The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Ai π
Login
close
search
    What is CFD & CFD Trading Meaning | 3 Advantages of CFD – Ai π

    CFD Trading

    Start trading contracts for difference (CFDs) with Ai π to gain access to a variety of products with competitive spreads.

    Trade now on forex, indices, cryptocurrencies, commodities, shares, and more

    Why Trade CFDs with Ai π?

    • icon_low_spread
      Enjoy competitive spreads
    • icon_Free_Trading_Tool
      Access to free trading tools
    • icon_mt4
      Trade on MT5 , one of the world’s most popular trading platforms
    • icon_fca_regulated
      Trade with a regulated broker
    • icon_volume
      Fast execution
    • icon_zero_commision
      Zero commission
    • CFD Trading vs Normal Trading
    • CFD Broker
    • CFD Trading Platform
    • FAQ
      • 1.How to Trade CFD?
      • 2.What is a CFD Broker?
      • 3.How to Open an Online CFD Trading Account?
      • 4.How Does CFD Trading Work?

    CFD Trading vs Normal Trading

    A CFD (contract for difference) is an online trading instrument that lets investors speculate on the price movements of a security. The primary rewards are from a security's price fluctuation, not ownership of the underlying asset.

    Some underlying assets include stocks, indices, commodities, cryptocurrency tokens, or currencies. CFDs are attractive to investors because they are traded on leverage. With leverage, it's easier to open trades with a smaller capital disbursement that would be required if you bought the underlying asset.

    cfd trading vs normal trading

    The two main differences between stock trading and CFD trading are leverage and asset ownership. If you invest in a stock, you first own the shares and become a part owner of the company. You also pay the full price quoted per share. Trading CFD does not require phone calls or physical presence in a stock exchange.

    With lower capital requirements, beginner traders have more access to different financial markets. A CFD trading platform like Ai π lets investors trade hundreds of financial products from the comfort of their home computers.

    These are the 6 advantages of CFDs :

    1. Trade long and short positions

    Unlike traditional stock trading, investors trade CFDs in either long or short positions. It's as simple as pressing the buy or short button since it doesn't require contract signing.

    Ai π_1.Trade_long_and_short_positions
    Ai π_2.Access_to_plenty_of_markets

    2. Access to plenty of markets

    Traders enjoy real-time access to plenty of trade choices from various asset classes. These assets include local and offshore stock CFDs, commodities, and indices.

    3. Trade CFDs 24 hours a day, 5 days a week

    The CFD markets are open 24 hours a day for you to trade online. They are reasonably more accessible to international investors because they are not restricted to stock exchange sessions like with stock CFDs.

    Ai π_3.Trade_CFDs_24_hours_a_day
    Ai π_4.No_stamp_duty_on_a_CFD_trade

    4. No stamp duty on a CFD trade*

    This is because you are not taking physical ownership of the underlying asset

    5. CFDs require less margin to open a position than a traditional trade

    Your money will not be tied to one transaction, as you can trade without having to deposit the full value of a product. It is important to note when you trade on margin any losses will be magnified as well

    Ai π_5.CFDs_require_less_margin_to_open_a_position
    Ai π_6.Trade_on_rising_and_falling_prices

    6. Trade on rising and falling prices

    With CFDs you are able to short-sell, meaning there are opportunities to benefit from both rising and falling markets

    * Tax laws are subject to change and depend on your individual circumstances. You should seek independent tax advice before making investment decisions.

    CFD trading vs Stock trading

    For example, if Tesla stock, TSLA (NASDAQ), is quoted at $221.72.

    Stock Trader: Buys 10 stocks at $2217.20.
    CFD Trader: Buys 10 CFDs but only needs to pay a 10% margin for a total of $221.72.

    Note: 1 CFD represents 1 unit of the stock. You can always confirm each underlying asset's minimum purchase units and its margin requirement on its order ticket before you purchase.

