Choosing The Right Broker For CFD Crypto Trading

What is Crypto CFD Trading?

Figure 1: A crypto CFD allows speculation on price movements of cryptocurrencies.

Crypto CFD (which stands for Contract for Difference) is a financial derivative that allows traders to speculate on the price movements of cryptocurrencies without the the actual owning of the asset. Crypto CFD trading allows traders to speculate on the rising and falling markets. When you trade Bitcoin CFDs, for example, you’re simply predicting whether the price of Bitcoin will rise or fall.

What is a CFD Broker?

A CFD broker is a financial platform that gives you access to trade CFDs on various assets such as forex, commodities, indices and cryptocurrencies.

If your goal is to trade cryptocurrencies, then choose to use a CFD broker instead of a crypto exchange. This is because it will be easier to trade on price movement, and you will also have access to leverage. Besides that, there will be significantly less wallet or transfer delays, and it also enables to you benefit on price decreases by going short.

Key Factors to Consider When Choosing a CFD Broker for Crypto

Regulation and Safety

Figure 2: The CFD broker you decide on must be regulated.

One of, if not the most important factor to consider is check if the CFD broker you are deciding on is regulated by a recognized authority. Regulation ensures that your broker meets strict financial and operational standards, maintains transparent trading practices and protect your funds. This helps gives you peace of mind as a trader that you are trading safely and securely.

Transparent Trading Conditions

A crypto CFD broker that is trustworthy should be transparent about trading costs. Some examples of these costs are spreads, commissions, overnight fees and margin requirements. Steer away from platforms that do not disclose their fees or offer unrealistic “zero-spread” claims without clear clarification.

Leverage and Margin Options

Leverage is one of the main advantages of CFD crypto trading, allowing you to control a larger trade size with a smaller deposit. A reliable CFD broker should offer flexible leverage ratios and educate you on responsible margin use, but the trader must remember that leverage increases risk.

Market Access and Availability

Figure 3: Crypto trading is 24/7.

Crypto trading is unlike traditional markets, as they are tradeable 24/7. The best CFD brokers should give you access to trade around the clock, without arbitrary market closures or restrictions. This ensures that you can react instantly to any global crypto news or price changes.

Platform Quality and Trading Tools

An efficient platform can make a huge difference to your trading performance. Beginners should choose a CFD broker that offers an intuitive interface, fast execution speeds, and built-in charting tools for Bitcoin CFD trading and other assets. 

Why TMGM Is a Trusted CFD Broker for Crypto Traders

One of the most CFD brokers that enables crypto trading is TMGM. If offers everything you need to start trading crypto confidently. TMGM is globally regulated, transparent pricing, flexible leverage, and has access to world-class trading platforms.

TMGM allows you to trade the biggest cryptocurrencies, such as Bitcoin and Ethereum as CFDs. 

For further information, they also have a vast expanse of education resources through its Trading Academy to help beginners understand the crypto trading, CFD trading, what crypto coins should be traded with, and more.