What are CFDs?
A CFD is an unlisted instrument that is an agreement between a buyer and seller. These two parties make a contract that the seller will pay the buyer the difference in value of a particular instrument on a daily basis for the period between when the contract is opened and closed. The buyer will, in return, pay the seller the difference in price if its value decreases. The difference is determined by referring to an underlying instrument.
CFD contracts provide a means to hedge against risk exposure or to speculate when an exchange rate change appears imminent. CFDs enable investors to gear (leverage) their investment, while avoiding many of the costs and hassles of trading in the underlying instrument. Trading CFDs is more advanced than normal equity trading and should only be attempted by those comfortable with the concept of gearing.
Download our brochure which explains in detail how Contracts For Differences work and how to get started trading them.
Current fee schedule
Why trade CFDs?
Utilising the Standard Online Share Trading platform, you can enjoy all the features and benefits of trading CFDs, such as:
- Gearing which amplifies the movement of the CFD relative to the underlying share
- Reduced trading costs (relative to equities and single stock futures)
- Corporate actions (earn real tax-exempt dividends)
- Discount day trading
- Product simplicity (as compared with SSFs)
- Short trading
- Pairs trading
- No expiry
- Trading the underlying spot price.
Our free 90-minute educational presentation covers the basic principles of CFDs, their features, risks, benefits and examples of trades. We also cover margins, charges, executions and trading tips and strategies.
Existing clients can log into the platform to check course topics and details, upcoming dates in your city, and to make a booking.
Phone calls will be suspended during the COVID-19 Lock-down. Please contact us via email.
New clients: Click here to register now with Standard Online Share Trading.
Existing account holders: To trade shares, please:
2. Click on the other products menu
3. Select CFDs registration.