Use of Leverage
The main difference is that leverage is used with CFD trading, while on Invest leverage is not applied. With leverage, you can trade a larger amount of units than your initially deposited capital would allow you to.
If you are using the Invest account, you will be buying and selling equities without leverage applied to your available funds. Additionally, you will be able to trade with fractional shares of companies if your capital is lower than the value of a whole share from your desired company.
The categories which you can trade CFDs with are - FOREX, Stocks, Commodities, Indices, and ETFs. Trading CFD units of these instrument categories does not mean that you hold any underlying assets, but in fact that you are speculating with the price movement of these assets.
Conversely, our Invest portfolio consists of Stocks (UK, US, DE, NL, and many others) and ETFs. You are able to buy and sell shares with Stocks and ETFs with quantity orders or with an exact monetary value by using value orders. You can take a look at our list of instruments by clicking here.
*All price feeds in Invest accounts and ISAs are strictly indicative.
When you trade with CFDs you are allowed to speculate with the fluctuations in the price of a given instrument. This way, you have two different types of positions to go for - long and short.
On our Invest platform, you are trading with real equities and you wait for their value to increase in order to sell them and make a profit.
You can find more about the general difference between the two types of accounts by clicking here.