Trading CFDs For A Living
Nowadays, trading CFDs for a living is possible through determination, careful investment, research and some luck. With CFDs gaining popularity as a method of day trading, it has never been easier to start. This article will guide you through getting started CFD trading for a living, what the pros and cons are and the taxes you should be mindful of. We have also compiled a list of our top CFD brokers below.
Best CFD Brokers
#1 - Kwakol Markets
CFDs are available on a breath of underlying assets, including stocks, indices, commodities, forex and cryptos. High leverage up to 1:500 is available alongside a 0.01 minimum lot size and award-winning software. For the tightest spreads from 0 pips, opt for the Premium account.
"Kwakol Markets is a good option for newer traders with a dedicated learning academy, copy trading and a choice of reliable platforms. New clients can also sign up and start trading in four straightforward steps."
- DayTrading Review Team
- FTSE Spread: From 0.8 pips (Standard Account)
- GBPUSD Spread: From 0.8 pips (Standard Account)
- Stocks Spread: From 0.8 pips (Standard Account)
- Leverage: 1:1000
- Regulator: ASIC, FINTRAC
- Platforms: MT4, MT5, AutoChartist
Forex Trading
Kwakol Markets offers a wider range of forex pairs than most competitors, with 90+ assets available. Users get fast execution speeds through the ECN model and competitive spreads. On the negative side, not all currency pairs are available on MT4.
Stocks Trading
Trade stocks with zero commissions and ultra-fast trade executions. Clients get exposure to US, EU, Asian and Russian stock markets on both the MT4 and MT5 platforms. Stocks are available as CFDs, so users will not own the underlying shares.
Crypto Trading
Trade cryptos against fiat currencies, other cryptocurrencies and metals like gold. This separates the broker from many alternatives that only offer cryptos paired with the USD. High leverage up to 1:20 on cryptos is available, plus support for Expert Advisors and copy trading.
About Kwakol Markets
Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of asset classes are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
Pros
- Easy account opening process
- Full range of investments with 1000+ assets including cryptos
- 2FA login security
Cons
- Lack of deposit and withdrawal methods
- The only base currency is USD
- Regional restrictions in certain countries
#2 - IG Group
IG offers an impressive suite of 17,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.
"IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 17,000+ markets and top-tier market research."
- DayTrading Review Team
- FTSE Spread: 1.0
- GBPUSD Spread: 0.9
- Stocks Spread: 0.02
- Leverage: 1:30 (Retail), 1:250 (Pro)
- Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
- Platforms: MT4, AutoChartist, TradingCentral
Forex Trading
IG offers currency trading on its award-winning web platform and mobile app. Comprehensive charts and forex analysis tools are also available through ProRealTime.
Stocks Trading
IG offers 13,000+ shares, with more listed firms than most competitors. Fees are low with no commission on US stocks. Extended hours trading is also available alongside ultra-fast execution speeds of 0.014 seconds.
Crypto Trading
11 popular cryptos are available, plus two crypto crosses. A crypto index is also offered, following the value of the top 10 digital currencies by market cap. All cryptos are available via CFDs.
About IG Group
IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
Pros
- IG is an LSE-listed company with a transparent financial history and a great track record
- Share dealing and ISAs are available for longer term investing
- Opening an account takes less than 5 minutes
Cons
- Inactivity charge
- No copy trading platform
#3 - IQCent
IQCent CFDs are available on forex, stocks, indices, commodities and cryptos with leverage variable by asset to a maximum of 1:500, which is higher than many alternatives. 24/7 customer support is also available to assist new users.
"IQCent will appeal to newer traders who want a platform where they can trade both binary options and CFDs with copy trading support and regular contests."
- DayTrading Review Team
- FTSE Spread: From 0.7 pips
- GBPUSD Spread: From 0.7 pips
- Stocks Spread: Variable
- Leverage: 1:500
- Regulator: IFMRRC
- Platforms: TradingView
Forex Trading
IQCent traders can access CFDs or binary options on 40+ forex pairs, including majors, minors and exotics. CFD spreads start from 0.7 pips and binary options payouts are decent up to 95%. Trading takes place through the broker's proprietary platform with advanced analysis tools.
