If you are interested in exploring what trading CFDs is like or if you are already a pro, XTrade is the way to go. Keep reading and you will see who they are, how reliable they are and how you can become an expert in CFDs trading.
Provided you are not an old-fashioned trader, you will probably know what CFDs are. Next to Binary Options, these are one of the trading ways that has grown faster in recent years.
Imagine you have purchased £10,000 of shares in ‘ARM Holdings’ and they are now worth £100,000. You would have a £90,000 capital gain if you sold them now. This would mean that in the UK you would be charged CG Tax on about £75,000. You believe that the economy is going to have a negative period, which might cause your shares to fall in value. Rather than sell the shares, and expose yourself to Capital Gains Tax, you should open a Short position in the CFD market of equivalent value through XTrade or other online account you have. Thus protecting your portfolio from the fall.
For those that don’t want to protect a portfolio in the physical market, they can go long or short on a large position, while only requiring a percentage of the trade to be in the account as margin. So you could maybe have £5,000 in your account, but be able to trade £50,000. Taking advantage of a leveraged position. The only downside to CFD trading in relation to Futures is that you pay interest on overnight positions if you are long, or you receive interest on overnight positions if you are short.
Effectively, when long on a leverage position, you are borrowing the amount of the trade less your margin.
Why Is XTrade Good For Me?
The company is based in Cyprus. Its professionals have been helping traders for decades now. They are present on all continents with customers in more than 140 countries.
They have developed top-notch trading platforms that will allow you to trade at ease, from your house or from any other location if you decide to use their mobile apps. In addition to that, they give a 24/5 support and provide you with innovative trading tools like Economic Calendar, Technical Analysis, Market Review, Real time charts, and a Push notification service.
Since CFD seems to be a less regulated arena of trading, many worry—and should do—whether or not their money will be safe when it comes to getting your profit back. Problems arise when a company is not able to successfully separate their assets from those of their customers. In order to achieve that, they have segregated client accounts at Barclays Bank PLC. On top of that they constantly keep an eye on all the operations, abiding by and submitting their financial records to CySEC.
In addition, it complies with one of the best security systems available for e-commerce: AICPA Web Trust. Clients are granted protection up to €20,000.
As a Chinese proverb says: “If your plan is for one year, plant rice. If your plan is for ten years, plant trees. If your plan is for one hundred years, educate children.” We are not trying to tell you what to invest in, rather to highlight the importance of education. And they know this well in XTrade. Have a look at their Academy and learn how to trade, how to use trading tools like a pro, or enrol in their courses and become an expert.
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