CFD (contract for difference) trading is becoming massively popular with independent traders and investors across the world. CFDs account for a growing proportion of the global forex market every year and are recognized as a flexible and effective investment tool. Traders are attracted by the simplicity and convenience of CFDs, the wide range of available trading assets, and the opportunity to make leveraged trades on small initial investments.
A major appeal of CFDs is that there is no need to purchase the underlying asset. When you trade an asset as a CFD you are investing on the price movement of the asset. Due to the inherent volatility of the financial markets asset prices fluctuate constantly. This is a potentially a major benefit to CFD traders because continual changes to asset prices create trading opportunities.
CFD Benefits – key points
- CFDs are simple, flexible and convenient
- Opteck currently offers over 1,000 trading assets as CFDs
- You can begin CFD trading with a small initial investment
- There is no requirement to purchase any underlying asset when you trade it as a CFD
- Risk management tools that help you to minimize losses and maximize profits
- Private trading with minimal bureaucracy and administration. No hidden fees, commissions or service charges.
Mobile trading brings traders a handheld trading platform that is designed to function perfectly on smartphones, tablets, iPads and similar devices. You can adapt your trading to your own personal schedule and stay connected to the markets at all times.
Mobile CFD Trading Benefits
- Respond instantly to sudden trading opportunities
- Receive trading signals and alerts
- Trade on market events across time zones
- Manage your trading account and transfer funds securely
- Never be more than 1 click from your portfolio and money
CFD mobile trading is the ultimate modern financial instrument. The whole concept evolved out of 21st-century traders’ need for personal independence and absolute control over their own investments. Traders were also searching for a way of investing that is compatible with hectic modern lifestyles and all the opportunities of the 24/5 international financial markets.
Some frequently asked Questions about CFD Trading
Is CFD trading similar to forex trading or spread betting?
CFDs are a financial instrument (i.e. a way of trading assets) they can be used to invest in forex (foreign currencies) as well as in a variety of other assets such as commodities, indices and stocks. CFDs give independent traders easy and secure access to the daily trillion dollar forex market but are not a form of forex trading per se. Most CFD traders aim to build a balanced portfolio that contains a mix of forex and other less volatile assets.
CFD trading is a serious form of investing. Traders make careful use of technical and fundamental analysis, trading strategies, and all available trading tools to make informed investment decisions. Any similarity to spread betting or financial spread betting is superficial. Interestingly, many people who were initially interested in spread betting saw its limitations and began trading CFDs instead.
Is CFD Trading risky?
CFD trading is like any form of investment – if you make the wrong decision you can lose money. Even professional traders and the big investment funds expect to lose on some trades. CFD benefits include a high degree of risk management, transparency, effective trading and analysis tools, and live data straight from the financial markets.
What Protection do I have as an Investor?
- Opteck is a regulated investor. Your funds are held in a segregated account, and your rights as a trader are protected under EU law.
- We invest heavily in the latest encryption and data protection technology.
- Opteck also maintains its own rigorous complaints procedure and customer service policy. Your first line of protection will always be your personal account manager.