Stocks Trading
IQCent offers CFDs and binaries on four German stocks: Lufthansa, Deutsche, Daimler and BMW. Traders can also speculate on stock markets via seven leading indices including US30, S&P500 and FTSE100.
Crypto Trading
IQCent offers 17 crypto assets through its own platform, including Bitcoin, Ethereum and Litecoin. Leverage on crypto CFDs is limited to 1:10 while binary options payouts vary by token but are competitive.
About IQCent
IQCent is an offshore binary options and CFD broker based in the Marshall Islands with 10+ payment methods and a low $50 starting deposit. With 100+ assets, around the clock trading and high payouts the brand is popular with aspiring traders.
Pros
- Regular technical and fundamental analysis published
- Both CFDs and binary options tradeable through a single terminal
- $0.01 minimum stake for newer traders
Cons
- No MetaTrader 4 platform
- Poor selection of stocks with just four equities
- A short period before an inactivity fee is charged
#4 - Videforex
Videforex CFDs are available on forex, indices, cryptocurrencies and commodities with up to 1:500 leverage and tight spreads from near zero. CFDs incur a commission fee of 1%–2.5% and up to 5% for leveraged trades.
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts are also higher than most alternatives climbing to 98%."
- DayTrading Review Team
- FTSE Spread: Floating from 0.2
- GBPUSD Spread: Floating from 0.1
- Stocks Spread: NA
- Leverage: 1:500
- Platforms: TradingView
Forex Trading
Trade 35 major, minor and exotic forex pairs through CFDs with floating spreads from 0.1 pips. Alternatively, binary options allow you to speculate on rising and falling prices with a fixed stake and payout.
Stocks Trading
Trade binary options and CFDs on global stocks from US, European, Russian and Asian exchanges, as well as 37 indices covering a wide range of global markets. The access to stocks trumps many binary options brokers.
Crypto Trading
Traders can speculate on crypto prices in pairs with USD and CNY through binary options and CFDs. The range of digital currencies is fairly narrow vs alternatives but major tokens like Bitcoin are available.
About Videforex
Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.
Pros
- You can enter positions with just ¢0.01
- Videforex offers transfers via a wide range of payment types, from credit cards to cryptocurrencies
- The support time are fast and reliable. Very few brokers offer 24/7 multi-lingual video support
Cons
- No MetaTrader 4 integration
- US clients aren’t accepted due to legal restrictions
- The broker isn’t overseen by a trusted regulatory agency
#5 - ForexChief
ForexChief offers a competitive range of CFDs, encompassing crypto, indices, energies and metals. A clear pricing schedule is available to clients with no hidden charges. Traders can also access very high leverage up to 1:1000.
"ForexChief will prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The large welcome bonus and low starting deposit will also appeal to new traders."
- DayTrading Review Team
- FTSE Spread: 70
- GBPUSD Spread: 0.9
- Stocks Spread: 50
- Leverage: 1:1000
- Regulator: VFSC
- Platforms: MT4, MT5
Forex Trading
ForexChief supports spot foreign exchange trading on all account types for 40+ major, minor and exotic currency pairs on the leading MT4 and MT5 platforms. Spreads are tight starting from zero and there are no dealers or requotes.
Stocks Trading
ForexChief offers 100 US company stocks CFDs for MT4 DirectFX and Classic+ account holders. Investors can speculate on the price of some of the world's largest companies, including Apple and Coca Cola. Spreads start from 5.
Crypto Trading
ForexChief supports crypto trading with five major digital currencies paired against the US dollar. Traders can bet on rising and falling prices with leveraged CFDs and market-leading trading software.
About ForexChief
ForexChief is a foreign exchange and CFD broker, established in 2014. The company is based offshore and registered with the VFSC and FMA. Users can choose between a wide selection of accounts and base currencies, making ForexChief accessible to global traders. The brand also stands out for its no deposit bonus and fee rebates for high-volume traders.
Pros
- The low minimum deposit of $10 will appeal to beginners
- High leverage up to 1:1000 is available
- MT4 and MT5 integration
Cons
- Withdrawal fees on several payment methods
- Weak regulatory oversight
- Limited market research
#6 - Axofa
CFDs are available on popular asset classes with a competitive $1 minimum deposit. The broker offers very high, unrestricted leverage of 1:1000, which will amplify both profits and losses.
