CFD Trading

CFD Trading with City Index gives you access to over 4000 global markets including Indices, Shares, FX, Commodities and Bonds.

  • Tight spreads from 0.5 points on FX
  • Choice of 4000+ CFDs from one account
  • Commission free CFDs (except Shares)
Trade CFDs with City Index

Why trade CFDs with City Index?

Tight Spreads

From 0.5 points on FX and 1 point on major Indices.

Hedging Tool

Use CFDs to hedge your existing share portfolio or investments.

4000+ CFD markets

Trade CFDs on Indices, FX, Shares and Commodities from one account.

Easy to spot trading opportunities

View buy/sell opportunities from our research portal.

Advanced trading platforms

Trade CFDs on our advanced technology and native apps.

Commission free CFDs

Commission free CFD trading on all CFDs except Shares.
Trade CFDs with City Index

Trade wherever you are, on our fast, reliable platforms

Customisable charts

16 chart types with 80+ indicators designed to help you perform technical analysis

Award-winning platform

Our powerful technology is designed to suit you, whatever your level of trading expertise

Actionable trade ideas

Our research portal highlights trade ideas using fundamental and technical analysis

Trade anytime, anywhere

Follow the markets on native apps built specifically for your smartphone and tablet
City Index Trading Platform
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Benefits of trading CFDs

No UK Stamp Duty

Unlike Share trading, CFDs are free from UK Stamp Duty

Trade on falling markets

Trade on falling markets (going short) as well as rising markets

Hedge your portfolio

Use CFDs to offset losses in an existing share portfolio

Trade on margin

Use a small deposit to control a larger position in the market
Start trading CFDs
With FX spreads from 0.5 points and Indices from 1 point

What Can I Trade On?

Indices

Fixed 1 point spreads on major Indices

Shares

Trade on thousands of global Shares from 0.1% commission

Forex

Trade EUR/USD and USD/JPY from 0.5 points

Commodities

Trade Gold from 0.3 points around market spread

See Our Other Markets

Discover CFD Trading

CFDs are popular with investors who want the opportunity to try to make a better return for their money.

However CFDs contain significant risks to your capital and aren’t suitable for everyone. We strongly suggest doing your research and trading on a demo account before you try it with your own money.

Try A Demo
Access the markets 24 hours a day
Trade CFDs on 4000+ global markets
Trade on falling markets (going short)
Your money works harder by trading on margin
Try A Demo

Learn more about CFD Trading

CFD Trading

Find out more about Contracts for Difference (CFD) trading.

What Is CFD Trading

How to analyse markets

How to identify trading opportunities using City Index's research tools

Research tools

How to manage risk

Learn techniques to improve your trading and manage risk effectively

Risk management

Start CFD Trading

APPLY

for an account

FUND

using your card or via bank transfer

TRADE

on powerful platforms
Create Account

How to trade CFDs

1. Choose a CFD market
Decide which market you want to trade on. Get bullish and bearish trading ideas in our fundamental and technical analysis research portal

2. Decide to buy or sell
Click 'buy' if you think the price will increase in value or ‘sell’ if you think the market will fall in value

3. Select your trade size
Choose how many CFDs you want to trade

4. Add a stop loss
A stop loss is an order to close your position at a predetermined price set by you

5. Monitor and close your trade
Once you have placed your trade, you will monitor profit/loss update in real time at the top of the screen. Exit your trade by clicking the close trade button

LEARN MORE

Why City Index?

With fast, reliable execution and tight spreads here's why our clients choose
City Index
Create Account
Over 30 years' experience in Spread Betting, FX and CFD Trading
Authorised and regulated by the Financial Conduct Authority (FCA)
Risk management tools to help protect your positions
Trade on multiple platforms and devices
Actionable buy/sell trade ideas from our research portal
Fast, easy payments and secure withdrawals
Create Account

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Trade CFDs with City Index

Benefits of CFD Trading

No UK Stamp Duty

As CFDs are a derivative product, you don't actually own the underlying instrument that you are trading on. This means that you do not have to pay UK stamp duty, saving you the stamp duty charge associated with regular share dealing.

The exception for this is Irish stocks, which are charged 1% of the notional trade value. This value is, however, refundable if you trade out within 30 days.

Ability to go long and short

With CFDs you can trade on falling markets by 'going short' (selling), just as easily as you can trade on rising markets by 'going long' (buying).

If you believe a company or market will increase in value you take a long position (buy). Your profits will rise in line with any increase in that price and your losses will increase with any fall in that price.

On the other hand, if you believe that a company or market will experience a loss of value you can use CFDs to go short (sell). Your profits will rise in line with any fall in price (and your losses will rise in line with any increase in that price).

Reduce your capital outlay using margin

CFDs are a leveraged product, which means you pay a small percentage of the total trade value to open your position, known as margin, rather than paying to cover the entire cost of your position.

For example, if a market has a margin requirement of 10% then you would need to have 10% of the full value of the trade in your account, as initial margin, to open the position.

Below is an example of the difference between buying 1000 shares in Barclays and the equivalent if you bought 1000 CFDs.

Leverage is good news if the market moves in the direction that you expect, but it carries a high degree of risk if the market moves against you. In the same way your profits are magnified, any losses will also be magnified and you could lose more than your initial investment.

Hedge your portfolio

If you believe your existing portfolio may lose some of its value, you can use CFDs to offset this loss by short selling.

Let's say you hold £5,000 worth of Vodafone shares in your portfolio. You can short sell the equivalent of £5,000 worth of Vodafone shares through a CFD trade.

Should Vodafone share prices fall by 5% in the underlying market, the loss in value of your share portfolio would be offset by a gain in your short sell CFD trade.

Access global markets & 24 hours trading

CFD trading gives you access to a wide range of markets that would not otherwise be available to retail investors, all from one trading platform. You can speculate on the price movement of thousands of individual shares, indices, currencies, bonds and interest rates from across the globe.

We know it's important for you to be able to access your account and trade whenever you want, wherever you are, particularly when market prices are moving quickly. So, we give you unrestricted access to your account 24 hours a day, 7 days a week.

Summary of differences between CFD trading and share trading:

Feature CFD trading Shares dealing
Free from Stamp Duty* checked
Commission charged checked checked
Ability to go long – buy and take advantage of rising prices checked checked
Ability to go short – sell and take advantage of falling prices checked
Ability to hedge – go short and mitigate against potential losses in your shares portfolio checked
Leveraged trading – gain a large exposure for a fraction of the value checked
Immediate dealing – instant trading both in and out of a market checked checked
Access to other asset classes – such as indices, FX, etc checked
Access to global shares – trade over 5000 different markets from around the world checked checked
Receive dividend and interest adjustments checked checked
Physical ownership – benefits include the ability to attend AGMs checked
Pay overnight financing charge checked