5 ways to build a trading strategy for CFDs in 2025
We look at how Vantage can help equip you with the tools to strategise as a CFD trader.
Sponsored by Vantage. To learn more about trading CFDs, visit the Vantage website today. Trading CFDs/FX carries risk and is not suitable for everyone. Refer to our PDS and TMD. Vantage Global Prime Pty Ltd, AFSL 428901.
A contract for difference (CFD) is a derivative investment product, intended for experienced traders.
Given the complexity of CFDs, it's important to have a strategy in place to reduce the potential risks.
1. Practice makes perfect
Trading CFDs is a high-risk endeavour.
So it's important to consider how they fit into your wider investment strategy.
You can use a demo account with Vantage to test your approach in real market conditions, without risking real funds.
When you feel ready to proceed with a real trading platform, you can find a number of options via Vantage.
Metatrader 5 includes advanced features and tools for risk management and technical analysis.
You're also able to use stop-loss and take-profit features to reduce risk.
2. Use the right terminology
In the world of trading, understanding the basics of trading terminology will help you make more informed decisions.
You can find a glossary of CFD-related terms through Vantage to help you get started.
Additionally, Vantage offers a range of other educational resources – more on them in a moment.
3. Stay updated on current events
As an investor, it's critical to stay up-to-date on the latest news and developments.
Asset pricing is intimately tied to world events – so the CFD market is always evolving.
This means using a platform with real-time news is key.
Vantage offers up-to-the-minute news for investors looking to make rapid decisions.
Additionally, Vantage also provides members with an economic calendar to keep track of major events – data releases, reporting dates, EOFY around the world and more.
4. Take courses and attend webinars
Part of the larger investing process is investing in yourself.
This includes learning new skills and keeping up to date with the latest market insights.
Picking a broker that offers educational resources, webinars and opportunities for learning – like Vantage – can be a great way to hone your existing skills and develop new ones.
Vantage Academy also offers users access to a range of eBooks, webinars, courses and articles to help assist with their trading knowledge.
5. Compare pricing
Managing trading costs effectively can help improve overall strategy performance.
In the CFD world, this typically comes in the form of fees and commissions.
But not all fees and commissions are created equal!
Comparing prices across trading platforms and accounts can help you get a better deal.
For example, Vantage's RAW Classic and RAW Premium accounts offer low spreads (starting from 0.0) that can benefit traders using scalping and day trading strategies.
RAW accounts with Vantage also offer a $0 commission* on Gold and US Stock CFDs, which can help further reduce your overheads.