CFDs are leveraged. Most retail traders lose money, and you can lose more than you deposit.

Lesson 8 · 7 min

Choosing a broker

The broker holds your money. Check that first, costs second.

Licence and entity

Find the licence number on the broker's site, then look it up on the regulator's own register. Check that the company name matches the one in your account agreement.

Which entity you get

Big brokers run several companies under different regulators. Your country decides which one you sign with. Protections differ.

Real costs

Compare spread plus commission on the pairs you trade, and swap if you hold overnight. Advertised minimum spreads are best cases.

Deposits and withdrawals

Check methods, fees and how long withdrawals take. Withdraw a small amount early to test it.

Quick check

1. Where should you confirm a licence? The broker's homepage badge The regulator's own register A social media post

2. Why can two clients of the same brand get different protections? They sign with different group companies Random chance They don't

3. A good early test of a new broker? Deposit the maximum Withdraw a small amount Ignore the agreement

Education only, not advice. CFDs are leveraged and most retail traders lose money.