Online Trading Essentials in 2020

At Top10best.io, we strive to help you make informed decisions about financial matters. We provide you with detailed review of brokers and financial brands in the market.

By the way, we’re 100% free to use & fully independent
Trusted by thousands





Online Trading Essentials in 2020

At Top10best.io, we strive to help you make informed decisions about financial matters. We provide you with detailed review of brokers and financial brands in the market.

By the way, we’re 100% free to use & fully independent
Trusted by thousands


etoro reviewStep 1: The Right Broker

Choosing the right broker is essential to your success.

Becoming a professional online trader, especially in a world where not many pro traders share their experience is daunting. You might even get hooked by scammers who promise you high payment and low risks but don't be fooled. CFD Trading, Forex Trading or any other types of online trading involves great risk, and of course great rewards too. That's why choosing the best online brokers based on your trading strategy is the first step.

In This Article we will discuss the following concepts:

  • List of best online brokers
  • The Journey to becoming an online trader
  • What is CFD
  • CFD Pro Tips
  • What is Forex Trading
  • Forex Jargons and Tips



    If you are going for FX trading, you must find the best forex brokers that are regulated. You should review their trading fees, account opening process, and see if that really fits you. Some of these brokers provide you with online trading platforms that are not good for beginners.

    The same process applies to you if you are searching for contract for difference and want to open live account on best CFD brokers. That's why we start with a list of top 10 online brokers (of course a quick view is enough for this article, if you are interested in reading them in detail, which you should, You can check their detailed reviews). You can either open a demo account or if you know what you do start trading using real money and live account.

    let's have a quick look at list of most popular brokerage service providers and their requirements:

    Best FX & CFD Brokers List of 2020

    eToro

    Zero Commission | Best Online Broker for CFD, Forex and Crypto


    4.3

    Minimum Deposit

    $200

    Trade Now
    IG

    Best Online broker for CFD & Forex Trading


    4.7

    Minimum Deposit

    $0

    Start Trading
    XTB

    Low Stock CFD Fees | Best CFD & Forex FX Broker


    4.57

    Minimum Deposit

    $250

    Start Trading
    AvaTrade

    Lowest Trading Fee | Best for CFD, Forex


    3.95

    Minimum Deposit

    $100

    Trade Now
    Pepperstone

    Best Online broker for CFD, Forex (Great User Experience)


    4.5

    Minimum Deposit

    $100

    Start Trading
    Plus500

    Best Online broker for CFD, Forex (Great User Experience)


    4.5

    Minimum Deposit

    $100

    Start Trading
    Fusion Markets

    Best discount Forex Online broker (Low Fees)


    4.05

    Minimum Deposit

    $0

    Start Trading
    AxiTrader

    No Minimum Deposit | Best Online broker for FX Forex & CFD


    4.35

    Minimum Deposit

    $0

    Trade Now

    Important Tip: Contract for difference or CFDs are rewarding yet very risky and you might end up losing money. Generally over 74% of retail investor accounts ar at risk of losing their capital. It's significant that you educate yourself about trading strategies, technical analysis, and finance before opting for trading.




  • How to Start Trading

    It does not really matter whether you decide to go for retail trading or becoming an institutional trader, there path you have to go through has crystal clear rules that you need to stick to.....



    etoro review


    How to Start Trading

    It does not really matter whether you decide to go for retail trading or becoming an institutional trader, there path you have to go through has crystal clear rules that you need to stick to.....


    etoro review The Path to online trading


    Use your EQ

    It does not really matter whether you decide to go for retail trading or becoming an institutional trader, there path you have to go through has crystal clear rules that you need to stick to.
    Trading needs IQ but more than IQ it needs control over emotions and strong emotional intelligence. You need to use technical analysis and follow the trends.

    Even the best traders always try to learn, why should not you? Choose an online broker that offers decent educational materials such as videos, webinars, and articles.
    We suggest XM, eToro, and IG.
    THey have spend quite enough time crafting trading video contents that helps you get up to speed.

    Use Demo Account

    Don't get us wrong but what we are about to tell you is actually happening.
    There is a degree of similarity among online casinos and online trading platforms: both involves spending money. There is also a big difference: They are meant for different purpose.

    A demo account is not a place to play with numbers and go crazy and trade like it's no body's business. Demo account is there to healp you utilise your time and convert that trading knowledge that you learn from education into trading. You ought to treat it like it is your chance to be wise and become an online trader.

    A lot of online brokers offer demo account. We picked a couple for you to review and choose the one that suits your needs. Fusion Markets, XM, eToro, XTB are pretty good.

    Compare Brokers

    Know the Alternatives.
    Sometimes we see traders just read one advertisement and get onboard with a trader. You got to know your options. Compare online brokers and get to know the details about them.

    For instance, how many base currency does your broker offer?
    What would be the minimum deposit?
    how much do they charge if you want to withdraw more than once a month?
    Do they charge Inactivity Fees?
    Do they offer heatmap?
    can you set alarms and triggers?
    and many more details that impacts your trading and ultimately your wealth.



    best cfd broker
    Best broker for
    Crypto & CFD
    Trade Now

    Account Fees:

    NO

    Minimum deposit:

    $200

    Withdrawal Fees:

    $5

    Investor Protection:

    £85,000 for UK residents, €20,000 for non-UK residents

    Regulated:

    YES, UK, Cyprus, Australia

    Customer Support:

    Live Chat, Email

    Demo Account:

    YES

    Trading Options:

    CFD, stock
    ETF, Crypto
    Forex

    Expert rating:

    Online Trading Platform: Mobile, Web

    Commission rating:

    Research rating:

    Education rating:

    Overal Ranking:

    4.3 / 5

    Deposit & Withdrawal Type:

    Bank Transfer, Credit/Debit card, Electronic wallets

    Open Account
    Use your EQ

    It does not really matter whether you decide to go for retail trading or becoming an institutional trader, there path you have to go through has crystal clear rules that you need to stick to.
    Trading needs IQ but more than IQ it needs control over emotions and strong emotional intelligence. You need to use technical analysis and follow the trends.

