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 -
IBKR offers access to a vast range of equity products from 24 countries. You can invest directly in stocks for capital growth, dividends, or voting rights. Alternatively, engage in trading price movements with CFDs, futures, and over 13,000 ETFs. In 2024, IBKR expanded its European derivatives by including trading on CBOE Europe Derivatives (CEDX).
Stock Exchanges Fractional Shares Leverage Shenzhen Stock Exchange, Toronto Stock Exchange, Euronext, New York Stock Exchange, Korean Stock Exchange, Chicago Mercantile Exchange, London Metal Exchange, London Stock Exchange, IBEX 35, Borsa Italiana, CAC 40 Index France, Nasdaq, Japan Exchange Group, Russell 2000, Nasdaq Nordic & Baltics, Tadawul Yes 1:50 Stocks Spread Share Baskets Platforms 0.003 Yes Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower -
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 -
Eightcap provides over 590 shares from the US, Australia, and Europe alongside a select range of indices, such as the Dow Jones and FTSE. Their Labs include first-rate educational resources, especially the ‘Navigating Stock Market Volatility’ guide. However, they do not yet offer fractional shares for budget traders, unlike brokers like XTB.
Stock Exchanges Fractional Shares Leverage New York Stock Exchange, CAC 40 Index France, DAX GER 40 Index, London Stock Exchange, Australian Securities Exchange (ASX), Euronext, FTSE UK Index, Japan Exchange Group, Dow Jones, Nasdaq, Hang Seng, Hong Kong Stock Exchange, S&P 500, Russell 2000, Toronto Stock Exchange, SIX Swiss Exchange No 1:30 Stocks Spread Share Baskets Platforms 0.03 (Apple Inc) No MT4, MT5, TradingView
Pepperstone
XTB
FXCC
IC Markets
Interactive Brokers
IC Trading
EightcapSafety 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 | ✘ | ✔ | ✘ | ✔ | |
| Interactive Brokers | ✔ | ✔ | ✘ | ✔ | |
| IC Trading | ✘ | ✘ | ✘ | ✔ | |
| Eightcap | ✔ | ✔ | ✘ | ✔ |
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 | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| Interactive Brokers | ✔ | ✔ | ✘ | ✘ | ✘ | ✘ |
| IC Trading | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
| Eightcap | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
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 | ✘ | ||
| Interactive Brokers | iOS & Android | ✔ | ||
| IC Trading | iOS & Android | ✘ | ||
| Eightcap | 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 | ||
| Interactive Brokers | ✔ | $0 | $100 | ||
| IC Trading | ✔ | $200 | 0.01 Lots | ||
| Eightcap | ✔ | £100 | 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) | ✔ | ✘ | ✔ | ✘ |
| Interactive Brokers | Capitalise.ai & TWS API | ✘ | 1:50 | ✘ | ✔ | ✔ | ✔ |
| IC Trading | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| Eightcap | TradingView Bots | ✘ | 1:30 | ✔ | ✘ | ✔ | ✘ |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| XTB | |||||||||
| FXCC | |||||||||
| IC Markets | |||||||||
| Interactive Brokers | |||||||||
| IC Trading | |||||||||
| Eightcap |
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."
Tobias Robinson
Reviewer
Pros
- Over the years, Pepperstone has consistently garnered recognition from DayTrading.com’s annual awards. Recently, it was honoured as the 'Best Overall Broker' in 2025 and was the 'Best Forex Broker' runner-up the same year.
- In recent years, Pepperstone has significantly enhanced the deposit and withdrawal process. By 2025, clients can use Apple Pay and Google Pay, while 2024 saw the introduction of PIX and SPEI for customers in Brazil and Mexico.
- The award-winning customer support can be accessed through phone, email, or live chat. During tests, response times have consistently been under 5 minutes.
Cons
- 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.
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
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.
- XTB has raised its interest rate on uninvested funds and introduced zero-fee ISAs for UK clients, offering access to 3,000 stocks and 700 ETFs for diverse investment opportunities.
Cons
- 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.
- 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.
- 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
- There are no limitations on short-term trading techniques such as trading and scalping.
- There are no deposit fees other than standard cryptocurrency mining charges, which benefits active traders.
