FXCM Group Press Releases

CFD Trading with FXCM

CFD trading allows you to trade the price movements of currency, stock indices and commodities like gold and oil without buying the underlying product. When you trade CFDs (contracts for difference) with FXCM, you enjoy the benefits that only a global leader can provide.

Why Trade CFDs?

LOW TRADING COSTS

Lower trading costs can help your strategy execute more trades.

ACCESS TO LEVERAGE

Trade with up to 200:1 leverage on forex, indices and commodities.1

MULTI-ASSET PLATFORM

Trade 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.

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Why Trade CFDs?

A CFD, or contract for difference, is a security that allows two parties to exchange the difference between the opening and closing price of a contract. These agreements allow the two parties to settle the final contract using cash, instead of physical goods or securities. This approach frequently makes settlement easier.

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.

CFD Trading

Leverage:
These contracts also provide leverage, allowing investors to potentially generate more robust returns. Investors who trade these contracts 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. FXCM offers 200:1 leverage on forex, commodities and indices. 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 comes with low fees. When buying, a trader pays the ask price. When selling or taking a short position, a trader pays the bid price. The spread between these two is generally fixed, and its size depends on the volatility of the underlying asset.

No Stamp Duty:
When trading CFDs, investors are not obligated to pay a stamp duty, because these contracts are a type of derivative. As a result, investors that opt to trade CFDs may avoid the generating the tax liability they would incur by trading other securities. Investors should keep in mind that tax laws can change. Because every trader has unique circumstances, they may want to speak with an appropriate tax professional to get clarity on any questions.

24/7 Markets:
Another benefit of CFDs is that these securities trade 24 hours a day. 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 benefit associated with owning a security without actually having to possess it, they also come with all the risk associated with holding that security. CFDs offer traders the ability to use significant amounts of leverage, but leverage can dramatically amplify losses.

Why Trade With FXCM?
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 24/7 service on demand at any time.
  • Acclaimed execution: We use an innovative No Dealing Desk model, which offers low spreads and anonymous execution, for most CFD transactions
  • 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 trading today.

1 Leverage: Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors.