CFD Trading: Choosing the Right Platform in today’s global socio-economic and geopolitical conditions

As the age-old Chinese statement says: we “live in exciting times.” And, this is probably the understatement of the century. Regional conflicts keep on popping up, the Brexit deal has not yet been resolved, the US migrant crisis and Donald Trump’s response to it make the daily headlines, and the US/China trade war is also ongoing.

According to Nasser Saidi, “public debt in advanced economies rose by more than 30 percentage points of GDP, with total global debt reaching some $250tn by the second quarter of 2018.” Furthermore, the US Fed raised the interest rate another quarter-point rate to 2.25 per cent at the end of September 2018. This is the eighth hike in the past two years. Thus, it looks as though another global financial crisis is pending.

Trading in turbulent geopolitical and socio-economic conditions

It is useful to remember that CFD traders can trade profitably on both rising and falling global financial markets. This is because they trade on the financial market asset price movements. They do not buy and sell the asset itself.

Therefore, the question that begs is not whether traders should trade in volatile conditions, it is what CFD trading platform they should use to trade on.

Here are some tips to help you, as a trader, determine which broker offers the best online trading platform that will allow you to trade profitably:

Technical analysis tools

The question that needs to be asked is what statistical analysis tools are available on the trading platform. There should be a large number of technical indicators and oscillators available for traders to use to study asset price movement trends.

These tools can include candlestick charts, moving average convergence-divergence index (MACD), relative strength index (RSI), Bollinger bands, Stochastic oscillator, on-balance volume, and Aroon oscillator.

As mentioned above, the main aim when using these indicators and oscillators is to study historical price movement patterns, and breakouts to determine a trend. Once this trend has been found, then it is possible to decide on a trading strategy.

Finally, traders will open a trading position, and set-stop loss and take-profit points. And, it is also essential to set the moving average point to let the trade run and not close out too early.

Economic Calendar

Fundamental analysis; ergo, the study of global socio-economic events that have the potential to impact the price of an asset, is a vital part of the overall investigation that a trader has to do to determine a profitable trading strategy.

Most of these events are listed in the Economic Calendar according to the month and day they are due to happen. For example, the date the US Jobs numbers are released, and the quarterly Fed meeting to determine whether US interest rates will be increased, remain the same, or decreased is also recorded on the Economic Calendar.

Therefore, a robust CFD trading platform will include an Economic Calendar; thus, alerting traders to these events before they take place.

Real-time asset price movements

This aspect is crucial to the trader’s profit or loss statistics. If the trading platform reports price moments a few minutes after they have happened, then the trader will make wrong trading decisions because the technical tools he uses will not be 100% accurate. Therefore, it is vital to ensure that the online trading platform of your choice reports real-time asset price movements.

Security

It is vital that the CFD trading platform that you choose follows Internet Security best practices and implements the latest security updates as they are released. Otherwise, there is a risk of the platform being hacked and trader investments and private information stolen.

Speed

A lagging online trading platform will have a negative impact on the trader’s ability to place profitable trades. Therefore, it is best to avoid signing up with a brokerage that offers a trading platform that is sluggish and slow to respond to mouse clicks.

Final thoughts

It is reasonable to assume that a broker’s CFD trading platform is the most critical part of its online presence. Thus, it is vital to open a trading account with a broker that prioritises the upkeep of its online trading platform.

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Seb Chromiak

I was born 09.10.1997, I currently study Economics and Politics at the University of Manchester and have an interest in Neo-liberalism, Russian Politics and Current Affairs.

Seb Chromiak has 50 posts and counting. See all posts by Seb Chromiak

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