Benefits of CFDs
CFDs were traditionally only available to institutional investors. Now they are one of the world’s fastest growing ways to trade the financial markets. A CFD enables you to trade on a financial instrument such as a share or a commodity without having to physically own it. This means CFDs have a large number of benefits over traditional ways of trading such as buying and selling shares through a stockbroker.
Trade with Low Commissions
DS Market Trader charges a low commission on equity instruments, and we are the most competitive in the market. Other CFD instruments, such as indices, commodities and treasuries are currently commission free. Please check our Rates Schedule for current charges.
No Stamp Duty
Unlike traditional share trading CFDs incur no stamp duty on UK Shares.
Access Global Markets
CFDs allow you to trade on a whole host of global instruments all from one account. Trade on Shares, Indices, Commodities, Sectors and Treasuries 24 hours a day.
For a full listing of the range of markets that we offer, click here.
Margin Trading
CFDs are a leveraged product which means that you are only required to deposit a fraction of the overall value of the trade. Typically, trading margins with vary between 1% and 10%. Margin means you can magnify the returns on your investment. However, it is important to remember that losses too will be magnified so margin trading is not necessarily for everyone.
Going long or short with CFDs
Markets go down as well as up. With CFDs you can potentially profit from falling markets because you are trading on the price movement of a financial instrument without physically owning it. This makes it as easy to sell an instrument as it is to buy. This is known as ‘going short’.