Common Info, your site for comparing trading services
Welcome to Common Info, your site for comparing Trading services. Common Info compares Forex, CFDs, Shares, Futures and Options and Spread Betting trading platforms as well as Advisory Trading services. Use our comprehensive comparison tables to assess which company has the services which suit your needs and capabilities.
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Common Info is your information centre on Trading - Common Information for everyone interested in trading and to gain some insight into various types of investing.
CFDs and Spread Betting are two of the fastest and most exciting way to invest capital. Become involved a fast-paced market environment even from the comfort of your own home with a large range of online trading platforms.
Both of these types of trading are similar to one another, and are often placed in the same category. This is because neither require stamp duty, and in both cases the trader - that's you or me - takes a position (or 'bet') on the market movements. In both cases, the trader does not take ownership of the underlying share.
CFDs are traded on margin. What does that mean? Trading on margin means you can invest without a huge amount of capital, but it does mean that your losses could be massive. If you lose a 'bet', you will lose the entire funds plus you may be required to pay more in addition in order to cover the deficit. You will usually pay around 10% on a margin, and the broker will lend the remaining 90%.
Spread betting is often likened to gambling, and in fact is commission free. As with CFDs, it involves taking a bet on the direction the market will take. And again, you will profit or loss based on whether you have bet correctly.
Both CFD Trading and Spread Betting are high-risk ways to invest. Certainly they are both worth looking into and it will take a fair amount of background work to feel confident enough to trade.
It is worth considering this: can you afford to gamble your capital? What would happen if you lost your position (all traders will experience this at one point or another). It is best to use money which you can afford to lose.
Forex - the Foreign Exchange Market
FX, Forex, Foreign Exchange - whichever you decide to call it, this market is the largest liquid market in the world. Daily turnover is in the trillions and investors around the globe are constantly trading on currencies.
As with most types of investment trading, Forex trading is quite a risky way to invest. If you are new to the Forex market, consider this: what is your risk allowance? Can you afford to lose all the money you choose to invest – you do not want to risk all your payday wage? What is your objective in investing in this market?
Do you have a strategy? This is key when looking at Forex. Technical analysis is one of the main elements of this kind of investment - reading financial charts, deciphering market data. What do the movements mean for you? How well do you know your way around these tools?
So there are many risks, as there are in most types of trading. But for some traders, that is what makes it exciting and stimulating, and what can mean a very rewarding activity. The best trader is the one who acts without too much weight on emotion, and relies on his or her knowledge and is fully educated in the field.