A CFD is simply an agreement to exchange the difference in value of a particular share between the time at which a contract is opened and the time at which it is closed.  CFD trading is very similar to normal share dealing. You deal at the cash price of the share, and pay a commission which is calculated as a percentage of the value of the transaction. Our standard commission rate for UK shares is just 0.25%

When you open a position, however, you do not have to pay for the full value of the shares. Instead you put up a deposit, from just 5% for some shares.

CFDs have no fixed expiry date, giving you the freedom to close your position when you choose. While your position remains open, your account is debited or credited to reflect interest and dividend adjustments.

Being a geared, derivative product, CFDs carry a higher degree of risk than ordinary share dealing and is a service only available to Intermediate Customers ie. customers that can demonstrate sufficient experience.  Please read the CFD Trading Fact Sheet below and read the risk warning carefully.

Equitrade Capital has particular expertise in this area and for those clients that feel this product is suitable, trading CFDs can be a useful strategy to add to any portfolio. For further information please contact Mr Amarjet Snehi or email a.snehi@equitradecapital.co.uk.  Alternatively please visit www.equitradecapital.co.uk for more information.

For more information please read our CFD Fact Sheet.