FXOpen: Trading Stocks and Shares Made Simple
Advantages of trading share CFDs with FXOpen
Trade share CFDs at FXOpen
with up to 1:5 leverage.
Multiple Markets. Multiple Instruments. One Platform.
FXOpen isn't just a share trading platform. With FXOpen, expand and diversify your trading portfolio with forex trading, indices, commodities, and cryptocurrency* CFDs too.
Be confident when you're investing in shares with us
As a broker, we're fully regulated by the Financial Conduct Authority in the UK. Your funds are also fully protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).
Place share trades direct from the chart
With multiple manual equity trading options, you can place three types of order: market, limit, and stop. Other features include trailing stop and one-click trading.
Automated share trading access
Based on your unique share trading strategy, download and use ready-made scripts and expert advisors. Or you can create your own custom scripts and indicators.
Analytics available at your fingertips
Make better informed equity trading decisions. More than 50 built-in indicators and graphic tools provide technical analysis, quotes history, strategy testing, news and more.
Share trading explained
By share trading with FXOpen, you can use derivative products to speculate on the future share price of a company. The value of that derivative is based on the underlying market. It gives you the ability to take a long or short position – depending on how you think the stock will perform.
A derivative product means that you won't actually own the stock. What it does mean, however, is that you can take a position that lets you profit from any change in its value – up or down. It also allows you to start online share trading with leverage for a fraction of the capital needed.
Investing in shares: How does it work?
With FXOpen, you can open a share trading account and start trading in the equity market now. It's all done using derivatives known as contracts for difference (CFDs). Instead of becoming an owner of any shares, you'll simply be taking a position on whether the price will go up or down.
One reason that share trading is growing in popularity is because you don't need sizeable sums to get started. CFD trading gives full exposure to the market with a smaller upfront investment using your leverage. It's then a case of predicting which way the share price is going to move.
With a CFD, you'll agree to exchange the difference in share price from when you opened your position to when you close it. If that price moves in the direction you predicted, you stand to profit. If it moves the opposite way, however, your investment will turn into a loss.
- Trader A makes a $1,000 trade on Company B's share price at $10.00
- Trader A predicts that price will go to $12.50
- Trader A buys 100 contracts at $10.00 a share
- Company B's share price increases to $12.50
- The initial trade value is $1,000, but the final value is $1,250
Before charges and commission, Trader A makes a gross profit of $250.
To get started with the FXOpen share trading platform, open your free account today.
How to start share trading with FXOpen
New to share trading? Familiar with the equity trading process? Your level of experience doesn't matter. What does, however, is knowing what your plan is when you first take up your opening position. Only then can you truly know when best to edit or close your position.
From your FXOpen share trading account, you have access to the information you need to make the right decisions at the right time. Insight or instinct – develop your strategy in line with what you hope and expect to achieve. And remember never to risk more than you can afford to lose.
FXOpen: The share trading platform for insightful investors
As one of the best share trading platforms, you're in total control with FXOpen. And we're here to enhance your trading experience – no matter which positions you decide to take. To find out more, get in touch with our team today. Or why not take a look at our FAQs?
What is equity trading?
To all intents and purposes, share trading
and equity trading mean the same thing. Both
refer to a unit of ownership in a company.
But there are slight technical differences
to be aware of.
First, a 'share' is a single unit of ownership. 'Equity', however, is the total stake you hold in a company i.e., more than one share. You might have three shares – which is your total equity.
The second difference refers to the meaning of 'shares' and 'equities'. More often than not, you hold 'shares' in a single company. But you could use 'equities' to describe the total amount you own in two or more companies.
So, when it comes to equity trading, you're buying and selling your total stakes in a company.
Why do people trade stocks and shares?
For investors, shares are one of the most
popular trading instruments. There are many
reasons for adding shares and equities to
your portfolio. One key reason why investing
in shares can be so attractive is the
liquidity available. The market is full of
ongoing supply and demand – so it's always
possible to find new and exciting
There are other reasons too. For example, there's a clear and transparent correlation between a company's share price and their underlying value. The better it performs, the more likely it is for the share price to increase. Similarly, you can take advantage of volatility – especially when companies are more exposed to prevailing economic or political events.
By trading shares as CFDs using leverage with FXOpen, another benefit is the smaller amount of capital needed. That leverage gives you full market exposure.
The factors to look out for when trading stocks and shares
Thinking about investing in shares? It's important to know the factors to look out for that can influence your positions and decisions. There are many possible internal and external factors to consider. Some are common to all companies, while others can be more unique in nature.
- Share supply and demand: If shares in a company are at a premium, high demand can outweigh supply – driving up the share price in the process.
- Company news or updates: Annual reports, profit warnings, or new products come with the potential to drive a company's share price up or down.
- Broader economic factors: Both on a national and an international level, economic announcements and policies can significantly impact share prices.
- Market and industry trends: It's perhaps more a long-term consideration, but any major trends within a specific market can affect a company's price. Airline stocks, for example, were negatively impacted by reduced travel during the Covid-19 pandemic.
- Investor mood/confidence: In some cases, it can all come down to the confidence that investors have in a particular company or sector. There may not be any tangible reason – so it can be so important to gain an understanding of any prevailing moods.
How much does it cost to trade shares online?
When you trade shares using CFDs, you pay a
small commission when opening and closing
your position. At FXOpen, our commissions
start from USD$1.5 per standard lot. The
rate will depend on your Account Equity and
Monthly Traded Volume. See our
Knowledge Base for more details.
Taking a long position? There will be an additional overnight charge to consider.
For any questions or if there's something you aren't sure about, FXOpen is here to help. Get in touch with our team. Our live chat service is also available 6am to 6pm, five days a week.
Trading stocks and shares: what to consider?
Like all trading, there is always risk
involved if you choose to trade shares. You
can profit from online share trading. But
using CFDs to buy shares online will fully
expose you to the market – and you may lose
some – or all – of your initial investment.
In some cases, losses can be rapid due to
leverage. So, you should never risk more
than you can afford to lose.
It is also worth considering whether you fully understand how CFDs work. They are complex instruments – and the risk is significant. For more support, please take a look at our Knowledge Base.
If you're aware of all the risks involved, equity trading using CFDs can be highly rewarding.
*Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients.