Брокер AAA Trade

ТОП-2 лучших брокера бинарных опционов в 2020 году:
  • БИНАРИУМ
    БИНАРИУМ

    № 1 в рейтинге! Гарантия честности, высокий доход! Хороший выбор для начинающих. Бонус за регистрацию счета!

  • ФИНМАКС
    ФИНМАКС

    Разнообразные торговые инструменты для опытных трейдеров!

AAA Trade Review — Is it scam or safe?

RECOMMENDED FOREX BROKERS

Trading Accounts

Account type Minimum deposit Minimum trade size Maximum leverage Spreads
Standard $500 0.1 1:200 1.8 pips on EUR/USD

AAA Trade basically offers a single commission-free Standard account with fixedspreads and leverage up to1:200 on the industry`s standard MetaTrader 4 platform.

Swap-free accounts which are Sharia-compliant are also available to clients of Islamic belief upon request.

The Company. Security of Funds

Founded in 2020, AAA Trade is a forex broker, offering multiple assets for trade, including various currency pairs and a wide range of CFDs on indices, stocks and commodities on the MT4 platform.

AAA Trade Ltd., trading under the brand AAA Trade, is a fully licensed EU-based investment firm, authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC).

CySEC applies certain requirements to license holders and sees to the compliance with the rules set. For instance, customer funds must be held in segregated accounts. Besides, the Commission requires forex brokers to hold at least �1,000,000 as a proof of good financial standing.

As a further guarantee to clients� funds, all CySEC-regulated companies are members of the Investor Compensation Fund, which is able to pay compensation to its covered clients up to 20,000 EUR, in the event a regulated broker becomes insolvent or ceases trading.

Moreover, every CySEC-regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services within the EU under the MiFID Passporting Regime.

Рейтинг надежных брокеров бинарных опционов с русским языком:
  • БИНАРИУМ
    БИНАРИУМ

    № 1 в рейтинге! Гарантия честности, высокий доход! Хороший выбор для начинающих. Бонус за регистрацию счета!

  • ФИНМАКС
    ФИНМАКС

    Разнообразные торговые инструменты для опытных трейдеров!

Trading Conditions


Minimum Initial Deposit

In order to open an account with AAA Trade, traders have to invest a minimum of $500, which is average for the market. Yet, other Cyprus-based brokers require lower minimum initial deposits. For instance, Easy-forex demands $25 and FXTM � just $5 from its clients as a start. Obviously this broker`s target group is institutional and high-volume traders, taking into account that the minimum trade size is 0.1 (mini lots).


Spreads & Commissions

AAA Trade offers fixed spreads, which are comparatively good — 1.8 for the EUR/USD pair, while most fixed-spread brokers offer a spread of 2 pips or higher for this pair.

In comparison, Exness provides fixed spreads amounting to 1.7 pips and variable ones on EUR/USD are averaged 0.4 pips on EUR/USD, plus a commission of to $ 2.5 per standard lot (per side). For more information, you may look up real-time spreads of 15 leading brokers here.

Leverage
The maximum leverage level offered by AAA Trade is 1:200, which is considered a industry standard ratio. However, many Cyprus-based brokers offer even higher levels — for example, XM provides leverage up to 1:888 and FXTM � up to 1:1000. Check out a list of brokers, providing leverage equal to or exceeding 1:500 here.

Nonetheless, we advise traders to exercise caution when trading on margin, as higher leverage involves greater risk of losses, which may even exceed the initial investments.

Trading Platform

This broker supports the renown MetaTrader 4 (MT4), desktop, web and mobile versions available.

MT4 is an internationally acclaimed trading terminal, offering a full spectrum of trading tools and resources: a number of built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options. Traders can download ready-made or create their own EAs and let the program do all the work.

Unfortunately, this broker does not allow scalping.

Methods of Payment

The following payment methods are available to AAA Trade clients: credit/debit cards, bank wire transfer, and e-wallet payment systems, such as WebMoney, Яндекс,Qiwi,Skrill, Neteller.

Accepted currencies: GBP, USD, EUR.

Conclusion

AAA Trade is a well-regulated broker that offers online in more than 20 forex currency pairs, indices, stocks and commodities CFDs through the famous MT4. To sum up the above, here are the advantages and drawbacks with regards to this broker:

Pros Cons
Well-regulated STP broker No choice of trading platforms
MT4 available Scalping not allowed
Commission-free trading, competitive fixed spreads Only fixed spreads available
High leverage levels
Broker Advantages

FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.

