CFD Trading commands substantial popularity in the market and that’s not without reasons! With CFDs, you can actually trade against price movements of shares without really actually buying or selling them. One of the biggest advantages of CFDs is that they can be accessed quick and easy. Selling CFDs is incredibly easy as well. You can make profits from CFDs by selling them just before the market starts falling.
Trading CFDs with Ava Trade
AVA Trade, eToro and Plus 500 remain the three most popular platforms through which you can trade CFDs. Thanks to the plethora of advantages offered by these 3 platforms—CFDs have actually become the easiest way to trade in stocks. Let us learn more about them in the course of the post.
One of the immediate benefits of trading with AVA Trade is that you can buy and sell shares of some of the most noteworthy corporations listed with the biggies like NASDAQ, NYSE etc. The fact that it is an award-winning broker ensures that as a trader you don’t really have to worry about the regulations. You do have the option to open a demo account and access the plethora of benefits including:
- Multi-language support
- Ability to trade stocks, indices and commodities
- Upto 20:1 leverage
- The ability to trade across multiple platforms
- AVA Trade commands more than decade of industry experience
- 24/5 customer services
- Enjoy access to educational tools
- Opportunity to make profits from even the smallest market moves
- Client funds are preserved in separate accounts with the famous international banks
- Access to more than 100 “famous” stocks including Amazon, Apple, Google, Barclays, Coca Cola among others
The Benefits of Trading CFDs
AVA Trade actually believes in educating its clients (or potential clients) before they can even start trading. This is the reason why when you visit their website, you will actually come to understand why CFDs are considered more beneficial forms of investment when compared to traditional trading and penny stocks.
When it comes to traditional stock broking, you do have the option of buying the stock directly from the broker. However, that would mean that you are actually incurring heavy fees. Online brokers, on the other hand, offer stocks at reduced costs but you cannot really rule out chances of paying up huge fees or commissions!
The online brokers may also offer you access to stocks and forex markets – however- they are mostly characterized by limited trading options. The contemporary pink sheet stocks are also dicey propositions – thanks to the high volatility. The poor quality of financial reports makes it difficult for clients to find out about the reputation of the companies. Even penny stocks are quite risky.
Compared to the aforementioned options, CFD remains one of the most convenient investment options. We have already told you that you can trade with high leverage. They have consistently proved to be the easiest way with the help of which you can speculate the movement of underlying assets and earn profits in accordance. The costs related to the stock CFD trading make for the bid/ask spread. So, the broker commission is completely weeded out.
How does Ava Trade Educate you?
With AvaTrade the investor immediately ends up gaining access to a host of orders and stops, live graphs and other facilities that will help you manage your portfolio in a better fashion. AvaTrade helps you trade on a series of powerful platforms including MT4, Mac Trading, Ava Options and Automated Trading.
Trading with Plus 500
When it comes to CFDs, another broker which deserves special mention is Plus 500. The trading platform enables investors to trade shares from global markets including Germany, UK, US and more. Low spreads, leverage and the availability of sound education tools are other hallmarks of this platform.
Some of the most popular shares that you can trade include Facebook, Netflix, Amazon, Apple, Microsoft, TomTom and Tesla. The Guaranteed Stop Feature allows you to control or limit your losses and avoid slippage. You can start trading with as little €100 to end up gaining as much as €500.
Some of the benefits of trading CFDs with Plus 500:
- Simple to use and highly intuitive platform
- 24/7 online support
- 0% Commissions
Start Trading Stocks With Plus 500 – CFD Service. 80.6% lose money
Trading Stock CFD on eToro remains another significantly beneficial proposition. It’s immensely easy to trade here. All you need to do is simply select the company, the position you want to enter (buy/sell) – enter the investment and leverage details, set your profit/loss orders and then click on “Open Trade” option. You can immediately get off with the trade or else set it to be opened at a future market rate.
The other benefits include:
- The ability to access it from any device can be equated to its ease of use
- Your stocks will be preserved under your name by a company regulated by EU – so the trust factor remains intact
- You are not paying any holding fee
- You have the opportunity to earn dividends if the company issues any dividend
- You can create a diverse portfolio including Cryptocurrencies, Stocks and Commodities
What is the Difference between Holding and Trading Stocks?
However, before foraying into trading, you should also understand the difference between holding a stock and trading the same. The buy and hold strategy is considered a historically successful move as far as accomplishing portfolio growth is concerned. It’s the passive investors who generally practice it. It entails the buying of a stock and then holding a position – quite overlooking the daily or monthly fluctuations governing technical indicators and stock prices. By holding the stock for a longer period of time, the investor is usually successful in increasing the overall growth of his money along with the overall growth of the market.
If you are someone looking forward to buying stocks, then holding and growing your money, then you can open an account with one of the interactive brokers. Trading, on the other hand, means simple buying and selling of stocks. It helps you make money on daily basis unlike what holding your stock lets you do. If you are trading CFD, you are not really the shareholder of a stock as a result of which you are not likely to earn dividends.