CFD stands for ‘contract for difference’. It is a derivative which makes speculating with a small deposit easy. CFDs are directly negotiated financial instruments. As unregulated derivatives they allow traders to take advantage of prices moving up or down on underlying financial assets.
The truth of the matter is that you need to have a brokerage account before you can start investing in the stock market. Your brokerage account will be run and managed by a stock broker, and this is the person who will have their ears on the ground, listening to any changes that the market might experience.
It would be worthwhile to note the difference between CFDs (contracts for differences) and ordinary shares, before getting into the advantages of using one for the other. Contracts for differences are basically agreements that are made on the price movement of an underlying asset.
Anyone entering forex trading without a clear strategy of how they are going to make money in the long run will end up losing a lot of money for no good reason. This is due to the fact that you will be instantly taken in by the trees in the forest of the forex market, and this will prevent you from seeing the whole forest at once.