Forex.com is a large broker listed on the New York Stock Exchange. We like it not only because it�s regulated in the U.S., Japan, Australia, Canada and Hong Kong but also because it offers very good spreads and superior execution.

XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it�s EU-regulated and there�s nothing more you can ask for.

FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.

FxPro is a broker we are particularly keen on: it�s regulated in the UK, offers Metatrader 4 (MT4) and cTrader � where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.

FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.

FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.

HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage — one of the highest in the industry.

Next Level Trading.

Cut losses and buy breakouts
automatically in 2 steps.

Sign up now for a trial account.

Cut Losses, Buy on Breakout

You know exactly where you want to buy, take profits, or cut losses�but your broker can�t trigger those orders automatically! You�re wasting time just watching the ticker. Or worse, you�re giving up profits you deserve.

Set triggers on your orders. Sell when a stock loses steam (Cut Losses), or buy when it is ready for takeoff (Breakout). Only possible with AAA Equities. See our guide here!

More money. Less time. In a volatile market, why trade any other way?

Cross-Platform

You�re always on the move. Your phone keeps you updated on stock prices and news. But you can�t trade until you�re back at your computer! You wonder why your broker hasn�t gotten with the times. Sounds familiar?

React faster. Trade without borders. In this market, you need every edge you can get.

AAA Equities is available through your computer, smartphone, and tablet.

Compare CFD Brokers

For our cfd’s comparison, we found 22 brokers that are suitable and accept traders from Russian Federation.

We found 22 broker accounts (out of 147) that are suitable for CFD’s.

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About XTB

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

75% of retail investor accounts lose money when trading CFDs with this provider.

Read our in-depth XTB review

AvaTrade

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About AvaTrade

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

71% of retail investor accounts lose money when trading CFDs with this provider.

Plus500

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About Plus500

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

76.4% of retail CFD accounts lose money

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About IG

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

68% of retail investor accounts lose money when trading spread bets and CFDs with this provider

Read our in-depth IG review

Forex.com

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About Forex.com

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

69% of retail investor accounts lose money when trading CFDs with this provider

Axitrader

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About Axitrader

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

68.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

eToro

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About eToro

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

XM Group

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About XM Group

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

71.6% of retail investors lose money when trading spread bets and CFDs with this provider.

City Index

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About City Index

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

72% of retail investor accounts lose money when trading CFDs with this provider

EasyMarkets

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About EasyMarkets

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

83% of retail investor accounts lose money when trading CFDs with this provider.

Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.

The Ultimate Guide to

Choosing a CFD Trading Platform

  • Written by Marcus Taylor
  • Founder & CEO

Contracts for difference (CFDs) enable you to trade thousands of assets without needing to own the underlying asset. This means you can easily go long or short on instruments like cryptocurrencies and stocks without needing a crypto wallet or a share dealing account.

In addition to the wide range of instruments offered, CFD platforms typically allow you to trade on margin, which means you could execute a ?1,000 trade with an account balance of just ?100, assuming a 10% margin.

We�ll explore the pros and cons of CFD trading in more depth in this guide, but first, here�s what to consider when choosing between different CFD trading platforms. You can jump to a particular section using the quick links below:

What to look for in a CFD Trading Platform

With hundreds of CFD brokers to choose from, you might be wondering what differs from one broker to another, and what should you pay close attention to when trying to find the best CFD broker for you?

We believe there are four key differences to consider:

1. Is this CFD broker safe to use?

The most important thing to consider when choosing a CFD trading platform is how reputable the company behind it is.

While thankfully not common, brokers have gone bust in the past leaving traders out of pocket. This is why we suggest using a company that is regulated by a recognised regulator such as the Financial Conduct Authority, who are obligated to insure their clients investments against insolvency by up to ?85,000 under the Financial Services Compensation Scheme.

In addition to this protection, major regulators also ensure that the broker runs their business in accordance with the laws and regulations designed to protect retail traders. We only feature brokers on our website that meet this criteria, but you can also check that a broker is regulated by visiting their website and looking for their regulation registration number.

2. Am I able to trade what I want to trade?

Each CFD platform will offer a different array of instruments that you can trade. If you have a specific asset or asset class you�d like to be able to trade, it�s wise to ensure that the broker you�re thinking of using offers these.

You can see a comprehensive overview of the instruments offered by any broker by reading their review, which can be accessed in the navigation menu at the top of this page.

3. How much will it cost me to trade?

There are three main fees to consider with CFD trading � the commission, spread, and overnight holding fee (swap rate).

The main fee is likely to be the commission rate, which you pay on each trade and is effectively the main way the broker makes money. This is sometimes a percentage (e.g. 0.1%) or a fixed price (?5 per trade) or a combination of the two.

