Safety First
Only consider offers from regulated brokers
Your Way
Trade either trend; open short or long positions
Risk Management
Stock CFDs can diversify a portfolio & minimize exposure

Benefits of CFD Trading

Margin Trading
You can trade Stock CFDs with 1:5 leverage
Accurate Pricing
CFDs reflect the underlying asset's price
Market Depth
An estimated 10M people trade CFDs
Quick Access
CFD accounts are activated in 1-2 days
Stock owner? Open short trades for hedging
Multi Directional
Profit or loss from rising and falling prices
Join millions of CFD traders today
Try it securely with a regulated broker!
Try for Free*

Financial contracts that pay the price difference between the open and closed trades in the settlement. CFD traders speculate on the price moving up or down. Traders who expect a price increase will buy the CFD, while those who expect the opposite will sell it.


CFDs track the price of an underlying asset. But investors don't receive any physical assets. CFDs are traded on margin, allowing leverage to the investors. So, a smaller capital is required to invest in CFDs compared to the underlying asset. Traders can take long or short positions; profit or loss from both price movement directions are possible.


High leverage magnifies losses as well as gains. So, risk management is a must. Traders should work with a regulated broker for safety and funds protection. Also, CFD markets are volatile: your positions can be liquidated quickly in case high leverage is applied.

What is CFD trading?

CFD trading is a popular investment method of speculating on the live price of a financial asset. Traders open short or long positions in CFD markets, speculating on the price of an instrument. It can be  a currency pair, a single stock, an index or a commodity.

Trading CFDs means you don’t have to take ownership or delivery of the item. No physical transaction is done during a CFD trading transaction.

To given an example, CFD traders don’t buy the stock; they just open a position in the CFD market based on its price. If they speculate correctly, they profit.

Trading Stock CFDs


An investment method of speculating on the live price of a company's shares.

Traders open short or long positions in CFD markets, speculating on stock prices.

Trading CFDs means you don’t have to take ownership or delivery of the stock paper. No physical transaction is done during a CFD trading transaction.

You don’t buy the stock; you just open a position in the CFD markets based on the underlying asset. However, you are entitled to dividend payments, similar to stock ownership.

Buying Stocks vs Trading Stock CFDs


Accessing stocks market may be hard. There are entry fees, geo-restrictions and more. However, stock CFDs are relatively easier to access. You just need a CFD trading account. Opening a live trading account usually takes between 1-2 business days, involving certain security checks by the broker.

As a principle, stock ownership grants profit only when the stock price increases. But CFD traders can potentially benefit from falling stock prices, as well as rising prices! Your profit or loss is determined by how accurate your speculation is.

Trading stock CFDs doesn't grant share ownership. But you are still eligible for dividends.

What determines Stock CFD prices?

CFD brokers obtain live prices via liquidity providers. Same factors that drive stock prices up or down are valid for stock CFDs as well. Demand and supply play a key role.

Based on market expectations, share prices may increase or decrease. Similarly, its CFD price changes as well. Ultimately, a company’s success is the driving force behind the stock price.

Dividend payments also play a part. Upcoming dividend announcements impact the price of a company’s shares.

Get Started in 3 Steps

Step 1

Find a safe & regulated broker

Step 2

Sign up for an account

Step 3

Start trading stock CFDs

What else is available for trading?

CFD brokers offer a wide range of financial assets. Besides stock CFDs, here are the most popular trading instruments available.

*: By clicking here, you sign up to be contacted for information from one of our business partners. You will receive explanations and answers to your questions. You may be offered a free trial for a CFD trading practice account. Practice (demo) accounts are free of charge and 100% risk-free; so you can practice with the platform. You may also be offered a live trading account. To start trading with real funds, you need a live trading account. Your agent can guide you for opening a live account with a licensed securities brokerage company, if you wish to proceed. However, the company may decline your application at their own discretion. 

Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your initial investment. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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