CFD or Contract for Difference. Let's talk about CFD today. More importantly, I hope that you will find the answer towards the question "Should I Invest in CFD?"
CFD is a popular form of online investment in Malaysia (with parts in the world). Lucrative and legal, this is very popular especially in short term investment or short trading.
CFD trading is extremely risky and in most cases, it can lead to losses if you are not careful with leverage and trading.
Should I Invest In CFD?
In order to answer this question, you would need to answer these few questions:
If your answer is "yes" to all the above, CFD might be right for you.
How much money can you make from CFD?
It really depends but in most cases, you can make quite a nice sum if you are constantly 'market-aware.'
Profit Margin = 1 - 5% on most days
The profit margin on CFD is pretty decent compared to the risks involved. If you play without leverage, 1 to 5% is pretty much the profit level you can make in a day trading. Unless you are trading on cryptos which are highly unstable, you might experience losses or profits up to 50% or 100% in some cases.
How much should you start investing in CFD?
It really depends but I will always recommend to start small. eToro, a leading CFD platform with over 1 million downloads on Android store itself require a minimum deposit of USD$200 (around RM900). Plus500 which is a great alternative to eToro require a minimum deposit of RM500.
Second disclaimer: I'm a happy client of eToro and it is the best CFD trading platform for me (less confusing and easier to use for me). Click on the banner below to try for yourself today.