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At ATFX, we believe there is a better way to trade the financial markets. With advanced technology, first-class products and services, and continuous education, we provide you with the best possible trading experience. Our customer-centric approach means that you come first, second and third on our priority list.

Benefits of Trading CFDs in UAE with ATFX

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Enjoy competitive spreads

Easy access to free trading tool

Trade on MT4, one of the world’s most popular trading platforms

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Globally regulated broker with a local presence

Ultra fast execution

Zero Commission

What Is Contract for Difference (CFD)

A CFD trading platform is a software solution that brokers and financial institutions offer to facilitate digital trading from remote locations. A trading platform lets you trade CFDs without physically visiting an exchange or having to make calls to a broker. Investors, in turn, purchase or sell securities from anywhere if they can access a computer or compatible phone.

The simplest trading platforms are downloadable Android or iOS apps that you can run on your smartphone. These are the basic tools you need to understand how the markets work. Traders can also download and install expert-level trading platforms on their computers and customize more trading tools to their needs. Cardinal alpha

The trading platforms are free once you register an account with a broker. You can also download the demo versions of these platforms and test them before getting real accounts. Demos let you experience the platform before you make your first deposit.

CFD Trading in UAE vs Normal Trading

A CFD (contract for difference) is an online trading financial derivative that lets investors speculate on the price movements of a security. Traders make a profit by speculating the prices of an asset instead of owning the actual underlying asset.

CFDs cover a range of underlying assets such as stocks, indices, commodities, and currencies. Trading CFDs in the UAE is attractive to investors because it allows them to trade on margin and the ability to use leverage.

Leverage allows traders to open trades with a smaller capital outlay compared to buying the actual asset. This means traders can potentially achieve greater returns with less initial investment.

The two main differences between stock trading and CFD trading are leverage and asset ownership. If you invest in a stock, you first own the shares and become a part owner of the company. You also pay the full price quoted per share. Trading CFD does not require phone calls or physical presence in a stock exchange.

With lower capital requirements, beginner traders have more access to diverse financial markets. A CFD trading broker like ATFX lets investors trade hundreds of financial products from the comfort of their home computers making it easier for new and seasoned traders alike to participate in global markets.

Advantages of Trading CFDs in UAE

1. Trade Both Market Direction

Unlike traditional stock trading, investors trade CFDs in either long (buy) or short (sell) positions.

2. Various Markets

Traders enjoy real-time access to plenty of trade choices from several asset classes. These assets include local and offshore stock CFDs, commodities, and indices.

3. CFD Trading in UAE: 24/5 Accessibility

The CFD markets are open 24 hours a day for you to trade online. They are reasonably more accessible to international investors because they are not restricted to stock exchange sessions like with stock CFDs.

4. No Stamp Duty on a CFD Trade*

This is because you are not taking physical ownership of the underlying asset

5. CFDs Require Lower Margin Requirements

Your money will not be tied to one transaction, as you can trade without depositing the full value of a product. It is important to note when you trade on margin, any losses will be magnified as well.
* Tax laws are subject to change and depend on your individual circumstances. You should seek independent tax advice before making investment decisions.

Disadvantages of CFDs

1. Potential for Significant Losses

CFDs are leveraged financial instruments that magnify potential profits. But it also means magnified potential losses.

2. Risk of Total Loss

There is a risk of losing all funds deposited in your account, including any previously realized profits, particularly if positions are not protected with stop losses.

3. Lack of Capital Protection

CFD’s price moves are determined by the price movement in the underlying instrument. However, CFDs do not offer capital protection or stability as their prices closely track movements in the underlying market, making them unsuitable for investors seeking capital preservation.

4. Not Suitable for Risk-Averse Investors

Due to its price volatility and rapid market movements, CFDs are not suitable for risk-averse customers.

5. Imperfect Hedging

Many traders use CFDs for hedging, but since CFD prices are often based on futures rather than spot prices, this can lead to imperfect hedging. It may not provide the precise hedge that investors are seeking.

