Forex means Foreign Exchange Trading or Interbank Trading or Spot Trading in major currency pairs and crosses on margin. We at IA FOREX offer Forex Trading in a most competitive way and also offer online trading of both Gold and Silver – commission free with low margin requirements and free easy-to-use trading software.
The “CFD”, or “Contract for Difference”, was developed to allow clients to receive all the benefits of owning a stock without having to physically own the stock itself. For example, instead of purchasing 1,000 shares of Microsoft from a stock broker, a client could instead buy 10 lots of Microsoft on our trading platform. A $10 per share rise in the price of Microsoft would confer to the client a $10,000 profit, just as if he had purchased the actual shares that are traded on the exchange. A major difference is that there are no exchange fees and many of the inefficiencies of trading the underlying shares on the exchange are eliminated. CFDs have grown in popularity dramatically over the past few years, and we believe that this will increasingly be the preferred way to trade the financial markets.
The other major benefit of trading a CFD is the fact that the client can trade on margin. CFD trading means clients can trade a full portfolio of Shares, indices, or commodities without having to tie up large amounts of capital. Using the example above, a client purchasing $50,000 worth of CFD Shares will only be asked for $500 margin.