Can CFDs make a difference to the way you trade Equities
It is an exciting time to be trading equities with markets in the US and Europe recording new highs. As part of your diversification strategy you may want to consider add contracts for difference (CFDs) to your portfolio. CFDs can be used to both speculate and hedge a range of assets whilst allowing you to diversify your current equity portfolio.
To find out more about CFD's click here.
Saxo Capital Markets is one of the few online brokers that allows you to trade both Equities and CFDs from one single account.
Here are some of the main features of CFD trading with Saxo Capital Markets.
- Build a multi-product portfolio in one trading account. Trade Shares, CFDs, FX, Futures and Bonds from the same account.
- No stamp duty (please remember that tax rules are subject to change)
- The opportunity to short or long the markets, potentially profiting from both rising and falling prices
- Trade UK and international shares from the same account
- Count on outstanding platform reliability
- Short-sell to protect your physical portfolio from adverse movements
- Trade online through our multi-asset award-winning platform
- Use up to 75%* of the value of your stock as collateral for trading in margined products such as FX and CFDs
- CFDs are traded in the same notional amounts as the underlying market, so there's no need to learn a new trading language
- You still get dividends from share CFD*
- Take advantage of half margin requirements on all CFD's (up to EUR 50,000 - or equivalent - of collateral)
* Subject to Saxo Capital Markets internal risk rating.
* You will still set cash adjustment
Equities and CFDs have more in common than you might think
Trading Equities and CFDs Equities are more similar than you think. You can apply your existing knowledge and trading strategy to CFD trading, diversifying your portfolio from Stocks to Stock indices, commodities, and ETFs to Forex - all with low margin requirements.
When trading a CFD, this mirrors the same exchanges and prices as trading Equities. The order functionality is exactly the same and you will also have access to the same order types as you would when placing an Equity trade.
Saxo Capital Markets uses Smart Order Routing on both CFD and Equities trades so you can benefit from the fastest and efficient level of execution. You also have the option to open a Direct Market Access (DMA) account that will enable you to place orders directly around the live market data, so you can combine the benefits of trading exchange pricing with the leverage of margin-traded CFDs.
Other Key features
Live price data from all offered stock exchanges
Saxo Capital Markets clients receive delayed pricing, which are subject to a subscription cost, where they can access free live price data on all stock exchanges. However, active clients placing four or more trades per month on the London Stock Exchange (either Stock trades or Single Stock CFD trades); will be entitled to a rebate. The rebate will only apply to Level 1 pricing and your subscription cost will be refunded directly to your account. For details on live price data and how to receive your discount, see Exchange agreements.
Low access fee to Stock Screener & Equity Research
Saxo Capital Markets offers full access to the advanced Stock Screener and Equity Research tool for a low monthly fee of EUR 1.99 per month (EUR 200 per month for Professionals) or equivalent. There are no activation costs and you can cancel your subscription at any time with no additional charge. For more information on trading conditions and commissions, and to learn more about using your Stock portfolio as collateral for margin trading, see Rates and Conditions.
Other Key Factors to consider when trading Equities and CFDs with Saxo Capital Markets
- Direct market access to 18,000+ Stocks on 30 stock exchanges
- Free Online triple access (desktop, web and mobile) to a single multi-asset account
- Free Smart Order Routing for best order execution
- Free advanced Charting Package
- Free placing/amending orders via the phone
- Free dedicated Client Trading manager
- Free Technical Analysis Tool
- Free Stocks portfolio as collateral for margin trading
- Free Economic CalendarFreeMarket News
- Free Auto-generated monthly account reports