CFD stands for Contract for Difference. It’s an agreement between a client and a broker, who are exchanging the difference in the current value of an instrument (stock, currency, commodity or index) and its future value. CFDs provide traders with all the benefits and risks of owning an instrument without actually owning it.
How to trade CFDs on our platform?
You can trade stocks in the form of CFDs and in the form of Equities.
To find CFDs on our platform look for the instruments marked with the “CFD” label.
Buying CFDs on stocks doesn’t make you a shareholder of the company. Nevertheless you will receive payments equivalent to dividends just like regular shareholders. You will not have the right to vote on major issues or receive a final distribution in the event of corporate liquidation.
It is important to know that CFDs are traded with leverage and you can short sell them.
Equities are real stocks which you can buy and sell directly on stock markets like the London Stock Exchange, NYSE, NASDAQ and Deutsche Börse.
Buying Equities means you are taking an ownership stake of an underlying stock, which makes you a shareholder in the company. As a shareholder you are entitled to vote on major issues, receive dividends and are eligible for a final distribution in the event of corporate liquidation.
How to trade Equities on our platform?
With Trading 212 you can trade stocks in the form of Equities and in the form of CFDs.
To find Equities on our platform look for the instruments marked with the “EQ” label.
While most brokers charge commissions and transaction costs, we provide 10 commission-free* deals every month and free real time quotes. To ensure the best price we route client orders directly to the relevant stock exchange for premium execution.
It is important to know that Equities are traded with no leverage and you cannot short sell.
*£1.95+0.05% after that per deal.