Legal Information: The domains www.fpmarkets.eu and www.fpmarkets.com/eu are owned and operated by First Prudential Markets Ltd (registration number HE 372179), a company authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC License number 371/18). First Prudential Markets Ltd registered address is 135 Omonoias, UAD Court, 7th Floor, 3045 Limassol, Cyprus.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.50% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the Risk Disclosure and Warning Notice.
Risk Warning: CFDs on Virtual currencies are not suitable for all investors. They are complex, extremely risky and usually highly speculative with values subject to extreme price volatility and hence may result in losing all the invested capital over a short period of time. You should avoid trading such products if you do not have the necessary knowledge in this specific product and/or if you cannot bear the loss of the entire invested amount.
Disclaimer: First Prudential Markets Ltd assumes no liability as to the accuracy or completeness of the information provided. This communication must not be reproduced or further distributed without prior permission.
* There might be charges for certain transactions i.e. bank wire charges.
** The average order execution time between the trade being received, processed and confirmed as executed by us is on average less than 40 milliseconds. As observed from our bridge provider between 01/01/2020 - 31/12/2021 (except majority of CFDs on Indices).
*** Terms and conditions apply.
^ Sat & Sun 08:00am to 16:00pm (GMT+3).
FAQs
Contracts for Difference
Brokers offer CFDs on instruments such as forex, commodities, indices, and spot metals. CFDs are a form of derivative trading. As in, they derive their value from the movement of an underlying asset. They allow traders to trade price movements without actually owning the underlying asset.
What is the difference between a forex broker and a CFD broker? ›
Forex trading focuses on the foreign exchange market, where traders exchange one currency for another in the hopes of profiting from shifts in the exchange rate. On the other hand, CFD trading allows traders to speculate on the price movements of various financial assets without actually owning the underlying assets.
How do CFD providers make money? ›
Brokers make money when the trader pays the spread. Occasionally, they charge commissions or fees. To buy, a trader must pay the ask price, and to sell or short, the trader must pay the bid price. This spread may be small or large depending on the volatility of the underlying asset; fixed spreads are often available.
Is it possible to trade forex through CFDs? ›
Both forex spot trading and forex options are traded using CFDs. There are many pros and cons to trading with CFDs – not least of all that CFDs are leveraged. As mentioned, this means that you only need to put up a deposit (called margin) to open a larger position – which can stretch your capital further.
Are CFDs illegal in the US? ›
No. CFD trading is illegal for US citizens and residents. Additionally, most CFD brokers don't accept US citizens or US residents as clients. CFDs are illegal in the US because they are an over-the-counter (OTC) trading product.
Can I trade forex without CFD? ›
Can I trade forex without a CFD? Yes. There are lots of ways to trade in the forex market apart from CFDs, such as currency options and futures contracts, currency ETFs, and more.
Do CFD traders make money? ›
It's possible to make money trading CFDs with experience and a thorough understanding of how the financial markets work. But, it's well known that around 75% of retail traders (private investors) lose money when trading CFDs.
Why do CFD traders lose money? ›
By failing to adopt certain risk management techniques and simply opening trades without protecting their trades with take-profit and stop-loss orders, they risk losing all their trading funds.
Is CFD trading good or bad? ›
CFDs are attractive to day traders who can use leverage to trade assets that are more costly to buy and sell. CFDs can be quite risky due to low industry regulation, potential lack of liquidity, and the need to maintain an adequate margin due to leveraged losses.
How much money do you need to trade CFD? ›
CFD margin requirements can vary depending on the market that you're looking to take a position on – and not all of our markets will have the same margin rate. For example, we require a deposit equal to 5% of the total position size on popular indices like the FTSE 100, or 20% on shares such as Tesla.
This requires constant vigilance of the market and price movements. As well as the use of effective risk management to safeguard funds. Some of the most popular risk management tools used in CFD trading are stop-loss and take-profit orders.
How much money can you make from CFD? ›
As a ballpark average, most successful traders make around a 10% return on their account. This varies depending on a lot of other factors, and usually traders will go through a growing period when they are starting out. So this isn't a measure of your initial deposit, but how much you have in your account.
Where is CFD trading illegal? ›
CFDs are illegal in the US and Hong Kong but in other countries, they can be traded under strict regulations. In such countries as Austria, Cyprus, France, and Australia, CFD trading is legal but certain regulations are in place to protect the parties involved.
Do professional traders use CFDs? ›
Professional traders often choose CFD trading to engage with different financial markets in different trading sessions. While this increases trading opportunities, it does require the trader to vigilantly monitor financial releases or news as they happen across the globe that could potentially impact asset prices.
Is CFD trading real or fake? ›
Cfd Trades is not a trusted broker because it is not regulated by a financial authority with strict standards. We would not open an account for ourselves with them. If you want to stay safe, only sign up with brokers that are overseen by a top-tier and stringent regulator.
What are CFD providers? ›
CFDs are financial derivatives that allow traders to speculate on price movements of the underlying financial instruments. They are traded OTC (over-the-counter) with a broker or market maker, known as a CFD provider.
How does a CFD provider work? ›
CFDs work by mimicking the underlying market. So, while you can mimic a traditional trade that profits as a market rises in price, you can also open a CFD position that will profit as the underlying market decreases in price. Say, for example, that you buy 5 contracts when the asset buy price is 7500.
Who provides CFD? ›
Saxo offers the most CFDs, with nearly 60,000 available symbols across a wide range of asset classes. Cash equities, options, and exchange-traded securities are among the other instruments available to traders at Saxo, and traders can choose CFDs for a given asset from within the trade ticket window.
What is an example of a CFD in forex? ›
CFD trading example 1: buying EUR/USD
EUR/USD is trading at 1.34657 / 1.34665. You decide to buy €50,000 because you think the price of EUR/USD will go up. EUR/USD has a tier 1 margin rate of 3.00%, which means that you only have to deposit 3.00% of the total position's value as position margin.
