Consider the following points when choosing your CFD broker
Where is the broker incorporated, does it have a local office and did it obtain the necessary MAS approval?
Many brokers compete for new accounts by advertising on their low commission rate. While important, that should not be the only thing to look out for. A low commission fee may be easily negated by wide spreads, especially if the CFD broker is a non-DMA or Market Maker. Furthermore, your orders may be subjected to slippages or re-quotes. This may affect your entry and exit price. DMA CFD brokers usually have tighter spreads that reflect the actual spread in the underlying market. Their brokerage fees are usually higher than non DMA CFD brokers.
Find out the financing fees for the trade. You will be paying interest (or be paid interest if you are shorting) while your contract is still open. While the rates are typically pegged to SIBOR plus a spread, find out the spread and see if it's reasonable to you.
Many CFD trades are "DIY" - to save cost and are placed via the directly internet by the trader. However there may be times when you may prefer to place a trade via phone, or to seek clarification from the broker and talk to a human. Check if the CFD broker can be reached by phone. Are there fees involved? How long do you have to wait for the call to go through?
Finally, check the ease of funding or withdrawing money from your CFD trading account. Does the CFD broker charge an administrative fee if you were to fund your account using credit card? When you wish to withdraw your money, are there any TT fees or administrative fees imposed? This is especially important for CFD brokers that are based overseas.
