Plus500 scam

Is Plus500 A Scam?

Unfortunately you can find scam brokers online. But is plus500 also a scam?

Plus500 is arguably one of the most highly rated and popular brokers in the world.

There are a number of reasons as to why it is one of the best.

Is Plus500 a Scam?

Plus500 is definitely not a scam. I’ve used the for years without problems, and so did millions of other traders.

In fact, Plus500 is listed on the London Stock Exchange. This means that you can buy Plus500 stocks. This also shows how awesome this company is.

Question: Why does the logo of Plus500 have the “xx.x% of retail CFD accounts lose money” warning?

Answer: This is because they are forced to do it by the regulators. All kinds of investments are risky. But especially CFD brokers like Plus500, have to add this warning everywhere possible (is CFD trading a scam?).

What is Plus500

The first thing to note with any broker before signing up is legitimacy.

This can be found through licensing and regulation under internationally recognized financial authorities.

In the case of Plus500 , we know that it is licensed and regulated by at least three of the world’s leading regulatory bodies – the FCA, ASIC, and CySEC. What’s more, this broker is also listed on the London stock exchange.

Plus500UK Ltd authorized & regulated by the FCA (#509909).

plus500 advantages

Plus500 Disclaimer: 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Being listed on a stock exchange does not completely prove the legitimacy of a broker.

However, it does require it to release its accounts to the public during every semester, which helps traders make a more informed decision when it comes to signing up. A listed company must also satisfy the standards of various auditors and other trustworthy financial bodies.

The broker is so good that we’ve compared Plus500 to eToro.

For a lot of brokers, financial regulation and stock market listings are not everything, and they should not be. The daily services and operations of a broker should also be heavily scrutinized in order to determine reliability.

Is Plus500 A Good Platform?

In a word, yes, but as a trader, you are going to need a more comprehensive answer to that. Is Plus500 a legitimate broker worth trusting with your online investments? We shall now take a close look and find out.


Plus500 offers a really simple choice of accounts, a demo, and a live account. The demo of course, is available free of charge with no accompanying time restrictions. Meanwhile, the live account can only be activated after making an initial deposit of at least 200AUD. For forex traders, leverage for a live account goes up to 1:30.

Trading platform

Plus500 uses an elegant design of trading software that is substantial but also easy to access and use. It arms clients with important services such as technical analysis software. It also enables traders to manage multiple markets on the same screen whilst providing price quotes in real time.

Plus500 is a CFD broker that offers following instruments through CFDs: currencies, cryptocurrencies (availability subject to regulations), commodities, stocks, ETFs, and indices.

The platform also comes in four different versions – one which is web-based, one which can be accessed on your desktop, one which can be accessed on your portable Android and iOS devices, and finally, a downloadable version.

Funding methods

You can fund your Plus500 account using either your Visa or MasterCard credit card. You can also use MoneyBookers or a bank wire transfer. The latter usually takes several days to be processed.

Customer support

The Plus500 customer support team is on hand 24/7 where users can communicate in multiple languages in addition to English. They can be reached via email or an online chat forum but not by telephone. This can be a problem for clients who have trouble connecting to the internet.


In terms of quality, Plus500 is on par with many of the world’s leading brokers. Plus500 is not a scam. Having general efficiency in all its services makes it an attractive and reliable choice for many traders.

etoro vs plus500

eToro vs. Plus500

eToro and Plus500 are both highly sought-after by brokers for different kinds of online trading.

The competition between high-end brokers is extremely tight, which is why traders sometimes have a difficult time choosing one broker over another.

So here, we shall see eToro and Plus500 go head to head and help you decide which you would rather sign up with.

What you are ultimately looking for as a trader is which broker better facilitates your trading strategy.

eToro vs. Plus500

The truth is that both of these brokers are awesome. They’ve been around for some time. The both have millions of active traders.

Let’s get right into it and compare eToro to Plus500:

1. eToro


When signing up with eToro, you will be presented with just two types of accounts, the demo account, and the live account.

