Contracts for difference and investing both enable you to take positions on financial markets, but they work in different ways. When you invest, you are typically buying and holding a market in the hope that it rises in value so you can sell it for profit. With CFDs, you never own the asset – you’re just speculating on its price movements.
CFDs bring several benefits over investing. You can trade on margin, short markets and more.
Learn more about CFDs vs investing.