You can speculate on the prices of popular instruments like Gold, Oil, German30, UK100 and international stocks using our CFD service.
CFD is an abbreviation of Contract for Difference. CFDs are based on exchange traded instruments and give you the ability to trade with leverage and avoid paying stamp duty on UK stocks.
In our platform CFDs are marked with the label “CFD”.
You can trade stocks on our platform in the form of Equities or in the form of CFDs.
CFDs are derivatives of real stocks. When you buy a CFD you don’t buy the stock itself but you speculate with its price.
Equities are real stocks which you can buy and sell directly on the London Stock Exchange, NYSE, NASDAQ and Deutsche Börse. In our platform Equities are marked with the label “EQ”.
Equities are suitable for long term investors and traders, whereas CFDs are suitable for experienced traders only.
The advantages of trading with CFDs are:
- Trading with leverage
- Making profits from falling markets (short selling)
- No stamp duty on UK stocks
Below is a full comparison between CFDs and Equities:
|Trade CFDs||Trade Equities|
Buying CFDs on stocks does not make you a shareholder of the company. Nevertheless you will receive payments equivalent to dividends just like the regular shareholders. You will not have the right to vote on major issues or to receive a final distribution in the event of corporate liquidation.
Your account is benefits from negative balance protection, so you cannot lose more than your deposit.
You can use leverage - up to 1:200 on some instruments.
Your Stop loss will be executed exactly at the selected price during market hours.