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What makes CFDs so popular amongst retail traders? What makes them so difference from the other trading options such financial spread betting, options, futures, or conventional share trading?
In this thread, we cover some differences.
#cfdtrading Image
CFDs vs Options
One of the main advantages of options (not binary options) is that unlike CFDs, they offer the prospect of receiving the ownership of the underlying instrument at a specified price giving you all the rights of shareholders.
#options
independentinvestor.com/cfd/cfds-vs-op…
Contracts For Difference vs Spread Betting
By far the greatest advantage of financial spread betting over CFDs is the tax treatment as spread trading involves no CGT on the profits you make from trading the financial markets. Both options are stamp duty exempt.
#spreadbetting
CFD vs Share Trading (Stocks)
The main advantage of CFD trading is the concept of leverage (or margin trading), you actually borrow money from your broker to trade and thus leveraged products incur a financing charge and considered more risky.
#sharetrading #stocks
CFDs vs Futures
Both products are very similar and cause a lot of confusion among novice traders. In essence, futures have an expiry date and thus contracts have to be settled, on the other hand CFDs have no expiry but incur higher trading costs.
#futures
independentinvestor.com/cfd/cfds-vs-fu…
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