CFD brokers

What is a CFD?

The Forex market exists to conduct international operations and currency exchange. But brokerage firms that serve private traders with small capital seek to provide them with access not only to the currency market, but also to shares of various companies. For this purpose, special trading instruments are used, which are called CFD contracts. This page contains a rating of the best Forex brokers that provide their clients with access to CFDs for buying and selling shares.

The best CFD trading brokers from Trade-Leader

Stocks are less volatile assets than currency pairs and their prices do not change as much. At the same time, they allow you to get a fairly high profit in short-term trading. But most traders are particularly interested in medium-and long-term investment in these securities. To avoid complex registration of ownership transfer for each transaction with shares and reduce margin requirements, contracts for difference (CFD) are very well suited, when trading in which the seller and buyer do not transfer the securities themselves. The subject of a transaction is the difference in the price of an asset at the time of its conclusion and at the end of the contract.

Exchange trading using CFD contracts is highly attractive for most traderserov.

Advantage of CFD brokers in 2024

• Stock prices of large companies reflect the processes in the real sector of the economy, and are more predictable by fundamental analysis methods than fluctuations in currency pairs, which are very susceptible to political factors.
• Margin requirements when trading stocks are 10-20 times higher than when working with CFDs, which allows traders with relatively small capital to invest in them, that is, these trading tools are more accessible and comparable in this respect to currency pairs.
• Since there is no actual transfer of rights to the shares themselves when trading CFDs, you can freely make transactions at any time and complete them in full without complicated formalities.

What are CFD contracts?

Contracts for difference do not exist only for shares of large companies. These synthetic market instruments allow you to successfully trade gold, palladium group metals, Nickel, copper, oil, cotton or, for example, cocoa. But keep in mind that the prices of all these assets are linked to the opening hours of the largest exchanges, and trading is suspended during their closing.

Types of CFDs

• CFD on Shares
• CFDs on Indexes
• CFD on Goods
• CFD on raw materials (oil, gas)
• CFDs for Metals
• CFDs on ETFs
• CFD options
• CFD Forex