CFD Stock Trading
Many British investors use CFD stock trading to derive benefit from the price movements in various companies’ values. When trading CFDs, investors do not own the underlying stocks in question and can leverage positions. This 2025 guide covers everything that you need to know about CFD stock trading, including a detailed analysis of the most popular equities in the UK market. Read on for a list of the best online brokers and tips for implementing a CFD stock trading strategy.
Top CFD Stock Trading Brokers
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Pepperstone offers an extensive range of share CFDs from the US, UK, Australian, and European markets. You can trade prominent companies like Tesla, Apple, or Netflix with the option to go long or short. The platform ensures deep liquidity and competitive fees. Additionally, it now supports 24-hour trading on 37 US stock CFDs, allowing traders to react swiftly to earnings announcements and sudden news events.
Stock Exchanges Fractional Shares Leverage SIX Swiss Exchange, Taiwan Stock Exchange, Toronto Stock Exchange, Euronext, Deutsche Boerse, Japan Exchange Group, Shanghai Stock Exchange, Hong Kong Stock Exchange, Australian Securities Exchange (ASX), Korean Stock Exchange, London Stock Exchange, Dow Jones, DAX GER 40 Index, FTSE UK Index, Nasdaq, New York Stock Exchange, CAC 40 Index France, Hang Seng, Shenzhen Stock Exchange, S&P 500, Russell 2000, IBEX 35 No 1:30 (Retail), 1:500 (Pro) Stocks Spread Share Baskets Platforms 0.02 No MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower -
XTB provides access to 3,548 real shares and 2,042 stock CFDs, featuring well-known companies like Amazon, Barclays, and BMW, all commission-free. The xStation platform enhances the trading experience with robust analytical tools, such as stock scanners, heatmaps, and a range of fundamental data like market capitalisation and P/E ratios.
Stock Exchanges Fractional Shares Leverage SIX Swiss Exchange, Deutsche Boerse, Japan Exchange Group, Hong Kong Stock Exchange, Bombay Stock Exchange, Australian Securities Exchange (ASX), S&P 500, CAC 40 Index France, DAX GER 40 Index, FTSE UK Index, Hang Seng, Nasdaq, New York Stock Exchange, Dow Jones, Euronext, Russell 2000, IBEX 35 Yes 1:30 Stocks Spread Share Baskets Platforms 0.2% No xStation -
At FXCC, traders can access competitive spreads on major indices, including the Dow Jones, NASDAQ, and S&P 500. A notable limitation is the absence of individual stocks, which puts FXCC at a disadvantage compared to competitors like CMC Markets, known for offering thousands of shares.
Stock Exchanges Fractional Shares Leverage Dow Jones, Nasdaq, DAX GER 40 Index, FTSE UK Index, New York Stock Exchange, Euronext, CAC 40 Index France, Deutsche Boerse, SIX Swiss Exchange, Hong Kong Stock Exchange, Japan Exchange Group, Australian Securities Exchange (ASX) No 1:500 Stocks Spread Share Baskets Platforms NA No MT4, MT5 -
IC Markets grants access to over 2,100 stocks from the Australian and US markets, including NASDAQ, NYSE, and ASX. Choose from four platforms; cTrader stands out for experienced traders, offering an extensive selection of indicators, timeframes, and chart types. Additionally, more than 25 indices allow investment across various regions and economies.
Stock Exchanges Fractional Shares Leverage Nasdaq, Australian Securities Exchange (ASX), New York Stock Exchange, DAX GER 40 Index, CAC 40 Index France, Euronext, FTSE UK Index, Dow Jones, S&P 500, IBEX 35, Hang Seng, Russell 2000 No 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) Stocks Spread Share Baskets Platforms 0.02 No MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower -
FxPro provides a robust range of stock CFDs with access to over 2,000 equities from major US and European exchanges, featuring companies such as Tesla and Apple. Additionally, the broker is expanding its offerings through BnkPro's e-money and investment products.
Stock Exchanges Fractional Shares Leverage Euronext, Hang Seng, FTSE UK Index, DAX GER 40 Index, CAC 40 Index France, Nasdaq, Dow Jones, IBEX 35, S&P 500 No 1:30 (Retail), 1:500 (Pro) Stocks Spread Share Baskets Platforms Variable No FxPro Edge, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade, Quantower -
IG provides access to over 13,000 shares for trading and investment, surpassing most rivals in the number of listed firms. The broker stands out with its zero commission policy on US shares. Additionally, out-of-hours trading unlocks more than 70 shares, alongside popular ETFs and trusts, even when markets are shut. They have also introduced an AI Index, highlighting opportunities in leading US firms specialising in artificial intelligence and machine learning, like Nvidia.
