How stock CFDs differ from owning shares
A stock CFD tracks the price of a listed share, but the holder has no ownership rights. There are no voting rights, and dividend treatment happens through cash adjustments rather than actual dividend payments. Positions held overnight typically incur financing charges, which makes stock CFDs more suited to shorter holding periods than long-term investing. Short positions may also carry borrowing-related costs and can be restricted on some names during volatile periods.
- CFD holders receive dividend adjustments, not dividends, and long and short positions are adjusted differently.
- Overnight financing charges accumulate and can outweigh price gains on long-held positions.
- Corporate actions such as splits are handled by broker adjustment policies that you should read in advance.