The spread is the difference between the bid and the ask price. In CFD trading, it�s less common for this to be a major part of the cost, but it is worth paying attention to.

Finally, there�s the overnight swap rate which you will pay for every night that you hold a position open.

Not all brokers charge all three fees, but it�s important to run some example costings to calculate how much you�ll likely pay per trade with the different brokers.

4. How good is the trading platform & charting package?

CFD trading platforms range from being highly intuitive for novices (such as eToro or Plus500�s custom platforms) to more sophisticated platforms like MetaTrader 4 or IG�s L2 Dealer, which come with advanced features like automated trading & direct market access.

The right platform for you will largely depend on how experienced you are as a trader and what you trade. An experienced equities CFD trader, for example, may specifically want a CFD broker that offers direct market access, a good charting package and a wide range of stocks to trade. On the other hand, a novice crypto trader may be more interested in finding a platform that offers a high-quality news feed, a wide range of crypto assets to trade, and an intuitive platform.

One of the best ways to compare platforms is to open several demo accounts and see which platform feels right for your trading style.

What are CFDs?

We�ve briefly alluded to why people choose to trade CFDs � but what actually are they?

A CFD is simply a contract or �bet� to pay the difference in the value of a particular underlying asset between when the contract is agreed and when it expires.

The underlying asset could be a company�s stock, cryptocurrency, forex pair, market index or a commodity like gold or oil. This underlying asset is never owned by the buyer or the seller.

The profit (or loss) is the difference in the price from when the contract was opened and the time it closed. There is no restriction on the time one has to hold the contract � it can be sold at any time the buyer deems fit.

While we�ve talked a lot about contracts, CFD trades are typically made with the click of a button from an online trading platform between an individual (the buyer) and a broker (the seller). This is why it�s essential to choose a trustworthy CFD trading platform that offers a variety of instruments at a reasonable price.

An example of a CFD trade

If Facebook�s shares were trading at a price of $192 and a trader bought one hundred shares at the current price, the total transaction would cost the trader $19,200.

Applying leverage

Now, let�s imagine a broker offered a margin (or leverage) of 10% or 10:1 on US stocks like Facebook. The trader could now make the exact same trade, but would only be required to put down $1,920 (10% of the cost).

What about the spread?

Some CFD brokers make their profits through what is called the spread.

This is a small difference in the buying and selling price of the CFD. When a trader enters a CFD trade, the online account will immediately show a loss equal to the size of the spread. Therefore, if the broker charges a spread of 10 cents, the trade will immediately show a loss of 10 cents when the trade is opened.

The blessing and curse of leverage

Using the example above, let�s imagine that Facebook made an announcement that increases its share price by 15% to $220. In this case, the trader would have made a profit of $2,800 (a 146% increase on their deposit of $1,920). As you can see from this example, leverage has the ability to magnify profits, but there�s also a dark side to leverage.

Now imagine that Facebook is involved in a scandal that unexpectedly plummeted its share price by 30% to $134. In this situation, the trader would have made a loss of $5,760, which means the trader would owe the broker more than the balance in their account.

Many reputable brokers now offer negative balance protection, which ensures that you never owe your broker more than your account balance. This works by closing out your trades when your margin is used up.

Limits on leverage (and how to get professional status as a trader)

In 2020, the European Securities and Markets Authority (ESMA) imposed rules that capped the amount of leverage that inexperienced traders were allowed to use. Prior to this, it was possible for most traders to get leverage as high as 500:1.

While the limits are constantly being reviewed, it�s currently only possible for retail traders to get leverage on major currencies of up to 30:1. For more volatile instruments like cryptocurrencies it�s 2:1. There may be a way to increase this, however.

If you meet the criteria of a professional trader, which means you meet at least two of the three criteria below, you can apply to be an elective professional with certain CFD providers which increases your leverage limits up to a possible 200:1 and usually includes a host of other benefits such as lower rates and a dedicated account manager.

Professional status criteria:

  • You�ve carried out a minimum of 10 significantly sized transactions at a frequency of 10 per quarter over the previous four quarters.
  • The size of your investment portfolio, including cash deposits and financial instruments, exceeds �500,000
  • You�ve worked (or work) in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged

It�s worth pointing out that there are often some features you lose access to by having elective professional status which varies from broker to broker that you should consider.

For more information on getting elective professional status, you can follow the links to the following brokers� web pages on getting professional status with them:

What are the pros and cons of CFD trading?