"Axofa could be a good option for clients looking for social trading features alongside the MT5 platform, and are willing to trade with an offshore brand."
- DayTrading Review Team
- FTSE Spread: NA
- GBPUSD Spread: From 1.6 pips
- Stocks Spread: NA
- Leverage: 1:1000
- Regulator: SVGFSA
- Platforms: MT5
Forex Trading
Axofa offers 50+ forex pairs with raw spreads and low commissions. On the downside, the broker is not particularly transparent when it comes to their account conditions and fees.
Stocks Trading
A decent selection of 100+ popular international stocks are available. Traders can also test out their strategies in the free MT5 demo account, though the conditions are more limited vs other brokers.
About Axofa
Axofa is a forex and CFD broker registered in St Vincent and the Grenadines. The broker offers three account types with access to forex, commodities and indices. With ECN processing, low minimum deposits and no commissions, Axofa could be an attractive option, although the broker does not hold a reputable license.
Pros
- Low starting deposit of $1 for beginners
- Proprietary mobile app
- Access to high leverage up to 1:1000
Cons
- Lack of transparency around pricing
- Unregulated broker
- Limited verifiable information about the broker’s owners and background
#7 - Sage FX
Trade CFDs on forex, stocks, metals, energies, indices, cryptos and dollar futures. Sage FX offers tight spreads and high leverage on all instruments from 1:100 to 1:500.
"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."
- DayTrading Review Team
- FTSE Spread: 5.0
- GBPUSD Spread: 0.9
- Stocks Spread: N/A
- Leverage: 1:500
- Regulator: Pending
- Platforms: TradeLocker
Forex Trading
Trade 7 major, 21 minor and 29 exotic forex pairs with high leverage and a choice between STP or ECN accounts. Support is available around the clock and the TradeLocker forex software is provided.
Stocks Trading
Speculate on price movements of 37 US and European blue chip stock CFDs, including Adidas, Intel and Volkswagen. On the negative side, the selection of stocks is limited vs alternatives and direct share dealing isn't provided.
Crypto Trading
Trade CFDs with leverage up to 1:100 on 23 crypto pairs with USD including popular tokens like Bitcoin and Ether and lesser-known options like OMG. On the downside, crypto-only pairs are not offered.
About Sage FX
SageFX is an offshore, unregulated CFD broker that offers highly leveraged trading on forex, stocks, commodities, indices and crypto via the TradeLocker platform. Traders can access commission-free trading or an ECN account with tight spreads. While the broker's regulatory status is weak, it does provide segregated accounts and two-factor authentication.
Pros
- Flexible accounts with STP and ECN solutions available
- Fast withdrawal processing
- High leverage up to 1:500
Cons
- Relatively narrow range of asset classes
- Not regulated by any reputable body
- Lacks educational resources and other extra features
#8 - Coinexx
Trade flexible CFDs on forex, commodities, indices and cryptos with tight spreads, fast execution, micro-lot trading and leverage up to 1:500. There are also no restrictions on day trading strategies.
"Traders seeking highly leveraged CFDs with a broker that uses crypto as a base account currency will find a good match in Coinexx. The ECN model also offer tight spreads from 0 pips. On the downside, traders should note the weak regulatory oversight."
- DayTrading Review Team
- FTSE Spread: From 0.0 pips
- GBPUSD Spread: From 0.0 pips
- Stocks Spread: NA
- Leverage: 1:500
- Platforms: MT4, MT5
Forex Trading
Trade 70 major, minor and exotic forex pairs with ultra-low ECN spreads and fast execution via the MT4 or MT5 platforms. There are also zero SL/TP limits and automated forex trading is well catered for.
Stocks Trading
Coinexx traders can speculate on broad movements of global markets via five indices covering exchanges in the US, UK, Germany, and China. On the downside, there are no individual stocks which is a significant drawback.
Crypto Trading
Trade CFDs on BTC, ETH, LTC and XRP with 1:5 leverage, market execution and 0.01 micro lot trading. However, we weren't impressed with the narrow choice of cryptos with no emerging, smaller-cap tokens available.
