Good brokers for beginners?

[Bradleyule]

I've been learning about trading for the past few months reading books, learning technical analysis etc and think its about time I started doing small trades. I'm not 100% familiarized with the different types of trading, CFDs, Spread betting etc. But I want to be able to trade the Currency markets and stocks.


I cant seem to find a futures broker that has any good recommendations. Am I also correct in saying that futures is a more tame way to trade than trading than CFDs?

Any input is appreciated, thanks.

 

[timsk]

I've been learning about trading for the past few months reading books, learning technical analysis etc and think its about time I started doing small trades. I'm not 100% familiarized with the different types of trading, CFDs, Spread betting etc. But I want to be able to trade the Currency markets and stocks.


I cant seem to find a futures broker that has any good recommendations. Am I also correct in saying that futures is a more tame way to trade than trading than CFDs?

Any input is appreciated, thanks.

Hi Bradleyule,
Welcome to T2W.

I recommend getting up to speed with the different markets and the various financial vehicles to trade them before jumping in feet first. It will be time very well spent. For example, you say that you want to trade futures and stocks. This is difficult to do from a single account unless you go to a broker like Interactive Brokers who offer a universal account from which you can trade pretty well any market via any financial vehicle. You could trade derivatives of (some) futures and (some) stocks via a spread betting account but, depending on which stocks (and to a lesser extent which futures), this could prove tricky. I suggest you stick to just one market to start with as it'll make life much easier while you're learning.

As for futures being more 'tame' than CFDs is hard to say as that would depend on what you mean by tame. Some traders prefer one to the other for a host of different reasons: which of the two (if either of them) will suit you best will depend upon your personal preferences. Sorry not to be more helpful, but I think you need to spend more time reading the Stickies and FAQs here to get a better grasp of your options (which includes options) before opening an account. As and when you do, make sure it's a demo account so you can trade paper money while you familiarize yourself with the trading platform and practice implementing your trading plan.
Tim.

 

[Bradleyule]

Hi Bradleyule,
Welcome to T2W.

I recommend getting up to speed with the different markets and the various financial vehicles to trade them before jumping in feet first. It will be time very well spent. For example, you say that you want to trade futures and stocks. This is difficult to do from a single account unless you go to a broker like Interactive Brokers who offer a universal account from which you can trade pretty well any market via any financial vehicle. You could trade derivatives of (some) futures and (some) stocks via a spread betting account but, depending on which stocks (and to a lesser extent which futures), this could prove tricky. I suggest you stick to just one market to start with as it'll make life much easier while you're learning.

As for futures being more 'tame' than CFDs is hard to say as that would depend on what you mean by tame. Some traders prefer one to the other for a host of different reasons: which of the two (if either of them) will suit you best will depend upon your personal preferences. Sorry not to be more helpful, but I think you need to spend more time reading the Stickies and FAQs here to get a better grasp of your options (which includes options) before opening an account. As and when you do, make sure it's a demo account so you can trade paper money while you familiarize yourself with the trading platform and practice implementing your trading plan.
Tim.

Thanks for the reply Tim. I was looking to implement the trading my plan I have spent months creating asap, I have been using MT4 to trade paper money. I mainly have an interest in trading currencies and am also in holding shares long term for certain companies. My understanding of CFDs so far is that they are best suited for the traders using larger funds.

 

[apau]

I trade equities, futures and options and dropped CFD's years ago. I trade equities over the phone and the futures and options on commodities, index's etc all on one platform.

My broker helped me at the start, but a lot of brokers will have a minimum you can open an account with. You just have to find the right broker, quite hard nowadays but if you find them they are worth their weight in gold.

 

[tommyho]

Hi Bradleyule,
Welcome to T2W.

I recommend getting up to speed with the different markets and the various financial vehicles to trade them before jumping in feet first. It will be time very well spent. For example, you say that you want to trade futures and stocks. This is difficult to do from a single account unless you go to a broker like Interactive Brokers who offer a universal account from which you can trade pretty well any market via any financial vehicle. You could trade derivatives of (some) futures and (some) stocks via a spread betting account but, depending on which stocks (and to a lesser extent which futures), this could prove tricky. I suggest you stick to just one market to start with as it'll make life much easier while you're learning.

As for futures being more 'tame' than CFDs is hard to say as that would depend on what you mean by tame. Some traders prefer one to the other for a host of different reasons: which of the two (if either of them) will suit you best will depend upon your personal preferences. Sorry not to be more helpful, but I think you need to spend more time reading the Stickies and FAQs here to get a better grasp of your options (which includes options) before opening an account. As and when you do, make sure it's a demo account so you can trade paper money while you familiarize yourself with the trading platform and practice implementing your trading plan.
Tim.

Tim, very good advice there. "paper trading" and then, once you have an acct with a broker, Sim trade. I've been trading for just about 2 yrs. now and use AMP. Really like their expertise and service. They are businesslike but efficient and courteous. Tim's recommendation to find a instrument and stick with it is excellent. Each is different with their own characteristics.
For me, KISS, is the best advice I could have received. Helps to eliminate all the millions of options and keep from second guessing yourself.
Tom

 

[Bradleyule]

Tim, very good advice there. "paper trading" and then, once you have an acct with a broker, Sim trade. I've been trading for just about 2 yrs. now and use AMP. Really like their expertise and service. They are businesslike but efficient and courteous. Tim's recommendation to find a instrument and stick with it is excellent. Each is different with their own characteristics.
For me, KISS, is the best advice I could have received. Helps to eliminate all the millions of options and keep from second guessing yourself.
Tom

I intend to sim trade currencies a lot more before trading real money. However If I wanted to say for example buy shares in a company like Procter & Gamble how would I do so? The main banks that hold those kinds of services all have really bad reviews. What do you mean by KISS?