Trade Contracts for Difference
Trade CFDs at low cost with an award winning platform
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61.0% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade Contracts for Difference (CFDs) with low commissions, deep liquidity from advanced trading platforms.
CFDs and Spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.70% of retail investor accounts lose money when trading with this provider. You should consider whether you understand how such products work, and whether you can afford to take the high risk of losing your money.
Single Stock Equity, Equity Index, Commodity And FX CFDs
At Marshall Sterling we provide Contracts For Difference (CFD) access to a broad range of markets including but not limited to Shares, Indices and Commodities.
We supply you with leading, professional grade, complementary trading platforms that includes access to a wide range of trading tools such as level two depth of market for shares, detailed charting packages and a host of technical analysis studies.
Our clients are also able to bolt on a wide variety of competitively priced news, research and depth of market subscriptions that aid in obtaining the a broader picture to assist in assessing the global investment landscape.
Our execution fees are amongst the lowest available globally, again helping our clients achieve their investment objectives.
More on CFDs
CFDs (Contracts For Difference) are essentially an agreement (Contract) between two parties to, at the closing of the contract, settle the difference between the opening and closing prices of the underlying asset.
You are able to trade CFDs via Direct Market Access (DMA) so as to provide best execution to our clients.
This provides clients with complete transparency of trade.
DMA essentially allows you to interact with the order book trading directly at market prices across many international exchanges.
CFDs are a particularly useful instrument as they allow (in most cases) the client the opportunity to make (or lose) money when the value of an underlying asset (be it an individual stock, indice or commodity etc) is not just rising like physical’s (Ordinary shares), but falling as well. Given market fluctuations in recent times, this is a particularly useful tool.
Another invaluable use for CFDs is to hedge your existing investments.
For example you can use CFDs to manage your downside on a particular investment by placing a hedge, thus carrying or protecting against the potential loss in the underlying asset.
CFDs utilise an initial deposit as margin and gear up that initial margin deposit to open a position in the market, thus increasing the size of exposure and risk or reward.
You are however able to use a smaller margin deposit in order enter a trade producing the effect of an unleveraged portfolio or transaction.
By doing so you are able to subsequently manage your risk more effectively.
Additionally risk can be managed by use of hedging and stop losses.
Leveraged products must be used responsibly as losses may exceed deposits. Please review our risk disclosure and request more information if necessary.
A working example of a CFD:
You may place an order using £10,000 of collateral and leverage your position 10x to £100,000.
Any movement in the underlying asset will be magnified 10x on your trade.
CFDs are a high risk instrument and there are stringent suitability criteria to adhere to.
We suggest the concept of only utilising a small element of your investment portfolio on such products. Please speak to your Independent Financial Adviser for more information and/or visit the Money Advice Service website at https://www.moneyadviceservice.org.uk.
However utilising the example above to illustrate the point, imagine you saw a 5% positive movement in the underlying asset.
This would equate to a 50% profit (or loss) on your utilised collateral as you are running a leveraged position of 10x.
Another words before commission you would see a return (or loss) of £5,000
Please note there are additional financing charges on CFD trades where borrowing has taken place. This is typically between 1% and 3% pa subject to interest rates.
Please ask for more details.
With derivative products such as CFDs, it is possible to lose more than your initial investment, as such these investment tools are not suitable for everyone.
CFDs are ideal for short term trading as the holder does not physically own the underlying asset and is subsequently not liable for Stamp Duty Reserve Tax.
Stop Loss order are available for peace of mind.
Please speak to your Marshall Sterling broker for further details.