Stockbroker of the year: Special mention — CFD providers
Low-cost contracts for difference are making a comeback
For the past seven years, Top Stockbrokers has provided a ranking of the best providers of contracts for difference (CFDs), a type of derivative that allows for low-cost, short-term leveraged trading.
CFDs are a contract between two parties where one pays the other one profits depending on the movement of a reference asset. So, for example, two parties can write a CFD on MTN and then pay each other the profit implied by the movement of the reference share.