In a world of incredible choice for traders, CFD brokers need to think and act differently to appeal – they need to think like a trader – to have an understanding that traders have a unique set of needs - what’s important in achieving their edge differs and is dictated to by strategy and time in the market.
There is one factor that trumps all others and appeals to all though; trust – the belief that it is you against the market and that the CFD broker offers a level playing field.
Pepperstone understand this – it is our edge in a world of choice. For Pepperstone, being regulated by the DFSA is so important – it offers reassurance of correct legal protections. A local presence within the DIFC with a highly knowledgeable team, offering a personalised service to discuss your specific trading needs – trust doesn’t come overnight, it is earnt, and is always the overriding factor in the trader’s hierarchy of needs.
Top of book liquidity is often overlooked, but the ability for a trader to be filled at the quoted price, without the broker slipping the price is so important.
For context, Pepperstone holds seven global licenses offering great protection for clients in the Middle East and its global client base – so contrast this to your broker and see who takes their commitment to compliance more seriously.
We can then go micro and break down the needs and wants by strategy and time in the market – transaction costs (spreads, commissions) and holding costs (e.g. swaps) are a major consideration, especially in fast-moving markets or over news – costs are typically of greater importance for scalpers, day traders and higher frequency accounts, as this represents the biggest headwind to profitability.
Top of book liquidity is often overlooked, but the ability for a trader to be filled at the quoted price, without the broker slipping the price is so important. For those trading frequently, and in size, slippage will add up – check your fill versus what was quoted, do you see a difference? Pepperstone prides itself on having some of the deepest liquidity conditions of any broker.
We could argue if you don’t know your true cost structure then it’s almost impossible to make correct decisions on trade frequency and which instruments to trade – it will affect the results of your backtest.
Control for higher frequency traders
Higher frequency traders also want incredible control in their execution – one-touch dealing and rapid execution, especially in fast-moving markets. This may not be as appealing to swing or position traders, who may be risking 50-80 pips to make 200 pips or perhaps more if trend-following.
Technology is always of importance, but when you trade five-10 times a week and hold for 24 hours to 10 days, you may be more concerned with news feed, insight and holding costs than one-click dealing, and ultra-low latency.
Trading should reflect your unique situation and circumstance; your broker should offer a service that reflects that – trade the possibilities with Pepperstone.
Find out more at pepperstone.com or call +971(0) 4 573 4100