- 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
- Unaware traders might face steep withdrawal fees, such as a notable $45 for bank transfers.
- The variety of currency pairs surpasses most options, but the choice of other assets is limited. Notably, stocks are absent.
- 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.
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
- As a well-regulated and reputable broker, IC Markets focuses on client safety and transparency to provide a dependable global trading experience.
- Access over 2,250 CFDs across diverse markets like forex, commodities, indices, shares, bonds, and cryptocurrencies. This variety enables traders to employ diversified strategies.
- In 2025, IC Markets earned DayTrading.com's accolade for 'Best MT4/MT5 Broker' due to its top-tier MetaTrader integration. This achievement highlights the broker's continuous refinement over the years to enhance the platform experience.
Cons
- 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.
- Although there are four top-tier third-party platforms available, the absence of in-house software or a trading app tailored for novice traders is notable.
Our Take On Interactive Brokers
"Interactive Brokers ranks highly for seasoned traders due to its robust charting platforms, live data, and bespoke layouts via the new IBKR Desktop app. Its competitive pricing and sophisticated order choices appeal to traders, and its wide equity options are industry-leading."
Pros
- Interactive Brokers has introduced ForecastTrader, an innovative product offering zero-commission trading with yes/no Forecast Contracts on political, economic, and climate events. It features fixed $1 contract payouts, 24/6 market access, and a 3.83% APY on positions held.
- IBKR is a highly respected brokerage, regulated by top-tier authorities, ensuring the integrity and security of your trading account.
- The new IBKR Desktop platform combines the top features of TWS with customised tools such as Option Lattice and MultiSort Screeners, providing an impressive trading experience for traders of all skill levels.
Cons
- The learning curve for TWS is quite steep, making it tough for novice traders to navigate and grasp all its features. In contrast, Plus500's web platform is far more accessible for those new to trading.
- You are limited to a single active session per account, meaning you cannot use both your desktop programme and mobile app at the same time. This restriction can occasionally lead to a frustrating experience for traders.
- Support can be sluggish and frustrating. Tests reveal that you may face challenges reaching customer service quickly, which could result in delays in issue resolution.
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."
Christian Harris
Reviewer
Pros
- IC Trading offers top-tier spreads, with some major currency pairs like EUR/USD featuring spreads as low as 0.0 pips, making it an excellent choice for traders.
- The streamlined digital account setup allows traders to commence trading swiftly, eliminating lengthy paperwork. Testing shows the process takes mere minutes.
- 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.
Cons
- Although IC Trading operates under the reputable IC Markets group, it is licensed by the FSC in Mauritius, a regulator known for its limited financial transparency and lack of robust safeguards.
- Unlike IC Markets, IC Trading lacks support for social trading via the IC Social app or the ZuluTrade platform.
- 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.
Our Take On Eightcap
"Eightcap excels for traders, offering diverse charting platforms, educational Labs, and AI tools. With over 120 crypto CFDs, it stands out in crypto trading and has won our 'Best Crypto Broker' award twice consecutively."
Pros
- In 2021, Eightcap enhanced its lineup, now providing an extensive range of cryptocurrency CFDs. It offers crypto/fiat and crypto/crypto pairs, along with crypto indices for comprehensive market exposure.
- With spreads starting at 0 pips, minimal commission charges, and leverage up to 1:500 for select clients, Eightcap delivers affordable and flexible trading opportunities. These conditions suit various strategies, such as trading and scalping.
- Eightcap excels with a suite of advanced trading tools, such as MT4 and MT5, and has recently joined the 100-million-user social trading network, TradingView.
Cons
- Despite the growing range of tools available, Eightcap lacks popular industry resources such as Autochartist and Trading Central. These provide advanced charting analytics, live news, and essential market insights for traders focused on short-term strategies.
- Eightcap must enhance its range of over 800 instruments to rival top competitors like Blackbull Markets, which offers 26,000+ assets, especially improving its limited commodities selection.
- Despite a helpful array of educational guides and e-books in Labs, Eightcap lags behind IG's extensive resources for aspiring traders. IG boasts a dedicated Academy app and features 18 diverse course categories.
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.