CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider (Saxo Bank). You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.
CFDs allow investors to speculate on share price movements (up or down), without the need for ownership of the underlying shares.
Complex products including CFDs and FX, come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs, FX or any other products work and whether you can afford to take the high risk of losing your money. 65% of retail investor accounts lose money when trading CFDs/FX with Saxo (which is the provider that we use).
You should also understand that unlike share trading as you do not own the shares, you will not receive the same benefits accruing from that ownership. Instead a margin of the total value of the trade is used, which can be as little as 5%, allowing positions to be leveraged by up to 20 times.
Consequently, relatively small movements can lead to substantial gains or losses because of the increased leverage. Unlike share dealing there is no settlement date and as a result positions can be held indefinitely. However these are subject to financing on the entire position, which is calculated on a daily basis.
To access Saxo Bank’s Key information Documents (KIDS) for CFDs please click on the links below.
In addition to the benefits below, please be aware of the risks at the bottom of this page. CFDs are high risk and are not suitable for everyone.
Allow our brokers to guide you in your CFD trades. We can provide informed recommendations to you including informed advice about all of the above strategies. This service is free of charge and is designed for both new and seasoned investors. Our daily market report will also help clients with new ideas, which are relevant to current market conditions augmenting CFD trading strategies.
Charges apply when you agree to execute a trade.
CFDs are margined products and carry a higher degree of risk. Due to the leverage involved it is possible to lose more than your initial capital. Bear in mind that if markets move against you, additional payments may be required.
Click here to read our full risk warning
* Tax treatment depends on your individual circumstances and may be subject to change in the future.
In order to help us determine (under regulatory guidance) that you know and understand the risks and characteristics of CFDs and leveraged investing we would ask you to complete the following assessments. Please click the following link to access our assessment form. CFD Assessment →
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