Never traded CFDs before - what should I actually look for when choosing a broker?
Been investing in index ETFs for a few years but lately I've been wanting to try CFD trading - mainly to get exposure to individual stocks and DAX with a bit of leverage. A colleague who trades CFDs recommended I just "pick any regulated one" but that doesn't feel like enough to go on.
Every time I google this I get listicles that all say the same 6 platforms and don't actually explain how to evaluate them. So I'd rather ask people here who've actually gone through this.
A few things I'm specifically confused about:
Regulation - I keep seeing CySEC and BaFin mentioned. Does it matter which one, or are both basically the same level of protection for EU retail traders? I'm based in Germany so I assumed BaFin registration matters more, but not sure.
Proprietary platform vs MT4/MT5 - some brokers like Etoro, IG, Libertex besides Metatrader push their own platform, others let you use only MT4/MT5. As someone starting out, does this choice matter? I don't have custom indicators yet.
Spreads vs commission - some brokers advertise "zero commission" but you pay through the spread. Is one model actually cheaper, or does it depend on how often you trade?
Demo accounts - are they actually useful for learning, or is the psychological difference with real money so big that it's not worth it?
Starting with around €500–1,000, mostly indices and a few large-caps. Not day trading, more like holding positions a few days to a couple of weeks.
Any practical advice from people who've been through this would be genuinely helpful.