Skip to main content

Trade stocks with CFDs

CFDs allow you to take a position in stocks from everywhere the planet during a very easy way. because of brokers offering CFDsyou’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
Easy Markets south Africa
R 1800
98.05%
Start Trading
Highly Recommended CFD Site South Africa!
2
XM Forex South Africa
R 1500
98.21%
Start Trading
Best South African CFD Brokers
3
hycm markets South Africa
R 1600
98.05%
Start Trading
One of the Best CFD Trading in South Africa
4
Avatrade South Africa
R 1200
98.11%
Start Trading
Most Popular South Africa CFD Trading Site

The Advantages of CFDs on Shares Trade stocks with CFDs

  • 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 .