Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more.
Develop your skills and refine your strategies with £10,000 in risk-free virtual funds.
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Test and perfect your trading plan before investing real money, giving you the confidence to execute with precision.
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Gain access to a comprehensive and user-friendly learn to trade academy, equipping you with the tools you need.
The link will take you to to our trading partner IG to open your demo. If you enter your contact details, we may contact you occasionally to discuss if we can add value to your trading. You will also be added to our daily research list to receive stock market news, you can unsubscribe at any time.
What is a CFD demo ?
A CFD demo trading account is a risk-free way to learn and practice trading on a virtual platform. With a demo account, you get access to a version of the real trading platform, allowing you to trade products and familiarise yourself with the platform's functionality without risking any real funds. All profits and losses in a demo account are virtual, which means you can experiment with different trading strategies and learn from your mistakes without financial consequences.
Why use a CFD demo ?
Open a demo account and experience simulated trading without risking real funds on a live platform. A demo account is an excellent way for new traders to get a realistic feel for trading CFDs, allowing them to ensure they're comfortable with the system and online trading process before risking real funds.
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The demo account provides ample time to practice and become familiar with the platform, enabling traders to test and refine their strategies. Experienced traders can also benefit from the risk-free environment to try out new trading strategies, diversify their portfolio, and take advantage of opportunities in different markets.
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With access to over 17,000 markets, including shares, indices, FX, and commodities, a demo account enables traders to trade CFDs and spread bets and enhance their trading skills. Traders can minimise their risk exposure by trading on multiple markets, improving their overall trading performance.
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In conclusion, trading CFDs is a popular way of trading in various financial instruments. A CFD demo account provides traders with a risk-free environment to practice and develop their trading strategies. Whether you are a new or experienced trader, a demo account is an excellent tool to enhance your trading skills and become a successful CFD trader. So, open a demo account today and start practicing!
What are CFDs and how do CFDs work?
What are CFDS and how do CFDs work?
Trading contracts for difference (CFDs) is simply an agreement to exchange the difference in value of a particular financial instrument such as shares, forex, indices and commodities between the time at which the contract is opened and the time at which it is closed. One of the main reasons for CFD trading, is they enable you to speculate on the rising or falling price of the financial instruments.
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Trading CFDs unlike a traditional share when you open a position you are not required to pay for the full value of the trade but rather you are required to deposit collateral. This is known as the initial margin, which can be as low as 5% of the purchase price. In recent years there has been a dramatic increase in the use of CFDs and they have in a short space of time become the instrument of choice for short term stock market investors.
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Short and Long CFD trading
Trade CFDs in a rising or falling market. CFDs allow you to trade ‘Long’ or ‘Short’. A Long trade is where you ‘Buy’ an asset with the expectation that it will rise, just as you would when buying a normal share. A Short trade is where you ‘Sell’ an asset that you do not own in the expectation that the price will fall and you can buy the asset back at a cheaper price.
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CFD Trading on Margin
Rather than pay the full value of a transaction you only need to pay a percentage when opening the position. This is referred to as ‘Initial Margin’. The key point is that the margin allows leverage, so that you can access a larger amount of shares than you would be able to, if buying or selling the shares themselves. The margin on all open positions must be maintained at the required level in order to keep the position open. If a position moves against you and reduces your cash balance so that you are below the required margin level on a particular trade, you will be subject to a ‘Margin Call’ and will have to pay additional money into your account to keep the position open or you may be forced to close your position.
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Overnight Financing
Because CFDs are traded on margin, if you hold a position open overnight it will be subject to a finance charge. Long CFD positions are charged interest, Short CFD positions will be paid interest. The rate of interest charged is set at 2.50%** above or below the current LIBOR (London Inter Bank Offered Rate). The interest on each position is calculated daily by applying the applicable interest rate to the daily closing value of the position. The daily closing value is the number of shares multiplied by the closing price. Each day’s interest calculation will be different unless there is no change in the share price.
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No Stamp Duty
There is no stamp duty on CFDs as you do not actually buy the underlying share. (Tax laws may change)
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Commission
Commission is charged on CFDs just like on an ordinary share trade. The commission is calculated on the total position value not the margin paid.
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If you are interested in trading CFDs (Contracts for Difference), you’re in safe hands. Guardian’s CFD Team are knowledgeable and experienced at trading all types of CFDs.
Example of a long and short CFD trade?
Share CFD example Long Trade
A Long trade is when you Buy a share CFD
Marks and Spencer is trading at 240–240.25p
You believe that Marks and Spencer’s share price is going to rise and place a trade to Buy 5000 shares as a CFD at 240.25p.
The value of the contract would be £12,012.50, but you would only be required to make an initial deposit of 7.5% (Initial Margin of £900.94.
The commission on the trade is £12.01 (£12,012.50 x 0.1%) unlike a traditional share there is no stamp duty payable.
10 days later Marks and Spencer is trading at 270–270.25p
You decide to close your position and take a profit by selling 5000 Marks and Spencer at 270p which equates to £13,500.
The commission on the trade is £13 .50 (£13,500 x 0.1%).
Profit on trade is calculated as follows:
Opening Level 240.25p
Closing Level 270p
Difference 29.75p
Profit on trade £1,487.50 (29.75p x 5000)
Total commission (£2 5 .51) 10 bps
Interest payments (£29.60)
Overall Profit £1432.39
Of course if the market had moved against you, you would have made a loss.
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Share CFD example Short Trade
A Short trade is when you Sell a share CFD
Marks and Spencer is trading at 300–300.25p
You believe that Marks and Spencer’s share price is going to fall and place a trade to sell 5000 shares as a CFD at 300p. The value of the contract would be £15,000, but you would only be required to make an initial deposit of 7.5% (Initial Margin) of
£1,125.
The commission on the trade is £15 (£15,000 x 0.5%).
10 days later Marks and Spencer is trading at 280–280.25p
You decide to close your position and take a profit by buying 5000 Marks and Spencer at 280.25p. The commission on the trade is £14.01 (£14,012.50 x 0.1%).
Profit on trade is calculated as follows:
Opening Level 300p
Closing Level 280.25p
Difference 19.75p
Profit on trade £987.50 (19.75p x 5000)
Total commission (£29.01) 10 bps
Interest payments £7.70
Overall Profit £966.19
Of course if the market had moved against you, you would have made a loss.
In this example by being Short M&S, interest payments are credited to your account.
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Guardian Stockbrokers reviews
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​Positive: Professionalism, Quality, Responsiveness, Value
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I could not more highly recommend Guardian Stockbrokers, everyone has been brilliant. The attentiveness, training and technical detail provided, has enabled a fast track learning and an ability to manage the portfolio in a way that would far exceed my own capabilities. It is almost as though they own the positions themselves; via their due-diligence and proactive manner of continuous monitoring. Above and Beyond.
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​Positive: Professionalism, Responsiveness
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Professional and proactive I’m really happy that they were recommended to me.
I would recommend Guardian Stockbrokers.
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When dealing with trading, you want to work with people that are professional, personable and trustworthy.
Guardian Stockbrokers are all of the above.
I'd recommend them any day!