Trade Shares Online | Stocks CFDs Trading

Plus500 trading platform allows you to trade shares from all popular markets such as USA, UK, Germany and more, with leverage and low spreads. Using our advanced trading tools, you can also control your profits and losses. Trade shares CFDs such as Facebook and Apple. No stamp duty - SAVE 0.5% compared to a traditional UK share purchase! Take advantage of falling or rising markets by opening Sell or Buy positions. Flexible trading in share CFDs. Leverage of up to 1:5 leverage allows you to start trading with as little as £100 to gain the effect of £500 capital!

How do you start trading shares?

  1. If you don’t already have a Plus500 account, open a Trading Account Here.
  2. Complete your account registration and documents verification, then deposit funds.
  3. To search for a specific stock, click into the search bar and type the company’s name or symbol.
  4. Consider placing stop orders in advance: you can define the level of profit you would be happy with and/or the level at which you would like to close out the position should the trend turn against you.
  5. Open a trade.

What are Shares?

Stocks are the shares into which ownership of the company is divided. Those who own stocks are called stockholders or shareholders. The ownership of shares entitles stockholders to a fraction of the company's assets and earnings (proportional to the number of shares owned). Stocks are usually traded in stock markets.

Companies go public and issue stocks in order to raise money to invest in their business and help it grow. Investors, on the other hand, buy stocks to try to make money and diversify their investments. Stock prices fluctuate, making the value of the company either increase or decrease.

Share trading involves buying and selling shares and other securities through a stock exchange or over the counter (OTC), in return for a fee or commission.

In order to trade shares, individual investors usually turn to brokers (nowadays it’s often an online broker), who execute the trades on their behalf.

Stock CFDs, as opposed to regular stocks, do not give you ownership of shares. Instead, they are a way of speculating on the future direction of the underlying share price. Contracts for difference allow you to settle for the price difference between the open and close rates. Therefore, CFD traders are neither entitled to ownership or voting rights.

Both contracts for difference and share trading offer ways to take advantage of price movements in financial markets, and both can form part of your portfolio.

Trading Shares with CFDs

There are numerous ways to gain exposure to the share market. These include Cash Equities and Derivatives, including CFDs. Over the past decade, trading Contracts for Difference (CFDs) has become increasingly popular. Trading stock CFDs allows customers to gain exposure to the price movement of different stocks without the ownership of the underlying asset. CFDs are by definition contracts between two parties (i.e. the provider and you) to pay the difference between the entry and exit price. It is classified as a financial derivative instrument as its price is derived from the price of the underlying asset.

CFDs have opened the world of trading to the masses due to its ease of access and lower costs. This has both brought a wave of interest to the stock markets. Thus, giving trading and the stock market a greater focus.

When trading CFDs, it is crucial to use a reputable and regulated provider, such as Plus500. This ensures pricing and transactions transparency, as well as various client money protection measures. In addition, regulated providers should disclose the risks involved and are not allowed to trick traders with get-rich-quick schemes.

Let’s take a look at a share CFD trading Example with Plus500:

The price of one Facebook share is $50 and you want to enter into a CFD contract of 15 shares. 15 shares x $50 per share equals $750. With leveraged trading, you do not need to invest the full $750. With a leverage of 1:5, your initial margin requirement for this particular share CFD is 20%. You will have to deposit $150 which is 20% of the notional exposure of $750. You need to make sure to have enough money in your account to open and maintain your position.

If you think Facebook’s price will rise, you open a Buy position, and if you think it will fall, then you open a Sell position. You can choose to set stops to close your position automatically at a predetermined price. When you, or the stops added by you, close your position, the profit or loss will be added or subtracted from your account balance. If your position remains open after market close, you will be charged an overnight funding fee.

From the same account, you can also choose to trade shares listed in many different markets, such as Nintendo, BP or Adidas without any extra requirements.

How Can you Trade Stocks CFDs?

Plus500 offers an alternative way to trade Stocks, through Contracts for Difference (CFDs). This gives traders the ability to use leverage to speculate on price movements of leading companies without actually having to invest large sums in the underlying security. This will amplify any profits, but it also means that losses are amplified. With some CFD providers this may involve losing more than your initial deposit. However, inline with the FCA requirement for all regulated CFD trading companies, Plus500 offers negative balance protection, which means that the maximum sum you risk at any one time is your account balance.

With CFD stock trading you can either open a BUY position or a SELL position, depending on whether you think the stock price will rise or fall. This gives you the possibility to profit on both rising or falling markets. However, it must be remembered that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.