Contracts for difference (CFDs)
If you're a more experienced investor, CFDs may be a suitable investment vehicle for you.
A type of margin trade, CFDs offer you potentially high returns for low investments, as you speculate on the price movements of an underlying share or index rather than buying and holding stock. You take a long position if you think the underlying's price will rise or a short position if you think the price will fall.
As you initially deposit only a small proportion of the value of the trade – as little as 10% on most shares – the potential rewards are greater. Your losses can also be magnified, however, if the market moves against your expectations.
By trading CFDs through us, you can benefit from:
- Access to thousands of UK, US and European stocks and shares
- Access to major indices, sectors and currencies
- Low commission charges of just 0.15% on UK share trades
- Financing rates of 2.5% above the London Interbank Offered Rate (LIBOR) on long UK equity overnight positions
- Interest paid at LIBOR less 2.5% on overnight short positions
- The ability to trade via BARX, which gives you access to real-time market data and sophisticated trading tools
- Instant execution during market hours
- Exemption from stamp duty
- The ability to protect your share portfolio against falls in the value through hedging
- The opportunity to profit from short-term market fluctuations
