Traditionally, if you needed to invest in a stock, a currency pair or any financial instrument, you would have to call your brokerage, confirm their trading account and the relevant trading conditions. Sounds complicated?
Luckily, online trading is widely available to traders and investors throughout the world today. With over ten years of experience, CMTrading offers the ultimate online trading experience, with 150+ tradable assets including 51 forex pairs, 73 US stocks, 15 commodities, 16 indices, 21 cryptocurrencies and more.
CMTrading traders enjoy ultramodern trading tech, high leverage, tight spreads, secure transactions, world-class support and much more. With full-fledged mobile apps, trading signals and daily technical analysis, online trading couldn’t be easier.
Trading stocks is fundamentally different than buying stocks. When a company goes public i.e. holds an IPO (initial public offering), shares of the company are listed on a stock exchange. This way, retail and institutional investors are free to buy shares in the company and become stakeholders. This is a mutually beneficial arrangement since the company can raise capital from selling its stocks and the investors can get dividends depending on the number of shares they own and how much the value of the stock appreciates over time. If the company does well in future, the value of the shares rises making it a win-win situation for both company owners and shareholders. Trading stock online is more akin to currency trading and involves a lot of speculation.
There are multiple benefits to investing in stocks, but it can prove to be quite a limiting experience for several reasons. Enter stock CFD trading. CFD stands for contract for difference and is essentially a contract between you and your broker to buy or sell some units of the underlying asset (in this case company shares) while paying the difference in price from the current going rate and the time of closing the trade. By offering CFDs on stocks, forex brokers have opened up the opportunities available in the online stock exchange to an even wider audience while making trading stock online a lot more favorable and accessible.
Even though owning stocks in a well-performing company can be very lucrative, it’s mostly considered a long-term investment which will take some time to pay off. On the other hand, by trading stock online, you have the opportunity of making instant profits by speculating on future price movements. You can even speculate on the price of a company’s stock going down and make a profit if it does. This is called short selling which although is available on a traditional online stock exchange as well – it is quite challenging to do and comes with additional fees and costs.
Want to get a piece of the largest financial market in the world? Look no further than forex, or currency trading. This popular market has a daily trading volume of over $6 trillion!
Currency traders profit from the fluctuation in the exchange rate between two national currencies, by buying or selling them. Unlike stock or index trading, the forex market is a vast network of major banks and high-level financial institutions.
CFDs have levelled the playing field in forex, allowing everyone — not only affluent investors or institutions — to trade forex. Currency trading through an award-winning broker like CMTrading has various advantages, among them:
CMTrading offers 51 leading currency pairs, including EURUSD, USDZAR, USDJPY and many others. As a trader, you must bear in mind that forex is amazingly fast and volatile. Also, be careful not to overuse leverage, and try to avoid scammers.
Start trading currencies with CMTrading today!
If you feel overwhelmed by the variety of stocks on the market, trading stock indices can be a great for you to start. CMtrading offers 16 popular global indices, including S&P 500, Nasdaq and FTSE.
Indices are a statistical measure of performance in the securities market. While you can’t buy them directly, you can gain exposure to them through investment products such as stock index CFDs or index funds.
There are various kinds of share index CFDs including fixed income indices, strategy indices and volatility indices. One of the most popular stock indices is the Standard and Poor index, covering over 70% of the stocks traded in the US.
Trading share CFDs has many advantages, among them:
With CMTrading you can trade the best index CFDs in the world and enjoy a leverage of up to 100:1, tight spreads, secure transactions and much more.
Start online share trading with CMTrading!
There is a way to trade stocks, commodities, forex, indices or even cryptocurrencies without actually owning them, and it’s called CFD trading.
CFD, or contracts for differences, is an advanced trading strategy that allows traders and investors to profit from underlying price movements of different instruments.
You can buy or sell CFDs like any other trading instrument and use technical and fundamental analysis to speculate future price movements.
Trading CFDs of commodities like gold, oil, coffee, or stocks like Apple, Amazon or Nike has significant advantages. You can profit from any price movement, be it a price hike or drop. In addition, unlike futures, CFDs can be traded in small sizes with high leverage. This means you can open an initial $50,000 position with as little as $1000.
Trade CFDs with CMTrading today!