INTRODUCTION
CFDs (Contracts for Difference) give traders access to financial markets without actually owning the assets. Choosing the right account type for CFD trading is important as it affects the strategies, commissions, support levels and available tools. In this article, we will look at the main account types offered by CFD brokers, their advantages and disadvantages.
ACCOUNT TYPES FOR CFD TRADING
Standard Account
This is the most common account type, designed for beginners and traders with an average level of experience. It provides access to basic instruments, medium spreads, no fixed commissions, and a minimum initial deposit.
ECN/STP account
Designed for more experienced traders. These accounts provide direct access to the interbank market (via ECN – electronic quotation system), which gives lower spreads but involves a fixed commission for each transaction. Used for algorithmic or high-frequency trading.
Fixed Spread Account
Ideal for traders who don’t want to take risks due to volatility. The spread (the difference between the bid and ask price) does not change depending on market conditions, which gives predictability of costs.
Cent account (micro/mini)
Suitable for beginners who want to trade with minimal risks. Accounting is carried out in cents or minimum currency units. This allows you to test strategies or adapt to the real market without significant losses.
Islamic Account
Available from brokers working with Sharia law countries, it eliminates interest-based spreads (swap-free), which meets the requirements of Islamic finance.
CONCLUSIONS
The choice of account type should correspond to the trader’s level of training, capital volume and trading strategies. Standard accounts are suitable for beginners, ECN/STP for professionals, and Islamic accounts for users who adhere to religious restrictions. Careful selection of an account allows you to optimize the costs and efficiency of trading on the CFD market.