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Home2024-01-12T15:44:45+00:00

Independent Investor is a financial trading information portal, publishing free
advice on trading opportunities and techniques designed to improve the results
seen by ordinary traders in the financial markets. Written to be accessible yet
informative, the site benefits from a vast archive of educational content aimed
at helping investors and traders improve their performance and enjoy better
market results.

In addition to providing insights into more effective trading practices,
Independent Investor also provides visitors with the chance to compare different
brokers, their pricing and service levels, through impartial, unbiased
comparison tables focusing on key trading criteria with constant updates
ensuring they represent an accurate picture of what’s on offer.


CHOOSE YOUR TRADING INSTRUMENT



SPREAD BETTING

CONTRACTS FOR DIFFERENCE

FOREX (FOREIGN EXCHANGE)

SHARE TRADING (INVESTING)

World of investing is complicated and challenging as it is, and strong financial
knowledge and perseverance are key to success. We strongly recommend novice
investors to familiarise themselves with financial spread betting, contracts for
difference, share dealing and forex using our comprehensive guides.

It takes a lot of time and experience to learn to trade professionally, you have
to consider the number of traders and the experience involved. It might sound
impossible to achieve the success but it is not as difficult as one might think.
This website strives to provide the most accurate and relevant information about
trading and the options available. Learning is just the beginning then you’ll
have to practice and eventually, you’ll meet your investment/trading targets.


HOW TO CHOOSE THE RIGHT BROKER



Traders are increasingly choosing CFDs, forex, and spread betting to trade in
the financial markets because of the leverage on offer. However, in order to
safeguard the interest of the trader, it is extremely important that s/he trades
using an appropriate brokerage firm that meets all the requirements. Choosing a
wrong broker can often be counterproductive and result in losses even on winning
trades. Hence, due diligence and appropriate care should be exercised in
selecting a broker.

Spread Betting Brokers

CFD Brokers

Forex Brokers

News And Updates

While choosing a broker for trading, it is important for the trader to research
the factors discussed below so as to maximize his profitability. Ignoring the
warning signs can lead to losses for the trader. Some of the factors that a
trader needs to watch out for are as mentioned below.

Below is a short list of key factors that are considered to be important when
searching for the best broker.

COMMISSION AND FINANCING CHARGES

It is also equally important to check out the commission / brokerage charged by
the broker. A broker who charges an extremely high commission can cause the
trader to incur a loss even on winning trades. Hence, it is extremely necessary
for the trader to check up on the fees charged by the broker before selecting
it.

Another important thing that a trader needs to be aware of is the amount of
financing charges charged by the broker for providing the required margin to
trade the derivative product. Most brokers charge a floating rate (normally
linked to LIBOR) + a fixed spread. A trader should verify these charges before
choosing the broker.

TOOLS PROVIDED

A trader must also check out the tools provided by the broker such as trading
platform, charting tools, etc. A faulty trading platform can result in incorrect
execution of trades which can cause grievous problems. Also, value-added
services such as charting tools, market commentary, mobile trading platforms and
easy fund transfer can provide a better trading experience.

SERVICE AND SUPPORT

Another factor that a trader must watch out for is the quality of service and
speed of support provided by the broker. As the broker selected by the trader
will be handling his money, it is extremely important that the broker be prompt
in responding to the trader’s queries and also provides the service to the
trader’s satisfaction.

SAFETY OF FUNDS

The trader must also ensure that his funds kept with the broker are safe. Forex,
CFDs, and spread betting are extremely leveraged and risky products, and there
is a possibility of the broker going bankrupt if it doesn’t have proper risk
management systems in place. Hence, the trader should ensure that the broker has
adequate systems in place to ensure safety of the funds invested.

It is safe to say, that not spending the time doing due diligence can have
detrimental results and may lead to total loss of one’s capital. Once the trader
has considered all of these factors, they must also feel confident in the broker
selection.


GREATER DIVERSITY FOR A BETTER RISK MANAGEMENT



Traders should consider diversifying their positions across different markets
and sectors, in order to spread the market risk of taking exposure to CFDs and
to offset the threat of a total account collapse.

Choosing to trade smaller positions over more numerous positions is a common
strategy for sharing risk across a portfolio and across different markets, as an
attempt to insulate portions of capital through unrelated, unlinked investments
in the assumption that while one or two might fail, the odds of more positions
turning against the markets simultaneously are lesser. This allows traders to
dampen the risks of being exposed to the market, particularly with such high
leverage, in order to build a more secure, stables trading account for long-term
returns.

While too much diversity can make a portfolio unmanageable, spreading the risks
to your capital across different, isolated positions can be a better way to
manage the odds in your favour.

Diversification almost always means strength from a risk management point of
view. The idea of putting your eggs in one basket and why that’s a bad thing is
well versed, yet it is no less applicable in the event of derivative products,
and those that spread their financial eggs over a wider base of positions can
expect lesser risks and a smoother path to achieving capital growth on
aggregate. More diverse portfolios, within reason, tend to outperform those that
choose a narrower base for investment, particularly when analysed over the
long-term.

On this portal, you’ll find extensive resources and materials on how to
effectively diversify your trading account, and how to make the most out of the
opportunities available to you; the materials are designed to help make it
easier for traders to introduce the right mix of risk management into their
portfolio, and to understand both the principles and practices which make
diversification work as a trading aim. You can also use this list of forex and
CFD forums to talk to fellow traders and learn more.

For those who are into forex trading and internet marketing we have a section
where you can learn about forex affiliate programs; which brokers offer CFDs and
spread betting.

Independent Investor is an online investment and financial market guide, written
by experienced traders to share insights and tips for greater success. Covering
the basics of getting started and how to trade in Forex, CFDs, share dealing,
spread betting and a number of other different trading types, and shares
strategies and techniques ranging up to advanced technical analysis in order to
provide traders with access to the materials they need to further their
portfolio. Comparing brokers is an important part of establishing a profitable
trading account, and we helps traders find the most competitive terms on trading
commissions from across the industry.





Independent Investor is a news and educational portal covering latest events in
the world of trading and investment. Information on this website is for
informative purposes only. Between 74-89% of retail investor accounts lose money
when trading CFDs, forex, and spread betting. You should consider whether you
can afford to take the high risk of losing your money. Independent Investor
offers an unbiased and independent broker comparison service, but we may receive
compensation from the listed brokers.



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