74% of retail investor accounts lose money when trading CFDs with this provider. eToro USA LLC does not offer CFDs, only real Crypto assets available for US traders. AFSL 491139.Capital at risk. See PDS and TMD.
The demo can be activated absolutely free but the live account requires a minimum first deposit that can vary from 200AUD to 1000AUD depending which part of the globe you are trading from.

The leverage afforded by the live account maxes out at 1:30 and spreads are 3 pips, fixed, a bit too high for some traders. eToro also has a swap-free account available for Muslim traders.

eToro Cons

  • The initial deposit is $200 with eToro. That can be a bit pricey for many traders.
  • The withdrawal process with eToro does take a rather long time, scalping is not allowed, and the brokers services are entirely off limits to US-based traders.

Trading platform

eToro’s trading platform is one of the most comprehensive in the world. It is an all-inclusive platform that is also highly intuitive and easy to use. It is stacked full of important information such as data charts, technical analysis and more. The platform has different versions to suit your desktop, web browser, and mobile devices.

Financial security

eToro is licensed and regulated by at least three of the world’s leading financial authorities, including the ASIC, FCA, and CySEC. Thus, you can be assured it’s not a scam. It also offers fair trading conditions to all traders.

eToro only offers real trading in Cryptocurrencies and Crypto-Portfolio for US clients. Most CFD traders lose money (see disclaimer above). Don’t invest more than you can afford losing.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of
retail investor accounts lose money when trading CFDs with this provider. You should consider
whether you understand how CFDs work, and whether you can afford to take the high risk of losing your

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection.
Tax on profits may apply.

eToro USA LLC does not offer CFDs and neither does it represent or assume any responsibility for the
accuracy or completeness of the content of this publication, prepared by What is Bitcoin, as a partner,
using information available and public and not specific to the eToro entity.

eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. OTC Derivatives are leveraged financial
products and considered speculative. OTC Derivatives may not be suitable for all investors. You don’t
own the underlying assets. You risk losing all of your investment. This information is general only and
has been prepared without taking your objectives, financial situation or needs into account. Consider
our Product Disclosure Statement (PDS and TMD). See full disclaimer.

eToro AUS Capital Limited AFSL 491139. Social trading. eToro does not approve or endorse any of the
trading accounts customers may choose to copy. All instructions and actions related to copied trades will
automatically be replicated in your account. Past performance of an eToro Community Member is not a
reliable indicator of their future performance. Capital at risk. See (PDS and TMD). See full disclaimer.

2. Plus500


Like eToro, Plus500 also offers its users CFD trading.


Plus500 Disclaimer: 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

The minimum initial deposit is only $100, a more appealing investment compared to eToro. We’ve written an article on how to trade bitcoin on plus500.

Plus500 Cons

  • It does not offer the MT4 platform or an automated trading platform, and its spreads are variable.
  • You cannot withdraw any cryptocurrency. You have to convert it back to USD, EUR etc.

Trading platform

Another similarity with eToro is that Plus500 also offers just a single trading platform to trade on. It is available in over 30 languages and has versions which are compatible with desktops, the web, and mobile devices. However, users will not be able to access the favored MT4 platform.

Financial security

The reputation of Plus500 rests heavily on its regulation under different global financial agencies including CySEC, ASIC, FCA, ISA, MAS, and FSB. Any broker would have to offer highly efficient and transparent services to be approved by this many authorities.


As you can see, the two brokers are quite evenly matched. What you can do is to compare how well their operations comply with your favored trading strategies. Each broker may tick most of the general criteria boxes. But when it comes specific trading requirements, you are likely to pick out a clear winner.

how etfs work

How Do ETFs Work

ETF is short for Exchange-Traded Fund and is essentially a collection of securities that can be traded via a broker on the stock exchange.

It is actually among the most valuable products private investors use these days.

This is due to a number of crucial benefits that it offers as well as the capacity to achieve investment goals if prudently used.

There is an ETF available for virtually anything– from traditional investments to alternative assets.

What’s more, investors can also make use of unique and intuitive structures of various ETFs to steer clear of taxes for short-lived capital gains, short markets, as well as gain leverage.

ETFs are different from mutual funds in that they trade like common stocks on the stock exchange. Therefore, they do not have a net asset value or NAV to be calculated at the end of each day.

