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Why You Should Trade CFDs for Stocks and Crypto with Fullerton Markets

Posted by Fullerton Markets on August 24, 2022 at 8:35 PM


Sure, the stock and crypto markets have been rather gloomy in the first half of 2022. This might affect your decision in buying these two asset classes, but what if we tell you that you can still make profits in both stocks and crypto even in the middle of a struggling market?

The answer to this is CFDs.

“CFDs” is short for “Contracts For Difference”. It gives traders the chance to make profits from price movements without having to actually own the underlying asset.

CFDs are available for various assets including stocks, Forex, indices, crypto and commodities. In this post, let’s focus on the main reason why you should focus on stocks and crypto CFDs.

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Four Reasons to Start Trading CFDs for Stocks and Crypto

1. Make profits regardless of the market situation

By not actually owning the asset, you can make profits from trading CFDs either way when the market is going both up and down. This is because what matters in CFDs is the moment you enter the contract and the moment you step out of it.

For example in crypto CFDs, if you think that Ethereum’s price will go up in value, you can buy Ethereum CFDs according to the current price in the market. When the price of Ethereum rises, you can sell and then exit the contract of your Ethereum CFD.

2. Higher Leverage

CFDs allow higher leverage than traditional trading. After all, it is a leveraged financial trading product that provides trading on margin. This will allow you bigger potential profit with more efficient use of trading capital.

In stocks CFDs, for example, if the broker sets the margin for your stock CFDs at 10% and you intend to buy 100 CFDs at a price of $500 per CFD, you can get the exposure of $50,000 worth of stocks with only $5,000 in capital.

In cryptocurrencies, CFDs allows traders to open bigger positions with a small capital and thus it gives you the chance of maximising returns from a small investment.

Read more: Why Trade Cryptocurrency CFDs?

3. No Shorting-rules

Because CFDs allow traders to trade without actually owning the underlying asset, the shorting rules can’t be applied. The shorting rules require traders to borrow an instrument before selling short. CFDs skip this while still providing the chance of making profits from the price movement.

4. Faster Execution and Lower Transaction Cost

Cryptocurrencies, for example, need you to take time to buy the actual currency directly, and brokers usually impose higher fees than if you buy CFDs. The time and fee might not be much, but in such a highly volatile crypto market, you might end up buying the digital currency at a less desirable price point.

When you trade crypto CFDs, you can expect instant fills at a lower cost. Crypto CFDs will also save you the hassle of opening a crypto wallet because the broker will deal with everything else while you focus on trading. For example, if you already have a trading account with a broker, you can just trade crypto CFDs on the same platform.

Moreover, CFDs have no settlement period. Your profits or losses are calculated immediately after you close your trade, unlike traditional stock positions that might take up to two days of settlement period.

Trade Stocks and Crypto CFD

Why You Should Trade CFDs With Fullerton Markets

With the many advantages of CFDs trading mentioned above, all you need now is the perfect broker to trade CFDs with. Here are 5 reasons why you should trade CFDs with Fullerton Markets:

1. You can trade the 10 hottest crypto CFDs

Currently, you can trade ten popular crypto CFDs with Fullerton Markets, including Bitcoin, Bitcoin Cash, Ethereum, Cardano, Dogecoin, Polkadot, Chainlink, Litecoin, Ripple and Stellar.

As of July 2022, Bitcoin, Ethereum, Ripple, Cardano and Dogecoin are included in Forbes’ 10 Best Cryptocurrencies of the month. Bitcoin sits in first place with a $370 billion market cap. In second place is Ethereum with a $128 billion market cap. Ripple, Cardano and Dogecoin are in 7th, 8th, and 10th place respectively.

2. More than 60 US Stocks CFDs

Fullerton Markets offers more than 60 US stocks CFDs from various industries including popular stocks such as AMZN of Amazon, AAPL of Apple Inc, BABA of Alibaba Group, NFLX of Netflix, MSFT of Microsoft Corp, and NVDA of NVIDIA Corp.

Trade Stocks and Crypto CFD

3. Multi-Asset Trading

As a multi-asset broker, Fullerton Markets allows traders to trade other instruments simultaneously on the same platform. It is very convenient especially with the multiple advantages traders can get from doing multi-asset trading using one broker. Multi-asset trading increases your opportunities to profit from various markets.

4. Speed of execution

As mentioned above, CFDs guarantee faster execution than traditional trading. With Fullerton Markets’ robust trading platform, this advantage is taken to the next level and you can expect a faster execution time when you open and close your trade.

5. Available on both MT4 and MT5 platforms

Stocks and crypto CFDs in Fullerton Markets are available on both MT4 and MT5 trading platforms. Both platforms have a wide base of users while MT5 has a wider range of functionalities. Read more about MT4 and MT5 here.

So what are you waiting for? Trading stocks and crypto CFDs with Fullerton Markets might exactly be the fresh breeze of wind you need in your trading portfolios.

If you already have an account, you can easily start to trade stocks and crypto CFDs from your existing account and if you haven’t, go ahead and open a live account here.

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You might be interested in: What Is CFD Trading and Why Should You Care?