Contracts for difference (CFDs) allow traders to speculate on the price movements of complex instruments like stocks, indices, crude oil, derivative products and commodities, and forex pairs. With CFDs, you never own the underlying asset, but rather profit or lose based on the difference between entry and exit prices. 

This leveraged trading has high rewards in store for anyone who dares to try it out. But there's a catch! It comes with significant risks, especially if you're a beginner. So as a newbie, choosing the best CFD trading platforms should be at the top of the list. One, they'll help you execute trades the right way. They also provide you with resources, advanced trading tools, and support to enhance your experience.

Let's discuss them in detail:

Educational Resources  

The first thing a newbie trader should look for in a CFD broker is educational resources. These would help you understand what CFDs are and how they work. Not just that! They'll also inform you about the instruments you can trade, the cost of trading CFDs, technical analysis tools, and examples of CFD trades. All these pieces of information will help you ascertain whether you and CFD trading are a great match.

As such, the best CFD brokers should go beyond the bare minimum of just executing trades. Look for a wealth of educational resources such as tutorials on using trading tools, webinars, glossaries, and market analysis. A good web trading platform that prioritizes education empowers you to build a strong foundation of knowledge in trading. High-quality content tailored specifically for new CFD traders can significantly speed up your learning curve and give you the confidence to make informed decisions in the market. 

Ease of Use and User Interface 

An intuitive interface is an absolute must for beginners. Statistics show that 21% of traders have a problem with the existing crypto exchanges because of their inconvenient user interface. A poor design can be a significant problem even for experienced traders considering that the market changes in seconds. So, spending more time navigating the platform before taking a trade position will disadvantage you.

Look for a CFD broker with a user-friendly trading platform, a mobile app, and a wide range of navigation guides. It must have clear menus, simple order placement processes, a mobile trading platform, and easily accessible educational materials. Overly complex platforms with cluttered layouts may hinder your trading experience and the ability to make confident decisions. Ideally, you should dedicate time to explore different user interfaces to see which best suits your learning style and preferences. 

Demo Account  

Before you start trading, it’s always advisable to work with a demo account to understand how the CFD market works and have the overall experience of the investment platform. This helps you simulate live trading using paper money.  

This demo CFD trading account empowers you to practice placing trades, testing various strategies, and getting accustomed to the platform's features without risking your own money. It's a safe space to make mistakes in your retail CFD accounts and gain valuable experience before transitioning to live trading with real funds.

Choose an online trading platform with a demo account that closely mirrors the real CFD markets. The price movements of assets in the demo account should be the same as in live trading accounts to ensure you’re getting the right reflection of how the market moves.  In the demo account, you can also test different risk management tools such as stop-loss and take profit and how you can use them when trading different asset classes.

Customer Support 

Customer support has quite a thing to do with how prospects view a business. Things are no different when it comes to CFD trading platforms. In fact, recent reports show that 81% of companies see customer service as a differentiator from the competition; meanwhile, 73% of customers say customer service is key to influencing brand loyalty. A reliable customer support team is, indeed, a lifesaver, especially when you're just starting out.

Choose a platform offering multiple support channels like phone, email, and live chat to receive help as quickly as possible. Whether you're facing technical issues or need trading concepts explained, responsive and knowledgeable customer support will help you resolve problems and keep your focus on learning. 

Make sure to check the availability of customer support hours. Some platforms might offer 24/7 support, while others may have limited hours, which is important to consider depending on your online CFD trading habits. 

Regulations and Security

Industry regulation forms a crucial part of any CFD trading. It helps control factors such as margin calls, maximum leverage for retail traders, publication of risk warnings, negative balance protection, and disclosure of information. These practices are aimed at promoting fair trading practices and protecting traders.  

Always go for forex brokers that uphold standards to protect clients, including segregating client funds from company funds. They should be compliant to the necessary laws set by regulatory bodies such as financial conduct authority. Opting for such CFD brokers offer peace of mind and security for your hard-earned funds. 

If it's a web-based trading platform, check for their regulatory information at the bottom of the page. They should clearly display their regulatory status and license numbers. If this information is difficult to find, it could be a warning sign. 

Conclusion

When you enter the financial markets as a beginner, you should select only the best CFD platform. Choose innovative features that'll facilitate your learning and create a safe environment for training and trading journey. Don’t forget about doing your own examination and only trade with money you can afford to lose.