How stock CFDs differ from owning shares
A stock CFD mirrors the price of a listed share without transferring ownership. You do not receive voting rights, you cannot move the position to another custodian, and your exposure is a contract with the broker rather than a holding on a share register. Dividends are typically handled as cash adjustments to open positions rather than as shareholder payments, and the treatment can differ between long and short positions. Because most stock CFDs are traded on margin and carry overnight financing, they suit short- to medium-term trading horizons rather than long-term investing, where financing charges accumulate against you.
- You gain price exposure only; there is no share ownership, voting or transferability.
- Dividend adjustments on CFDs differ from real dividends and vary between long and short positions.
- Overnight financing makes long holding periods progressively more expensive.
- Your counterparty is the broker, so its terms and financial standing matter.


