How To Trade WallStreetBets Stocks with CFDs Learn At CAPEX.com

We trade CFDs on some of the most popular stocks on the market at CAPEX, including those with a buzz on the wallstreetbets subreddit. Since this subreddit has been in the news for the last couple of months, we want to give you an insight on how to trade wallstreetbets stocks with CFDs.

Sign Up Now
about-monitors
capex-cfd-1-en

Customers can trade CFDs on many favourite assets

We have over 2,100 CFDs offered on our online platform to trade from, covering over 20 international markets. These include the most popular and volatile cryptocurrency CFDs and other financial markets like stocks and commodities.

Trading CFDs does carry a significant risk to your capital. Still, we offer a free demo account so that our customers can practise their trading skills and strategies before using real money to commit to transactions. We provide you with the right resources to ensure successful CFD trading, no matter how volatile the market is or what news has been released that can also cause fluctuations in asset prices.

Sign Up Now

Safe trading under a fully licensed broker

We are a well-regulated broker that promises to put the safety of its customers first within a trusted trading environment. We are regulated and licensed by CySEC (Cyprus Security and Exchange Commission) with the license number 292/16. We’re registered in many countries globally, including in the UK, Germany, Sweden and Poland.

Our platform’s services are legally recognised through the EEA, allowing our customers to trade confidently. We adhere to the highest security standards with the help of advanced technologies to ensure our customers don’t experience any security breaches or hacking incidents. Our clients’ data is confidential, and we continue to keep it that way.

Sign Up Now
explore-cx-trader

What is WallStreetBets?

Wallstreetbets is also known as r/wallstreetbets or WSB. It is a subreddit where amateur traders and subredditors discuss and debate stock and other financial trading news. It is most known for playing a significant role in the short squeeze of GameStop back at the start of 2021, where it caused significant losses for major US firms and short sellers in just a few days.

It is known for promoting aggressive trading strategies and methods that are highly speculative and highly leveraged trading. Most of the members are generally amateur traders or investors that ignore a lot of the fundamental analysis. So their techniques would be categorised as gambling rather than following a protocol for stock trading success.

Like CAPEX, many brokers have developed their platforms over the years to offer zero commission trading services and accessible mobile apps. It has encouraged members of wallstreetbets to commit to day trading and other high-risk trading opportunities on these platforms in the hopes of a quick return.

Meme stocks

What is a meme stocks meaning? Some subredditors use borrowed funds like overdrafts or student loans to purchase specific stocks like meme stocks. Meme stocks gained a lot of popularity over the past couple of years due to the rise in price and rise in returns they generate that some have experienced, like the infamous meme cryptocurrency Dogecoin.

Created a community

Members of the subreddit are known to be quite bold in their language as they refer to themselves using their own slang. Followers are referred to as ‘degenerates’, and other words are used like ‘stonks’ for stocks or ‘gay bears’ for individuals who expect a stock to decline. The words and conversations can be quite controversial. Still, the members have created this community that accepts these terms to be used purely in financial conversation and high risk investing.

Wallstreetbets have their moderators and rules that you should follow if you want to contribute to the subreddit. They allow you to post pictures and videos as well as discussions and questions for other members. It’s similar to the community you would find in an online broker like CAPEX, but without any regulations. High risks and quick decisions without the appropriate analysis are encouraged.

How did it start?

Wallstreetbets started as a small forum where high-risk traders and investors could discuss trading methods. The founder Jaime Rogozinski started WSB in 2012 after he was fed up with the pre-existing financial subreddits. The communities that existed would reject his high-risk trading ideas, so he took it upon himself to create a space where investors like himself could discuss their ideas without judgement or scrutiny.

Get Started with CAPEX

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.

Create Account

CFD trading

To answer how to trade wallstreetbets stocks with CFDs, first, we have to know more about the instrument. A contract for difference or CFD is a form of derivative trading that allows you to speculate on the trend of prices. Whether they increase or decrease, it works in different fast-paced financial markets like forex, shares, commodities and cryptocurrencies.

The contract for difference is between the investor and the investment bank, and it is usually short term. When the contract ends, the investor and the bank exchange the difference between the opening and closing prices. You can either make a profit or loss depending on which direction you decide to move your asset.

How does it work?

When you’re CFD trading with us, you don’t own a physical share or currency pair, for example. You do, however, trade several units for your specific asset. You buy or sell depending on if you think the prices will go up or go down. We offer over 2100 tradable CFDs from international financial markets like stock trading and crypto pairs here at CAPEX. We have the most popular stocks listed on the UK stock exchange and other global stock indices. If you decide to buy a stock with CFDs because you determined the price will rise, you then gain more of the CFDs you have bought every time the price does move in that direction. On the other hand, if the price moves in the opposite direction, you will lose CFDs and money.

Leverage and margin

Trading CFDs means you’re trading leverage. It means you only need to deposit a small fraction of the total value of that stock to be able to open a position. So it can be defined as trading on a margin because you’re meeting the margin requirements to begin the trade. You then have the opportunity to increase your returns or losses, depending on the movement of the stock’s price and whether you decide to buy or sell. There is a risk that you could lose all the capital that you deposited, but you won’t lose more than the account value.

Investing without leverage

We recently launched a new addition to our platform called StoX, which gives our customers access to trade over 50 of the world’s most prominent US-listed companies like Apple and Facebook without leverage and swap fees on long buy positions.

