CFDs allow you to take a position in stocks from everywhere the planet during a very easy way. because of brokers offering CFDs, you’ll be ready to trade the stocks of your choice for the short, medium or future .
Indeed, because of the explosion of CFDs, you’re not obliged to travel through your bank and buy shares via a securities account or a PEA but far more simply because of trading platforms .
If you’ve never heard of CFDs, we invite you to see out our article on the advantages of those stock products .
CFD trading South Africa platforms
| Forex Brokers | Minimum Deposit | Support | Rating | Visit Site |
|---|---|---|---|---|
|
1
|
R 1500 |
98.05% |
Start Trading Plus500 south Africa | |
| Recommended CFD Site South Africa! | ||||
|
2
|
R 1500 |
98.05% |
Start Trading Easy Markets south Africa | |
| Highly Recommended CFD Site South Africa! | ||||
|
3
|
R 1500 |
98.21% |
Start Trading XM Forex South Africa | |
| Best South African CFD Brokers | ||||
|
4
|
R 1600 |
98.05% |
Start Trading Hycm markets South Africa | |
| One of the Best CFD Trading in South Africa | ||||
|
5
|
R 1200 |
98.11% |
Start Trading Avatrade South Africa | |
| Most Popular South Africa CFD Trading Site | ||||
- CFDs on shares have many advantages over buying shares through traditional media and even over other derivatives like warrants, turbos etc. Here may be a list of the most benefits.
- you’ll not have any costs aside from the spread, ie the difference between the worth and therefore the sale also as a maintenance margin (if you retain your shares for an extended time). All this is often clearly defined by your broker, we advise you Etoro which is that the most advantageous.
- You will enjoy a leverage of around 5 on the shares, which can allow you to start out with alittle capital.
- You will receive the dividends , as if you own the shares in hard ownership.
- You can, consistent with your desires, trade up or down .
Simple Example for Trading Stocks
Imagine that the BNP Paribas share price is € 40 and you would like to shop for 100, you’d need, if you purchased shares within the traditional way, a budget of € 4,000 (100 BNP Paris shares x € 40 = 4000 €).
- With Stock CFDs, if you would like to shop for 100 BNP Paribas shares, you simply need a budget of € 800 because of the leverage effect .
- The upward / downward movements are amplified by 5 times because of the leverage effect of 5 (If the BNP Paribas share gains 1% your gain are going to be 5%), so you would like to immobilize 5 times less money to take a position …
- If the BNP Paribas share climbed to € 42 and you would like to sell your Shares, you’ll earn 100 x € 2, or € 200 profit .
- If the BNP Paribas share drops to € 38 and you would like to spare it, you’ll lose 100 x € 2, or € 200 loss .
- As you’ll see, CFDs on Stocks are relatively easy to know . Note that there are risks of losing your capital with CFDs .