Get our occasional Market Report emails

sent straight to your inbox

There’s no charge for this.

Home / CFD Trading

CFD Trading

In simple terms a CFD (contract for difference) is a financial derivative allowing traders to speculate on financial markets going long (moving up) or going short (moving down). Originating in London in the 1990s, CFD trading was first used by hedge funds and institutional traders as a cost-effective way to hedge their exposure to stocks on the London Stock Exchange. CFD trading was found to be a cost-effective way of trading because it avoided the UK stamp duty, as no shares actually changed hands and because only a small margin was required.

When in the late 1990s a number of innovative UK companies started offering electronic trading platforms, CFD trading became available to retail traders. Traders soon found that the real benefit of CFD trading was the opportunity to trade on leverage on any underlying instrument, and this lead to a growth in the use of CFD trading. In response to this, CFD providers began to offer the product not just for London Stock Exchange shares but also to include many global stocks, commodities, bonds, currencies and indices.

CFD trading begins when the trader makes an opening trade on a chosen instrument with the CFD provider, creating a position in that instrument. There is no expiry date on the position, so the position is not closed until a second reverse trade is performed. At the point of the reverse trade, when the position is closed, the difference between the opening and closing trade is paid as a profit or a loss.

Although there is no expiry built in to the position, any positions left open overnight are rolled over. At the point of the roll over any profit or loss is realised and credited or debited to the account, the position is then carried forward to the next day. When a trader is CFD trading, the profit and loss and margin requirement is constantly calculated and shown on the trader’s screen. If the trader’s account drops below the minimum margin level, the trader may need to make an urgent deposit to cover the margin in order to prevent the position being liquidated.

Because CFDs are traded on margin they provide the CFD trader with leverage, meaning that a small deposit is used as a lever to access an equivalent larger amount of assets. Not only does this provide an advantage to the trader but also increases the risk involved. However, this increased risk is also what drives CFD trading. Low margin requirements on CFDs means that only a small amount of capital is required to take a relatively large position.

CFDs provide investors with an invaluable instrument for trading financial markets. CFDs allow investors to trade without actually owning the underlying asset that the CFD is based on. Being a leveraged product, CFDs allow traders to take a large position with a small investment. You can make money from CFD trading whether the market moves up or down and you can use our CFD platform trial before deciding if you want to trade CFDs with Accendo Markets. Traders will find the many benefits to CFD trading include:


CFD Traders commit fewer funds by trading on leverage.


Under current UK legislation, CFD trading is not subject to stamp duty*.


The position, once opened, is only closed when the trader chooses to close it by performing a reverse trade.


CFD trading offers more flexibility than traditional derivative trading like futures and options


Level 2 data allows traders to view market depth and pricing data from a variety of exchanges. This gives them the ability to gauge market liquidity and sentiment, thus improving trading decisions.

CFD Trading with Accendo Markets

Holders of the Best CFD Provider Award, Accendo Markets is a derivatives brokerage based in the heart of the City of London.

Our user friendly trading platform is designed to cater for the needs of both beginners and professionals. The award winning trading platform offers traders a host of features including:

  • live pricing
  • trading tools and charts
  • live news feeds
  • current open positions.

And also for more advanced users:

  • live level 2 data
  • state of the art charting software
  • tools for the technical analyst

We provide a free CFD platform trial. When you sign up for the free CFD platform trial it will give you an allowance of £10,000 of virtual money to trade the financial markets, meaning that clients can perfect their trading strategy before committing funds. When the trial ends, you owe us nothing. However, we are confident that once you have experienced our trading platform you will make Accendo Markets your CFD trading provider of choice.

As an active trader with Accendo Markets, you will receive all of the benefits already mentioned. You will have the advantage of daily reports direct to your in-box. Our professional analysts will keep you updated on the latest research and trading opportunities, and you will be assigned a designated professional trader. Your designated trader is there to answer your questions on the telephone or by e-mail. He will also act as your account manager and trading tutor if required.

You can of course just trade online if you are a confident and experienced trader, but it is good to know that the support is there if you need it. We look forward to welcoming you as a CFD trading client of award winning Accendo Markets.

*Tax laws subject to change. Please consult an independent tax advisor if necessary.

Latest Trading Opportunities

Upcoming UK100/250 Dividend List

View Thursday 25 November 2021

Week in Advance: Monday 29th - Friday 3rd December

View Thursday 25 November 2021

Upcoming UK100/250 Dividend List

View Friday 19 November 2021

Week in Advance: Monday 22nd - Friday 26th November

View Friday 19 November 2021

Upcoming UK100/250 Dividend List

View Friday 12 November 2021

Get our Market Report emails sent straight to your inbox

Don’t miss out on regular trading opportunities!

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

4.81 Average

156 Reviews


I have found Accendo staff very helpful,,and informed. I have traded with you for some years now and have no regrets. Keep up the good work!

Posted 3 years ago

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 3 years ago


I am very happy with the service I get from Accendo Markets and in particular Amrit Panesar. He is very professional and pleasant to speak to and this counts for a lot.

Posted 3 years ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 3 years ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 3 years ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 3 years ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 3 years ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 4 years ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 4 years ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 4 years ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 4 years ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 4 years ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 4 years ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 4 years ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 4 years ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 4 years ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 4 years ago

Mr Brian C

Easy to deal with.....

Posted 4 years ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 4 years ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 4 years ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 4 years ago