Top-rated derivative stock trading platforms

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Content

I. What is derivative stock trading?

II. The difference between underlying securities and derivative securities

Comparison between derivative securities and underlying securities

III. Leading derivative securities trading platforms

1. eToro

2. Exness

Exness Trading Platform

3. Mitrade

4. XM

5. FXPro

I. What is derivative stock trading?

Derivative stock trading (abbreviated as DST) is a financial instrument whose value is determined by the price of an underlying asset. This asset can be commodities like metals, agricultural products... or financial instruments such as interest rates, bonds, and stocks...

Currently, derivative stock trading comprises 4 basic types:
- Futures contracts (abbreviated as FC): It is an agreement between two parties to buy or sell assets at a predetermined price before the current time.

- Forward contracts- Options contractsSwap contracts

II. The difference between underlying securities and derivative securities

When investing in underlying securities, people typically opt for long-term investments rather than speculation. Whereas with derivative securities, they are used as a hedge tool, seeking profit from underlying securities when prices fluctuate. Therefore, the advantage of DST trading is the absence of the need to purchase underlying assets and the ability to easily profit in markets with decreasing or increasing prices.

Comparison between derivative securities and underlying securities

Additionally, Mytour also shares the most reputable stock exchanges in Vietnam. If you're interested in stock trading, don't overlook platforms like Mitrade, HOSE, HNX, and more.

III. Leading derivative securities trading platforms

Here are the derivative securities trading platforms trusted and chosen by many traders for investment. Feel free to explore.

1. eToro

Based in Australia, eToro is supervised and regulated by various organizations such as CySEC, ASIC, and FCA. Offering products like cryptocurrencies, forex, ETFs..., it's easy for you to make choices.

Advantages of eToro:
- Commission-free.
- Vietnamese language supported interface.
- Free deposits.
- Floating spread fees.

2. Exness

Exness Trading Platform

Exness is also a reputable derivative securities trading platform based in the Czech Republic, catering to the needs of traders. Currently, Exness offers a wide range of products, making it easy for everyone to find suitable investment options. Moreover, Exness supports advanced and modern trading platforms such as Meta Trader 4, Meta Trader 5, and WebTerminal to provide users with the best experience.

Advantages of Exness:
- Low floating spread prices.
- Vietnamese language supported interface.
- Quick deposit and withdrawal processes, with multiple methods available.

3. Mitrade

Mitrade stands as a leading Derivative Securities Trading Platform, licensed by ASIC - the Australian Securities and Investments Commission. Not only does Mitrade offer a diverse range of products, but it also boasts very low transaction fees, simple trading, and user-friendly interfaces. Despite being in operation for only 3 years, this trading platform has attracted a significant number of participants and garnered various awards.

Key Advantages of Mitrade:
- Provides a demo account for users to practice free of charge.
- Competitive, low fees in the market.
- Mitrade's trading software is simple and user-friendly.
- Free deposits and withdrawals with fast withdrawal speeds.
- Absolute customer information security.
- Regular promotions.

4. XM

Similar to Mitrade and eToro, XM Trading Platform is also registered in Australia, alongside Cyprus, offering various products such as cryptocurrencies, oil, gold, stock CFDs, etc. Currently, this platform is regulated and closely monitored by ASIC, FCA, and FSP. XM serves millions of customers from around the world.

Advantages of XM:
- No commission fees.
- Interface available in multiple languages, including Vietnamese support.
- Swift order execution.

5. FXPro

Established in 2006 in the United Kingdom, FXPro derivative securities trading platform offers around 300 different investment products. According to traders, products at FXPro are highly liquid, with competitive spreads, and everything is transparent. With over 15 years of development, FXPro has attracted many participants, expanding to 173 countries.

Advantages of FXPro:
- Highly liquid products.
- Competitive spread prices.
- Commission-free.
- Transparent order matching.

Besides the aforementioned derivative securities trading platforms, the following platforms are also highly regarded and trusted:
1. FBS Trading Platform.
2. XTB Trading Platform.
3. ICMarkets Trading Platform.
4. LiteForex Trading Platform.
5. FXTM Trading Platform.

We hope that with the sharing above about the leading derivative securities trading platforms, you have gained useful information to make appropriate choices for yourself to conduct trustworthy and safest trading activities.

The content is developed by the Mytour team with the aim of customer care and solely to inspire travel experiences. We do not take responsibility for or provide advice for other purposes.

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Frequently Asked Questions

What are the basic types of derivative stock trading available in the market?

The four basic types of derivative stock trading are futures contracts, forward contracts, options contracts, and swap contracts. Each type serves different purposes, allowing traders to hedge risks or speculate on price movements.

How do underlying securities differ from derivative securities in investment strategy?

Underlying securities are typically chosen for long-term investments, while derivative securities are often used for hedging or profit-seeking during price fluctuations. This difference highlights the strategic approach traders take with each type.

What advantages do platforms like eToro and Exness offer to derivative traders?

Platforms like eToro and Exness provide numerous advantages, including commission-free trading, low floating spreads, support for the Vietnamese language, and quick deposit and withdrawal processes, catering to the needs of traders.

Can I practice trading derivatives for free on any of these platforms?

Yes, Mitrade offers a demo account that allows users to practice trading derivatives free of charge. This feature is beneficial for beginners looking to gain experience without financial risk.

What are the key features to consider when choosing a derivative trading platform?

When selecting a derivative trading platform, consider features like regulatory compliance, fee structures, available trading instruments, user interface, and the quality of customer support, as these factors significantly impact your trading experience.