Why trade CFDs

CFD trading with Central Markets

Online CFD trading with Central Markets provides easy access to all major exchanges across the globe, plus  access to 21 Index-tracking CFDs that follow these exchanges. CFDs are a versatile option for trading and investing  in most market conditions CFDs allow investors to hedge current stock positions or to profit when stocks fall.

In bear market conditions, CFDs can be shorted (sold), enabling you to look for a decline in a certain stocks or indices, and sell that stock or index to realise a profit from its decline in value.

CFDs were traditionally only available to institutional investors, now they are one of the world’s fastest growing ways to trade the financial markets.

A CFD enables you to trade on a financial instrument such as a share or a commodity without having to physically own it. This means CFDs have a large number of benefits over traditional ways of trading such as buying and selling shares through a stockbroker.

Benefits of CFDs

  • Trade in falling markets and short sell and CFD
  • CFDs are an margined product and clients are offered up to 20 times leverage
  • Online CFD prices streamed directly to your desktop  providing split-second trading executions and substantial liquidity
  • Online streaming prices provide instant execution through one click trading
  • No stamp duty when trading CFDs

Trade with Low Commissions

Central Markets charge a low commission charge on equity instruments, currently. Please check our Rates Schedule for current charges.

No Stamp Duty

Unlike traditional share trading CFDs incur no stamp duty on UK Shares.

Access Global Markets

CFDs allow you to trade on a whole host of global instruments all from one account. Trade on Shares, Indices, Commodities, Sectors and Treasuries 24 hours a day.

Margin Trading

CFDs are a leveraged product which means that you are only required to deposit a fraction of the overall value of the trade.

Typically margins with Central Markets vary between 5% and 10%. Margin means you can magnify the returns on your investment.

However, it is important to remember that losses too will be magnified so margin trading is not necessarily for everyone.

Going Long or Short with CFDs

Markets go down as well as up. With CFDs you can potentially profit from falling markets because you are trading on the price movement of a financial instrument without physically owning it.

This makes it as easy to sell an instrument as it is to buy. This is known as ‘going short’.

Risk Warning:

CFD’s are highly complex and carry a high degree of risk to your money.  It is possible to lose more than your initial investment as you may have to pay more money into the investment than you did at the start, to make up for the difference.  So make sure you fully understand the risks involved and seek professional financial advice if necessary.  You should only take a risk with money you can afford to lose.