply. There is a high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Capital at risk. T&Cs apply. Fees may apply. There is a high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Capital at risk. T&Cs apply. Fees may apply. There is a high risk of losing your money.

How do people trade?

There is a wide variety of trading instruments used by traders to speculate on different types of assets and contracts. Some of the most popular include:

CFD (contract for difference) - refers to an agreement between two parties to trade financial instruments based on the difference between the entry and closing prices.
Options - options contracts give the buyer the option to buy or sell an asset at an agreed-upon date and price. Call options provide the option to buy, whereas put options provide the option to sell. 
Futures - standardised contracts that serve as an obligatory agreement to buy a particular asset at a fixed price in the future.
Forwards - contracts
are similar to futures contracts, however they are customisable,  as opposed to standardised


Before you consider trading

You should only ever trade once you understand the risks, and use money you can afford to lose. Generally speaking, even adept investors consider trading once they have ample savings and a well-established low-risk investment portfolio. Even then, all investors should practise paper or demo trading before considering risking real money. This enables users to learn risk-free and experience the intricacies, market volatility and processes involved in trading. Most trading providers offer demo accounts free of charge, so be sure to take full advantage of this and practise for some time before considering trading.


What are some of the risks?

Capital risk - As with all financial investments, trading involves real risk. Trades can go down as well as up and you could end up with less than you started with. Trading often comes with an enhanced risk, through the use of leverage which can magnify losses as well as profits. You may even lose more than your initial position if the market moves against you quickly.

Fees and commissions - Costs can vary between trading providers so be sure to understand exactly what they are. Trading may also include other commissions, spreads and expenses that may lower your returns. 

Liquidity - This
essentially means, how readily and easily an asset is bought and sold. Not all trading instruments and asset classes share the same level of liquidity, so it can take longer than expected in some cases to buy and sell your holdings. 


Is trading right for me?


Deciding whether or not trading is right for you depends on factors such as  your financial goals, experience level and risk tolerance. Be sure to be fully aware of the complexities of trading before risking any real money. Consider making use of free practise paper trading available with some providers before making any financial decisions. 

Introduction
Types of ETFs
Comparison Table
What is an ETF?
What do people trade?
How do people trade?
Before you consider trading
What are some of the risks?
Is trading right for me?
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