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

Example stock trading with CFDs

At CAPEX, you can stock trade with a variety of CFDs. We have included some of the most popular shares, which are highly discussed on the wallstreetbets forum.

Tesla

If you choose to trade Tesla stock with CFDs, you will get a 1:5 leverage with a 20% initial margin and a 10% maintenance margin. Currently, Tesla’s price has decreased, and the trader’s trend shows that the majority, around 93%, have decided to buy because the price is low. CEO Elon Musk is usually quite vocal online and through social media about upcoming vehicle releases and the impact of cryptocurrencies on his company. So it’s a good idea to monitor any news developments that could change the trader’s trend.

Nvidia

Nvidia will also trade with a 1:5 leverage and a 20% initial margin followed by a 10% maintenance margin. Currently, the price is on an upward trend, but around 96% of our traders are buying. Its presence in the WSB subreddit comes with mixed reviews as some users think the forum should stick to meme stocks and other volatile assets. But, its current increase in the market has proven popular and could soon be a favourite stock to consider.

Amazon

You can CFD trade Amazon with the same 1:5 leverage and the same 20% initial margin and 10% maintenance margin percentages as the other stocks. The price of Amazon is currently fluctuating but moving downwards, and the majority of traders trends, around 91%, are choosing to buy. On the WSB, there are daily memes and discussions about the executive chairman Jeff Bezos. He received backlash as he recently took a trip to space and thanked both Amazon workers and customers for funding his trip. The recent events could impact the stock’s price, so it’s good to monitor more outside news.

We at CAPEX offer zero commission trading

We do not charge commission fees to our customers to open or close a position on any of the financial instruments you want to trade across our range of CFDs on Forex, shares, bonds, ETFs, indices, commodities, cryptocurrencies and blends. It’s beneficial for customers because it means they can come out of trades with lower costs. We have considerable tight spreads depending on the market you’re trading in.

Advantages of using WallStreetBets

Positive impact

When the GameStop short squeeze took place earlier this year, it shone a light on the US financial markets bias towards wealthier investors and politicians. Americans felt that Wall Street always had a way of coming out on top due to its dishonest hedge funds and corporations operating for years. Whereas on the other hand, small investors wouldn’t benefit. The short squeeze was seen as a lesson to those prominent conglomerates because they and short sellers suffered a substantial financial loss.

CFDs are tax efficient

If you decide to choose a wallstreetbets stock to trade with CFDs, make sure you have done your fundamental research first. But, if you’re in the UK, there are no stamp duty fees to pay when trading CFDs. It may not apply in other countries, but in addition to the zero commission fees we offer at CAPEX, you could see a good amount of profit that isn’t taxed. However, we suggest you consult with a tax advisor to make sure that you comply with the tax regulation.

Generate conversation

Certain stocks could have a drastic price change due to the discussions and debates that are had. The wallstreetbets subreddit currently has over ten and a half million followers. So, when you think about a stock or any other asset gaining popularity, this could potentially be an excellent place to see what the buzz is about and why it’s so popular. It may benefit your finances or have the opposite effect, depending on what you do with the presented information on WSB.  However, it is not regulated, so you should consider backing up the reliability of the information on a platform like CAPEX.

 

Register

Register

Register an account on CAPEX.com and start trading.
Verify

Verify

Send over your documents and verify your account.
Deposit

Deposit

Login into your CAPEX.com account and deposit money.
Trade

Trade

Start trading with CFD’s and over 2100 other instruments.

Risks of following WallStreetBets

Unreliable sources

Many of the members and contributors are amateur traders, so they might not have the most reliable trading knowledge. The subreddit promotes high-risk stock trading methods that may not work for everyone. So we recommend that you do the necessary fundamental and technical research before going off on what you see being posted. Similarly, suppose there is a rumour about a company. In that case, it may not be accurate, so it’s wise not to follow the discussions of others blindly or risk losing your investments to wallstreetbets recommended stocks.

Volatility

As we’ve mentioned, wallstreetbets initiated the short squeeze for the company GameStop. The traction it created showed how volatile the market could and still can be. It is a valuable platform to read on popular trends and stocks that have a history of volatility. Unlike with us at CAPEX, where volatility is more likely to work in your favour. But the stock market is rapidly changing depending on outside influences, which you should still consider.

Staggering losses

Many members go on the subreddit to share their earnings, and there are examples of traders who have lost excessive amounts of money. We don’t think this is the best place to get advice or a ‘get rich quick scheme’ because its mantra is to discuss and practice high-risk methods. At CAPEX, we have our own online trading school. You can learn the basics and develop your stock trading skills and CFD trading determinations to have a more successful trading experience. It is not an investing subreddit, but more like a gambling subreddit.

Conclusion – Trade more than 2,000 CFDs on stocks at CAPEX

If you want to trade wallstreetbets recommended stocks, make sure to do your research on the specific company. Including the history of trends and the type of risks, it poses to you, the investor. Trading stocks, whether through CFDs or not, present a risk, but it is at an even higher risk if you were to follow the opinions of the wallstreetbets members religiously. We think it is good to read up on popular stock discussions and proceed with caution when trading.

We want all of our customers to trade confidently. So open an account at CAPEX.com today and start learning by trading on an online broker demo account and with the help of a magnitude of online resources to develop your understanding of stock trading with CFDs.

How To Trade WallStreetBets Stocks With CFDs – FAQ

👍What are the popular stocks on wallstreetbets?
🤔Should I trade CFDs?
👀Should I follow the advice of traders on wallstreetbets?