For individuals new to the stock market, it is a little-known fact that there is an enormous difference between day trading and investing. Television and internet ads often promote each…
Steps to start trading Share CFDs with FXCM
Unlike real shares, when you buy or sell a contract for difference (CFD), you trade the underlying asset, not the share itself. This is why you can short a share CFD, whereas you can only sell a real share – that's to say, you can't make money by speculating on a drop in the price of a real share.
Trading CFDs on shares, you can also buy or sell a fraction of the value of that share. Trading with us, you can go as low 1/10th of the size of a share. So, for example, if Apple was currently trading at $100, you could open a trade in CFD on this stock for just $10.
Shares Education for Beginners
You can search a specific Share CFD, or you can browse the entire offering in our Symbols List. One you know the company name or ticker you want to trade just double click to subscribe and the instrument will appear in the Dealing Rates window.
What are the costs of trading?
When trading Share CFDs with FXCM, trading costs are included in the spread and there are no extra commission fees charged when opening or closing positions and unlike many other brokers there are no minimum commission levels, so at FXCM you are able to avoid the extra costs of placing smaller trades.
The spread costs can easily be calculated on the Trading Station platform, as you can see the real-time spreads and pip costs (in your account denomination) before you enter any trade. To calculate the spread cost in the currency of your account:
(Pip Cost) x (Number of Contracts) x (Spread) = Total Transaction Cost
Can I hold my positions long term?
As long as there is sufficient margin in your account, you can hold your position indefinitely.
Any positions held past the closing time of a stock exchange may be subject to a "financing charge" which reflects in an FXCM account as "rollover." The financing adjustment will take place on the account after the close of the relevant stock exchange. Visit our CFD Product guide for more information.
The financing charges are updated daily and can be seen in the Trading Platforms under RollB and RollS.