Your opinion on CFD brokers?

Why nobody’s talking about the CFD brokers ? I know there a regulated and unregulated, but I’m under the impression that all of them are skam. So many new guys put tons of money on CFD brokers and it’s good for liquidity, but it seems morally wrong.

I don’t understand your moral point. But perhaps you meant “religious”?

It’s important for security that you aim for a broker working from a well-regulated jurisdiction every time. I’m lucky in that regard, I’m in the UK, brokers here are FSA-regulated. I trade via spreadbetting but that’s only because it is tax-free here: if it wasn’t tax-free I’d be happy to trade CFD’s.

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do you mean FCA?

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Evidently it depends on your perspective.

It seems to me that everyone’s talking about them, all the time, lol.

In this forum, in particular, a really significant proportion of the posts and conversations are about CFD “brokers,” as they like to be known (they’re not really brokers at all, obviously).

I don’t trade CFDs myself, though I have in the past, and without incident or problems - I just used an FCA regulated one.

Apart from (obviously) using a properly regulated CFD “broker” - which means regulated by the FCA, ASIC, CFTC or an EU regulator (preferably not in Bulgaria, Malta or Cyprus, where the regulators don’t protect the customers nearly as well as in other countries), there isn’t too much to say, really.

Proper regulation avoids at least 95% of the problems that lie in wait for unwary customers and about which discussions fill some trading forums.

So my outlook is very different from yours: I think there’s far too much talk about CFD “brokers”.

Especially here.

There are even a few people here - very few, really, but pretty vociferous - who think (or say they think, anyway) that it’s a good idea to avoid properly regulated CFD brokers and to use unregulated or almost-unregulated or effectively unregulated ones instead. Not a view that would be widely tolerated, perhaps, but there you are: free speech is alive and well and living at Babypips. Along with a lot of spam, as well, because we apparently offer almost completely unfettered free speech for that as well.

If you look in a forum where more successful, professional traders post, you’ll see that the longstanding members, admin, moderators and community elders occasionally remind those less experienced what a crazy, terrible idea it would be to trade CFD’s without using a properly regulated broker, and that’s all that anyone ever really says on the subject, or needs to.


Not really.

It’s not actually relevant to “liquidity” at all, because CFDs are not a market.

Anyway, welcome, John Manganese. But I’m curious: you joined the forum an hour ago and made this post an hour ago, too. What prompted that?

Yes actually, thanks. I didn’t mean the Food Standards Agency.


A pity. I’m just ready for a nice devilled broker on toast (rather than the more commonly available brokered devil on toast, I mean).

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In my opinion, not all CFD brokers are dishonest, but this kind of trading is known for being risky and more about guessing. CFDs can make you win or lose a lot of money quickly because they let you trade with more money than you actually have.

Thank you for your reply.
As you said - ‘CFDs are not a market’, and this is what’s bothering me, as we (even us the beginners) we want to trade on the market, and not on some pre bought pool, with murky (despite fca) rules. Is it even possible to go on profit on one of those FCA regulated cfd brokers ? Or is it just a computer game where everything is against you ? I’m not sure if I make my point clear enough … one thing is to play on the real market, and is completely different playing a ‘trading game’ against some guy in some office, where he can chase your stop loss at any moment.