What's the difference between trading stocks and stock CFDs?
When you buy and sell stocks, you own them outright. Stock CFDs are a type of asset that allows you to trade the price movements of stocks, without owning any shares in that company at all. Another difference is that you can trade with the expectation that a stock's price will actually fall in value - not just rise. You can't do this with normal stock trading.
Please see below for the main differences between stock trading and stock CFDs :
|Is a Short position allowed?||Commission||Spread||Swap||Swap Free Period||Leverage|
|US||No, only long position||No||Yes||No||NA||1:1|
Key benefits of trading stock CFDs:
- Open long and short positions on stock prices.
- Benefit from leverage, which you can't do when trading stocks.
- Choose from a wide range of stock CFDs from the biggest exchanges in the world.
- Trade fractional shares such as 0.3 lot.
When can I trade stocks?
US stock trading hours are 16:30 - 23:00 server time.
Do you charge commission on your stocks?
All US stocks are commission-free. Read more about commissions.
Do you charge withholding tax on US stocks?
Yes, there'll be a 30% dividend withholding tax charged directly to the client's account when receiving a dividend. For example, if the dividend amount is $10, you'll receive a net dividend of $7 (30% withheld) in your account.