Broker to Trading

These brokers offering trading in Stocks CFDs and are located in 'offshore' countries. When trading a Stocks CFD the trader does not own any Stocks. A Stocks CFD lets the trader go long or short (potentially enabling the trader to day trade a Stock) and use leverage, though increasing leverage increases risk. A feature these brokers share is that they allow the trader to trade Stocks CFDs using both non-automated and automated approaches. Automated trading lets the trade use online trading robots to trade in ways the human trader cannot or does not wish to do, for example frequent trades on day trading times frames.

While a Stock CFD is not a Stock, its value is referenced to the value of the underlying Stock, thus the trader can analyse the Stock CFD in the same way they analyse real Stocks. The Stocks CFD trader will trade on the online trading platforms available for trading other CFD markets. Thus the trader can use tools for Stocks CFDs as well, some of which they may associate with other types of trading.

All the brokers in the comparison table offer MetaTrader 4 (but not necessarily to trade Stocks CFDs). MT4 allows the trader to download or build additional technical indicators, which can be used to analyse markets, including Stocks CFDs, with technical analysis. Technical analysis is utilised extensively in day trading markets. MT4 like other trading platforms has a range of chart price types including candlestick charts. Candlestick charts are also used in technical analysis, and can provide pointers to momentum and direction in a market. Day trading markets are complex and no matter what analysis is performed, from technical to fundamental, the market may not behave as expected.

Additionally MT4 lets the trader use and build online trading robots which trade on behalf of the trader in accordance with their programmed rules (algorithm). MT4 has a successor platform, MetaTrader 5 (MT5), which some brokers offer. MT5 can have a wide range of markets, and this tends to be the platform with Stocks CFDs, however MT4 can also provide Stocks CFDs, but normally less than would be on MT5. The R StocksTrader platform in the table also lets the trader use build and run robots, as well as support the trader who executes their own trades.

Automated trading is an advanced strategy and the trader does not need to use this functionality even if it is available. As their experience improves and as their knowledge of market and markets behaviour deepens, the trader may wish to consider robots even if only to trade when they are not available to do so. By definition day trading takes place on shorter time frames and robots can enable strategies which may not be feasible for the human trader on these time frames.

Robots have a potential advantage in terms of speed of order execution and reliability, barring connection or equipment failures. This very advantage can result in drawdown or losses in the trader's account, sometimes very rapidly with higher frequency trades. The human trader does have the capacity of being able to exercise their trading discretion, exiting trades where a robot might stay. The again, a robot strategy may eventually work out in the end. All the trading platforms let the trader analyse Stocks CFDs without having to use automated trading.

Stocks CFDs Analysis

Since a Stock CFD lets the trader trade with leverage on shorter term time frames (increasing leverage increases risk) the trader can use technical analysis to analyse Stocks CFDs when trading them. The value of the Stocks CFD references the real underlying Stock, thus the trader can apply methods for Stocks analysis, such as fundamental approaches based on analysing data from financial statements over time and look for patterns and deviations from these patterns.

However since the trader will typically be trading with leverage on a day trading time frame, technical analysis becomes more important as the value of the stock will be influenced by a range of factors which can make more static analysis based on fundamental factors problematic.

This is arguably a general issue with trading and markets, that they tend to some kind of equivalence on day trading time frames, with the caveat that each market will still be subject to particular fundamental influences on this market, for example earnings releases for Stocks or data releases for a wide range of markets.

This is why technical analysis becomes important. Without assuming that technical analysis has any predictive power based on its analysis, it is used extensively, thus can point to potential market generated moves. As with all analysis, it can be wrong, but analysis at least can provide a basis for making a trade.

Best Offshore Stock Broker

The pick in this site from the brokers in the table above of best offshore stock broker is RoboForex, with the caveat that other brokers may suit different traders. RoboForex is regulated, by the IFSC in Belize. RoboForex has a number of online trading platforms. However Stocks CFDs are offered on R StocksTrader, which is a relatively user friendly web trader.

R StocksTrader also lets the trader use automated trading strategies, and lets the trader firstly build robots without needing to program and then lets the trader run them on the cloud, without needing a VPS. However the particular feature for Stocks CFD traders pertinent to RoboForex is that is offers many thousands of Stocks CFDs to trade. Thus the trader can choose from a wide range of Stocks CFDs to trade. The minimum deposit for R StocksTrader is $100.