Benefits and Risks

CFDs trading appeals to a wide variety of individuals who want to take advantage of the versatility and great value that CFD trading can offer. You do not need to be an experienced investor to trade CFDs, but you do need to research the products that you wish to trade and be aware of the risks associated with CFDs.

The Benefits
The following reasons explain why CFDs might appeal to you:

Bull or Bear
One of the most obvious advantages of CFD trading is the opportunity to short (or sell) the market. You can therefore profit from both rising and falling markets.

A Contract Size of Your Choice
Trading with LCG allows you to trade in sizes smaller than those usually available in the underlying market.

Trade on Margin
CFD trading is a margined product, which means there’s no need to tie up large amounts of your capital in order to place a trade. When you’re ready to trade, you only need to deposit a small percentage of the full value of your position. This deposit is known as margin.

Furthermore, traditional share trading focuses on the buying and selling of company shares and securities only. With CFD trading, the trading options are far greater: commodities, currencies and indices.

Regulated Industry
CFD trading is tightly regulated by the Financial Conduct Authority (FCA). Regulation by the FCA means that we have to abide by strict rules and regulations which ultimately mean you have the comfort of knowing that you are working with a reputable organisation.

The Risks
CFD trading offers many benefits, but it's important to note that it carries a high level of risk to your capital, so you should only trade with money you can afford to lose. It is possible for you to lose more than your initial deposit so please ensure CFD trading meets your investment objectives and seek independent advice if necessary. View full risk warning.