What’s the difference between CFD and share trading?

The main difference between CFD trading and share trading is when you trade a CFD you don't own the underlying share.

With a CFD you never actually own the asset or instrument you have chosen to trade, but you can still benefit if the market moves in your favour, or make a loss should the market move against you. With share trading however you enter a contract to exchange the legal ownership of the shares for money and you own this equity.

CFDs are a leveraged product, which means that you only need to deposit a small percentage of the full value of the trade in order to open a position. With share trading you purchase the shares for the full amount owing either using individually-held electronic funds or a margin loan.

^Major FX pairs
*Conditions apply. See Frequent Trader Program for more information.

Open a stockbroking account

Access our full range of stockbroking products, share trading tools and features.

Open a CFD trading account

Access our full range of products, CFD trading tools and features.

TOP

This website uses cookies to improve your experience and access our trading platform. You can manage cookies in your browser settings or continue to use the site as normal.

x