If you’re an experienced investor who’s comfortable with risk, CFDs offer a tax-free alternative to conventional share trading.

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Find the right investment products to meet your individual needs and goals.

Feature CFDs Share dealing Spread Trading
Free from Stamp Duty
Receive dividend and interest adjustments
Trade on leverage
Access to global markets
Go long and short
Instant dealing
Own asset outright
Free from Capital Gains Tax


CFD trade vs Share deal

Remember, a CFD is a derivative product which has a value based on an underlying asset. So you don’t actually buy the asset you’re trading yet still gain full exposure to the underlying market, as this next example shows:

Opening Trade

Share Trade CFD Trade
Price of ABC plc 100p 100p
Number of shares 10,000 10,000
Value £10,000 £10,000
Stamp Duty £50 £0
Deposit Requirement N/A £1000 *Based on 10%
Amount Invested £10,050 £1000


Closing Trade

Share Trade CFD Trade
Price of ABC plc 110p 110p
Number of shares 10,000 10,000
Value £11,000 £11,000
Profit on Trade £950 £1000
ROI 9.5% 100%

This is an example of a successful trade but remember that any losses would be magnified in exactly the same way.

Things to consider

Leverage - remember that leverage magnifies returns and losses in exactly the same way. So you could lose more than your initial deposit.

Deposit requirements – to hold a CFD position, you need to have enough funds in your account to cover the margin requirement. If your position starts losing money, your broker may ask you to deposit additional funds (‘margin call’). If you don’t, your position may be closed.

Price movements - if prices move against you, you will lose money unless you are able to close or amend your position straight away. We offer a range of flexible orders to help you minimise your risk.

No shareholder privileges – because you don’t own the underlying asset, you won’t receive voting rights, invitations to AGMs or other shareholder benefits. You will receive dividends (90% of net value) on long positions. On short positions, you will be debited for 90% of the net value of dividends.

CFDs and Financial Spread Trading carry a high level or risk to your capital and you should only deal with money you can afford to lose. The value of investments can fall as well as rise and you may lose significantly more than your initial margin payment. We do not recommend that trading in these products is suitable for all types of investor. We recommend that you consult an independent financial advisor if you are uncertain whether they are right for you.

Barclays CFDs and Financial Spread Trading are provided by GAIN Capital UK Ltd. All dealing, administration and settlement is carried out by them.


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CFDs and Financial Spread Trading carry a high level of risk to your capital and you should only deal with money you can afford to lose. The value of investments can fall as well as rise and you may lose significantly more than your initial margin payment. We do not recommend that trading in these products is suitable for all types of investor. We recommend that you consult an independent financial advisor if you are uncertain whether they are right for you.

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