Stock Exchanges Fractional Shares Leverage SIX Swiss Exchange, Taiwan Stock Exchange, Toronto Stock Exchange, Tadawul, Deutsche Boerse, Japan Exchange Group, Shanghai Stock Exchange, Euronext, Hong Kong Stock Exchange, National Stock Exchange Of India, Australian Securities Exchange (ASX), Bombay Stock Exchange, London Stock Exchange, Dow Jones, S&P 500, IBEX 35, Borsa Italiana, Russell 2000, Korean Stock Exchange, Shenzhen Stock Exchange No 1:30 (Retail), 1:222 (Pro) Stocks Spread Share Baskets Platforms 0.02 Yes Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime -
IC Markets offers trading on more than 2,100 stocks, covering major markets like the US and Australia, and over 20 leading indices. Their services feature zero commissions and very narrow spreads starting at 0.4 points. Unfortunately, they do not support fractional shares, which could make stock trading more manageable for novice traders.
Stock Exchanges Fractional Shares Leverage DAX GER 40 Index, CAC 40 Index France, Euronext, FTSE UK Index, Dow Jones, S&P 500, Nasdaq, IBEX 35, Hang Seng, Russell 2000, Australian Securities Exchange (ASX), New York Stock Exchange No 1:500 Stocks Spread Share Baskets Platforms Variable No MT4, MT5, cTrader, AutoChartist, TradingCentral
Safety Comparison
Compare how safe the CFD Stock Trading are and what features they offer to protect traders.
Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
---|---|---|---|---|---|
Pepperstone | ✔ | ✔ | ✘ | ✔ | |
XTB | ✔ | ✔ | ✔ | ✔ | |
FXCC | ✘ | ✔ | ✘ | ✔ | |
IC Markets | ✘ | ✔ | ✘ | ✔ | |
FXPro | ✔ | ✔ | ✘ | ✔ | |
IG | ✔ | ✔ | ✔ | ✔ | |
IC Trading | ✘ | ✘ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the CFD Stock Trading support and whether they have trading accounts denominated in British Pounds (GBP).
Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
---|---|---|---|---|---|---|
Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
XTB | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
FXCC | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
IC Markets | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
FXPro | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
IG | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
IC Trading | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
Mobile Trading Comparison
How good are the CFD Stock Trading at mobile trading using apps or other mobile interfaces.
Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
---|---|---|---|---|
Pepperstone | iOS & Android | ✘ | ||
XTB | iOS & Android | ✔ | ||
FXCC | iOS & Android | ✘ | ||
IC Markets | iOS & Android | ✘ | ||
FXPro | iOS & Android | ✘ | ||
IG | iOS & Android | ✔ | ||
IC Trading | iOS & Android | ✘ |
Beginners Comparison
Are the CFD Stock Trading good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
---|---|---|---|---|---|
Pepperstone | ✔ | $0 | 0.01 Lots | ||
XTB | ✔ | $0 | 0.01 Lots | ||
FXCC | ✔ | $0 | 0.01 Lots | ||
IC Markets | ✔ | $200 | 0.01 Lots | ||
FXPro | ✔ | $100 | 0.01 Lots | ||
IG | ✔ | $0 | 0.01 Lots | ||
IC Trading | ✔ | $200 | 0.01 Lots |
Advanced Trading Comparison
Do the CFD Stock Trading offer features that allow for more advanced trading strategies?
Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
---|---|---|---|---|---|---|---|
Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✔ | ✔ | ✘ |
XTB | Open API | ✔ | 1:30 | ✘ | ✘ | ✔ | ✘ |
FXCC | Expert Advisors (EAs) on MetaTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
IC Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade | ✘ | 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) | ✔ | ✘ | ✔ | ✘ |
FXPro | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✘ |
IG | Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | ✔ | 1:30 (Retail), 1:222 (Pro) | ✔ | ✘ | ✔ | ✔ |
IC Trading | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the CFD Stock Trading.
Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
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Pepperstone | |||||||||
XTB | |||||||||
FXCC | |||||||||
IC Markets | |||||||||
FXPro | |||||||||
IG | |||||||||
IC Trading |
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."
Pros
- Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
- The award-winning customer support can be accessed through phone, email, or live chat. During tests, response times have consistently been under 5 minutes.
- Support for top-tier charting platforms such as MT4, MT5, TradingView, and cTrader. These tools accommodate different short-term trading methods, including algorithmic trading.
