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.

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