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Are all cfd brokers dishonest?

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Are all cfd brokers dishonest?

  #1 (permalink)
Stockholm, Sweden
Posts: 5 since Nov 2022

I have been searching for a way to trade a hft strategy that require a high leverage 100-200x. From my understanding the only way to do that is trough cfds. Several years ago when I looked into the cfd-space I came to the the conclusion that most, if not all, brokers offering these contracts was both deplorable and not trustworthy. Everything from stopping you out early to fiddling with exchange rates to trouble when withdrawing money from your account. Basically these "brokers" do not want profitable traders since you are not trading on an exchange but "in house" so your profit is a direct loss on their part. Sure they all say that they hedge your position and blabla but all in all thats just bs, at least used to be.

So my question is, have anything changed for the better these last years? Are there any trustworthy cfd brokers out there and is there anyone you actually know that trades regularly and profits from them?

Thanks in advance.

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  #2 (permalink)
sands's Avatar
London + UK
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Their business model isn't geared towards making you money unless you already know how to trade well and consistently and are willing to pay their much larger fee. For me the warehousing of prices is something that is more suited to longer investing than intraday trading anyway, as over the longer term the wider spreads than exchange pricing will be less significant. They are not any different than before. They are what they are, that being businesses aimed at making money for themselves. And you can still get better spreads and fees elsewhere.

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  #3 (permalink)
st. louis missouri
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Marmeladov View Post
you are not trading on an exchange but "in house"

Is that that legal? Iíve always thought it was illegal for a broker to just house trades off the exchange on his own book.

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  #4 (permalink)
bobwest's Avatar
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Marmeladov View Post
you are not trading on an exchange but "in house"

harryguy View Post
Is that that legal? Iíve always thought it was illegal for a broker to just house trades off the exchange on his own book.

One of the reasons CFD (Contract for Difference) trading is illegal in the US.


When one door closes, another opens.
-- Cervantes, Don Quixote
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  #5 (permalink)
Stockholm, Sweden
Posts: 5 since Nov 2022

Thank you guys for the input. I have put this idea on hold for the moment. And as Bob said, there is a reason why these firms are illegal in us.

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Last Updated on December 8, 2022

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