CFD's and investing!

Hello, can you guys help me a little bit about the difference about the CFD’s trade and investing? Like i know the CFD’s you can buy or sell depending on the price, like you can say the price will go down and you can still profit. What is the difference between the CFD’s and investing category in legal ways and you have to go through different things investing or the only difference is the fact that in investing you can only buy and you have to keep the investing longer to make some profit?
Help me a bit and maybe give me your opinion about investing

And btw what is this “Estimated cost” when i try to send the offer means what it represent?
Thank you !


Trading CFDs offers (and it’s mandatory with this platform) the use of leverage. Investing can only be done with available funds (money you have in the account). That’s the main difference along with what you’ve already pointed out about shorting.

Depending on your tax laws you might find there’s more relief trading CFDs, I don’t know the tax laws for every country so I’ll just say that on it.

With investing you’re free to trade using the account as far as the provider is concerned, there’s no minimum timeframe for holding positions, in my demo Invest account I was up £86 in 24 hours on a small position.

The estimated cost you see there is so because your base currency is USD and you want to buy a stock that trades in Euros and you’re using a Limit Order so by the time your order is filled (assuming it is) the FX rate is likely to be a bit different than it is at the time the order is sent.

If you bought a stock trading in your base currency the quoted cost would be fixed.

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Ok, thank you for information. So correct me if im wrong. If i have in cfd’s portfolio 500euros and i buy a stock for only 100euros and it goes down and down more that 500 the broker will go negative on my account like -100 euros or -200 euros and if i use the investing portfolio i’m using only my 500 euros on my account and then if the price go down the position will close by itself and i will remain with 0 euros ??

So is something more than that different between this to beside those? Like i know in cfds i don’t really have a % of a company but in investing you will buy like a physical part of the share and i will be like an owner of that company and i’m asking that if is more to that like legally point of view maybe…i don’t really know what to ask, sorry haha. I’m new into trading :frowning:
Thanks for asnwers !

Some brokers would but with T212 they have what is called Negative Balance Protection installed which means that your CFD account will only go to zero but never a minus balance. If your account drops below the required margin you will get a margin call (T212 will tell you to put money in the account or sell some shares, if you ignore this they will sell your shares for you unless the margin improves).

And yes, when you invest you own the shares, CFDs you do not, when you own the shares you can collect dividends and you can vote on board members too depending on the share class. I read somewhere on here that you can also collect dividends if you trade the CFD, this is news to me though, I always thought you couldn’t but I do defer to those more in the know.