> Differences Between Etfs And Mutual Funds

ETFs also usually have a higher liquidity and lower fees on a daily basis compared to mutual funds which further elevate their appeal to private investors.

How big are ETFs today? In the United States alone, they have attracted an estimated $1 trillion from investors and have roughly 1000 products trading on stock exchanges all over the country.

An ETF can be bought or sold just like shares of stock since the shares of an ETF are traded on a public stock exchange. Shareholders receive a percentage of the profits, and a residual value if the fund liquidates.

Creation and Redemption

The amount of ETF shares is controlled by a system called creation and redemption. It involves a few big investors or authorized participants and large financial agencies like banks or investment firms that have a high capacity for making purchases. Such APs are the only participants capable of creation and redemption.

In creation, an AP trades a certain number of underlying assets and receives in exchange some newly created ETF shares. Redemption is when the AP returns the ETF shares and receives the underlying assets.

Types of ETFs

There are many different types of ETFs to become familiar with. Fortunately, they are not that hard to get.

  1. Market ETFs are aimed at keeping track of specific indexes like S&P 500 or NASDAQ.
  2. Bond ETFs are designed to give some insight into various types of bond.
  3. Sector and industry ETFs give exposure to industries like technology, medicine, and crude oil.
  4. Commodity ETFs keep track of the price of a given commodity such as oil, precious metals, and food items
  5. Style ETFs keep track of certain styles of investment or focus on market capitalization.
  6. Foreign market ETFs keep track of markets like the Hang Sang index in Hong Kong and Japan’s Nikkei index and others which are outside of the United States.
  7. Inverse ETFs at making a profit out of a declining underlying market/index.
  8. Alternative investment ETFs: These refer to innovative ETF structures like those that enable investors to be exposed to certain investment strategies.

Advantages of ETFs

  • Ability to buy and sell at any time of the day.
  • Investors can place different types of orders since ETFs are traded in much the same way as stocks
  • Without counting brokerage commissions, fees are generally lower as there is no sales load.
  • Offers investors more control when dealing with taxes such as when they have to pay their capital gains tax.

Disadvantages of ETFs

  • Given that your strategy is to invest small amounts on a regular basis, it would be more cost- efficient to consider alternatives that invest directly in a no-load fund with a fund company.
  • Technical problems and discrepancies are not unheard of in ETFs that keep track of their underlying Index.
  • An ETF sale will not be settled until after 2 days of the transaction. So as a seller, the funds you receive from selling an ETF cannot be reinvested for at least a couple of days.


Happily, however, ETFs will continue to be the subject of innovation, speculation, and advancement for years to come. The key is to be fairly picky about which one you choose to advance your trading goals because, as we know, not all ETFs are created equal.

How to Start CFD Trading

Simply put a CFD or Contracts for Difference trade refers to an exchange in the difference of the cost of a certain financial instrument within an appointed time frame. The financial instrument in question is usually either a share, commodity, indices, foreign exchange or treasuries.

Over the years, CFD trading as developed a reputation for being one of the riskiest forms of online trading and usually taken on by experienced traders who have ample experience and intuition about the ever changing global markets. To get your career underway as a CFD trader, there are some crucial factors to get right before hand.

1) Finding the Right Broker

This decision is largely a matter of the authenticity of service being offered as well your individual preferences as a trader. Conduct a detailed review of all the brokers you are considering. Pay careful attention to the services they provide for their clients, the type of markets you are looking to trade in and the spreads and commissions charged by each broker on those markets.

2) Trading Platforms

Make a thorough assessment of the trading platform your broker is offering. It should be easy to access, easy to read and swift at sealing trades for you. It should also be updated in real time about the changes in price and the availability of new open positions. The platform should also be practical enough to be accessed by your smartphone so that you can stay updated on the progress of your trades while you are on the move.

3) Choosing a Market

With CFD trading, you will have access to a global assortment of markets. With the help of the trading platform as well as the kind of trades that you specialize in, you will be able to select a suitable market to trade in.

4) Go Long or Go Short

There are just two kinds of prices that are quoted in a CFD market. The first being the selling price and the second being the buying price. The difference between the two is known as the spread. Depending on the price of the underlying instrument, the price of your CFD will be quoted. If you are guessing price of the market will go up, you will buy the market or Go Long and if you think the price will decline, you will sell the market or Go Short.