6. Unpredictable Returns

Due to the impact of leverage on trading returns and the volatile movements in underlying instruments, CFD returns are not regular or predictable; thus, they are not suitable for customers who seek stable returns.

CFD Trading in UAE vs Normal Trading

For example, if Tesla stock, TSLA (NASDAQ), is quoted at $221.72.

Stock Trader: Buys 10 stocks at $2217.20. CFD Trader: Buys 10 CFDs but only needs to pay a 10% margin for a total of $221.72.

Note: 1 CFD represents 1 unit of the stock. You can always confirm each underlying asset’s minimum purchase units and its margin requirement on its order ticket before you purchase.

PropertiesContracts For Difference (CFD)Stocks
Ownership
None
Ownership rights
Use of leverage
Yes
Not possible
Trade long or short
Allowed
No
Markets
Variety
Equities & ETFs only
Costs
Spreads, Rollover costs are charged
Commissions
Trading sessions
24 hours every weekday
Only during exchange hours
Dividends
Cash adjustments
Dividends paid
Loss exposure
Loss can exceed deposit
Lose invested amount
Voting benefits
None
Full voting rights

CFD Trading in UAE vs Normal Trading

Contracts for difference allow a larger population of traders to invest in diverse asset classes without purchasing any physical products. As more CFD products come up every day, there needs to be an intermediary to facilitate those trades. There is no central exchange for all CFD traders to go to when they need to conduct their transactions. Instead, every CFD trader needs to approach an intermediary, the CFD broker. A CFD broker offers hundreds of financial products for the investor to choose from.

Even as CFDs represent the ideal products for short-term traders and hedge investors, finding the best CFD broker still poses a challenge to a new investor. Hundreds of CFD brokers offer competitive services, adding to the difficulty of choosing one. It also requires thorough research before settling for one firm.

To appeal to a client base, brokers work hard to develop service packages and benefits that benefit their client base more. Some brokers will focus on features that help institutional investors, and others will focus on individual retail investors. The best will have tailored benefits for everyone. A proprietary platform that works for all kinds of investors shows how much a CFD stocks broker values clients. The broker, in turn, benefits from charging some fees to the traders.

As a forex trader, expect any of these 3 charges by the forex CFD broker:

Fixed spread

With fixed spreads, the spread does not change. A customer expects a constant amount before trading.

Floating spread

Floating spreads present a variable spread depending on market volatility and hours.

Commission fees

Commissions are charged on trades or withdrawals. If charged on trades, commissions are an agreed percentage of the spread.

When you trade CFDs (contracts for difference), you purchase the difference in price from the point at which you open the contract until it’s closed.

Traders are advised to only deal with regulated brokers if they want to safeguard their portfolio. The regulators determine the competitiveness and security standards offered by brokers who join their regulatory bodies. They are mainly clustered into jurisdictions, and that way, brokers from a specific region will have a preference for one regulatory body. SCA, ASIC, ESMA, BVIFSA, IFSC, FCA, FSA and the CIMA are some of the best regulators. Regulators like SCA are an excellent choice because they offer a good mix of security and competition.

Confirm your broker’s regulatory status by reading the footnotes at the bottom of their platform’s homepage.
As a forex trader, expect any of these 3 charges by the forex CFD broker:

Register for an account

1.

Register Live Account

Complete the Live Trading Account application form & send all your e-KYC requirements.

2.

Get Verified

We will verify and establish your identity through a series of security questions. Once we have verified identity, we will set up your account.

3.

Start Trading

Start Trading & Fund Your Account. Go to your dashboard and fund your account to start trading online on our platforms.

CFD Trading Platform

A CFD trading platform is a software solution that brokers and financial institutions offer to facilitate digital trading from remote locations. A trading platform lets you trade CFDs without physically visiting an exchange or having to make calls to a broker. Investors, in turn, purchase or sell securities from anywhere if they can access a computer or compatible phone.

