CFD Stocks

Take advantage of falling or rising markets and speculate with stocks of selected companies from around the world. At Purple Trading, we now offer shares of more than 100 prominent companies from around the world to trade with. Choose from a wide range of your favorite company shares, from Apple, through Tesla or to Coca-Cola and trade with us.

Trade with CFD stocks from around the globe

CFD stocks are a financial instrument directly derived from the prices of physical shares (physical shares are a so-called underlying asset for CFD stocks). Traders now have the opportunity to speculate on the development of stock prices of world-famous companies using their favorite MT4 platform, no matter which way the price goes. At Purple Trading, we have prepared more than 100 CFD stocks for you. This way, you have the opportunity to speculate on the rise or fall of Tesla, Amazon, and others, without having to buy physical stocks themselves.
 

Advantages of CFD shares over physical ones:

 
  • Very convenient for intraday traders

  • Possibility to use financial leverage

  • Possibility to go short (speculate on price drop)

  • All CFD stocks can be found in MT4 together with the rest of the financial instruments

Disadvantages of CFD stocks over physical stocks:

 
  • The necessity to pay swaps (fee for holding the position overnight)

You will find these new instruments in the MT4 platform. A 1:5 leverage is available for retail traders. Clients with the status of a professional trader can use leverage up to 1:20. 1 lot always corresponds to 1 share.

CFD stocks trading fees

You can trade CFD stocks on all types of our accounts. The standard fee scheme is spread + commission. For US shares, the commission is $0.02 per share, for other shares 0.1% of the nominal value of the transaction.
 

Table No. 1: Commission fee per transaction when trading CFD stocks
US shares Other shares Minimum commission
0,02 USD 0,1 % 5 USD / EUR / HKD
 

Commission "per transaction" is paid for one side of the trade. That is, separately for opening and closing of the position. If the commission for these transactions does not reach the value of the minimum commission, this minimum commission listed in the table above is always charged.

Commission calculation examples

 

Example no.1

 

US CFD stocks

Suppose a trader buys 50 lots of Coca-Cola (KO) for a unit price of $53. This is a US share, so the fee will be 50 ×​ $0.02 = $1. However, this amount does not reach the amount of the minimum commission. In this case, the trader pays the minimum commission, which corresponds to 5 USD.

The same trader then decides to buy another 500 pieces of this share for the price of 54 USD. He pays $500 × $0.02 = $10 for this transaction.

If he later decides to close the entire position, he will sell 550 pieces for the price of 56 USD. He pays $550 × $0.02 = $11 per transaction.

Note that the share price does not play a role here. The trader always pays only for the amount of shares traded, provided he exceeds the value of the minimum commission.

 

Example no. 2

 

Other CFD shares
Let’s say the trader buys 10 CFD shares of Volkswagen Group (VOWG) for a unit price of EUR 190. As this is not a US share but rather a European one, the fee will be calculated from the nominal value of the transaction. The nominal value of the transaction is 10 × 190 EUR = 1900 EUR. Of this, 0.1% represents EUR 1.9. The trader pays the minimum value of the commission to the commission, i.e. 5 EUR.

As in the previous case, however, our trader decides to increase his position and buy another 50 shares for the same price of 190 EUR. The nominal value of the transaction will be 50 × 190 EUR = 9 500 EUR and the fee will therefore correspond to 9.5 EUR.

Suppose the price rises to 250 EUR and our trader decides to close his position. He will therefore sell a total of 60 shares. The nominal value of the transaction corresponds to 60 × 250 = EUR 15,000. In this case, the fee of 0.1% is EUR 15.

Note that in this case it is not only about the amount of traded shares, the share price is also important, and therefore the resulting nominal value of the entire transaction. This example also shows why the commissions are paid separately for the opening and the closing side of the trade position when trading shares.

Dividends

As with most of the stock indices in our offer, you can count on dividends for CFD shares too. These will affect you in case you hold the position open over the dividend payment date. Dividend payment dates can always be found in the updated table on our website. If you hold a long position, your dividend will be added to your account balance. Similarly, if you go short on the instrument, the dividend will be deducted from your account.
 

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