5) The Size of Your Trade

Whether you are dealing in shares, commodities, indices, foreign exchange or treasuries, the value of a single CFD or share will depend on the underlying instrument. One of the main things to consider when trading in CFD is the influence of leverage. CFD involves trading on margin, which means only a tiny percentage of the full asset is exposed at a given time. So only the equivalent amount of that portion is invested. However, leverage can exponentially increase the resulting profit or loss to account for the value of the entire asset so that while a profit can be really sweet for traders, a loss can end up costing them far more than their initial investment. So it is important to ensure that you have enough funding in your account to make up for any loss you might incur or else do not use leverage altogether.

6) Keep an Eye on the Trade

After placing a trade and announcing a time, whether you make a profit or a loss depends entirely on the where the market will go. So long as the trading platform you are using is accurate and in real time, you can open more trades and close existing ones going by your chances of gaining a profit or loss.

7) Closing the Trade

Closing a trade is simply a matter of selecting the ‘close option’ on the trading platform. Upon closing the trade, you will be immediately informed of the resulting profit or loss and the difference in your account funds.

Start With CFD Trading Now

CFD trading is a very delicate and tricky process in the online trading scheme. While no one participating is in real control of their earnings, those traders who are experienced and highly skilled likely stand a better chance of making successful trades than novice traders. If you manage to fulfil the above criteria, you will be in with a strong shout.

Best CFD Brokers

best CFD trading

CFD Trading has become very popular recently. There are so many CFD brokers to choose from, that it’s almost impossible to compare them all.

We took the time to check 40+ brokers to come up with the best one.

Before we go in to how to choose a good CFD broker and our top rated candidates for the job, let us take a look at what CFD trading is about.

What Is CFD Trading?

In very simple terms, a CFD or Contract for Difference is an agreement to exchange the difference in value of a particular financial instrument. This happens between the time that its position was opened and the time at which it is closed.

Here are the best CFD Brokers that we have tested:

Rank Broker Min. Deposit Regulated Features Review
review $200 YES + Crypto Trading

74% of retail investor accounts lose money when trading CFDs with this provider. eToro USA LLC does not offer CFDs, only real Crypto assets available for US traders. AFSL 491139.Capital at risk. See PDS and TMD.

By trading on margin, a trader does not have to expose the full position of any given asset, just a small percentage of it.

The instruments that can be traded in CFDs include shares, indices, commodities, foreign exchange and treasuries. As with any form of online trading however, you do need a broker to get you started.



Make sure you only sign up with trusted brokers. This way you can avoid the scam platforms.

Choosing the Best CFD Broker

Before we unravel the reviews of our top recommendations, let us first consider what key features to look for in an efficient brokering service.

1) How Do The Reviews Look?

The only reason anyone would trouble themselves to review anything is because they might have good reasons for why you should or should not try out the same product for yourself.

In the case of CFD Brokers, an unbiased review of any broker you are looking up can supply you with some handy information to help you decide whether or not you want to work with them. An added tip is to look up multiple reviews on the same broker and check if they are all consistent.

2) Is The CFD Broker Legitimate?

If the broker is not licensed and regulated by a government authority, you have absolutely no solid evidence to suggest it will serve you authentically and not be a scam.

While regulated brokers are not exactly squeaky clean on issues like extortion, their complaints tend to be isolated incidents or misunderstandings on the part of their clients. The bottom line is an official certificate should be a must-have of any broker on your radar.

3) Is The Broker Compatible With Your Trading Style?

This calls into account details like trading platforms, types of accounts, assets to trade in, methods of making deposits and withdrawals etc.

As a trader, you will have your own unique preferences when it comes to trading so it is best that you go with the broker that is most compatible them.

Reviews of CFD Brokers: We are now ready to take a look at a few of the best CFD brokers you can choose from.

Other Good CFD Broker

Please take a look at the recommended brokers in the list above. If you want to check out other CFD brokers then look here:


One of the largest binary options brokers in the world, 24Option now also offers traders to trade with CFDs and Forex as well. It is a regulated broker in multiple jurisdictions most notably under the FCA in the UK CySEC in Cyprus and IFSC in Belize.

