Do you want to trade online? Are you looking for guides or brokers to start trading with? If you are interested in online CFD trading on stocks, currencies, cryptocurrencies, stock indices or commodities, you’ve come to the right place. In this article we will explain everything you need to know about online trading. If you want to start straight away, you can click here to register on the Plus500 broker’s website to start trading. If you prefer to go more slowly, get comfortable, because we’re going to explain everything you need to know (76,4% 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).
As you’ll see later, in this tutorial we will cover how to trade with Plus500 broker. So, before continuing you can look at this review of Plus500 before we begin. And now, we’ll start with the online trading guide.
Online stock trading
With CFDs, you can make online trades on many underlying assets. Currencies on the Forex market are among the most popular underlying assets. However, there are possibly more people in the trading world who are interested in stocks.
As you may know, CFDs are derivative products. This means that when you trade CFDs on an underlying asset, you do not own that asset, but rather a product that roughly replicates its behavior and price. Therefore, if you trade stock CFDs you should be aware that you will own not the stocks, but a derivative. Of course, if you have purchased stock CFDs that pay dividends with Plus500, you should know that you are entitled to receive dividends.
With brokers like Plus500 you can trade CFDs on stocks from around the world. Of course, stocks on the US Stock Exchange (S & P500, Dow Jones and Nasdaq), from the UK, Germany and Spain are available. This means that there are CFDs on the shares of Facebook, Alphabet, Netflix and many more.
Of course, it is also possible to trade stock index CFDs.
Each online broker has their conditions for trading. Some apply fees for each purchase and sale transaction/ operation, and others simply charge spreads and other types of fees. In the case of Plus500 there are no commissions on the buying and selling of share CFDs as you can see here (76,4% of retail CFD accounts lose money).
Online Forex trading
If what you’re interested in is currency trading, you have the option of trading CFDs on different currency pairs. As you may know, in the Forex market you are always operating with currencies. If you invest in stocks, you only do so with one stock. That is, you buy or sell Facebook shares, but in the case of currencies, you can only trade one currency against another. For example, you can buy CFDs on the Euro against the Dollar, which is known as the Euro / Dollar. If you are making this trade, what you’re interested in is that the Euro should be better than the Dollar.
As you can see, the Forex market is somewhat complex, and if we add to this the fact that CFDs are also complex, we find that we are dealing with high-risk products.
As you can imagine, currency prices are constantly moving because the Forex market is the one that is the most liquid and has the largest volume worldwide. This means that every time a piece of news comes out about the economy of a country, the prices move quickly and strongly.
In the case of Forex CFD trading, Plus500 broker has no commissions as you can see here (76,4% of retail CFD accounts lose money).
Online commodity trading
Almost everything in the world is based on commodities. Among the most popular commodities for trading are oil, gold, corn, etc. As you can see it is energy, metals and food that move the world.
Obviously if you trade commodity CFDs you do not have the right to collect dividends or anything like that, because you are not investing invest in companies that have an economic activity, but in raw materials.
If you want to learn more about commodity CFD trading (76,4% of retail CFD accounts lose money).
Online cryptocurrency trading
In recent years there has been a huge cryptocurrency boom. The sharp rise in the price of Bitcoin since its inception has made millions of people interested in virtual currencies.
Having said that, we have to remember that the volatility of cryptocurrencies is enormous. Just as there have been months when the price of cryptocurrencies such as Ripple or Ethereum has had a meteoric rise, there have also been huge falls within short periods of time.
The interest in cryptocurrencies is no surprise because many people see them as the future of payment methods. But there are also opposing opinions. For example, there are many people who think that cryptocurrencies are a big bubble that is bursting. And there are some who are even more radical; they think that cryptocurrency is an outright scam. Of course, there are also opinions in between. Among them are those who think that one cryptocurrency may succeed and another may fail. For example, some may think that Bitcoin will fail, and that Ripple will be the one to succeed because it has the support of banks. At the end of the day, deciding if cryptocurrencies are a scam or the future is entirely up to you.
As you can see here with Plus500, you can trade CFDs on almost all crypocurrencies (76,4% of retail CFD accounts lose money).
To be able to trade you need to contract the services of a broker or a CFD provider. The world is full of brokers that allow CFD trading. However, some of them are very expensive, because they charge big commissions, and others, although they have attractive offers, also involve great risks because they are not properly regulated.
In this tutorial we talk a lot about Plus500, but there are other reputable brokers such as Markets.com, eToro or AvaTrade, among others. Most of them have something in common and it is that they are reasonably regulated.
– Plus500UK Ltd authorised & regulated by the FCA (#509909).
– Plus500CY Ltd authorized & regulated by CySEC (#250/14).
– Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018).
– Plus500AU Pty Ltd (ACN 153301681), licensed by:
ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.
Although it is impossible to know if a broker is a scam, all the signs seem to indicate that one is dealing with a safe broker.
Throughout the tutorial we have stressed quite a bit the fact that CFDs are high-risk products, and partly because of this, some brokers offer a demo account service. The demo is a simulator that allows you to trade with virtual money. With the demo, the underlying assets are simulated, but they behave the same as on a real trading platform. This allows you to get into the world of trading without risking real money.
In the Plus500 demo we find that the platform is the same as the real one. This means that the charts are the same, that orders such as stop-loss or take-profit are available and that you have all the underlying assets at your disposal.
If you want to get the Plus500 demo, just click on the button below. Then, click where it says “free demo account” and follow the steps indicated (76,4% of retail CFD accounts lose money).
Online trading is an activity that has been growing a lot in recent years. The cost of trading has been greatly reduced thanks to the internet, and commissions and spreads are getting lower and lower. In addition, there is an increasingly large number of assets to trade. If you want to start trading with Plus500 where there are no commissions click here (76,4% of retail CFD accounts lose money).