When to Trade CFD Shares

CFD trading shares are a good choice for investors with limited capital and those who want to trade on overseas markets without having to open a full brokerage account.

Thanks to the ability to employ leverage, CFDs are also ideal for day traders and short-term traders who want to engage in shares dealing with less capital.

CFD share trading will only work in the long run if you have a transparent, regulated, and reputable broker. TMGM meets these requirements.

You can contact us with questions or open an account today.

Frequently Ask Question

You can start CFD share trading by opening an account with us today. With TMGM, you can learn the nuances of CFDs with a demo account before you move to live trading.

When starting, you should select a platform and ensure you know how to place orders, read charts and indicators, and use risk management tools.

When you start trading CFDs, you must meet your broker's minimum deposit requirements. At TMGM, you need $100 to open an account. The amount of capital will depend on your plans. If you are learning to trade, $100 is enough to start your career. However, you may need more if you would like to open larger positions and meet your broker's margin requirements.

When you trade with TMGM, you do not own shares. A contract for difference is a derivative that tracks the stock but does not give you any ownership rights. Unlike with options or futures, you do not have the right or obligation to buy or sell shares directly. CFDs merely track the underlying stock's price movements so that you can benefit from price movements without purchasing the shares.

There is no single correct answer to the CFD vs. share trading comparison. These instruments serve different purposes. Shares give you ownership of the asset, so you can enjoy benefits like dividends and long-term gains. CFDs do not have the same investing benefits, but they allow you to track the market with limited capital, so they are better for day trading and short-term strategies.

So, if you are an active trader with limited capital, CFDs are better than stocks for your goals.

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Please be aware that Trademax Global Limited (TMGM) is not authorised by the Financial Conduct Authority (FCA) to provide financial services in the UK.

Therefore, where TMGM provides you with financial products or services, you will not have the benefit of the various protections that are available to clients of regulated UK investment firms. This includes that:

  • you will be unable to lodge complaints about us, or the services we provide, with the Financial Ombudsman Service;
  • you will not be protected by the Financial Services Compensation Scheme in the event of our insolvency
  • we will not protect your assets pursuant to the FCA's client asset protection regime;
  • where you trade contracts-for-difference:
    • the amount that you may lose could exceed the amount that you have invested, noting that you will not have the benefit of negative balance protection.

If you are uncomfortable with not having the benefit of the above protections, you should not trade with TMGM.

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