This broker provides clients with the highly popular MT4 trading platform for CFD and Forex while for binary options traders, it offers Scipio. There are numerous currency pairs as well as over 100 assets to trade in.

Deposit options with this broker are plenty. International traders can make deposits through Webmoney, AstroPay, Qiwi, Sofort and Skrill. The minimum initial deposit for brand new accounts is $250 while the minimum trading amount is $24. A demo account is also available but only after that minimum initial deposit is made.

Finally, the other notable feature of this broker is its customer service. It is available in 16 different languages via an online chat or over the phone through 16 different codes. The staff is very professional and courteous.

>> Sign Up Here is a Forex broker for the most part but also includes CFDs. It is a licensed and regulated broker under CySEC in Cyprus and FSB in South Africa.

In terms of assets, offer over 200 stocks, commodities indices and currency pairs to trade. It uses the Markets Web Trader platform which has been tuned to work well on mobile devices. Leverage is a generous 200:1 which is about ideal for most traders. The minimum deposit required to open an account is $100.

CFD traders are given all the mandatory financial aid to be expected from a good broker such as the ability to trade shares, commodities, indices etc. without owning the underlying assets.

For the benefit of all traders, a demo account is available for an unlimited time so traders can experiment with new financial strategies without risking their real funds.

Top Rated CFD Brokers

While these are a few of the best brokers in CFD trading currently operating, do not be flattered by their glittering reviews and ratings. What you should really be concerned about is how well regulated they are as well as how adept they are at serving your personal financial interests.

What is CFD Trading

CFD is short for Contract for Difference and is a derivative form of trading. The main attractive feature about it for traders is that it allows them to wager on the constant change of prices for assets like shares, commodities, indices, foreign exchange and treasuries in a way that is very cost efficient.

If a trader is confident that the price of an asset will go down they can buy it. In trading terms, that is to ‘go long.’ If they feel the price will go up can ‘go short’ which means to sell. Part of the cost efficiency in CFD trading is that it allows you to trade on margin, as in you do not have to expose the full capacity of your financial position in the market. And since you do not necessarily have to own the assets you are trading, you are not required to pay for stamp duty.

How does CFD Trading work?

As mentioned earlier you do not have to own the underlying asset to trade. Depending on the direction you think the prices will take off in, you simply need to buy or sell a certain number of units of a certain asset. These assets or instruments can be shares, indices, currencies etc.

Here are more CFD Trading articles:

The fluctuation of prices is determined in points. For every point the price moves in your desired direction, your profit will multiply according to a number of units you have either bought or sold. For every point the price moves against you, your loss will be calculated in the same fashion. It is important to note that a potential loss can go past your initial deposit.

1) Leverage and margin

Since in a CFD trade you only have to deposit a minute percentage of the entire value of an instrument in order to trade, it is considered to be a leveraged product. The fact that you do not have to purchase the entire instrument and open a position with a minor percentage means that you are trading on margin. The upside is that you can make a significantly high profit out of a relatively low deposit. The downside is this same principle applies when it comes to losses. In fact, you stand to lose more than your initial investment.

2) Costs involved in CFD trading

  • Spread: The spread refers to the difference between the buying price and selling price of a trade. You will enter into a trade with the buying price and exit using the selling price. The smaller the spread between the two, the lesser the price must move before you stand to make a profit… or a loss.
  • Market data fees: A trader is required to open a subscription to access details of prices on the market. A fee is charged for each subscription.
  • Holding costs: If there are positions open on your account by the end of trading time for the day, you may be liable for a charge known as a holding cost. It could either be a positive or negative going by the holding rate applicable and your position’s direction.
  • Commission: This applies for shares only. A minute percentage of the marginal value only is charged as a commission for each CFD trade. For trades based in the UK for instance, commission charges begin at 0.1%.


As a novice trader, it is good to begin with a demo account until you are more familiar with the system. CFD trading is a great way to make substantial revenue out of tiny investments. However, it does come with its own unique set of risks but that is all part of playing the game.

