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CFD Trading Account FXCM Markets

By June 16, 2021February 20th, 2023No Comments

CFD Trading

When you trade CFDs with us, you can take a position on thousands of instruments. Our spreads start from 0.7 points on forex pairs including EUR/USD and AUD/USD. You can also trade the UK 100 and Germany 40 from 1 point and Gold from 0.3 points.

A number of CFD instruments is traded outside classic markets trading sessions. The attractiveness of CFD trading is that you only need to invest a small percentage of the full value of the asset you trade. Trading margins can be as low as 1%, so if you take a position worth $20,000, it may only require a $200 deposit – which is not a huge amount for an armchair investor.

What are the Advantages of CFDs?

CFDs can be useful financial instruments to help you achieve your trading objectives in a user-friendly way. However, CFDs don’t come without risks, so we only recommend CFD trading for experienced traders.

CFD Trading

Professionals prefer future contracts for indices and interest rate trading over CFDs as they are a mature product and are exchange traded. The main advantages of CFDs, compared to futures, is that contract sizes are smaller making it more accessible for small traders and pricing is more transparent. Futures contracts tend to only converge to the price of the underlying instrument near the expiry date, while the CFD never expires and simply mirrors the underlying instrument. The key calculation to work out your profit or loss is the difference between the price at which you enter and the price when you exit, multiplied by your number of CFD units. With FXTM for example, CFD traders can choose from CFDs on shares, indices, commodities. To find out more about the individual CFDs on offer, you can visit FXTM’s detailed contract specifications page. The term CFD stands for contract for difference which is a type of trading and a popular gateway for investors to enter the financial markets.

Costs of CFD trading

The expected decline is, in part, due to rising yields from U.S. investment bonds and strong U.S. tax reforms planned for 2018. Regulation ensures the safety of your funds from internal company fraud or bankruptcy. CFD Trading Make sure the broker you’re considering is regulated by the regulatory agency of that particular location. For example, in the U.K., the FCA is the regulatory agency and in Australia, it is the ASIC.


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