We found 11 online brokers that are appropriate for Trading Stocks CFD Investment Platforms.
Trading the financial markets is easy due to its accessibility from the Internet. Unfortunately, there still exists legal setbacks with trading. Furthermore, depending on your country of location and the passport that you hold, you are limited on the assets that you can trade. For this reason, some companies have created CFD, which stands for Contracts for Difference. This tool gives almost everybody access to stocks, Forex, cryptocurrencies and futures. In this article, we will explain how CFD works and how you can use them.
When one uses CFD to speculate the financial markets, you do not directly speculate on the actual assets, like stocks, cryptocurrencies, Forex or futures. Therefore, when you buy a CFD, you do not hold the above financial instruments. For example, if you buy a Microsoft stock CFD, you are not a Microsoft shareholder. You do not get voting power from CFD. A CFD is not the same as the financial instrument that it represents. With a CFD, you merely speculate the price, entry point, and exit point of the asset.
Furthermore, it is important to note that as the name implies, CFDs are a contract between the broker and the trader. CFDs are an agreement with your broker to pay the difference in price of the corresponding asset that the CFD is representing. This is so as when the trader buys the CFD, they are buying the asset at its current price. When the trader then sells the CFD, they are selling it at the current price that it is worth.
For the broker to stay in business and not go bankrupt, it needs to hedge the trader’s order. If the trader goes long on a CFD, the broker will go short on that asset. Therefore, while the trader uses CFD to make profits, the broker trades the actual asset on the reverse side of the traders. Thus, whether the trader is right or wrong on his CFD speculation, the broker will always break even. But in this process, the trader still has to pay fees to the broker. Therefore, the broker will always be able to gain profits from these paid fees.
A stock is a part of a company. Owning a stock means that you are, to some degree, an owner of a company. Your position in the company’s ownership is proportionally equal to the ratio of the stock you own over the total outstanding stock that a company issue. A stock allows you to claim dividends if the company offers dividends. Additionally, owning a stock means that you can demand information regarding the company’s performance and management.
The main difference between a CFD and a stock lies within their nature. A stock is similar to a fundamental investment in the company, while a CFD is strictly speculating on price action.
Another difference is that CFDs always come with margin. When trading CFD, the brokers always allow margin. As explained above, the broker always breaks even. Thus, the bigger the capital that a trader invests, the more fees are incurred. Depending on the market’s volatility, the margin on the equity varies between 5% and 30% of the trade’s value. Hence, it is important for traders to remember that bigger capital comes with bigger risks.
When it comes to going short, it is easier to trade with CFDs than to go short on a stock. To short a stock, one needs to first borrow the stock. This comes with fees and can be difficult to borrow depending on the nature of the stock. Also, not all brokerage accounts are eligible for short trading.
On the other hand, with a CFD, shorting is as easy as going long. You simply buy at a specific price and inform your broker that you will sell at a lower price. Also, when traders go short, brokers use the short positions to hedge the long positions of the other traders. This makes it easy for the broker to maintain his business and limits his borrowing.
In conclusion, stocks and CFDs each have their own pros and cons. In general, stocks are more suitable for long term investors who aim to make profits from their equity. On the other hand, since CFD are merely based on price action speculation, they are more suitable for short term investors.
We've collected thousands of datapoints and written a guide to help you find the best Stocks CFD for you. Our aim is that this information helps you choose a trustworthy, reputable and professional broker who can satisfy your trading needs online. We have compiled a list of what we consider the best Stocks CFD Investment Platforms below.
There are a number of important factors to consider when picking an online Stocks CFD Investment Platforms trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Stocks CFD Investment Platforms.
Compare Stocks CFD Investment Platforms min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Stocks CFD Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Stocks CFD Investment Platforms that accept Stocks CFD Investment Platforms clients
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IC Markets
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eToro
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Roboforex
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AvaTrade
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XM
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XTB
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Pepperstone
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FP Markets
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Trading212
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Plus500
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EasyMarkets
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG), Dubai Financial Services Authority (DFSA), Dubai International Financial Center (DIFC),Financial Sector Conduct Authority (FSCA), XTB AFRICA (PTY) LTD licensed to operate in South Africa | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546, Plus500SEY Ltd is authorised and regulated by the Seychelles Financial Services Authority (Licence No. SD039), Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore (MAS) for dealing in capital markets products (License No. CMS100648-1), PLUS500AU (PTY) LTD is regulated by the FSCA (Financial Sector Conduct Authority), Plus500 adheres to MiFID rules | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) |
Min Deposit | 200 | 10 | 1 | 100 | 5 | No minimum deposit | 200 | 100 | 1 | 100 | 100 |
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Used By | 180,000+ | 27,000,000+ | 10,000+ | 300,000+ | 3,500,000+ | 250,000+ | 89,000+ | 10,000+ | 15,000,000+ | 15,500+ | 142,500+ |
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Platforms | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, Tablet & Mobile apps |
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Learn More |
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Up with trading212 |
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Up with plus500 |
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Up with easymarkets |
Risk Warning | Losses can exceed deposits | 78% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 71% of retail investor accounts lose money when trading CFDs with this provider | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74-89 % of retail investor accounts lose money when trading CFDs | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | Your capital is at risk |
Demo |
IC Markets Demo |
eToro Demo |
Roboforex Demo |
AvaTrade Demo |
XM Demo |
XTB Demo |
Pepperstone Demo |
FP Markets Demo |
Trading 212 Demo |
Plus500 Demo |
easyMarkets Demo |
Excluded Countries | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, PY, HN, GT, PR, NI, VG, AN, | US, JP | BE, BR, KP, NZ, TR, US, CA, SG | US, CA, IL, KR, IR, MM, CU, SD, SY | US, IN, PK, BD, NG , ID, BE, AU | AF, AS, AQ, AR, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, UY, VU, VG, EH, YE, ZW | US, JP, NZ | US, CA | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE |
You can compare Stocks CFD Investment Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Stocks CFD Investment Platforms for 2022 article further below. You can see it now by clicking here
We have listed top Stocks CFD Investment Platforms below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.