Forex Trading Disadvantages
What should I trade out of CFD’s, (contracts for differences) or spread betting? Which is better, I want to…?
I am already an investor in the stock market and have traded live forex before and have done quite well.
For the past year, I have been practicing trading CFD’s (contracts for differences) and spread betting in demo accounts.
With CFD’s, I prefer to trade stocks & shares, and with spread betting I prefer to trade currencies because I’m good at it. I only want to choose one instrument to do my trading on the finacial markets, however.
Which out of spread betting or CFD’s would you say is the best instrument to get started with? What are the advantages/disadvantages between the two? Please help/advise. Thanks.
P.S. I’m really trying to decide.
CFDs are an alternative to short term trading the stock. The lack of stamp duty on a CFD will gradually be outweighed by the financing charge.
Plus points are: same spread as market, and the ability to join the order book.
SB is just that, betting. No CGT, no stamp, no financing charge. But, wide spreads, take or leave the price, sometimes no liquidity in small shares (or no on-line dealing). You can deal, sorry, bet on almost anything, index Futures. Index Options, shares etc.
All good fun!
Forex Trading |Class #7 Concepts of Fundamentals| FXReturn
