So i thought that in cfd’s category you can buy stocks/forex and sell with leverage and is risky to invest and in the invest 212 category you can only buy Etfs, but now i see that the number of Etfs are a few in Germany and Uk. and the stocks are the same in both category. Can you guys tell me what is the difference between those 2 category and why stocks are available in both sections and not in just one??
Hi Robert, the question isn’t super clear to me, you want to know the difference between WHICH 2 categories? CFD and Invest accounts?
Stocks are available in both accounts because some will want to trade a stock and others will want to invest in a company by owning stock. Usually an investor has done their fundamental analysis of a company and feels that the company has a promising long-term future, perhaps they pay a solid dividend too and so the investor wants to benefit from capital growth and/or get some income too.
The trader using his/her CFD account isn’t concerned with all that, their reading of the chart tells them price is likely to be on the way up or down momentarily so they want in to benefit now, they don’t care what the company has got going on for the next few years, it’s all about now.
So you can see both types of account holders may have an interest in the same stock so it’s prudent for it to be available in both account types.
Hope this helps a little.
Yeah, your answer was very helpful. Thank you!