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Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.23% 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. Please read the Risk Disclosure and Warning Notice.
Risk Warning: CFDs on Virtual currencies are not suitable for all investors. They are complex, extremely risky and usually highly speculative with values subject to extreme price volatility and hence may result in losing all the invested capital over a short period of time. You should avoid trading such products if you do not have the necessary knowledge in this specific product and/or if you cannot bear the loss of the entire invested amount.
Disclaimer: First Prudential Markets Ltd assumes no liability as to the accuracy or completeness of the information provided. This communication must not be reproduced or further distributed without prior permission.
* There might be charges for certain transactions i.e. bank wire charges.
** The average order execution time between the trade being received, processed and confirmed as executed by us is on average less than 40 milliseconds. As observed from our bridge provider between 01/01/2020 - 31/12/2021 (except majority of CFDs on Indices).
*** Terms and conditions apply.
^ Sat & Sun 08:00am to 16:00pm (GMT+3).
FAQs
A contract for difference (CFD) allows traders to speculate on the future market movements of an underlying asset, without actually owning or taking physical delivery of the underlying asset. CFDs are available for a range of underlying assets, such as shares, commodities, and foreign exchange.
What is the difference between a forex broker and a CFD broker? ›
The main difference between trading CFDs and forex is that the first are instruments that derive their value from an underlying asset, rather than the asset itself. On the other hand, forex involves trading fiat currencies, although you can use CFDs to trade forex.
Has anyone made money in CFD trading? ›
It's possible to make money trading CFDs with experience and a thorough understanding of how the financial markets work. But, it's well known that around 75% of retail traders (private investors) lose money when trading CFDs.
Can I trade CFD in the USA? ›
CFDs are illegal in the US because they are an over-the-counter (OTC) trading product. OTC trading products aren't listed on regulated exchanges like the New York Stock Exchange (NYSE), bypassing US regulatory bodies. However, US traders have alternatives such as forex, options and stocks.
Is CFD trading real or fake? ›
The problem is not with CFDs, which are a legitimate investment and trading product. They work on the basis that you trade on leverage and your profit and loss is based on the difference between the opening and closing price you trade at.
Is CFD trading good for beginners? ›
CFD trading can be attractive to beginner traders, but it also involves significant risk. First, beginner traders should make sure they understand the basics of CFD trading, including leverage, margin and stop-loss orders. It's also crucial to choose a reputable and regulated CFD broker.
Which is better, forex or CFD? ›
Unlike forex which limits you to currency pairs only, CFDs allow you to trade a wider range of assets, including forex. There isn't much diversity in the forex markets. For example, most forex brokers offer the major eight currency pairs, but also allow you to trade up to 70 other minor currencies.
How much does CFD cost? ›
Commissions start at 0.5 cents per US share and 0.05% on all other share CFDs, with lower rates available for active traders. Overnight financing charges start at benchmark +/-1.5%, with lower spreads available for larger balances.
Why do CFD traders lose money? ›
By failing to adopt certain risk management techniques and simply opening trades without protecting their trades with take-profit and stop-loss orders, they risk losing all their trading funds.
Are CFD brokers safe? ›
CFDs can be quite risky due to low industry regulation, potential lack of liquidity, and the need to maintain an adequate margin due to leveraged losses.
Many CFD brokers make money from trading against their clients and profitable clients make them lose money. This is similar to how casinos operate. Casinos ban profitable customers.
Why is CFD not allowed in US? ›
The main reason why CFD trading is not available to US traders is because it is against US securities law. Over the counter financial instruments, such as CFDs, are heavily regulated through legislation like the Dodd Frank Act and enforced by the SEC (Securities and Exchange Commission).
Why is CFD banned? ›
The ban aims to address concerns about leverage and protect investors from potential losses. While CFD trading is prohibited for US citizens, US brokers can offer CFDs to residents of other countries.
Why is CFD trading so hard? ›
This requires constant vigilance of the market and price movements. As well as the use of effective risk management to safeguard funds. Some of the most popular risk management tools used in CFD trading are stop-loss and take-profit orders.
Do professional traders use CFDs? ›
CFDs offer flexibility, leverage and cost effectiveness to institutional, professional and non-professional traders alike.
Are CFD brokers good? ›
CFD's are complex instruments come with a high risk of losing your money rapidly due to leverage. Between 74%-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Does TD Ameritrade have CFD? ›
Unfortunately, you can't trade stock CFDs at TD Ameritrade. But we have reviewed 100+ brokers to create a list of the best CFD brokers in 2024; all offer stock CFDs to trade, so pick one that suits your needs.
