Trade the world with Stock CFDs
Everything you need to know about stock CFDs
What is a stock CFD?
A CFD (contract for difference) is an investment product you buy and sell that tracks the performance of an underlying security. In the case of stock CFDs, the underlying security will be. Another way to think of stock CFD is much like an ETF that tracks an underlying index, a stock CFD tracks an underlying stock.
Benefits of stock CFDs
Access to 15+ global marketsStock CFDs are a global product. They allow investors to trade on markets not easily accessible from North America. These include the London, Australia, Hong Kong, Frankfurt markets and many more.
Lower fees than owning international sharesWhen trading normal stocks, setting up the connections required to ensure stocks are changing hands accurately and safely can be very costly. With a stock CFD, you still get secure access to international stocks price movements without the need to own the physical security. This makes stock CFDs much more cost-effective than international stocks themselves.
High leverage opportunitiesStock CFDs can be traded with up to 6x leverage so you can maximize the cash you have. This margin availability can potentially have a huge difference to your trades—both positively and negatively.
How are stock CFDs different from normal stocks?
- When you purchase a stock, you are purchasing a part of ownership in a company, therefore becoming a shareholder.
- You get benefits like dividends and the right to vote on issues like the board of directors.
- Traded on exchanges where you can buy or sell the stocks directly.
- When you purchase a CFD, you are purchasing a contract to track the performance of an underlying stock. You do not become a shareholder of the underlying stock.
- Not traded directly on an exchange, traded as a contract between you another party.
- The value of the CFD will rise and fall with the stock price it tracks, much like a normal stock, so you can profit off the rise or fall of the value of the stock without direct ownership.
- You don’t receive voting rights but will still receive dividends. If you short a stock CFD, you will have to pay dividends if required.
- Stock CFDs can only be traded on margin.
- There are risks associated with trading stock CFDs, for more information read about leverage and risk
How to get started trading stock CFDs
Open an account
To get started you need to open a Forex and CFD account.
Log into the platform
When your account is open, you can trade stock CFDs on the
Find stock CFDs by country under watchlists
Pricing of stock CFDs depend on the country the underlying stock trades on. For a full list of stock CFD commissions and fees, see pricing
Get answers to our frequently asked questions
What are the costs associated with stock CFDs?
On top of a commission, you may also incur financing fees and borrowing fees. Learn more
What does it mean to trade on margin or leverage?
Trading on margin means you’re borrowing money from a broker to purchase a security. Learn more
What is the typical margin rate for a stock CFD?
This rate varies by country. For more details, see the Trading with margin page.
What global markets can I trade?
Questrade offers a wide variety of global markets. For a full list, go to the FX & CFDs pricing page.
How to I trade stock CFDs?
To trade stock CFDs, you need to open a Forex & CFD account. Once the account is open, you can trade them on the award-winning platform, Questrade Global.
Can I do all my trading online?
Yes, once you log in to the platform you can trade stock CFDs 24 hours a day, 6 days a week.