About Coinexx
Coinexx is an unregulated broker that provides leverage up to 1:500 on forex, commodities, indices and cryptocurrencies with deep liquidity, pure ECN spreads and negative balance protection. The broker uses crypto as base currencies and has low minimum deposit requirements of 0.001 BTC.
Pros
- Very high leverage up to 1:500
- Full range of investments including cryptos
- ECN execution model with tight spreads from 0 pips
Cons
- No copy trading service for aspiring investors
- No regulatory oversight reduces safety
- Limited educational materials for new traders
#9 - World Forex
World Forex's leveraged CFDs are available on a modest suite of 100+ instruments, including stocks, commodities and forex. Very high leverage up to 1:1000 is available for account balances up to $1000, with lower levels available to accounts with higher balances.
"World Forex provides both highly leveraged CFDs and digital contracts, making this a good broker for clients who want flexible and rewarding ways to trade. The copy trading service will also appeal to newer traders."
- DayTrading Review Team
- FTSE Spread: NA
- GBPUSD Spread: NA
- Stocks Spread: From 0.03
- Leverage: 1:1000
- Regulator: SVGFSA
- Platforms: MT4, MT5
Forex Trading
World Forex offers CFD and digital contract trading on 53 forex pairs, including EUR/USD and GBP/EUR. High leverage is available for CFDs, which can be accessed with competitive spreads on certain account types.
Stocks Trading
World Forex traders can speculate on price movements of 40+ stocks with CFDs and digital contracts with no commissions, tight spreads and high payouts. You can take positions on big names like IBM and American Express.
Crypto Trading
Traders can access CFDs on crypto assets through World Forex's dedicated W-CRYPTO accounts, which offer leveraged cryptocurrency trading with spreads from zero. We rate that you can trade on 10 cryptos paired with the USD and EUR, while crypto-crypto pairs are also available.
About World Forex
World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
Pros
- 10+ accepted payment methods
- STP/ECN technology
- MT4, MT5 and a proprietary trading terminal
Cons
- Weak regulation
- No negative balance protection
- Withdrawal fees apply
#10 - Scope Markets
Scope Markets clients can trade CFDs on a good selection of asset classes including forex, precious metals, energies, indices and global shares. The award-winning broker also offers a decent suite of educational materials and a YouTube channel to support aspiring traders.
"Scope Markets will appeal to traders seeking highly leveraged CFDs and spot investment products on the powerful MetaTrader 5 platform. The Scope Markets Group stands out for its range of trading tools and educational materials."
- DayTrading Review Team
- FTSE Spread: 0.4
- GBPUSD Spread: 1.0
- Stocks Spread: Variable
- Leverage: 1:2000 (location dependent)
- Regulator: CMA, FSC, FSCA
- Platforms: MT4, MT5
Forex Trading
Scope Markets offers MT5 trading for a range of major, minor and exotic currency pairs with high leverage and a low starting deposit. Multilingual 24/5 support is also available to support forex traders.
Stocks Trading
Scope Markets offers stock trading on popular markets, alongside cash and futures indices. Clients can speculate on major stocks from US, EU, Australia, and more with competitive fees and reliable trading software.
Crypto Trading
Go long or short on popular cryptos like Bitcoin, Ethereum and Ripple with leveraged CFDs and competitive spreads. Depending on the jurisdiction, different regulations apply. CFDs on cryptocurrencies are not offered in all jurisdictions.
About Scope Markets
Scope Markets offers day trading and investing in multiple spot and CFD instruments. The group of brokers is regulated in several locations, including Belize, Kenya and South Africa. Users get competitive trading conditions, a range of payment methods, strong support and can get started in a few straightforward steps.
Pros
- Modern Scope Trader web platform with 50+ analysis tools and intuitive design
- Multi-regulated group
- MT4 and MT5 platform integration
Cons
- Limited trading instruments
- Regulatory scrutiny varies between countries
Guide To Trading CFDs For A Living
Although difficult, it is not impossible to make a living through CFD trading. What this article aims to do is give you tips and ideas on how to correctly start trading CFDs for a living, as well as help you avoid making simple mistakes. To become a profitable CFD trader you only need an internet-capable device such as a computer, phone or tablet.
