
Contract for Differences (CFDs)
Berkeley offers customers the opportunity to trade share price movements on a margined basis through a CFD. This enables clients to trade major UK, US, and European shares utilising a small deposit, with no time restriction for holding the contract.
Furthermore, under current legislation there is no UK stamp duty payable on trading a CFD, saving both UK and overseas investors considerable sums.
Primary advantages include;
- Competitive margin rates
- Direct Market Access offered
- No time restriction on CFDs *
- Save 0.5% on stamp duty on UK CFDs
- Aggressive commission rates
- The ability to go long and short
* The maintenance of a short position is subject to the ongoing ability to borrow the underlying stock.
Disadvantages include:
- Market makers may widen the spread at certain times of the day or on certain illiquid stocks
- Large trades in a CFD market that is relatively small may give rise to liquidity issues that can cause slippage
- CFDs are a geared product and, as such, it is possible to lose in excess of the funds you may have put up as your initial deposit
