4 things to know about developing a CFD trading strategy in FY 26/27
Thinking about investing in CFDs in the new financial year? There are some important points to consider first
Sponsored by Pepperstone. To learn more about trading CFDs, visit the Pepperstone website today. Trading CFDs/FX carries risk and is not suitable for everyone. Refer to our PDS and TMD. Pepperstone Group Limited, AFSL 414530.
The new financial year is just around the corner. That means it's time to take a closer look at your investment performance and re-strategise where necessary.
For some, this will include looking at incorporating CFDs into their overall trading strategy, or refining it further.
With this in mind, we take a look at some of the key considerations.
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1. Set clear goals
Successful and experienced traders don't trade in a vacuum. They have a clear plan and goals for what they want to achieve by investing.
Those goals will be different for everyone. For some, it will be to provide a secondary income stream, akin to a hobby or side-hustle. Or it might be to fund better education for your children. Perhaps you see it as a tool to enable even larger goals, like additional properties or early retirement.
But on a more day-to-day level, there are practical considerations for how CFDs are used in a wider investing portfolio. Let's take a look at some of them:
- Portfolio diversification: CFDs are a distinct asset class, and can be used in conjunction with other assets to offset market cycles.
- Risk balancing: Most portfolios contain a range of risk levels. CFDs are considered high risk, so can be used to potentially increase gains in a portfolio that is either low-risk or otherwise balanced. However, it's important to remember that high risk assets also increase the potential for loss.
- Exposure to new industries: CFDs allow exposure to a range of different industries, without necessarily requiring the same high level of entry costs. For some, they are a way to "sample" a new area before investing more extensively.
- Going long and short: Because CFDs require taking a position on the price of an asset rather than owning it outright, it's possible to make money during both market highs and lows.
As you can see, there are multiple reasons that people show an interest in trading CFDs.
However, due to their risk levels, they need to be carefully considered. Will they help you fit your goals? How well do they align with your existing trading strategies?
If you do decide they're right for you, it's also important to take appropriate steps to minimise your risk.
With this in mind, Pepperstone provides risk management tools, including stop loss orders and negative balance protection for retail clients.
2. Make sure you have the right platform
Your trading platform is one of the most important tools in your arsenal. It determines what features you have access to and what markets you can trade.
Personal preference is also a factor, too. So to this end, Pepperstone offers 5 different platforms for traders.
- The Pepperstone Platform: A proprietary web and mobile platform, with access to access to 1,350+ CFDs and 1,000+ share CFDs.
- TradingView: Depth of data, automation options and an extensive social trading network.
- cTrader: A heavily customisable layout, primarily designed for forex CFD trading.
- MetaTrader4: Mobile and desktop-based trading platform, arguably one of the world's leading CFD platforms.
- MetaTrader5: A streamlined, updated version of MetaTrader4, incorporating a range of quality of life improvements.
You can read more about the specifics of each platform available through Pepperstone right here on Finder.
Trading with Pepperstone
With Pepperstone, you're able to trade across a range of markets and platforms, while also getting access to a range of educational resources.
🏫Learn to trade and upskill
Learn the fundamentals of trading CFDs and stay up to date on the latest developments.
📈A broad choice of markets
Choose from more than 1,350+ CFD instruments to complement your portfolio.
💸Competitive pricing
Standard spreads from 0.02 on oil CFDs and 0.05 on gold CFDs
BTC/USD spreads from $15 and ETH/USD from $2.
⏰Uninterrupted 24/7 trading^
No weekend platform downtime or associated price gaps.
🪙14 new crypto CFD pairs
Including Tron, Pepe, Bonk and more.
📞Locally-based support
Get access to help 24/7, whether online or over the phone.
Get started with Pepperstone
CFD Service. Your capital is at risk.
3. Practice
Of course, part of developing a trading strategy means putting it to the test.
But as we've noted earlier, you don't want to take unnecessary risk.
Using a demo account -- like the one offered by Pepperstone -- allows you to test your strategy in an environment that's pegged to real-world values.
With Pepperstone, you have unlimited virtual funds to experiment with. So you're able to test strategies and determine whether they're a good fit for your overall approach and goals.
Just remember: performance in a demo environment is not indicative of real trading results.
4. Invest in ongoing education
No trader knows everything -- and if you meet one that claims they do, you should be very wary!
Learning is an ongoing, lifelong pursuit for every serious trader.
Accordingly, it's important to look at the sort of resources that your trading platform provides to help you upskill and improve your knowledge.
Pepperstone provides a range of educational resources, including market analysis, trading guides, webinars and more.
Leveraging these tools can help you make more informed decisions across the course of your trading career.
Learn more about trading with Pepperstone today
Pepperstone does not require a minimum opening deposit. Commissions vary according to the asset being traded but start at $5 or 0.07% on AU Share CFDs or $3.50 per 1 lot on FX.