Collect Your Capital
Like any other kind of investment, CFD traders require some initial funds to get started. As the famous saying goes, “you need money to make money” and CFD trading is no different, though leverage can give you a nice boost. The key thing to remember when deciding how much money to put up as your trading capital is that you should never put in more than you can bear to lose. Although CFD trading for a living can bring about plentiful returns, it can also bring losses that are just as large.
One perk of trading CFDs for a living is that the amount of funding you require to get exposure to the full price of stocks, commodities, indices, etc is minimal, with margin trading levels as low as 5%.
Choose A CFD Market
When thinking about how to start CFD trading for a living, you must consider what kind of financial markets you want to get involved with. There are different forms of CFDs available, covering almost all commercial derivatives markets. If you are keen on piggy-backing off the success or failure of a known company, stock CFDs may be right for you. If you are less interested in having to rely on the performance of a single stock and would rather deal with a generally less volatile measure of a market, then equity index CFDs could be what you need. Other popular markets for those wishing to trade CFDs for a living are crypto CFDs, forex CFDs, commodity CFDs and ETF CFDs.
Find A Broker
Arguably the most important single step in your CFD trading career is selecting the right broker. A good platform could mean the difference between trading CFDs for a living successfully and failing to meet your goals at all. This stage will require you to carry out some research, though we have listed some of the key things to be looking out for below:
- Fees And Costs: Many CFD fees may seem small at first but can quickly build up, especially when making frequent trades. Try to compare a range of brokers to see which has the most competitive pricing structure, though you should bear in mind which fees are likely to be most relevant to your trading style.
- Customer Support: Good customer service is key to ensuring a smooth trading process. Some brokers offer 24/7 customer support in multiple languages. Although you may not frequently use the service, you will likely thank yourself for going with a broker that is more reliable and fast-acting when faults or errors appear.
- Platform: To make the best trading decisions it is paramount that you use an environment that is best suited to you. The variations in platforms between brokers can be huge and what may work for one trader may not work as well for another. It is best to compare the features of the platforms offered, such as graphs, timeframes, indicators and historical data. A great way to get hands-on with testing a platform is by making use of demo accounts, which use virtual money in a simulated trading environment.
- Extra Services: When trading CFDs for a living, the extra services offered by brokers could help make tracking or handling your positions a lot easier. For example, a service like guaranteed stop-loss orders could help prevent large reversals that could eat away at your profits.
- Reputation: What reviews have other CFD traders given about this broker? Is their trading platform well respected? Have they had any previous issues with customer service? When trading CFDs for a living, you are completely reliant on your broker’s services and any potential faults or poor service could mean money lost, so a reputable broker is key.
There are plenty of CFD brokers available on the internet and no one is perfect for every kind of trader when CFD trading for a living. If you consider switching to a different kind of CFD, it might be worth reassessing your options to check if you are still using the best option. Similarly, if trading several types of CFDs at the same time, it might be an idea to use different brokers to get the most competitive pricing from both simultaneously.
Select Your Strategy
Once you have found the perfect broker for you, it is time to decide what assets you will trade and how. There are myriad different strategies that you can employ when trading CFDs, some of which require more attention and focus than others. Having an idea of how involved you want to be with each trade and how many trades you want to make each day is a good start in deciding what strategy to use. The kind of CFD that you have chosen will also influence your decision on how best to go about making your trades. For a full guide to comparing and selecting strategies, see our dedicated page here.
Keep yourself up-to-date with the recent news and developments relevant to your markets. There is nothing worse for a CFD trader than opening a position, only to have the market react differently than expected because of a news piece or event you hadn’t clocked. Given that the losses are just as critical as the gains when trading CFDs for a living, it is vital to stay abreast of the industry.
Pros Of Trading CFDs For A Living
- Margin trading facilitates exposure to large markets and trades by only requiring a marginal stake from the investor. This means that profits can be magnified, though losses are too.
- As well as profiting from bullish markets, trading CFDs for a living lets you make money from bearish ones. Going ‘short’ involves speculating that an asset’s price will drop, giving greater opportunity for profit.