What is the diference between CFD Trading and Binary Options?

CFD trades and Binary Options trades certainly have their similarities, but they also have some very clear differences. Often times, traders are curious as to whether they can utilize the two forms of trade in tandem with each other to maximize their returns on their investments.

To understand if this is possible we must take a comprehensive look at the two trading platforms and put them side by side to see exactly what’s what.

In this article, we will briefly go over the similarities between CFD trading and binary options trading and a more comprehensive assessment of their differences and hopefully draw out a rational conclusion.

So before we dive into the differences between binary options trading and CFD trading, let us reacquaint ourselves with their similarities. To start off with, they are both derivative forms of trading. They are both a departure from the stock market and currency market trading. Secondly, they are both small scale investments and carry significantly lower risks. Both with CFD trades and binary options trades, there can only be two outcomes and two main options. The trading time frames involved with these two forms of trading a feverishly quick compared to other forms. To start trading in binary options or CFD does not require a substantial initial investment to get you started.

How is CFD trading different to binary options trading?

First off, awareness of your profits or losses. With binary options trading, this is a clear cut issue. All the information you need to know in the event of a profit or loss is displayed before you call an option on a trade. You will know before the time of expiry, the pay-out rate you will receive if your prediction is accurate as well as the loss you will incur if your prediction is not.

In the case of CFD’s you will be in dark regarding your exact percentage of profit or loss until the time that the trade expires making it altogether trickier to deal with. This is by default, a result of the difference in the entry and the close price which can vary. So traders cannot know for sure where their investment will go till the absolute ending of the trade.

In order to be involved in different markets at a relatively cheaper rate, CFD trading requires traders to pay extra commissions for brokers as well as trades. These fees are not fixed as such and can change with each broker. This is unheard of in binary options trading circles. There are no commission, fees or leverage whatsoever.

The problem with leverage in CFD is that in the event of a trade backfiring, your loss can exceed your initial investment and that can be a nasty defeat. With binary options, a loss can never go past the initial deposit.

What’s more, binary options brokers will actually propose to refund a percentage of the losses incurred by traders if they end up out the money. That percentage is usually around 10-15% but it certainly is something.

On a global scale, binary options trading is the wider form being practiced. In the United States, for instance, CFD trades are not legal although binary options are so long as they are licensed and regulated.

Conclusion – CFD Trading vs Binary Options Trading

While there are similarities, after putting them side by side, it would seem that binary options trading comes off as a less risky form of trading to engage in.

Perhaps the most logical conclusion one can draw from the differences is that binary options trading is the more popular method and more risk friendly, especially to early traders. CFDs are more the territory of experienced traders who have played and figured out how to stay in the game many a time.

Is CFD Trading a Scam?

cfd trading scamCFD trading stands for ‘Contract for Difference’.

CFD traders can trade different assets (stocks, indices, crypto etc.) and capitalize on the fluctuation of their prices.

A fully licensed and regulated broker is the way to go, if you are looking for trustworthy services.

CFD Trading is not scam, but make sure you pick a good broker, that is regulated like eToro.

We have tested over 60 brokers. I would recommend you only sign up with regulated and licensed brokers that we recommend.

Here is our #1 rated broker for CFD Trading (Safe & Regulated):

eToro – Best Trading Platform

eToro is a trading platfrom that is regulated by CYSEC. CopyTrading makes it simple to copy the trades of successful traders.

  • Trusted CYSEC Regulated Broker
  • Minimum Deposit: $200
  • Trade Stocks, Indices, Currencies, Commodities


74% of retail investor accounts lose money when trading CFDs with this provider. eToro USA LLC does not offer CFDs, only real Crypto assets available for US traders. AFSL 491139.Capital at risk. See PDS and TMD.

As soon as we think a broker is a scam we list them on our scams page.

We have dug deep to find more information about the license of ForTrade. As you can see here, they are listed on the FCA page (Reference number: 609970).

It is merely a sign of approval from a governmental authority to reinforce its competence and ability to deliver justly on your investment.

For all the reasons stated above, we see no reason why a traders shouldn’t trust this broker.