Cons
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
- Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.
Our Take On XTB
"XTB emerges as an ideal option for novice traders, offering the impressive xStation platform, zero commission pricing, no required minimum deposit, and outstanding educational resources, many of which are conveniently integrated into the platform."
Pros
- The xStation platform stands out with its user-friendly design and intuitive tools, such as adaptable news feeds, sentiment heatmaps, and a trader calculator. These features streamline the learning process for new traders.
- XTB offers a superb array of educational resources, such as training videos and articles, embedded within the platform to assist traders of all experience levels.
- Top-notch customer support, available 24/5, includes a welcoming live chat with response times under two minutes during tests.
Cons
- The demo account lasts only four weeks, posing a challenge for traders wanting to fully explore the xStation platform and refine short-term strategies before investing actual money.
- The research tools at XTB are commendable but have the potential to excel further. Enhancing them with access to top-tier third-party services like Autochartist, Trading Central, and TipRanks would significantly elevate their offering.
- XTB has stopped supporting MT4, restricting traders to its own platform, xStation. This decision may discourage experienced traders accustomed to using the MetaTrader suite.
Our Take On FXCC
"FXCC remains a top choice for forex traders, offering over 70 currency pairs, very tight spreads from 0.0 pips in tests, and high leverage up to 1:500 with the ECN XL account."
Pros
- FXCC has introduced MT5, which in our evaluations, mirrored the trading conditions of MT4 by offering swift execution, improved charting, and market depth tools.
- The complimentary education section, featuring the 'Traders Corner' blog, provides a wide array of resources suitable for traders of all experience levels.
- FXCC offers competitive and transparent ECN spreads starting from 0.0 pips, with no commissions. This makes it one of the most cost-effective forex brokers available.
Cons
- The range of research tools, such as Trading Central and Autochartist, is quite limited. Leading platforms in this category, like IG, offer more advanced features.
- Unaware traders might face steep withdrawal fees, such as a notable $45 for bank transfers.
- FXCC's exclusive MetaTrader platform is a limitation, especially when compared to more versatile options like AvaTrade, which offers five different platforms to cater to various trader needs.
Our Take On IC Markets
"IC Markets provides excellent pricing, swift execution, and easy deposits. With cutting-edge charting tools like TradingView and the Raw Trader Plus account, it continues to be a preferred option for intermediate and advanced traders."
Pros
- IC Markets provides some of the industry's narrowest spreads, offering 0.0-pip spreads on major currency pairs. This makes it an extremely cost-effective choice for traders.
- Access over 2,250 CFDs across diverse markets like forex, commodities, indices, shares, bonds, and cryptocurrencies. This variety enables traders to employ diversified strategies.
- IC Markets provides reliable 24/5 support, especially for account and funding queries, drawing from direct experience.
Cons
- Interest is not paid on idle cash, a feature gaining popularity with alternatives such as Interactive Brokers.
- IC Markets provides metals and cryptocurrencies for trading through CFDs, though the selection is narrower compared to brokers such as eToro. This limits opportunities for traders focused on these asset classes.
- Certain withdrawal methods incur fees, including a $20 charge for wire transfers. These costs can reduce profits, particularly with frequent withdrawals.
Our Take On FXPro
"FxPro is an excellent choice for traders, offering swift execution speeds under 12ms, reduced fees since 2022, and outstanding charting platforms like MT4, MT5, cTrader, and FxPro Edge."
Pros
- FxPro uses a 'No Dealing Desk' (NDD) model for swift and transparent order execution, usually within 12 milliseconds, making it well-suited for short-term trading strategies.
- FxPro provides four dependable charting platforms, including the user-friendly FxPro Edge. It features more than 50 indicators, 7 types of charts, and 15 different timeframes.
- FxPro's Wallet is a notable feature enabling traders to securely manage their funds. It ensures additional protection and ease by separating unused funds from active trading accounts.
Cons
- FxPro offers customer support five days a week around the clock, accessible via various platforms, and the service quality is reliable based on tests. However, the absence of weekend support can be a drawback for traders requiring help beyond standard market times.
- FxPro, with its $10M funded demo account and expanding Knowledge Hub, mainly caters to experienced traders. Beginners might find its account and fee structure challenging to understand.
- There are no passive investment options such as copy trading or interest on cash. While traders might not find these essential, competitors like eToro, which accommodate both active and passive investors, offer more extensive services.
