List of the Best CFD Trading platforms
Blackbull Markets
Leverage
One of the key benefits of CFDs is to offer leverage that will better help you utilize capital. Trade CFDs and take out a large position that only requires a small margin. With very little capital, you, as a CFD trader, access greater profits — and margins on some instruments are as little as 1%!
Short Selling
Unlike other traditional equity products, CFDs offer you the unique ability of short selling. Short selling allows a trader to make profits by selling a CFD at a high price and buying it back at a lower one. So, traders can profit not from only rising markets but also falling ones. Another major advantage of short selling: there’s no cost in holding an open position — making it perfect for hedging as well as speculating. FPM offers a wide range of Securities, FX, Commodities and Indices for short selling.
Hedging
CFDs are ideal for hedging purposes. Many equity portfolios remain vulnerable to market downturns and the cost of exiting and re-entering are far too high and risky. Using short selling, Direct Market Access CFDs enable traders to lock in the value of an equity portfolio by holding short positions that mirror that in the equity portfolio. So every pound that the equity portfolio loses, the CFD portfolio gains. As CFDs require only a tiny margin, your outlay will be minimal.
FPM offers different types of CFDs. Foreign Exchange Market CFDs enable traders to hedge currency balances. Indices CFDs enable clients to blanket hedge a large portfolio without having to buy individual Equity CFDs.
FPM also enables clients to open company and trust accounts wherever these equity portfolios are held.
| CFD Hedge | |||||
|---|---|---|---|---|---|
| Stock | Volume | Price | Exposure | Margin | |
| Entry Point | XYZ | -500 | £10.00 | £5,000.00 | £250.00 |
| Exit Point | XYZ | -500 | £9.00 | £4,500.00 | £225.00 |
| Profit & Loss | £500.00 | ||||
| Share Position | |||||
|---|---|---|---|---|---|
| Stock | Volume | Price | Exposure | Margin | |
| Entry Point | XYZ | 500 | £10.00 | £5,000.00 | £5,000.00 |
| Exit Point | XYZ | 500 | £9.00 | £4,500.00 | £4,500.00 |
| Profit & Loss | -£500.00 | ||||
Lower Transaction Costs
Unlike traditional equities trading and other derivatives products, CFDs have very low transaction costs — that’s why many high-volume traders chose to trade with FPM.
Contact us to find out more about our competitive and flexible rates.
Simplicity
Direct Market Access CFDs are easy to trade. Other derivatives products, such as options and futures, may not move in line with their underlying financial instrument — so they can be difficult to trade and difficult to understand. Not so with CFDs — they reflect exactly the exchanges that they’re based on.
Dividends & Corporate Actions
If you trade fully paid equities, you’ll get your dividend on the payment date. Not so if you’re trading CFDs. You’re entitled to a cash equivalent of any dividend that is paid, and you have the advantage of being paid on the ex-dividend date. You also have the ability to participate in other corporate actions such as share splits and rights issues.
In comparison to other providers, Online trading platforms offer the most extensive list of UK and other global equity CFDs ensuring you can get access to corporate actions and dividends wherever possible.
Flexibility
Open new positions and for as long as necessary. Trade in and out of positions through the day. CFDs offer you flexibility at low cost. Traders can use unrealized profits as margin to open new positions. CFDs are cash-settled, so on the same available capital, it’s much easier to trade in and out of positions multiple times throughout the day — and positions closed intra-day don’t incur financing fees. Most CFDs do not have an expiry date so positions can be held open as long as necessary.