May 2, 2016

6 reasons why trade "Stock CFDs" but not real "Stocks" with XTrade


This Post has ended its release period. Please check XTrade's latest information and campaign on XTrade's company introduction page.

XTrade - What's now?

We are no longer promoting XTrade. The information regarding to XTrade on the website 'Hercules.Finance' maybe outdated. ref. XTrade

We no longer promote XFR Financial Limited. The information on the website related to this brokerage firm may be outdated.

XTrade is one of the largest online CFD broker in the world.

The broker offers more than 800 different CFDs including Stocks, Indices, Commodities and Metals.

Now you do not need to go through complicated paper works with  some agencies in order to trade these financial instruments, because with Xtrade, you can trade all of them together within 3 minutes on the web.

Trading CFD is a great solution for traders of its underlying product. This time, we like to focus on the Stock CFD tradings and introduce why Stock CFDs are better than the real stocks.

But before listing up the merits of trading CFDs, let me introduce the demerit of trading Stock CFDs instead of the real Stocks.

Only demerit is the Vote Right

Stock CFD is delivered as OTC product, meaning that you are trading the prices with the broker and the underlying product is not related to it at all.

So you will not have the ownership of the underlying instruments neither vote rights.

Remember that the companies who issues shares, do not know that you are trading its Stock CFD with XTrade.

CFD is just a contract between traders and the brokers to exchange prices to make profits from the difference of the prices.


1. Profit from falling prices

The first main benefit of trading CFD is that you can even make profit from falling prices. Unlike the real stock markets, you will make profit/loss by the price difference.

So falling prices in the stock market does not necessarily means that everyone is losing their money.

You need to expect price differences in CFD market, on the other hand you need to expect rise of prices in the real stock market.

The opportunities are simply doubled up for you.

2. High Leveraged

XTrade offers up to 1:400 leverage for Forex tradings, and up to 1:200 for CFD tradings depending on the symbols.

This means that you can leverage your profits up to 200 times more, but also your losses will be 200 times more in this case.

Are you looking to trade Stocks but hesitating because of the shortness of your capital? Well XTrade will help you to trade Stocks with small funds.

You can even start trading from 100 dollars with XTrade.

3. Lower Costs

Trading Stock CFDs eliminates many extra costs which normally incurs when you trade real stocks, such as stamp taxes/commissions, the costs of a physical delivery of the Shares, the registration fees and holding/safe custody charges.

All costs are included in the spread in case of XTrade, and you do not need to pay for extra costs other than that.

The spread is the only costs you need to pay for XTrade.

4. Limited Risks

High leverage of 1:200 and more than 800 of CFDs don’t mean that it is an investment with high risks.

As XTrade limits the losses for traders up to the deposited amount, and any exceeded losses will be covered by the broker.

Meaning that if your account balance goes negative, below zero due to high volatility in the market, XTrade will fix the account balance to zero automatically.

You can earn 200 times more and limit the loss to the amount of deposit at the same time with XTrade.

5. Dividend/Bonus payments

Dividend payment, in another word bonus payment for shareholders are also paid for Stock CFDs.

It is paid every night when at 00:00 server time, and it will be credited or charged directly to your trading account according to the amount of Stock CFDs you hold.

Generally speaking, you will be credited if you have long(buy) position, and charged if you have a short(sell) position.

So you will not even miss the benefit of a shareholders by trading CFDs.

6. All online and one account

The service of XTrade is all done online.

You can open an account, deposit/withdraw and trade on the web at anytime from anywhere in the world.

As long as you have an internet connection, you have an access to your funds and positions.

If you are interested in trading CFDS with XTrade, you can even start trading in a few minutes on the web right now.

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