We found 11 online brokers that are appropriate for Trading CFD Pairs Investment Platforms.
When you trade CFD pairs, you take two positions, one long and one short, in two different CFDs, usually in the same industry sector. The goal of this technique is to profit from a future projected convergence or divergence in the underlying share values.
The potentiality of making profits increases with pairs trading. It is market-neutral, which means the overall market direction does not affect the profit or loss. The focus in it is to match two instruments of a correlated nature. One is traded long and the other is traded short when the price ratio of the two diverges by a certain number of standard deviations. Historical data is used to optimise the certain number, and profit is earned on one or both positions if the pair gain is reverted to the mean trend.
CFD is an abbreviation for contract for differences and CFD pairs trading takes place while taking either long or short positions. The focus is to exploit a future divergence or convergence in the share prices. Each position may not return with a profit. There could be profit on one and it may be more than the potential loss on the other.
Let us understand with an example. Suppose Barclays Bank is seen to be making an announcement about dividends, and based on the technical analysis it is found the trend is positive in the near term. Simultaneously, Standard Chartered Bank is not able to establish updated momentum. Traders, therefore, believe they should go and sell short Standard Chartered Bank and go long with Barclays Bank. The underlying value for each contract should be the same and the time should be the same too.
The CFD pairs trading is measured with respect to the ratio of the share prices. Profit can be witnessed with rise in the original ratio. A reduced ratio indicates a losing trade.
The success in CFD Pairs trading relies on the ability of traders to spot the anomalies and thereafter act quickly. The anomalies may be visible for long periods or may quickly disappear. Identifying the price anomalies takes some time and direction to better know when to enter and exit a trade. A good plan is required to spot the anomalies as they are rare. It is equally important to act appropriately when anomalies occur. It is important to note here that commissions are double, as two positions are involved in the strategy.
Moreover, having a stop loss is significantly required even in CFD pairs trading. Some unforeseen events like unexpected company announcements, takeover bids and profit downgrades may impact one leg of the pair adversely.
A point of exit should be determined even before taking an entry in the trade. The exit point could be a set dollar amount or a set percentage.
Yale School of Management released a paper in June 1998 in an attempt to prove that profit can be made through pairs trading. K. Geert Rouwenhorst, William Goetzmann and Even G. Gatev authored the paper using historical data from 1967 to 1997. They said the average return over a six-month period was 12 percent.
The tests of the trio included randomly selected pairs and conservative transaction cost estimations instead of depending on plain luck.
There are basically two ways to know how prices track each other. Traders can watch the price of one and this is subtracted from the price of another. Several charting platforms allow the superimposing of two charts to easily compare the two.
Another way is to use a facility enjoyed on the charting platform. Charting software allows the creation a price ratio chart.
Using CFDs is another common strategy. The health care sector may be coupled here against the materials sector or the energy sector against ASX 200 index. It is important to consider the weighting of the sectors within the overall market index while choosing.
CFD pairs trading occurs when a trader takes positions, long or short, to exploit convergence or divergence in the future. CFD trading is a high risk leveraged trading strategy and is only meant for experienced investors who fully understand the risks.
However, the strategy is not as simple as it is believed to be. The success depends on the ability of traders to spot anomalies. Stop-loss is important here as unforeseen events may occur at any time and may lead to adverse impacts on one leg of the pair. Understanding and being able to succesfully implement a CFD pairs trading strategy will require education and experience.
We have conducted extensive research and analysis on over multiple data points on CFD Pairs Trading to present you with a comprehensive guide that can help you find the most suitable CFD Pairs Trading. Below we shortlist what we think are the best CFD Pairs Trading Investment Platforms after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching CFD Pairs Trading.
Selecting a reliable and reputable online CFD Pairs Trading Investment Platforms trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade CFD Pairs Trading Investment Platforms more confidently.
Selecting the right online CFD Pairs Trading Investment Platforms trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for CFD Pairs Trading Investment Platforms trading, it's essential to compare the different options available to you. Our CFD Pairs Trading Investment Platforms brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a CFD Pairs Trading Investment Platforms broker that best suits your needs and preferences for CFD Pairs Trading Investment Platforms. Our CFD Pairs Trading Investment Platforms broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top CFD Pairs Trading Investment Platforms.
Compare CFD Pairs Trading Investment Platforms brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a CFD Pairs Trading Investment Platforms broker, it's crucial to compare several factors to choose the right one for your CFD Pairs Trading Investment Platforms needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are CFD Pairs Trading Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more CFD Pairs Trading Investment Platforms that accept CFD Pairs Trading Investment Platforms clients.
Broker | IC Markets | Roboforex | eToro | XTB | XM | Pepperstone | AvaTrade | FP Markets | NordFX | EasyMarkets | SpreadEx |
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | RoboForex Ltd is regulated by the FSC, license 000138/437, reg. number 128.572. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049), Central Bank of Ireland | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), FSCA (FSP Number 50926), Capital Markets Authority (CMA), Securities Commission of the Bahamas (SCB) | Cyprus Securities and Exchange Commission (CySEC), License No: 209/13, VFSC registration number 15008 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) | Financial Conduct Authority (FCA) |
Min Deposit | 200 | 10 | 100 | No minimum deposit | 5 | 200 | 100 | 100 | 1 | 100 | 1 |
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Used By | 180,000+ | 1,000,000+ | 30,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 300,000+ | 10,000+ | 10,000+ | 142,500+ | 10,000+ |
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Platforms | MT4, MT5, Mirror Trader, Web Trader, cTrader, Windows, Mac, iOS, Android | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, cTrader, IRESS, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, Tablet & Mobile apps | MT4, MT5, Web Trader, TradingView, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 76% of retail investor accounts lose money when trading CFDs with this provider. | 76-85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74-89 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
NordFX Demo |
easyMarkets Demo |
SpreadEx Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, CA, EU, RU, SY, KP, CU | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR |
You can compare CFD Pairs Trading Investment Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top CFD Pairs Trading Investment Platforms for 2024 article further below. You can see it now by clicking here
We have listed top CFD Pairs Trading Investment Platforms below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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