Commission-free US shares CFDs

Stocks, also known as shares or equities, are financial instruments traded on exchanges. Stock CFD trading involves investing in contracts that track the performance of publicly listed companies’ shares. CFDs allow traders to speculate on stock prices without actually owning the underlying assets or taking on shareholder responsibilities. This type of trading is available across multiple sectors, giving you the chance to apply your knowledge and expertise across different companies to diversify and expand your portfolio.

You can easily trade stocks via CFDs on online trading platforms. The basic idea is that you don’t own or buy the stock itself, you’re trading on whether its price moves up or down. If you expect the stock price to rise, you can open a buy (long) position. If you expect the price to fall, you can open a sell (short) position. That way, you can profit when stock prices move in the direction you’ve anticipated.

Trading stock CFDs allows you to use leverage, meaning you only need to deposit a fraction of the total trade value. For example, with a 1:20 leverage ratio, a deposit of just $200 gives you exposure to $4,000 worth of trades. However, leverage amplifies both potential profits and losses, since gains and losses are calculated on the full trade value, not just your margin.

The main difference is ownership. When you buy stocks directly, you own a share of the company. When you trade stock CFDs, you’re simply speculating on the price movements of those shares, without owning them.

Equiti offers fractional stock CFDs, meaning you can buy or sell as little as 0.1 of a share online. Buying physical shares requires paying 100% of the trade value upfront, whereas CFD trading allows you to use leverage. Margins start from just 5% (leverage 20:1), meaning you only need to deposit 5% of the total trade value, or trade up to 20 times more shares with the same amount. However, always remember that leverage increases risk as much as it increases potential returns.

A stop-loss order is a popular risk management tool that helps protect your capital and limit potential losses when prices move against your position. When you place a stop-loss order with your broker, you’re instructing them to close your position automatically once the asset reaches a specific price.

A stop-loss order helps reduce the need for constant monitoring and can limit losses, particularly in volatile or fast-moving markets. However, keep in mind that a stop-loss is not a guaranteed protection. Sudden market movements, gaps or major economic announcements can cause prices to skip your stop level, especially outside regular trading hours.

CFD trading is based on anticipating whether a financial instrument’s price will rise or fall, which means you can capture profits in either direction. When you trade with leverage (or margin trading) you are able to hold larger positions, but it’s important to note it maximises losses equally if markets move in an adverse direction.

However, there is no strategy or market that can guarantee profits due to the volatility and complexity of market dynamics. If a broker claims otherwise, make sure they are properly regulated. Equiti encourages traders to carefully assess their risk tolerance and only trade what they can afford to lose. If you’re a new trader, it helps to test out leverage trading on a risk-free demo account before investing your capital to get a sense of how quickly markets can move.

You can trade CFDs on over 60 US stocks during extended hours, from 4:01am to 4:59pm (04:01 to 16:59 New York time). Instruments marked with an asterisk (*) in our full stock CFD list are eligible. You can view the complete list here.

When trading outside standard hours, market liquidity tends to decrease, which may lead to higher volatility and wider spreads. Be sure to consider these factors when planning your trades or designing your risk management strategy.