    Even the best traders always try to learn, why should not you? Choose an online broker that offers decent educational materials such as videos, webinars, and articles.
    We suggest XM, eToro, and IG.
    THey have spend quite enough time crafting trading video contents that helps you get up to speed.

    Use Demo Account

    Don't get us wrong but what we are about to tell you is actually happening.
    There is a degree of similarity among online casinos and online trading platforms: both involves spending money. There is also a big difference: They are meant for different purpose.

    A demo account is not a place to play with numbers and go crazy and trade like it's no body's business. Demo account is there to healp you utilise your time and convert that trading knowledge that you learn from education into trading. You ought to treat it like it is your chance to be wise and become an online trader.

    A lot of online brokers offer demo account. We picked a couple for you to review and choose the one that suits your needs. Fusion Markets, XM, eToro, XTB are pretty good.

    Compare Brokers

    Know your Alternatives.
    Sometimes we see traders just read one advertisement and get onboard with a trader. You got to know your options. Compare online brokers and get to know the details about them.

    For instance, how many base currency does your broker offer?
    What would be the minimum deposit?
    how much do they charge if you want to withdraw more than once a month?
    Do they charge Inactivity Fees?
    Do they offer heatmap?
    can you set alarms and triggers?
    and many more details that impacts your trading and ultimately your wealth.


    What is Forex trading?

    Lets' first see What is FX or Forex. Foreign Exchange trading is referred to trading (Buy and sell) certain currencies on a market or bet and focus on price movement of certain currency pairs. It's sometimes called currency market too.

    Besides regulated online brokers, there is a big volume of FX trade happening over-the-counter (Also called OTC) which is very risky. Due to its huge number of transaction globally, you will always find someone to trade with.

    Forex Expressions & Jargons:
    What is Lot
    Let's start with A lot. Lot refers to is forex contract and the standard number of units that is in it. Generally, it is 100K of the base currency. There is also something else called a "mini lot" which is 10K and 100 unit of the base currency.

    What is Leverage:
    Even though it is risky but leverage gives you the opportunity to use bigger positions than what you actually have in your live account. Using leverage can multiply your profit or your loss, that's why it's risky and you need to conduct analysis before hand.

    What is Spread:
    Spread is the difference between what you ask and what price you actually bid, Easy.

    What is Pip:
    A pip, in most cases is around 0.0001 for the currency pairs and is considered as the tiniest amount of a currency pair.



    5 Pro Tips for CFD Trading

    What is CFD trading?

    Lets' first see What really is CFD and then we get to learn the Tips. Contract for difference or commonly known among traders as CFD are nothing but derivative products. To put simply, it means the value of another asset or security can derive the value of CFDs and these products, in other terms it always follow price movements of what they are relying on.

    For instance if you buy Vodafone share CFD, then if the company’s share price hits the top and increases, then your CFD value will boost too. The history of CFD goes back to mid 1990s in London and was introduced as a type of leveraged equity swap by hedge funds. It was from early 2000 till 2010 that we saw the first exchange traded and got popular because it was centrally cleared CFDs. The truth is that CFD always inherent the risks and regulators are pretty strict with CFD brokers.

    1. Remember stop-loss orders:
    #1 - As easy as it sounds (in fact it just looks easy) it is essential to either or even guaranteed stop-loss orders or do your best to limit your downside and use stop-loss orders.

    The simplest way to explain it would be this: stop limit order guarantees that you'll have the price you want, in case you can sell it yet it under no circumstance doesn't guarantee that you will actually sell. On the other hand: A guaranteed stop loss order does not take to account volatility or slippage and it will be done precisely at the pre-defined price level.

    2. Consider limiting the leverage:
    #2 - It is all about risk tolerance level and how much you can afford to lose. Some brokers allow you to change the default leverage. It would be wise to change it especially when you are dealing with read stock and options.

    3. What Trade Position to use?
    #3 - This is all about risk factors. There are also other online brokers that prevent you from changing the leverage. The best work around is to decrease your trade position.

    4. Not the Hero, Be the Analyst
    #4 - No matter what all the other experts say, Whether you go for your strategy or even use copy-portfolio or copy trading from other traders, you must be the owner of your portfolio( not in terms of capital and money. In terms of analysis too) So, We strongly encourage you to do your own technical analysis and make informed decisions. We all have to have a solid trading strategy and sometines expect that the sky gets cloudy too.

    5. You can lose more than your initial investment
    #5 - Beware of the online bokers that do not offer negative balance protection. You can easily find yourself to lose more than what you have invested.


    best forex broker
    Forex

    Market is open 24 hours a day (business days)

    ETF trading is available in the EU

    Regulated FX brokers operate in certain countries


    best cfd broker
    CFD

    The price is derived from other products or securities

    Usually traded over the counter market (Less Regulated) - Risky

    Regulated CFD brokers operate in many countries