Pros

  • Access to a huge range of markets � including instruments that may not normally be available in the trader�s country.
  • Go long and short � With CFD trading it�s relatively easy to open a short (sell) position, allowing traders to potentially make money when an instrument goes down in price. With some other forms of trading it can be difficult to execute short positions without having already borrowed the instrument or having a relationship with the broker.
  • Leverage � While we�ve covered the downsides of leverage, it does allow traders to potentially maximise their gains with a lower initial deposit.
  • Instant order execution � With CFD trading, most orders are executed instantly with the click of a button so there is little risk of slippage or requotes.
  • Low fees and commissions � In comparison to traditional share trading, where it�s not unusual to pay ?7-12 per trade, most CFD trading platforms charge a relatively low commission that works out more cost-effective for higher-frequency trading or trading with lower amounts of money.
  • No stamp duty (UK only) � Because there is no exchange of an asset, there is no stamp duty to pay if you�re trading in the UK.

Cons

  • You can lose everything � While assets rarely plummet to zero in traditional stock or commodity trading, it�s possible to lose your entire balance (and more) with CFD trading as a result of using leverage.
  • Overnight fees � CFD trading is not ideal for holding positions for long periods of time as there are fees for holding a position overnight.
  • Lack of ownership � With CFD trading you own the contract � not the asset. This has its upsides � you can trade Bitcoin without having a crypto wallet, trade gold without having to pay for bullion storage, and trade foreign stocks without having to open accounts with international brokerages. There are some drawbacks, though. When you own a company�s stock, for example, you get voting rights and potential dividends.
  • Capital gains tax applies � Unlike spread betting, which is exempt from capital gains tax, CFD trades are subject to capital gains tax. You should seek specific financial advice for more information on this.

What CFD instruments can you trade?

As a CFD is simply a contract to pay the difference in value between the current price and a future price, there are few inherent limits on what can be traded as a CFD.

Generally speaking, though, the following asset classes are commonly available for online CFD trading, in approximate order of most popular to least:

  • Stocks (e.g. Facebook, Barclays, Vodafone, Tesla)
  • Cryptocurrencies (e.g. Bitcoin, Ripple, Ethereum)
  • Forex
  • Commodities (e.g. Gold, silver & oil)
  • Indices
  • ETFs
  • Options

To make it easy for you, we�ve highlighted which instruments each of the CFD brokers in our comparison table above.

How to Learn CFD Trading

While covering the vast number of CFD strategies is beyond the scope of this article, many brokers offer educational programmes, webinars, and seminars to make learning how to trade CFDs easier.

City Index has a particularly good online guide for learning how to trade CFDs using their Web Trader platform, which covers much of what we�ve already talked about but in greater detail and with specific examples.

XTB also provides an online trading academy, which has the advantage of offering different courses depending on your level of experience.

While their introduction to CFD trading is just two short lessons (and repeats much of what we�ve included here), they provide a very detailed course on fundamental analysis, which dives into specific strategies for trading CFD stocks, cryptocurrencies, commodities, as well as an introduction to interpreting macroeconomics, politics and central bank policy.

Why Choose XTB
For CFD’s?

XTB scored best in our review of the top brokers for cfd’s, which takes into account 120+ factors across eight categories. Here are some areas where XTB scored highly in:

  • 16+ years in business
  • Offers 1,500+ instruments
  • A range of platform inc. MT4, Mirror Trader, Web Trader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 0.20pips
  • Used by 230,000+ traders.
  • Offers demo account
  • 3 languages

XTB offers three ways to tradeForex, CFDs, Social Trading. If you wanted to trade DAX30

The two most important categories in our rating system are the cost of trading and the broker�s trust score. To calculate a broker�s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

XTB have a AAA trust score. This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 16

Trust Score comparison

XTB AvaTrade Plus500
Trust Score AAA AAA B
Established in 2002 2006 2008
Regulated by Financial Conduct Authority Central Bank of Ireland, ASIC, IIROC, FSA, FSB, UAE and BVI Financial Conduct Authority (FRN 509909) and Cyprus Securities and Exchange Commission (License No. 250/14). Plus500AU Pty Ltd (ACN 153301681), licensed by: ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546
Uses tier 1 banks
Company Type Private Private Private
Segregates client funds

A Comparison of XTB vs. AvaTrade vs. Plus500

Want to see how XTB stacks up against AvaTrade and Plus500? We�ve compared their spreads, features, and key information below.

