Been trading both for about 8 months now. CFDs give me more flexibility with leverage but the overnight fees add up quick.
Stocks feel safer but returns are slower. What’s your experience been like with profitability between the two?
CFDs work for short trades because the leverage is helpful and I can easily go long or short. However, the overnight fees can be quite high on longer trades. For anything over a week, I prefer buying stocks. There is potential for more profit with CFDs as I can react quickly to market changes.
Your choice should reflect your trading style and risk appetite. CFDs allow for both long and short positions with less initial capital. However, watch out for those overnight fees on longer holds. Stocks are simpler, with no daily costs, making them good for longer-term holds. But you do need more capital upfront, and shorting can be tricky. I’ve experienced both profits and losses, so align your choice with your trading method.
CFDs hit harder when they work stocks grind out steady wins
CFDs crush stocks for profits, but there’s a learning curve.
Keep positions short with high leverage - I close everything in 1-3 days max. Overnight costs destroy profits otherwise. Oil and indices have been money makers for me.
Stocks are boring but reliable. I run 70% CFDs for active trading, 30% actual stocks long-term. CFD wins fund my stock buys.
Don’t hold leveraged positions too long - learned that the hard way. Financing charges turned winning trades into losers.
It comes down to how much risk you want and how much cash you’ve got. CFDs let you control bigger positions with way less money upfront, but those overnight fees will kill you. I’ve seen small weekly gains disappear because of daily charges. With stocks, you need more money to start, but you actually own something real. No sneaky fees or time pressure chipping away at your profits. Either one works if it matches how you trade and your timeline.
CFDs give big gains but stocks build wealth slowly
CFDs are where I find the best returns, but I stick to currency pairs and don’t hold overnight. If you hold CFDs too long, the fees can wipe out profits. I also keep about 20% in stocks as a safety net for bad CFD trades. Both options can work, but CFDs require strict discipline on timing and risk management.