FXCM: the benefits of trading with CFDs

By James Hood
Michael Kamerman, Managing Director at FXCM, on the company’s recent single stock (share) CFD launch and the benefits that come from trading with CFDs...

It’s Tough Being Short

Most people prefer to buy. It’s more intuitive. 

Did you learn to “buy low, sell high” or “sell high, buy low”? You learned the first way. It’s ingrained in us to buy first. 

Would you rather click on flashing green or red lights on your platform? Doesn’t green mean go and red means stop? Most of us want to “go” and would rather click on green.

But in markets such as these, sometimes you do not want to buy. You want to sell because you think markets are headed lower. In those cases, you want to go short. Yet, going short can be tricky. Sometimes the ability to go short varies from broker-to-broker. Most times, you incur additional fees. So it’s worth considering trading CFDs instead.

Contracts-for-difference (CFDs) are an easier way for the trader to go short and have fewer restrictions and brokerage fees. While CFDs do have daily financing fees if your trades are left overnight, the asset class is generally utilised for short-term transactions. 

CFDs on Single Stocks with FXCM

As one of the most highly requested and anticipated products, FXCM is proud to add single stock (share) CFD trading to its retail offering. With this recent launch, retail clients will now be able to trade CFDs on individual company shares including Tesla, Apple, Exxon Mobil, Boeing, and more. 

American companies are reporting their earnings right now and traders are taking advantage of big moves as the Covid-19 pandemic has significantly altered the outlook for 2020. Stocks are volatile. Companies are struggling to provide forward guidance on earnings. Potential opportunities abound for traders ready to act.

Trading share CFDs with FXCM has advantages. All trades are commission-free with customers only paying the bid/ask spread. Trade sizes are low with the minimum trade size of 0.1 units of a share. Therefore, for a low cost and small financial outlay, traders can test their strategies without a big commitment. 

FXCM’s initial launch of share CFDs focuses on American stocks but the company is looking to quickly expand the list to approximately 100 shares from the United States, United Kingdom, Germany, France, and Spain. The product line is available on all of FXCM’s flagship platforms.

For more information on the product offering and trading risks, please visit FXCM’s websites

In a time when the market is in a constant state of change, it is important to have a reliable provider with full transparency and clear, secure regulation. As one of the world’s largest retail brokers and a leader in online trading with over 20 years of experience, FXCM has a wealth of expertise and knowledge to share with traders. Whether it’s foreign exchange, cryptos, commodities, or stock indices, FXCM is the broker that partners with you at every call, click, or tap. 

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 

75.38% 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.

Forex Capital Markets Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority. Registration number 217689. Registered in England and Wales with Companies House company number 04072877.

For more information about FXCM and the risks associated with trading, click here


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