The simplest trading platforms are downloadable Android or iOS apps that you can run on your smartphone. These are the basic tools you need to understand how the markets work. Traders can also download and install expert-level trading platforms on their computers and customize more trading tools to their needs. Cardinal alpha

The trading platforms are free once you register an account with a broker. You can also download the demo versions of these platforms and test them before getting real accounts. Demos let you experience the platform before you make your first deposit.

How the CFD trading platform operates - 4 Important considerations

To trade online, you need the trading platforms to access an interface to monitor prices in real-time and make decisions on whether to purchase or sell stocks. The interface consists of charts, news feeds, and relevant research notifications to guide investors. The features available provide the decision-making and portfolio monitoring you need.
  1. Trading platforms are financial software that facilitate digital trading on exchanges.
  2. The software platforms help traders track portfolios through charts, news, and research.
  3. The platforms offer a single place to track thousands of tradable instruments.
  4. Brokers have different variations of trading platforms customized to their clients’ needs.

What to look for when choosing the right platform

To pick the best CFD trading platform for your needs, ensure it ticks the boxes on this checklist.

1. Affordable fees

The platforms usually incur costs to keep them running. They charge traders some small fees to cater to that. These charges are in the form of withdrawal fees, commissions, and spreads. Select brokers that charge low commissions. ATFX gives traders fee benefits that include the following.

  • We at ATFX take pride in offering our customers highly competitive spreads that give you an edge in the market. With our tight spreads, you can open a trade while paying less, and there are no additional charges besides the difference between the Bid and Ask prices.
  • We want you to make the most of your trading experience, which is why we offer competitive spreads across all CFD products. This, coupled with our zero bank fees policy, ensures that you benefit from more profitable trading.

2. Trade instruments

Some platforms list hundreds of CFD pairs, while some restrict you to a few picks. Some of ATFX’s benefits of CFD instrument pairs include:
  • Diversification is a key component of successful portfolio management, and CFDs provide investors with an effective way to diversify their portfolio without owning the underlying asset.
  • With a wider range of pairs to trade, investors have access to more options, allowing them to better manage their risk and increase their potential returns. One of the key advantages of CFDs is that they allow traders to gain exposure to different markets and asset classes, potentially reducing overall portfolio risk. This is particularly true at ATFX, where traders can test exotic markets such as Hong Kong, Singapore, Peru, and Indonesia. By adding these markets to their portfolio, traders can gain exposure to different economic conditions and geopolitical risks, which can help to mitigate overall portfolio risk.
  • Moreover, trading CFDs allows traders to apply leverage only to commit a small portion of the preferred notional value to enter a trade. This allows traders to maximize their potential returns while minimizing their risk exposure.
  • In addition, trading with negative balance protection at ATFX provides traders with peace of mind, knowing that they cannot lose more than their account balance trading CFDs.

3. Ease of use

Choose platforms usable for beginners and experts alike. It should be simple for you to operate.

Some ATFX trading tools available for members:

  • The ATFX platform provides a number of advantages to traders who are looking to achieve success in the financial markets. One of the key benefits of using the ATFX platform is the ability to receive long and short entry/exit signals, which can help traders make profitable trades. These signals are based on technical analysis and can be generated by a variety of indicators, such as moving averages, trend lines, and oscillators.
  • In addition, the ATFX platform provides 24-hour global coverage of market news, which allows traders to stay up-to-date with the latest developments in the financial markets. This is important because financial markets are dynamic and can change quickly in response to economic, political, and social events.
  • Data is also delivered straight to traders’ inboxes on the ATFX platform, hassle-free. This means that traders can focus on analyzing the data and making trading decisions without having to spend time searching for information.
  • For members, the ATFX platform provides long-term forecasts on pivot levels. Pivot levels are important support and resistance (S & R) levels that can help traders identify potential turning points in the market.
  • Traders also get timely analyst view tips for direction and key levels before trading on the ATFX platform. This can help traders gain insight into the market and make more informed trading decisions.
  • Finally, the ATFX platform provides slow and fast price indicators to guide traders’ entry and profit targets. These indicators can help traders determine the best time to enter and exit trades, as well as set realistic profit targets.

