How stock CFDs differ from owning shares
When you buy a share you own part of a company, can hold indefinitely, and may receive dividends and voting rights. A stock CFD is a contract with the broker that pays or charges you the difference between the opening and closing price of the position. You gain leveraged exposure but take on financing charges for positions held overnight, and you have no shareholder rights. Dividend events are usually handled as cash adjustments to open positions rather than actual dividend payments, and the treatment differs for long and short positions. Understanding these mechanics matters more than any single broker's marketing.
- Stock CFDs provide price exposure only; you never own the underlying shares.
- Leverage magnifies both gains and losses relative to the margin you post.
- Overnight financing charges make long holding periods progressively more expensive.
- Corporate actions such as dividends and splits are applied as account adjustments per the broker's rules.


