At CMC Markets, traders have been trading with us for over 30 years. Our award winning Next Generation platform* offers financial derivative products as an alternative to investing in physical shares from an array of markets around the world, including the German stock market. Furthermore, members of our platform can also spread bet or trade CFDs on other German asset classes, such as treasuries and commodities and indices.
Spread betting is a tax-efficient** way of speculating on the price movement of the underlying assets. This means that traders do not actually own the asset, and when possible, traders can go long or short on the position. The benefit of spread betting is that if the price of an asset is predicted to fall, then traders have the option to sell. Users of our platform can spread bet on indices, forex, commodities, global shares and treasuries. CFDs work in a similar way and allow traders to buy or sell a number of units for an instrument, depending on whether they think that the price will rise or fall, and the difference in price will be exchanged at the end of the contract. Trading CFDs can be beneficial to traders, as they can gain access to an asset at a lower cost than purchasing it outright, and can also choose to go long or short.
However, both are derivative products and require trading with leverage which comes with various risks and can result in the loss of capital. Another risk to note is that of market volatility and rapid changes in price, which may arise outside of normal business hours if a trader is spread betting or trading CFDs on international markets. This can cause the account balance to change quickly, which can then run the risk of an account close-out. Therefore highlighting the importance of monitoring the account on a regular basis.
You can spread bet and trade CFDs on the following asset classes by opening an account with us. Please note that indices are available with a demo account for practising with virtual funds, but you will need to open a live account in order to trade on shares and ETFs, with which demo users have access for a month.