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Choosing which instrument to trade can be a challenge, but in our following CFD vs spread betting guide, we aim to help you decide which instrument you should trade.
We’ll also go over the factors that make us, at CAPEX, the best online broker for beginners and experts.
It’s normal to feel stuck or confused while trying to figure out a trading platform or instrument, which is why available customer support is essential. At CAPEX, we offer our traders customer support through phone, live chat, and email.
Our customer support team is available seven days a week, ensuring that they proficiently resolve any incoming queries. Plus, we understand that our customers are from all over the world, which is why we offer customer support in several languages. Traders can also refer to our FAQs page in case a query arises, as we’ve tried to answer a number of commonly recurring questions there.
Trading on a platform that is complicated can lead to an extremely poor trading experience. Beginning your journey as an investor is already an overwhelming experience, and the last thing you want is a platform that seems like a maze.
Luckily, here at CAPEX, we offer our traders two smooth and user-friendly trading platforms – The MT5 Trader and CAPEX WebTrader. Both our platforms are super easy to use and have several integrated tools to support traders throughout their investment journey.
CFDs or contract for differences are a well-known type of financial derivative in which two parties speculate on an asset’s future price and trade a contract based on that speculation. CFDs do not involve the buying or selling of any underlying asset; instead, CFD traders buy and sell contracts only. The contract is an agreement between a buyer and a seller to exchange the difference of an asset’s value between a given time period.
A plus point of trading CFDs is that they can be traded in rising and falling markets because a CFD trader can open a position when the market seems to be falling and buy a position when the market is set to rise. Plus, CFDs are traded with leverage, so CFD traders can invest less capital & obtain greater exposure.
Experience a new level of trading with the right support when you need it. Sign up for a free account and trade smart with CAPEX.com.
Here at CAPEX, we offer traders learning tools and features to better manage the risk in CFD trades. We want our traders to have the best possible trading experience, which is why our trading platforms are designed in a user-friendly manner as well.
Spread betting is a type of derivative in which a trader places a speculative bet on an asset’s price movement and makes a profit if the speculation is correct. There is no buying or selling of underlying assets involved in spread betting; instead, it’s more like placing price bets whether a market is rising or falling.
Spread betting involves leverage, so you can place a bet worth much more than the capital you invest. While this offers great market exposure for a smaller investment, it also increases the risk in your investment because you can end up losing more than you invest.
We, at CAPEX, offer a fully featured demo trading account that mimics the live trading platform perfectly. Forex traders can practice strategies, explore the platform, and make mistakes without risking any real money. You can trade exactly the same way you would for real but use virtual funds instead. Better still the market values will be the same as the real markets, meaning you can experience real trading with absolutely zero risk. There really is no better way to learn to trade than with CAPEX.
The major similarities between CFDs and spread bets are that:
While CFD trading and spread betting may seem like the same thing, there are a few differences to consider:
It all comes down to what you’re looking for as an investor. If you’re still confused, you can try our CAPEX demo trading platform feature, which allows traders to have a life-like trading experience on a simulated trading platform.
No instrument is better than the other because each trading instrument comes with its own pros and cons. Although, it’s safe to say that one instrument might suit your trading needs better than others. You just need to ask yourself which instrument suits your trading needs better.
If you’re looking for an instrument that allows you diversification, can be traded with limited capital, and offers flexibility – CFDs should be your go-to option. After all, not only can you trade CFDs in a wide range of markets, but you can also trade with high leverage and renew your CFD contract in case it’s going well, and you want to continue earning through it.
Here at CAPEX, we offer traders over 2100 tradable instruments that can be invested in through CFD. Plus, we offer the highest leverage ratio to our expert traders and the lowest trading costs (commissions/spreads) for all our investors.
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CFDs are high-risk instruments, and in order to trade them and have a good experience, you need to be aware of some essential tips. Continue reading to learn a few effective trading tips.
Research is extremely underrated, especially when it comes to trading. Mainly because the more you know, the better trading decisions you’ll make. It’s extremely important to know the market you’re investing in, especially the factors that affect that market. So focus on research and ongoing learning.
The last thing you want to do is put all your eggs in the same basket. Diversify your trades so you can reduce the risk of losing most of your money. If one trade doesn’t go so well, you might be able to recover from that through other trades.
Trading strategies provide traders with direction. It’s easy to let emotions rule your decisions when you’re trading, but sticking to strategies helps avoid such happenings. Plus, most expert traders have strategies up their sleeves, which is why they’re able to make a successful trade. So, you can learn trading strategies that are proven to be effective and practice them on our demo trading account.
Demo accounts are highly beneficial because they give insight into where you stand in terms of trading knowledge and skills. Plus, they provide you with an opportunity to polish your trading skills without risking any money. You can even learn how to apply strategies and see if they’re effective.
Here at CAPEX, we offer traders an excellent demo account feature and plenty of learning tools to support them through their trading journey. Traders can learn trading through our online trading school named Capex Academy. We also offer a trading dictionary and expert trading blog.
RegisterRegister an account on CAPEX.com and start trading.
VerifySend over your documents and verify your account.
DepositLogin into your CAPEX.com account and deposit money.
TradeStart trading with CFD’s and over 2100 other instruments.
Signing up with CAPEX is extremely easy; all you need to do is:
Once you’ve completed the above steps, your account should shortly be verified and ready to use. We recommend traders to try out our CFD trading demo account before they invest any capital so they can develop a better understanding of how CFDs work.
Choosing which instrument to trade isn’t an easy task, which is why CAPEX encourages traders to research each instrument before investing. While CFD trading and spread betting have many similarities, they’re both unique trading instruments, and one might be more suitable for you than the other.
During our CFD vs spread betting guide, we concluded that CFDs offer more trading flexibility and are simpler instruments to trade. In that sense, we’d suggest that you give CFD trading a go. You can sign up with our online broker demo account and experience CFD trading with zero risks.