What is the difference between CFD trading and actual stock ownership?

✦

I see brokers offering CFDs on stocks. How is this different from buying actual shares?

👍🔥📈1 reaction2 answers

💡 2 Answers

Price Action Pro

Trader · 15 days ago

With CFDs you never own the underlying asset — you are trading price movement only. No dividends, no voting rights.

👍 4

Wolf Cub

Trader · 15 days ago

CFDs allow leverage and short selling easily, but you pay overnight financing charges. For long-term holding, always own the actual stock.

👍 1