- There are fewer taxes to pay in most jurisdictions as CFDs are derivative products, so you do not take ownership of the underlying assets.
- Trading CFDs for a living can be more convenient than spot trades, also thanks to their derivative nature. For example, purchasing 100 barrels worth of oil in a CFD is no different from any other trade and you do not need to take delivery of the barrels directly.
Cons Of Trading CFDs For A Living
- Trading CFDs for a living on margin exposes you not only to greater profit opportunities but also magnified losses. If you speculate incorrectly, your margin can quickly be eaten away and you could lose more money than you initially staked on the position.
- The lack of ownership rights associated with CFD trading can have limitations, such as no dividend payments or voting rights.
- Holding CFDs open for significant periods of time (overnight) can rack up large costs, so trading CFDs for a living is generally not suited to long term investing.
Tips For Trading CFDs For A Living
- Start with a demo account. Before depositing any real money, many traders find it useful to practice their trades using paper trading accounts. These are often standard and allow you to become confident in your CFD trading knowledge and ability before risking real capital.
- Don’t get drawn in by leverage. Leverage can often trap inexperienced investors who see it as a way to get rich quick. Trading CFDs for a living often involves leverage but there must be robust risk management systems in place and traders should try to keep leverage rates low.
- Don’t obsess over profits. Life as a day trader goes up and down at times much like the markets. It is important to understand that you will lose money at times and most investors lose more than they win in their first year. Try to set realistic goals to keep yourself in check and don’t let losses affect your strategy.
- Manage your risk. Trading CFDs for a living is a risky business and the markets will not always go your way. Implementing systems that will limit your losses when this happens, like stop losses and trailing stops, can increase profit margins substantially.
- Keep a journal. All successful endeavours involve learning from mistakes and refining approaches. Keeping a journal of trades made, signals, outcomes and asset types can help you optimise your process and avoid repeating errors.
- Do your research. There are plenty of scams and cons in the world of CFD trading, from brokers to additional service providers, so be careful. Conduct thorough research before giving your money to anyone else.
Taxes
Contracts for difference are treated differently than normal shares or asset ownership for tax purposes. This is due to you as a trader not owning the underlying asset that the CFD refers to, but instead having the contract based on the asset price.
In the UK, stamp duty is applied to normal shares, commodities and other securities. However, when trading CFDs for a living, you will not have to pay stamp duty. Even though the stamp duty rate is relatively low (at around 0.5%), over time this tax could build up.
This is not to say that CFD trading is tax-free. There is still a tax burden through capital gains in most countries and, as a CFD trader, you should become familiar with what these are. In some countries like Australia, gains made through CFD trading for a living could also have income tax applied to them.
It is also important to note that compared to spread betting, CFDs do not offer the same kind of tax benefits, though overall, there is a slight tax advantage over trading assets normally.
Final Word On Trading CFDs For A Living
It is no easy task to successfully and consistently trade CFDs, otherwise, everyone would and everyone would be rich. If you are looking at trading CFDs for a living, you must focus on minimising your risk through a deep understanding of the markets, risk management strategies and careful use of leverage. To get started with trading CFDs for a living, see our guide above or check our list of the top brokers.
FAQs
What Is A CFD?
CFD stands for Contract for Difference. These financial instruments are a means of speculating against the change in the value of an asset, as opposed to investing in the asset itself.
What Can I Trade With CFDs?
You can trade most assets and markets, such as commodities, stocks and shares, indices, currencies and forex.
What Is Leverage?
Leverage lets you borrow money from your broker to open a position greater than you would otherwise have the stake for. This can be beneficial if you are successful, increasing your profits, though losses are also magnified.
Can I Trade CFDs Anywhere?
No. Some countries, such as the US, have banned CFD trading altogether. Check your local laws to find out if you can trade CFDs for a living in your country.
Can You Trade CFDs For A Living?
Yes, although it can be quite difficult. The majority of traders lose more than they gain in their first year through incorrect and brash decisions, so take care and be strategic with your risk management and position opening.
Are There Any Fees Involved With CFD Trading?
Yes, there are many different fees that you will be charged throughout your time trading CFDs for a living. These include overnight holding fees, commissions and spreads.