    Properties Contracts For Difference (CFD) Stocks
    Ownership None Ownership rights
    Use of leverage Yes Not possible
    Trade long or short Allowed No
    Markets Variety Equities & ETFs only
    Costs Spreads, Rollover costs are charged Commissions
    Trading sessions 24 hours every weekday Only during exchange hours
    Dividends Cash adjustments Dividends paid
    Loss exposure Loss can exceed deposit Lose invested amount
    Voting benefits None Full voting rights

    CFD Broker

    Contracts for difference allow a larger population of traders to invest in diverse asset classes without purchasing any physical products. As more CFD products come up every day, there needs to be an intermediary to facilitate those trades. There is no central exchange for all CFD traders to go to when they need to conduct their transactions. Instead, every CFD trader needs to approach an intermediary, the CFD broker. A CFD broker offers hundreds of financial products for the investor to choose from.

    Even as CFDs represent the ideal products for short-term traders and hedge investors, finding the best CFD broker still poses a challenge to a new investor. Hundreds of CFD brokers offer competitive services, adding to the difficulty of choosing one. It also requires thorough research before settling for one firm.

    cfd broker

    To appeal to a client base, brokers work hard to develop service packages and benefits that benefit their client base more. Some brokers will focus on features that help institutional investors, and others will focus on individual retail investors. The best will have tailored benefits for everyone. A proprietary platform that works for all kinds of investors shows how much a CFD stocks broker values clients. The broker, in turn, benefits from charging some fees to the traders.

    As a forex trader, expect any of these 3 charges by the forex CFD broker:

    • icon_fixed_spread
      Fixed spread
      With fixed spreads, the spread does not change. A customer expects a constant amount before trading.
    • icon_floating_spread
      Floating spread
      Floating spreads present a variable spread depending on market volatility and hours.
    • icon_commission_fees
      Commission fees
      Commissions are charged on trades or withdrawals. If charged on trades, commissions are an agreed percentage of the spread.

    When you trade CFDs (contracts for difference), you purchase the difference in price from the point at which you open the contract until it’s closed.

    Traders are advised to only deal with regulated brokers if they want to safeguard their portfolio. The regulators determine the competitiveness and security standards offered by brokers who join their regulatory bodies. They are mainly clustered into jurisdictions, and that way, brokers from a specific region will have a preference for one regulatory body. CySEC, ASIC, ESMA, BVIFSA, IFSC, FCA, FSA and the CIMA are some of the best regulators. Regulators like CySEC are an excellent choice because they offer a good mix of security and competition.

    Confirm your broker’s regulatory status by reading the footnotes at the bottom of their platform’s homepage.

    Excellent

    Ai π_Trustpilot_stars_resize

    on

    trustpilot logo atfx

    Ai π is a co-brand shared by a group of entities including: 

    AT Global Markets LLC is a Limited Liability Company in Saint Vincent and the Grenadines with company number 333 LLC 2020. The Registered Office: 1st Floor, First St. Vincent Bank Bldg, James Street, Kingstown, St. Vincent and the Grenadines.

    AT Global Markets (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom with registration number 760555. The Registered Office: 1st Floor, 32 Cornhill, London EC3V 3SG, United Kingdom.

    Ai π Global Markets (CY) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under the license no. 285/15. The Registered Office: 159 Leontiou A' Street, Maryvonne Building Office 204, 3022, Limassol, Cyprus.

    AT Global Markets Intl Ltd is authorized and regulated by the Financial Services Commission with license number C118023331. The Registered Office: G08, Ground Floor, The Catalyst, Silicon Avenue, 40 Cybercity, 72201 Ebène, Republic of Mauritius.

    AT Global Markets (SC) Limited is licensed by the Seychelles Financial Services Authority as a Securities Dealer with License No. SD093. The Registered Office: Suite 3, Global Village, Jivan's Complex, Mont Fleuri, Mahe, Seychelles.

    EMERGING MARKETS is regulated by the Jordan Securities Commission authority as an Introducing Broker license number 643 and is the regulated entity in the Hashemite Kingdom of Jordan.

    Ai π is a trade mark of AT Global Markets INTL LTD a company registered in Mauritius under FSC and all services in the Hashemite Kingdom of Jordan is offered through its Introducing Broker.

    HIGH RISK INVESTMENT WARNING: Trading Foreign Exchange (Forex) and Contracts for Differences (CFDs) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full Terms of Business.

    Restricted Regions: AT Global Markets LLC does not provide services to residents of certain countries, including but not limited to Canada (Provinces of British Columbia, Quebec, and Saskatchewan), Japan, Democratic People’s Republic of Korea (DPRK), Iran and United States of America (USA), or any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

     

    © Ai π.COM. All rights reserved.