Best CFD Brokers That Are Not Scam

All of these brokers offer CFD trading in addition to other forms of trading. These brokers are regulated buy a trusted authority, therefore they are considered to be very safe.

Rank Broker Min. Deposit Regulated Features Review
review $200 YES + Crypto Trading
review $250 YES + US TRADERS
review $100 YES + UK FCA LICENSE

74% of retail investor accounts lose money when trading CFDs with this provider. eToro USA LLC does not offer CFDs, only real Crypto assets available for US traders. AFSL 491139.Capital at risk. See PDS and TMD.

In order to ensure the game you are playing is not rigged against you, you must investigate the industry as deep as you can.

Scams in Stocks Trading

The usual complaints associated with stock trading are the little things like commissions, fees and services. However, the online community is also awash with hundreds upon hundreds of nasty accounts of customers who feel betrayed by their broker and seek to warn others about them. The brokers in question are not exclusive of high repute and global recognition for trustworthy services.

That said, it is just as important to take this stories with a grain of salt since a lot of customers are not particularly articulate about the alleged scam that occurred and may not have fully understood the official terms & conditions involved before lodging their complaints.

Scams in CFD Trading

CFD trading is generally considered to be a relatively riskier form of trade and is not legal in the United States while Forex trading is. The main reason for that is it in the interests of most of the futures and stock trading industries to keep CFD trading out of the competition.

It was certainly not out of compassion for traders to spare them from making a reckless mistake and losing big time on their funds. Without CFD trading in the picture, any lost funds would likely be theirs.

The answer to the question of whether or not CFD trading itself is a scam is a no.

CFD trading is simply a derivative form of trading that allows traders to trade in numerous markets on a global scale using a single account accompanied by its own unique features.

Leverage Can Be Risky

It is on the riskier side of the different trading forms as it carries the option of using leverage. You can leverage your account up to hundreds of times over what it is actually worth, but you will be taking an enormous financial risk there.

The idea is to take calculated and controlled risks so that you have a greater possibility of using this form of trade in an efficient and safer manner without risking too much of a financial downfall.

It is best advised to invest in CFD trades that are under the value of your own account so that you will not be using leverage so it will be less likely in the event of a loss that you would lose more than your initial investment. Using leverage, you stand in a position to win a lot of money as well as lose it and in CFD trading, the final outcome is notoriously difficult to predict until the time the trade expires.

There are a whole bunch of other factors. These have the capacity to be exploited and manipulated in order to extort money from the traders.

These shady operations are usually the work of unlicensed and unregulated brokers who lure customers in with false hopes and promises.

So Is CFD Trading a Scam?

So can these forms of trading be classified as scams? Definitely not. As long as you know how they work and calculate well the risks involved, you can be assured fair play in your online trading activities.


How Safe Is CFD Trading

CFD trading, like any other derivative form of online trading has a unique set of features that set it apart. But the main attractive feature about it is arguably leverage.

Many traders are lured in with the prospect of making immense gains in profit out of relatively tiny investments but are not well informed as to the extent of the risk posed by leveraging a position and how it can backfire on your finances monumentally.

Is CFD trading really that risky?

Leveraging aside, CFD trading should be considered with the usual concerns associated with other online trading derivatives. In very simple terms, CFD trading can typically be tamed by seasoned veteran traders who are highly skilled and intuitive about the market as well as possess a solid amount of capital to cushion most financial blows.

All CFD trades are executed on a marginal basis, meaning you do not need to expose the full value of an asset to place a trade on it. You can deal with something as small as 10% of it. Not owning an entire asset also clears you of any stamp duty you would have to pay.

Let us talk more about leverage

The main instruments available for CFD trading are shares, indices, commodities, foreign exchange and treasuries. To make a profit out of even the slightest movement of the quoted price, the key tool you need to use is leverage.

As mentioned earlier, a key feature of CFD trading is the ability to trade on margin. The prime advantage of trading on margin is that CFD traders have easier access to the market since there is not a particularly large deposit required and positions are open for as low 10% or even 5%. What you are also exposed to as a trader is the movement of the price in direct proportion to the full value of the trading position.

