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Trading Info

CFDs: A Quick Introduction

Contracts for Differences (CFDs) is an investment instrument developed to allow market traders the benefits of possessing Shares, Indices, Forex, and Commodity positions without actually owning the underlying instrument itself. The market trader enters into a contract with a CFD at a specific price, and the difference between that price and the price that it is closed at is settled in cash.

It is important to remember that by trading CFDs it is possible to lose all or part of an investment.

Xtrade, one of the best online CFD forex brokers, offers CFD trading on verity and popular financial market. We provide our trades with the opportunity to trade CFDs with no exchange charges and no Stamp Duty. CFD trading enables market traders to trade a portfolio of Shares, forex, Indices, or Commodities without having to lock up large amounts of capital.

CFD trading eliminates many of the brokerage and exchange-associated fees, like stamp taxes and commissions. Also, the expensive costs and delays of a physical delivery of the Shares, the registration, and any holding/safe custody charges that come with having a broker are eliminated, saving you additional time and money.

Unlike outright share ownership, CFD holders are not entitled to any voting rights, but they do receive the cash equivalent to any declared dividends.

Example:

You decide that you want to buy Google Shares. Instead of purchasing 1,000 Shares of Google from a Stockbroker, you buy 1,000 CFDs of Google on the Xtrade trading platform. If there is a $4 per share fall in the price of Google, you would receive a $4,000 loss. However, if there is a $4 per share rise in the price of Google, you would receive a $4,000 profit, just as if you had purchased the actual shares.

Order Execution Policy
Important Notice: We would like to inform you that due to issues related to the dissemination of marketing material, the license of Xtrade Europe Ltd has been partially suspended from 30th of May 2017 in order to be able to define the situation on the matter with the Cyprus Securities and Exchange Commission (“Cysec”).
We would like to notify you that during the suspension period we will not be able to execute any orders from new clients or accept any new clients. The Company will continue to provide its investment services to all existing clients.
Important Notice: We would like to inform you that due to issues related to the dissemination of marketing material, the license of Xtrade Europe Ltd has been partially suspended from 30th of May 2017 in order to be able to define the situation on the matter with the Cyprus Securities and Exchange Commission (“Cysec”).
We would like to notify you that during the suspension period we will not be able to execute any orders from new clients or accept any new clients. The Company will continue to provide its investment services to all existing clients.
Trading CFDs involves significant risk of loss. Trading FX/CFDs involves a significant level of risk and you may lose all of your invested capital. Please ensure that you understand the risks involved.