Markets.com is a CFD trading platform – you can trade stocks, forex, commodities and more. But can you actually make money trading with them? And should you sign up? Read on to find out more about Markets.com and how their platform works.
CFD stands for “Contract for Difference”. Basically instead of actually buying the underlying asset such as stock in Apple, you are trading a contract. The contract is between you and your broker to pay the difference between the opening and closing price. In reality, CFD trading feels just like stock trading.
Trading CFDs has a couple of advantages and some disadvantages. For traders CFDs offer faster trading – you can open and close positions instantly and there is no settlement period. This makes CFDs ideal for day trading. You can also open both long and short positions – so you can profit when the market moves in either direction.
There are some disadvantages – CFDs can have expiration dates. When you buy a stock, you can hold it indefinitely. Some CFDs will expire and close at a set date. Most CFD brokers also only offer leveraged trading. While leverage can be a powerful tool for experienced traders, it can be a disaster for newbies.
Trading is Risky
Trading is risky. Unfortunately, most people who don’t have any trading experience who sign up to platforms like Markets.com will end up losing money. This is because they don’t understand how trading works. Understanding margin, leverage, spread etc are essential.
I would start with a practice trading account first and work from there. It’s a great way to learn about trading without risking your own money.
So can you make money on Markets.com
Good traders will be able to make money through Markets.com. If you’re new to trading then I believe it would be very difficult for you to turn a profit. But for experienced traders, there is nothing particularly wrong with their platform. You can trade stocks from all over the world as well as forex and commodities. The amount of money you can earn will depend on your trading ability.
CopyTrading is Better for Beginners
If you’re new to trading, then I would recommend CopyTrading instead. With Copy Trading you automatically copy the trades made by more experienced traders. So even if you have no trading experience you can jump straight in and learn while others make trades for you.
eToro is one of the largest copy trading platforms with over 10 million members. You can browse through the profiles of pro traders, allocate funds and then whenever they make a trade you will too. To pick the best traders, you can filter and search for traders who have been profitable and even look at their entire trading history to make sure they are someone you should be copying.