CFD's are a popular alternative to physical share dealing.
Features of trading using CFD's
Go Short - take advantage of falling prices
Leverage - gain larger exposure with a small deposit
Instant access to many markets normally from the same platform at any time - trade domestic & international shares, indices, forex, commodities and more
No Stamp Duty*
See how CFD trading compares to traditional shares dealing and find out which form of trading is most suitable for you.
|Feature||CFD trading||Shares dealing|
|Ability to go long - take advantage of rising prices||Yes||Yes|
|Ability to go short - take advantage of falling prices||Yes|
|Ability to hedge - go short and mitigate against potential losses in your shares portfolio||Yes|
|Free from Stamp Duty*||Yes|
|Pay Capital Gains Tax* - CGT to be paid on profits||Yes||Yes|
|Leveraged trading - gain a large exposure for a fraction of the value||Yes|
|Immediate dealing - instant trading both in and out of a market||Yes||Yes|
|Access to other asset classes - such as Indices, FX etc||Yes|
|Access to global shares – flexibility to trade 1,000’s of different shares from around the world||Yes||Yes|
|Receive dividend and interest adjustments||Yes1||Yes|
|Physical ownership - benefits include the ability to attend AGMs||Yes|
1Positions are adjusted to reflect dividends.