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.
|Range of markets you can trade
||Over 9,500 products. Including Forex, Equities, Commodities, Indices, etc
||Equities and ETFs
|Long and Short
||Can trade both rising and falling markets
||Can only profit from asset price increases
||CFDs can be traded up to 24-hours 5 days a week
||Only when the Stock Exchange is open
|Costs of trading
||Spread (excl. shares), Holding Costs, Commission
||A cash adjustment is made to reflect dividends.
||Yes - As per company
Own the asset