A CFD (contract for difference) is a financial derivative that allows you to speculate on the price movements of an asset like forex, shares, indices, or commodities without owning the actual assets. Your profit or loss is determined by the difference between the opening and closing prices of the CFD.

When trading CFDs, the main costs are the spreads (the difference between the buy and sell price), commission (depending on the asset traded and the account type), and possible overnight/swap fees, which are industry-standard fees that reflect the cost of keeping your position open after the trading day ends.   

To find out more about the costs of trading with us, visit our pricing page.

To start trading CFDs with us, you can apply online to open a live trading account. We’ll ask you a few questions about your financial background and trading experience and require you to share some documentation to verify your identity.   

Once your account is approved, you can log in to your secure client area and get started.  

1. Select your preferred trading platform and choose the market you want to trade. 
2. Tap ‘add funds’ to fund your account. You can deposit as little as $10 or account currency equivalent using our secure payment methods. 
3. Review the relevant fees and charges and set your risk management orders. 
4. Once everything is in place, you’re ready to start trading.

CFDs are complex instruments and come with a high risk of losing money quickly due to leverage, which can increase both potential gains and losses. In accordance with regulatory rules, Pepperstone provides negative balance protection to retail clients, ensuring you cannot lose more than your account balance. We also offer a range of risk-management tools, such as stop orders, which can close your position automatically if the market turns against you.

CFDs can be suitable only if you understand the risks involved and have a clear trading plan. We offer demo accounts, educational resources, expert insights, and dedicated customer support to help you throughout your trading journey.

It depends on your goals. If you’re looking for long-term growth, investing in assets like shares allows you to own them and benefit from their potential appreciation. On the other hand, CFDs let you speculate on the price movements of assets without owning them. This gives you greater flexibility and access to leverage, but also comes with a higher risk. At Pepperstone, you can trade a wide range of global markets through CFD instruments, giving you the tools and support to trade based on your objectives.