How to Trade Forex
Trade Forex CFDs
CFDs (Contracts for Difference) give you exposure to forex price movements without needing to physically own and secure forex. When you buy forex CFDs, you don't actually hold forex, but you can still make gains if the price of forex increases, and losses when the price of forex decreases.
CFD exchanges are regulated in many countries, so traders can have confidence in the security of their funds.
Pros of trading forex CFDs Cons of trading forex CFDs
  • No physical forex
  • Ability to short forex
  • Regulated
  • Leverage increases risk
  • Less control over an asset
After careful evaluation of several CFD exchanges, we recommend Plus500 for their
CFD Service. Your capital is at risk. Like all financial instruments, CFDs carry risks.

CFDs (Contract for Difference) allow traders to gain exposure to the price of an asset without physically owning the asset. This has the advantages of avoiding costs and risks associated with transacting and storing the physical equivalent asset, and it increases the range of assets available to trade in a single platform, including cryptocurrencies, fiat currencies, stocks and commodities.

However CFDs also carry risks. For example, CFDs are traded on margin (leverage), which means a trader only pays a fraction of the total purchase amount and essentially borrows the rest from the exchange. This has the effect of amplifying both gains and losses (for example, when you buy a CFD on margin. a small increase in price can result in a big gain, but a small decrease in price can amplify losses). If a position goes too far into the red, (for example, a trader buys gold CFDs only to see the price decrease significantly), the CFD exchange can forcibly close the position and lock in the loss in order to protect against further loss.

CFDs are exciting and innovative, but as with all financial instruments, it is important to understand the risks. 76.4% of retail investor accounts lose money when trading CFDs with Plus500. It is advisable to have a strategy and keep a level head. Plus500 offers a demo account with free virtual cash to practice trading and refine your strategy.



Plus500 is an authorised and regulated CFD provider
  • Plus500UK Ltd authorised & regulated by the FCA (#509909).
  • Plus500CY Ltd authorized & regulated by CySEC (#250/14).
  • Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018).
  • Plus500AU Pty Ltd (ACN 153301681), licensed by: ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.
  • Plus500SEY Ltd authorized & regulated by the Seychelles Financial Services Authority (#SD039).