Last Updated on:
CFDs and stocks are both effective trading instruments with excellent earning potential; however, one might be a better choice than the other for you.
Continue reading our CFD vs stocks guide to figure out which instrument is better for you, and how we at CAPEX offer the best CFD trading experience for beginners and experts alike.
Having the opportunity to invest in a diverse range of markets is essential as it allows traders to spread out their trades and reduce the risk of loss. Here at CAPEX, we offer traders over 2100 unique instruments that can be traded through CFDs. You can trade CFDs on stocks, indices, ETFs, commodities, bonds, blends, forex, and cryptocurrencies, all through a single CFD trading account.
The most important factor in becoming an expert trader is focusing on ongoing learning. The more you know, the better you trade.
Keeping that in mind, we at CAPEX offer our traders a number of learning tools and features including CAPEX Academy, where everyone can learn trading through video content. Similarly, we have an expert trading blog that keeps traders updated with ongoing market trends. We also have a trading dictionary so traders can make themselves familiar with commonly used phrases and terminologies.
CFDs, short for contract for differences, are a famous form of financial derivatives in which two parties agree to trade a contract based on an asset’s future price speculation. A CFD trader doesn’t actually buy and sell an asset like you do while trading stocks; instead, the trader buys a contract from a CFD provider.
CFDs can be traded with leverage, which means you can invest a limited amount of funds in obtaining greater market exposure. Here are the major pros and cons of trading CFDs:
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.
A stock refers to the total shares that make up a company’s entire worth. When a trader buys a company’s share, he or she becomes a partial owner of that company and is entitled to a share of the company’s profits & assets. Shareowners may also get the right to vote during a company’s annual shareholder meeting.
Stock trading can be done through online brokerage platforms and are amongst the most popular financial instruments traded for profits. If you feel like a company’s value will rise shortly, you can invest in its shares. If the company’s share value does go up, you’ll make a profit. Although, if the company goes down in value you might end up in loss.
A huge plus point of trading stocks is that they offer dividends, which provides financial security to investors.
Knowledge is Power!
When it comes to your money - it's priceless.
An investment in learning how to trade always pays the best dividends. Get access to the right resources, tools and information so you can trade with all the information available!Sign Up and enjoy our in-platform trading lessons
Stocks and CFDs are similar in a few ways; for instance, both are traded for the same reason, which is to make a profit. Plus, both offer users a wide range of trading opportunities. However, there are several differences to consider as well.
Having low trading fees is always a plus point as it allows you to avoid unnecessary expenses while giving you the opportunity to keep most of your profits to yourself. Here at CAPEX, we offer traders some of the lowest trading spreads, fees and commission rates that are extremely low as well. On top of that, we do not charge a deposit or withdrawal fee, nor do we have a minimum deposit amount. Our aim is to provide the best possible CFD trading experience with the lowest trading fees and costs.
If you’re looking for an instrument that allows you to invest less capital in return for greater market exposure, opens doors to endless investment opportunities and has lower trading costs, CFDs should be your go-to option. Here at CAPEX, we’re dedicated to making your CFD trading journey as smooth as possible with the help of advanced learning tools and excellent trading platforms.
On the other hand, it’s essential to know that trading CFDs with leverage also represents a high risk. Therefore, we recommend you practice CFD trading in our demo account using virtual money before investing with real money.
Trading CFDs can be extremely rewarding if you choose the best CFD trading platform for your trading journey. Continue reading to find out what to look for in the best online broker for beginners and how CAPEX offers all of these things.
The first sign of a secure and legitimate broker is the license and regulation it practises under. We at CAPEX.com operate under Key Way Investments LTD, a Cyprus Securities and Exchange Commission (CySEC) regulated entity, which is a tier-1 financial authority. Being licensed by CySEC means having to follow strict rules and guidelines to ensure any of our client’s information and funds are fully secured.
As CAPEX, we also operate in Seychelles, the United Arab Emirates and South Africa, under other entities that are part of the group, which are regulated by the Seychelles Financial Services Authority, the ADGM Financial Services Regulatory Authority, and the Financial Sector Conduct Authority (FSCA), respectively.
Trading on a platform that’s confusing or isn’t smooth could lead to an extremely poor trading experience. Your priority should be finding a trading platform that is highly intuitive, has a smooth interface and is easy to use for every trader. At CAPEX, we offer traders two unique trading platforms – The MT5 Trader & Capex WebTrader, both of which are extremely user-oriented and easy on the eyes. All our features are laid out neatly on our platform, with the most important functions being just a click away.
Any broker that cares about its traders and the outcome of their trading experience will offer available customer support. After all, what could be worse than waiting for an important issue to be resolved? Here at CAPEX, we have a team of dedicated customer support advisors who are available seven days a week. Our multilingual customer support team can be reached through email, live chat, and phone. Plus, we have an elaborative FAQs page on our website, where we have answered all commonly recurring questions in a thorough manner.
The secret to succeeding as a trader is focusing on ongoing learning. The more knowledge you obtain, the better decisions you’ll make while investing. At CAPEX, we offer our traders several learning tools and features such as a trading dictionary that allows you to become familiar with basic trading terminologies. We also have an online trading school named CAPEX Academy, where everyone can learn trading through informative videos made by investment experts. Similarly, we allow our traders to track and follow the expert traders through a tool integrated into our MT5 trading platform.
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.
Here’s a step by step guide on signing up for a CFD trading account with us at CAPEX:
Once you’ve completed the signing up process, your account should be verified and ready to use in no time. We don’t have a minimum deposit requirement, so you can begin your trading journey straight away. Although, we do recommend starting off with smaller investments and practicing stocks trading with demo account first to reduce risk.
Deciding which instrument to trade can be tough, as each one has its own benefits and risks. While CFDs and stocks are both profitable instruments, CFDs might be the better choice for you based on a few factors. For instance, CFDs offer more trading options, they can be traded with limited capital, and CFDs allow traders to benefit from rising plus falling markets.
Being the best CFD broker for every kind of trader, at CAPEX, we are dedicated to providing the best CFD trading experience. Luckily we’re able to achieve our goals with the help of excellent trading platforms, high-quality learning tools, excellent customer support, a wide range of CFD offerings, and a lot more. Hop on to our website and sign up with us for free to begin your CFD trading journey today.