On January 3, Fullerton Markets, the fastest-growing brokerage firm in Asia, announced the addition of new CFDs on stocks available for trading. The addition of stock CFDs (share CFDs) offering is an effort by the company to enhance the trading options available to customers who can now use CFD to invest in stocks. The aim of the company’s launch is to enable retail customers to trade CFDs on individual company shares such as Facebook, Apple, Tesla and others. The new product will give its customers the potential to earn leveraged profits on both falling and rising stock prices.
Stock CFD trading offers better options to many investors than traditional stock trading. The key benefit of share CFD trading is that it allows traders to open both long and short positions. Therefore, customers can take advantage of movements in the share price and create more opportunities for more returns. In other words, Fullerton Markets provides stock CFDs trading services that allow its customers to grade price movements of the most popular stocks and benefit from the market whether it is bearish or bullish.
With this addition, the company’s customers can reap the benefits of trading securities without owning the underlying assets. This gives them all the advantages of ownership without any tax and legal responsibilities. Furthermore, traders can choose to use leverage to increase potential profits.
Mario Singh, the CEO of Fullerton Markets, talked about the development: "One of our goals at Fullerton Markets is to make it easier for our clients to trade multi-assets in one single platform. Now, clients can trade Stocks, Forex , Cryptocurrencies, Commodities and Indexes with us online. In this period of economic uncertainty, it's more important than ever to protect your portfolio from adverse market cycles. With a wide range of products and a team of experts available to help you make the most of your portfolio, we can help traders achieve better returns, reduce volatility and hedge risk."
The company stated that it will offer share CFD trading on open markets, such as MetaTrader4, a free-of-charge forex trading platform, and on mobile devices to promote seamless connectivity for existing customers and reduce the need to switch between providers.
Why Is Stock CFDs Trading Becoming Popular?
The development by Fullerton Markets comes at a time when an increasing number of forex companies are launching share CFDs trading services to their clients. In July 2020, FXCM, a retail foreign exchange broker, launched stock CFD trading for US equities . In February 2020, RoboMarkets, an online forex broker, launched 500 European stock CFDs on R Trader platform. In October last year, FP Market, a multi-regulated broker, launched its share CFDs directory. Therefore, the rising trend shows that stock CFD products are gaining more interest among investors.
CFDs assist in solving the channel problems. Opening a traditional stock trading account normally involves cumbersome procedures, requires a lot of information and has more geographical limitations in terms of selection of stock types. However, trading stock CFDs is quite simple. it normally takes one working day to open an account. Furthermore, the account connects investors to the global stock market through the MetaTrader4 platform to catch all the major stocks in the world.
Moreover, CFDs help to solve customers’ funding problems. Major stocks are normally expensive per share. With limited funds, it would be more difficult for investors to reap profits in the stock market. However, trading stocks via CFDs is more beneficial since customers do not need to pay the full amount of investment. Investors can take advantage of leverage, as they only need to pay a small percentage of the total position to conduct a transaction while enjoying the risks and benefits brought by market fluctuations.
Lastly, CFDs provide trading opportunities in a bear market. During the Covid-19 pandemic, the traditional stock markets plunged into a bear market. Many investors stopped trading during that time because of the heavy losses they witnessed in the stock markets. However, by trading stocks via CFDs, customers can limit a potential loss on a particular trading experience by choosing either ‘long’ or ‘short’ positions, depending on the market direction, and obtain more profitable opportunities.