I see "0% commission" advertised — does that mean the CFD broker is free to use?

No. The cost moved rather than disappeared. The broker earns from the bid-ask spread, which is usually a little wider than the raw market and is charged on both entry and exit, plus a daily financing ("swap") fee on any leveraged position you hold overnight. Compare brokers on total cost over a realistic holding period, not on the commission line alone.

A broker is offering me 500:1 leverage and a deposit bonus — should I take it?

Treat both as warning signs. Regulators in the EU, UK and Australia capped retail leverage at 30:1–50:1 and banned bonus incentives precisely because that combination drained accounts. Leverage that high almost always signals an offshore licence with no realistic path to recover your funds. The safer choice is a lower cap under a named, reputable regulator — every time.

Will a stop-loss guarantee I can't lose more than I planned?

Not a standard one. When your stop level is hit, the order becomes a market order and fills at the next available price. In a fast-moving gap — a weekend or a shock event — that fill can land well below your number, so your actual loss exceeds the plan. Some brokers sell guaranteed stops that remove this gap risk for a fee; weigh the cost against the protection.

How do I tell whether a CFD broker is genuinely safe before I deposit?

Work in this order: confirm the regulator and your local legal status, then test that the broker actually returns funds — check withdrawal terms and real user reports, not just the marketing. Because a CFD is an OTC contract with the broker itself, broker solvency is your real exposure. Regulated providers must segregate client money, which is the protection you are paying for.

I'm a beginner in India or Southeast Asia — is a local-regulated broker or a big offshore one better?

Favour the regulated venue, even at lower leverage. Offshore brokers can dangle higher leverage and bonuses, but if something goes wrong there is no regulator in your corner and no fund-segregation guarantee you can lean on. In restricted jurisdictions, start with education and a regulated demo account before risking real capital, and confirm what is legally permitted where you live. Source: [Contract for difference — Wikipedia](https://en.wikipedia.org/wiki/Contract_for_difference)

What Is a CFD? Leverage, Margin and Risk Explained

Tue, 16 Jun 2026 00:00:00 +0000

A contract for difference is a bet on a price you never have to own. You and a broker agree to settle the gap between an asset's price when you open the trade and its price when you close it - in cash, both ways. If the price rises, the broker pays you the difference. If it falls, you pay the broker. No shares change hands, no barrels of oil arrive at your door. That single design choice - settle the difference, skip the ownership - is what makes a CFD cheap to enter, flexible across markets, and far more dangerous than its low entry cost suggests.

Contract on ForexCFD.top

What Is a CFD? Leverage, Margin and Risk Explained