There are many advantages of trading with CFDs compared to traditional securities such as stocks or futures. CFDs combine all of these investment types in one product. FXFlat offers you CFD trading in the world’s most important stock markets, major indices, commodities and foreign currencies.

Not so long ago, the only way to invest or to trade still consisted in buying and holding securities and in hoping that the exchange or single value would increase. There simply existed few alternatives for the investor. With the introduction of new financial instruments such as CFDs, buying and selling can take place in each market phase 24-hours a day while making use of every movement.

When trading a CFD, it does not matter whether the market is following an upwards or a downwards trend because you can reposition within only seconds. If you are, for example, ‘going short’, the aim is to sell and later re-acquire a value at a lower price. The same principle applies to ‘going long’, but in a reverse manner. Of course, the risk that the market will move against you is never completely eliminated (see risk warning).

The trading segment has dramatically grown in popularity in course of the last years. In fact, the development is further continuing and CFDs have become a respectable product on the market. The main reason for the growth is the great advantage of CFDs towards the common securities trade.

As a CFD trader, you do not physically own the underlying values, stocks or contracts and are therefore exempt from the full investment. You are only required to deposit a percentage of the equity as a security (margin). The margin requirements for FlatTrader vary between 0.5 % up to 10 - 20 % for highly speculative stocks.

Benefit from trading the most important indices and single stocks around the world within only seconds at highly favourable conditions and without additional costs.

If all CFD long positions are opened and closed within a day, there are no financing fees (interests) charged. For every additional day that you hold a CFD after the stock market closes, a financing fee has to be paid.

• When buying a CFD, you are charged a financing fee at the so-called Interbank Offer Rate (e. g. London Interbank Offer Rate - LIBOR) plus 2.5%.
• When you short-sell a CFD, you receive an interest accrual at the Interbank Offer Rate minus 2.5%.

In case of long positions, the dividends on a CFD position are credited to your account with a discount of up to 15% and in case of short positions charged on the ex-day.

An enormous advantage when trading CFDs is the broad range of order types that can be used. In order to help you secure your investments, you can choose among a comprehensive and adjustable range of orders that you can either use to secure your profits or to reduce the amount of loss.

Market order – an order to buy or sell a CFD executed at the next quoted exchange rate. This is the most common order type. Care should be taken with high market volatility as the next exchange rate can differ significantly.

Limit order – a limit order is used to buy or sell a security at a specific better price.

Stop order – an order used to limit losses or secure profits. Stop orders can also be used for opening a new position. In most cases, however, this order is used to close a position if a negative price trend occurs and secure or close (stop loss) the position held.

Trailing stop order –another type of stop loss order that follows the price trend with the difference between order and price previously determined, depending on the market direction and type of stop order used.

Order cancels order (OCO) – a limit for profit order for open positions combined with a protective stop loss. If either the limit or the stop order is executed, the other order is automatically deleted, which allows traders to continue their strategy when away from the trading desk and without having to follow the market development.

Parent and contingent order – two distinct orders that are linked by an "if/then" condition. The contingent order will not be subject to a fill until the parent order is filled. This allows setting up the trade while you are away from the trading desk including entry, exit and risk management.

Guaranteed stop loss order – guarantees that are determined in order to execute a stop loss on a fixed level. This type of order is charged with an additional fee and subject to minimum distances that must be maintained to the current price level.

FlatTrader allows you to trade all stock exchanges and financial instruments worldwide. There are various advantages in combination with the different CFDs depending on your personal trading style and risk behaviour. You can trade CFDs on individual stocks, indices, commodities, interest markets, bonds and currency pairs.

Stock CFDs

Stock CFDs are the most commonly traded CFDs and allow you to trade stocks with leverage. You can trade on rising or falling prices without becoming the physical owner of the underlying asset. We offer you thousands of stock CFDs from exchange markets in Europe, the United States, Australia, Asia and many others. The trading of CFDs allows you to avoid the high costs and disadvantages involved when owning the underlying asset. The margin trade also has the advantage that capital commitment is not necessary.

Index CFDs

In addition to the individual stocks, indices can be traded on a margin basis. Index CFDs are based on the development of the underlying stock exchange market. This allows you to build up a position on the entire market development and not only on a single stock company. You can trade CFDs from the stock exchanges in Europe, the United States, Australia and Asia.

Commodity CFDs

Through FlatTrader, a number of commodities can be traded as futures-based CFDs.

Bonds and Interest Rates CFDs

Trade on future-based state securities and interests.

Forex CFDs

Trade the most important currency pairs also as CFDs.

Due to legal restrictions, currently we are not able to offer exchange traded products or CFDs and futures. Forex and other products remain unaffected by this restriction.
If you have any questions about margin, spreads or, for example, trading hours, please do not hesitate to contact our customer consultants.