What is a CFD trading account?

A CFD trading account is a brokerage account that lets you speculate on price movements without owning the underlying asset. It gives access to markets such as forex, commodities, indices, and shares, and lets you go long or short using margin.

There are five common types of CFD trading account:

1. Demo account

2. Cent account

3. Standard account

4. Professional account

5. Islamic (swap-free) account

Please note that account types and features vary by entity and jurisdiction.

1. Demo account

A demo account uses virtual funds in live market conditions to simulate trading without risking real capital. It is commonly used by traders who are learning a platform, testing a strategy, or becoming familiar with CFD trading.

2. Cent account

A cent account denominates trades in cents rather than dollars, reducing the size of trade exposure compared with a standard account. It is often used by traders who wish to gain experience trading with real funds while using smaller position sizes.

3. Standard account

A standard account is the most common live account type and typically provides access to a broker's full range of available markets, products, and trading conditions.

4. Professional account

A professional account may offer different trading conditions, including higher leverage limits and reduced regulatory protections compared with a retail account. Eligibility requirements vary by jurisdiction and regulator.

5. Islamic (swap-free) account

An Islamic account, also known as a swap-free account, is designed for clients who prefer an alternative to standard overnight financing arrangements for religious reasons. The fee structure and eligibility requirements vary between brokers.