CFD Trading Online with FXCM

A Contract for Difference (CFD) is a financial instrument where two parties exchange the difference between the opening and closing prices of a position, settled in cash. CFD trading allows you to speculate on the price movements of currencies, stock indices, and commodities like gold and oil without owning the underlying asset. This efficient approach to trading offers flexibility and ease of access across various markets. With FXCM, you benefit from the expertise and resources of a global trading leader.

Benefits of CFD Trading

ACCESS TO LEVERAGE

Leverage limits on the opening of a position vary of up to 30:1 depending on the tradeable instrument.¹

MULTI-ASSET PLATFORM

Trade CFDs including forex, indices and commodities from one powerful, easy-to-use platform.

TRADE RISING AND FALLING MARKETS

CFD trading is flexible, allowing you to take advantage of both rising and falling markets.

Risks of CFD Trading

Leverage amplifies losses: trading with leverage can dramatically amplify your profits or losses. Small market moves can have a big impact.
Magnified losses: profit or loss is calculated on the full position size, not the margin, so losses can exceed your margin.
No guaranteed liquidity: In fast or quiet markets, you may not be able to open or close a position at your expected price.

CFD Trading on my FXCM Account

By trading CFDs, investors can receive all the benefits associated with owning a security without actually possessing that security. Investors can harness these contracts to take long or short positions, speculating on the underlying asset's future price movements. Alternatively, they can use these contracts to hedge their portfolios, helping to manage different kinds of risk such as downside risk.

Leverage:

These contracts also provide leverage, allowing investors to potentially generate more robust returns. Investors who trade CFDs using leverage may only have to put up a small fraction of the contract's cost, so they can potentially generate a stronger return on investment.

Harnessing leverage can also allow investors to trade CFDs with a much smaller capital outlay. Leverage limits on the opening of a position vary of up to 30:1 depending on the tradeable instrument. Investors should keep in mind that leverage is a double-edged sword. While it can greatly amplify one's profits, it can also dramatically amplify their losses. Trading CFDs with any amount of leverage may not be suitable for all investors.

Low fees:

CFD trading can involve relatively low entry costs. The primary cost is the spread—the difference between the bid and ask price. This spread is contingent on market movements and liquidity, and it can widen significantly during periods of high volatility. Additionally, traders may incur other fees such as overnight financing charges.

24/5 Markets:

Another benefit of CFDs is that these securities trade 24 hours a day, five days a week. Even if an underlying markets is closed – the stock market, for example – an investor can still trade CFDs based on major stock market indices.

Key Considerations:

While CFDs offer investors all the benefits associated with owning a security without actually having to possess it, they also come with all the risks associated with holding that security. CFD Trading offers traders the ability to use significant amounts of leverage, but leverage can dramatically amplify losses.

Should I Choose FXCM As My CFD Broker?

We're a leading provider of not only forex, but also CFDs, which means trading with us will provide access to benefits that only a top broker can provide. These include:

Award-winning customer service: Get 24/5 service on demand at any time.
Free premier education: With on-demand lessons, webinars and real-time instruction, you have all the training you need at your fingertips

Additionally, you can trade on our proprietary Trading Station, one of the most innovative trading platforms in the market. Open a free forex demo account to start practicing forex and CFD trading today.