4. Broker reputation

Your chosen platform has to be credible. Go through ranking websites or read reviews to read the common pros and cons of the platform. The platform should be licensed and regulated.

Some recent ATFX rewards and regulator acknowledgments include

ATFX is a well-regulated financial services provider with a presence in multiple countries. The company is authorized and regulated by different regulatory bodies depending on the location.

  • In the United Kingdom, AT Global Markets (U.K.) Limited is authorized and regulated by the Financial Conduct Authority (FCA). In Cyprus, ATFX Global Markets (C.Y.) Limited is regulated by the Cyprus Securities and Exchange Commission (CySEC), while AT Global Markets Intl Ltd is licensed by the Financial Services Commission (FSC) in Mauritius.

These regulators oversee the activities of ATFX to ensure that they comply with the relevant laws and regulations and protect the interests of clients.

  • The company’s commitment to excellence is reflected in the awards it has won over the years. ATFX has been recognized as the Best Institutional Forex Broker at the Global Forex Awards 2022 by Holiston Media. The company has also been awarded the Best Global Broker 2022 at the Ultimate Fintech Awards 2022 by Ultimate Fintech. In addition, ATFX has been recognized as the Most Trusted Broker 2022 by JFI Awards. These awards are a testament to the company’s hard work and dedication to its clients, and they demonstrate the trust and confidence that clients have in ATFX.
  • ATFX has a global presence and has won awards not only in Europe but also in Asia, South America, and the Middle East. The company’s success in these regions is a result of its commitment to providing clients with top-quality services and innovative trading solutions. ATFX’s global team is dedicated to meeting the needs of its clients and ensuring their success in the financial markets.
  • ATFX understands that its success is closely linked to the success of its clients. The company is committed to providing a safe and secure trading environment and ensuring that clients have access to the best tools and resources to help them make informed trading decisions.
  • ATFX’s dedication to its clients has earned it a reputation as one of the most trusted and reliable brokers in the financial services industry.

5. Demo trading

Demo trading features let you mimic trades with world prices to learn how to trade on a practice account.

ATFX Demo Account: The MT4 demo account offered by ATFX allows traders to experiment with new techniques and ensure they are confident before trading with real money. With investment in virtual funds, traders can familiarize themselves with the platform and test their strategies without risking any capital.

Chart packages on the MT4 demo account are free, and the account can be accessed on a desktop, tablet, or mobile devices, with compatibility for Windows, iOS, and Android devices. This allows traders to practice trading on their preferred device and become comfortable with the platform before transitioning to live trading.

  • Try new techniques and ensure confidence before trading live
  • Familiarize yourself with the platform risk-free
  • Access an investment virtual funds to experiment
  • Leverage restrictions on demo accounts are the same as on live accounts
  • Insufficient funds will result in rejected trades, just like on a live account
  • Chart packages on MT4 demo account are free
  • MT4 demo is available on desktop, tablet or mobile
  • Compatible with Windows, iOS and Android devices

6. Customer support

You need reliable customer support in case of technical issues.

  • ATFX provides 24/5 customer support services in over 20 languages, ensuring that clients from all over the world can receive personalized advice and assistance whenever they need it. The customer support team is known for its responsiveness and reliability, making it a trusted partner for traders of all levels of experience.
  • ATFX’s commitment to providing top-quality customer support has been recognized with over 80 prestigious international awards. These awards are a testament to the company’s dedication to its clients and the high level of service that it provides.
  • Whether you need help with account setup, navigating the trading platform, or have any other questions or concerns, the ATFX customer support team is always available to provide assistance. With its extensive experience and expertise, the team can offer valuable insights and guidance to help traders succeed in their trading endeavors.
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