So even if it is only a small unit you have claimed you are still liable to receive the profit or loss of the entire position. For instance, trading at a margin of 5% will leverage your position 20 times over, so if your initial deposit is $5000, you are exposed to a position worth $100,000.

Remember the tiniest fluctuation one way or the other can yield such a result. Therefore, if you profit from the position, all will be well, but a loss could land you in serious financial trouble.

So clearly, CFD trading is not for the faint hearted. It requires a thoroughly comprehensive knowledge of the market to make an optimistic bet. While the nuts and bolts of leverage can be a little overwhelming at first, knowing them inside out is crucial before committing to a trade in CFDs.

It is only natural for a trader to decide that the stakes are simply too high to make any kind of participation in the market. All one has to really do here is dial it down on the investments. Some brokers do offer mini contracts for those traders who cannot afford to lose more than they bargained for.

While it is tricky enough to try and take an educated guess at which general direction the market will move in, imagine having to worry about every minor little fluctuation that could result in triumph or a spectacular loss.

Conclusion – CFD Trading

The bottom line is there nothing inherently amiss with CFD trading. It is simply the prowess with which traders utilize it. For trading form that yields such magnified responses in either direction, you need to be on top of your game assessing the risks and determining the sums you dare invest in it

Can a Beginner Make Money with CFD Trading?

Regardless of where the market is headed, your primary incentive as an online trader is to get bread on the table and to do that, you need to coax some revenue. With CFD trading, there is a rather interesting game to play.

make money cfd trading

CFD Trading is realyl exciting and you can make a lot of money with it.

So what exactly is CFD trading?

Obviously, before you begin trading in CFD you should get a firm grip on what it is all about.

Check out our list with top rated CFD brokers here.

As trading has taken to rapid expansion online from its more traditional forms, many new concepts have developed with attractive features that have attracted a global community of trading brokers and their numerous clients.

CFD Meaning

CFD or Contracts for Difference trading is derivative form of trading designed to give traders unique access into the various active global markets and assets.

  • It is very much part of the modern trader’s tool kit to maximize returns on investments.
  • It is risky to use relative to other forms of trading and its most successful users are usually veteran traders with a wealth of experience and tactical acumen for playing the market.
  • CFD trading does share some similarities with the more popular binary options trading platforms, however with some unique features of its own that pose a higher element of risk to traders.

It too offers just two options for traders; either to ‘go long’ and purchase a contract or ‘go short’ and sell it.

A key feature of all CFD trades is that they are a margin type of trade. It is never the price of the entire trade that is opened but merely a small part of it.

And since you are not the actual owner of any given asset, you are not liable to pay a commission for stamp duty. So they are cheaper to invest in. Each trade is dealt with in currency, and how much of it is acquired by your account is down to how well your skills in the trade really are.

How can I get started?

If you want to try out CFD trading for yourself, all you have to do is to follow these simple 3 steps:

  1. Step1: Sign up with one of these brokers
  2. Step2: Make a first deposit
  3. Step3: Start trading

What you can trade with CFD trading

The type of instruments you can trade are shares, indices, commodities, foreign exchange and treasuries. All of these are relevant to domestic and foreign trades.

Choosing a CFD service provider

When it comes to this decision, there are two main business models to consider: Spread pricing and Transparent pricing.

  • With the spread pricing method, your CFD provider will offer you a price to work with that is not the same as the underlying price. This way they can still make money without charging you with a separate commission. The main drawbacks of this method to be mindful or are firstly: you will not know in advance an exact amount of what the deal is going to cost, and secondly: the price that has been quoted will only work one way.
  • With transparent pricing, the price that has been quoted by the CFD provider is a reflection of the actual underlying price. And as a trader, you will have to pay a commission for each trade. And unlike with spread pricing, the quoted prices can work both ways.

Associated risks with CFD Trading

CFD trading offers traders the option of leverage. This enables them to buy assets that are hundreds of times over the value of their actual account. If the trade works out in their favour, they will win big money. However, if it does not, they will lose much more than what they had initially invested. This is the main reason why CFD trading is more for experienced professional than amateur traders.


So can a beginner make money from CFD trading? In theory, yes, absolutely. In reality however, best play it safe and hone your skills in less risky trading environment before taking your first shot at it.