Our Take On IG
"IG offers a complete package with an intuitive online platform, top-tier beginner education, advanced charting tools through its TradingView integration, real-time data, and swift execution for seasoned traders."
Pros
- The ProRealTime advanced charting platform remains free, provided traders meet modest monthly activity requirements.
- As a seasoned broker, IG adheres to stringent regulatory standards across various regions, ensuring significant trust.
- IG provides a wide range of professional and engaging educational materials, such as webinars, articles, and analyses, tailored for traders.
Cons
- Beginners may find IG's fees complicated, as they vary depending on the trades or services. This could cause confusion and unexpected costs.
- Based on tests, stock and CFD spreads remain less competitive than the lowest-cost brokers, such as CMC Markets.
- IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.
Our Take On IC Trading
"IC Trading offers an ideal environment, featuring top-tier execution speeds of around 40 milliseconds, extensive liquidity, and advanced charting tools, perfect for scalpers, traders, and algorithmic traders."
Pros
- Trading Central and Autochartist provide valuable technical analysis and actionable ideas. These tools are readily available within the account area or on the cTrader platform.
- IC Trading provides exceptional flexibility, allowing traders to open as many as 10 live accounts and 20 demo accounts. This enables the management of distinct profiles for various activities, including manual and algorithmic trading.
- The streamlined digital account setup allows traders to commence trading swiftly, eliminating lengthy paperwork. Testing shows the process takes mere minutes.
Cons
- Customer support was inadequate during testing, with multiple live chat attempts going unanswered and emails ignored. This raises significant concerns regarding their capacity to manage urgent trading issues.
- The educational materials require significant enhancement unless accessed via the IC Markets website. This limitation is particularly disadvantageous for beginners seeking a thorough learning experience, especially when compared to industry leaders such as eToro.
- Unlike IC Markets, IC Trading lacks support for social trading via the IC Social app or the ZuluTrade platform.
CFD Stock Trading Explained
A Contract for Difference or ‘CFD’ is a product that stipulates that the buyer will either pay or be paid the difference between the original price of the asset at the time of purchase, and the price at the time the contract is closed. With CFD stock trading, traders can go long or short. This means that they can make a profit based on whether they think the value of the stock in question will rise or fall.
When trading CFDs, investors do not own the underlying asset. For example, if you purchase a CFD relating to the value of National Grid shares, you do not actually own any of the stock: the CFD merely tracks and mimics its value. This means that the trader can speculate on short-term price movements of an asset without the hassle of having to hold or sell the actual stocks later on.
When a CFD is purchased and closed, the profit or loss is calculated from the difference between the value of the stock at the time of purchase and closing. Some brokers also choose to add a spread. This means that if a trader were to buy and close a CFD straight away, they would make a net loss. Moreover, most CFD brokers charge some form of commission when both opening and closing the contract, which is usually around 0.1%.
Trade Example
CFD stock trading is best explained through an example…
In this scenario, a trader is looking at the Vodafone Group which has stock currently trading at a sell/buy price of £1.19/1.20. They believe that the price is going to rise in the short term and therefore they decide to invest in CFDs. As they think the price is going to rise, they purchase 10,000 units going long on the Vodafone Group. The broker offers a 5% margin rate, so the trader must put down a deposit of £600 (5% x (10,000 units x £1.20)).
When the trader checks the value four hours later, they notice that Vodafone Group is now trading at a sell/buy price of £1.25/1.26. The trader makes a quick decision to close the trade at this point and lock in some profit. This is calculated by taking the difference between the price at purchase and closing, in this case, £0.05 (£1.25 – £1.20) and multiplying it by the number of units, 10,000, to give a gross profit of £500.00.
However, like most online brokers in the UK, there is a commission charge of 0.1% for each CFD contract opened and closed. To open the contract, the trader is charged a commission of £12.00 (0.1% x (10,000 units x £1.20 buy price at purchase)), while to close it they are charged a commission of £12.50 (0.1% x (10,000 units x £1.25 sell price at close), giving a total commission of £24.50. This leaves the investor with a net profit of £475.50.
CFD Trading VS Share Trading
CFD stock trading and spot share trading may seem similar, but there are some fundamental differences between the two. When you spot trade stocks, you directly purchase shares in a company, which means that you own a part of that company. If the company performs well, you will receive a range of benefits such as dividends. The downside of spot trading is that if the value of the company drops, you will lose money.
Spot trading is best used for long-term trading when you believe the value of a company is going to increase over a long period. If you are interested in short-term price movements, CFD stock trading is worth considering. With a CFD, you can decide whether to go long if you think the price will rise, or go short if you believe it will fall.
