Start trading with Pepperstone
If you're looking to branch into CFD trading, Pepperstone can help you learn more.
This CFD investing guide is brought to you by Pepperstone and Finder. In this guide, you'll find a selection of articles and resources that provide insights for experienced investors. To learn more about Pepperstone and CFD trading, visit our handy review of its services.
Trading CFDs/FX carries risk and is not suitable for everyone. Refer to our PDS and TMD. Pepperstone Group Limited, AFSL 414530.
Trading CFDs
A Contract For Difference (CFDs) are a type of derivative trading product.
As a CFD investor, you take a position on price movements within the market – without owning the underlying asset itself.
Although CFDs are considered high-risk, they attract investors for a variety of reasons.
- Diversification – CFDs can be a useful tool for diversifying your existing portfolio and increasing liquidity.
- Leverage – Because you're not required to put up the full value of the trade for CFDs, leverage allows you to potentially increase earnings with reduced assets. However, this can also lead to greater losses. So trade carefully!
- Going long and short – Ordinarily, markets need to be on the rise for investors to make money. However, CFD trading allows you to take a position on price fluctuations in both directions.
Trading with Pepperstone
With Pepperstone, you're able to trade across a range of markets and platforms, while also getting access to a range of educational resources.
Learn the fundamentals of trading CFDs and stay up to date on the latest developments.
Choose from more than 1,200 CFD instruments to complement your portfolio.
Use trading platforms like Pepperstone proprietary platform, TradingView, MetaTrader4 & 5 and cTrader.
Learn more about trading with Pepperstone today
Pepperstone does not require a minimum opening deposit. Commissions vary according to the asset being traded but start at $5 or 0.07% on AU Share CFDs.
How trading CFDs works
To get started trading CFDs, you'll need to sign up to a broker and a trading platform.
Pepperstone functions as a brokerage that also provides you with access to a number of different trading platforms.
Ideally, you should look for a trading platform that offers market insights, educational tools and a broad variety of markets to choose from.
Many trading platforms also provide a demo account. This way, you're able to practice trading strategies with real market values, without putting your funds at risk.
After this, you'll need to pick a market to trade in. Keep in mind that your chosen trading platform can affect which markets you have access to.
Pepperstone allows you to trade CFDs across forex, commodities, indices, currency indices, cryptocurrencies and shares.
You will also need to determine a trading strategy.
Trading CFDs involves considerable risk, so this trading strategy should also consider acceptable losses and minimise risks where possible.
After this, you're able to start opening trades.
Articles and resources about Pepperstone
Pepperstone review: Australian forex and CFD broker
Trade more than 90 currency pairs with Pepperstone, an Australian forex and CFD broker.
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