Spread & fee comparsion

XTB AvaTrade Plus500
Fixed Spreads
Variable Spreads
EUR/USD Spread 0.20 0.70 0.60
GBP/USD Spread 0.1 1.6 0.01%
DAX Spread 0.9 1.5 0.01%
FTSE 100 Spread 0.50 1.0 0.02%
S&P500 Spread 0.10 0.25 0.02%

Comparison of account & trading features

XTB AvaTrade Plus500
Platform MT4, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps
Services Forex, CFDs, Social Trading Forex, CFDs, Spread Betting, Social Trading CFDs
Base currency options USD, GBP, EUR USD, GBP, EUR, JPY, AUD GBP, EUR, CHF, JPY, AUD, CAD, NZD, PLN
Funding options Payoneer, Credit cards, Bank transfer, PayPal, Neteller, DebitCard, Payoneer, Credit cards, Bank transfer, PayPal, Neteller, WebMoney, Credit cards, Bank transfer, PayPal, Skrill,
Micro account
ECN account

Frequently Asked Questions

What is CFD Trading? A contract for difference (CFD) is a contract written between a �speculator� and a �provider� such as a CFD firm. At the end of the contracted term, the parties settle by paying or receiving the difference between the opening and closing price of a specific underlying financial instrument, asset or exchange rate, with a CFD speculator taking the opposing side of the financial outcome from the CFD provider. How Does CFD Trading Work? A CFD is an agreement to pay the difference in the value of a particular underlying asset after the period of the contract expires. The underlying asset can be a company�s stock, foreign exchange, or market index among other commodities. While the actual underlying asset is never owned by the buyer or the seller, the profit (or loss) will be the difference in the price of the asset from when the contract was opened to the time it was closed. How do you make money CFD trading? Like most forms of trading, you make money in CFD trading by correctly speculating on the direction that an asset will move in the future. After placing a trade (with or without leverage) you will have made an immediate loss due to spread (the difference between the buy and sell price) and other fees taken by the broker. You must first, therefore, make back the cost of placing the trade, and anything above this break even point will be profit that can be crystalised by exiting the trade. Of course, it is equally possible that the trade goes in the opposite direction to what you had expected, which would result in a loss. What are CFD stocks? Unlike traditional stock trading where you own a �piece� of the company you buy stocks & shares in, in CFD stock trading you do not own the underlying asset (i.e. the stock). Instead, you agree to pay the difference in value between the current price and the price when you sell it, despite not owning it.

To discourage traders from holding onto assets indefinitely, there is usually a small fee for holding positions open overnight. Therefore, CFD trading is generally considered more suitable for shorter-term trading. How does CFD leverage work? Also called trading on margin, leverage enables traders to execute trades of a larger size than the balance in their account. For example, with 10:1 leverage you could make a ?10,000 trade with an account balance of just ?1,000. Is CFD trading halal? CFD trading is not permissable in Islam.

This is partly due to the interest that is incurred by holding positions overnight, which is problematic due to interest being forbidden in Sharia Law. Related to this is the existence of Riba, which is condemned in the Qur’an, and results from the counter-value being of the same genus as the value being traded. What does CFD stand for? CFD stands for contract for difference. Is CFD trading the same as spread betting? No. While there are many similarities between these two methods of trading, such as not owning the underlying asset you trade, there are also several crucial differences between them. For example, in spread betting each trade typically has a fixed expiry date, whereas CFD trades can be held indefinitely. Spread betting is also exempt from both stamp duty and capital gains tax in the UK, whereas CFD trading is only exempt from stamp duty. You can read more about the differences between CFD trading and spread betting here. Can you lose more money than you invest with CFDs? Yes. One of the main disadvantages of using leverage is that you can lose more money than you have available in your account if your trade moves too far in the opposite direction.

If a broker offers negative balance protection, this will prevent this from being the case as any trades that would force your account balance going below zero will be closed automatically. In 2020, this feature was made mandatory for retail CFD accounts in Europe under ESMA rulings in an attempt to protect retail traders from owing their broker more money than they had deposited. Is CFD trading taxable in the UK? CFD trading is subject to capital gains tax but not stamp duty in the UK, as there is no underlying asset being exchanged. However, if you are concerned about the tax treatment of CFD trading, we would recommend seeking the advice of a qualified financial advisor.

Секрет успеха:  Ангел Хранитель для бинарных опционов
Брокеры БО, дающие бонусы за открытие счета:
  • БИНАРИУМ
    БИНАРИУМ

    № 1 в рейтинге! Гарантия честности, высокий доход! Хороший выбор для начинающих. Бонус за регистрацию счета!

  • ФИНМАКС
    ФИНМАКС

    Разнообразные торговые инструменты для опытных трейдеров!

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