It is much easier to execute trades quickly when trading stock CFDs, making it perfect for anyone who is interested in day trading. CFDs also allow you to trade with leverage, so that you can borrow money from the broker and potentially boost your profits. However, as you do not own the stocks, you will not receive any dividends or voting rights.
UK Stock Market Key Players
The United Kingdom is home to some of the largest companies in the world, with many of them listed and traded on the London Stock Exchange. Here are the top ten companies on the FTSE 100 index along with their 2022 market cap in GBP:
- AstraZeneca – 170.50 billion
- Shell – 149.37 billion
- HSBC Holdings – 107.35 billion
- Unilever Group – 97.57 billion
- GlaxoSmithKline – 91.07 billion
- Diageo – 80.22 billion
- British American Tobacco – 76.27 billion
- BP – 73.76 billion
- Rio Tinto Group – 61.03 billion
- Glencore – 56.79 billion
Benefits Of CFD Stock Trading
- You can use CFDs to hedge against standard stock holdings
- You can trade CFDs with leverage
- You can go long or short
- Fast execution speeds
Drawbacks Of CFD Stock Trading
- You do not own the stocks and therefore you will not have any voting rights
- You will not receive dividends if the stock performs well
- Leverage can lead to large losses
Getting Started With Trading Stock CFDs
- Select a broker: Before you can start, you need to choose which CFD stock trading broker to use. There are a few different things to consider before you make your decision. Check out the various fees, spreads and commissions charged by each brokerage to find the best deal. Also try to find an online broker that offers a CFD stock trading demo account, which will allow you to practise and get used to trading contracts for difference before you enter the live markets. Other things to consider include customer service hours, brand reputation and the stock markets they offer access to.
- Research the market: Most UK brokers will offer access to stocks listed on the FTSE as well as other popular markets from around the world. There is no perfect fit, you simply have to find an asset that suits you and that you have researched sufficiently. If you are a new trader, it could be worth opting for one of the larger companies listed in the top ten UK stocks section. Experienced traders may prefer to trade smaller but more volatile companies.
- Choose the direction of your trade: One of the main benefits of CFD stock trading is the ability to go long or short. This means that you can make a profit based on whether you believe the value of a stock will rise or fall. If you think it is going to increase, you should go long and purchase a buying CFD. If you believe that it will drop, purchase a selling CFD.
- Select the number of units: Choose the number of units you would like to purchase. If you are trading with leverage, more units will require a larger deposit. Leverage also runs the risk of building up large losses.
- Utilise risk management tools: To protect yourself, you should implement risk management tools. Add a stop-loss order to limit losses, as well as a take-profit order to guarantee closure at a target price.
- Monitor and close: Once you have placed your trade with risk management tools set up, you can monitor the price. Either close the deal when you are happy with the price, or wait for it to hit a target price and close automatically through your take-profit order.
Bottom Line On CFD Stock Trading
CFD stock trading is used by many investors as a way of speculating on and benefiting from the price movement of a company’s shares. Investors can use CFD stock trading to hedge against their stock portfolio, or they can simply use it in a bid to earn a profit. CFD stock trading can also be combined with leverage to boost earnings, but remember that leverage trading can also lead to large losses.
If you are interested in getting started with trading stock CFDs, check out our list of top brokers and follow this guide.
FAQs
What Is CFD Share Trading?
A Contract for Difference (CFD) is a derivative product that allows traders to speculate on the price movements of a stock. The investor does not own the underlying stock, and can go long or short depending on the direction they believe the price will move.
Does CFD Trading Affect Stock Price?
No, CFD trading does not typically affect the stock price. CFDs are a derivative product, where the trader does not own the underlying asset or stock. Therefore, trading this asset class will not impact the price of the actual stocks.
Is CFD Share Trading Only Available On MT5?
CFD stock trading is not only available on MetaTrader 5 (MT5). A host of other investing platforms support CFD stock trading, including cTrader, NinjaTrader and MetaTrader 4 (MT4). See our respective guides for brokers that offer each trading platform.
Which Is Better: CFD Trading Vs Spot Share Trading?
CFD trading and spot stock trading each have distinct advantages. Those wishing to benefit from price movements of stocks in either direction should opt for CFDs. Those who are seeking long-term gains should opt for spot stock trading where dividends could be earned.
Do You Own The Stock When Trading CFDs?
When trading equity CFDs, you do not own the underlying stock. CFDs are derivative products that allow traders to profit from the price movements of a stock.