Shares Trading

Shares Trading with AvaTrade

Trading the shares of companies online is an exciting way to enter the financial markets. This market offers a wealth of choice when it comes to global shares and stocks and at AvaTrade, we provide our traders with access to over 100+ stocks from the biggest companies in the world.

To top it off, stock CFD trading makes it easier for you to trade the shares of some major companies, compared to trading traditional equities. With CFD trading, you are not actually purchasing the actual asset, but simply making a prediction regarding the direction that the price of the asset will move. As a result, with stock CFD trading, trading the stocks of the largest companies in the world, listed on various exchanges including the New York Stock Exchange (NYSE), the NASDAQ Composite Index as well as the London Stock Exchange (LSE), is now in reach. In addition, with online stock trading, you do not need to worry about the commissions or fees associated with traditional stock trading.

What is Shares CFD Trading?

A contract for difference (CFD) is a tradable contract made between two parties, usually a buyer and a seller, to exchange the difference between the opening and closing prices of the contract, at the close of the contract. This difference is then multiplied by the number of shares specified within the contract. The value of the CFD is therefore, the number of shares multiplied by the price of the underlying share.

Based on this, a share CFD is a financial instrument which is linked to the underlying share price. Here though, the holder of a share CFD has no shareholder rights. You are simply speculating regarding the direction that the price of the share will move, either up or down.

Benefits of Shares CFD Trading

One of the main benefits of trading shares CFDs is that you are not required to pay the full underlying value of the contract, as a result of the ability to leverage your investments. At AvaTrade, you are simply required to deposit margin as collateral, typically 20% of the overall investment. So, for example, if you wish to purchase a share CFD contract of £20,000 worth of Vodafone shares, the maximum capital initially required would be £4,000.

In addition, unlike traditional stock trading, with stock CFD trading you can benefit irrespective of the direction that the price of the asset will move. This is unlike the traditional stock trading market which is primarily directional. That is, an investor will purchase shares on the expectation that the market price will increase.

Buy Shares Online in the World’s Premier Companies

At AvaTrade, you are able to open short or long CFD positions on the stocks of major companies across the world’s financial markets. When the market is bearish or trending down, you can go short, and when the market is bullish or trending up, you can go long. Thanks to CFD trading on margin, you are able to generate profits from small market movements. While this allows you to increase your profits in a big way, it is vital to remember that your risks are also increased. Fully understanding leverage and the risks involved, is a vital component of trading effectively and safely.

At AvaTrade UK, we offer leverage of 20:1. This will give you a margin requirement of only 5% for shares trading. Let us explore exactly what this means and how this can impact your trading capital and your bottom line. Let us consider that with a capital outlay of £5,000, you can acquire shares worth £100,000. In this example, if the price of the underlying shares would increase by 5%, this would result in a profit of £5000; effectively a 100% return. In comparison, a traditional stock trader buying the same shares over the counter, would have only made a £250 profit on such an increase, with the same amount of capital outlay. Remember though that leverage is a double-edged sword, and a negative price move can result in disastrous losses. Since we fully understand the risks of online trading, we have ensured that our traders have access to plenty of risk management tools on all of the AvaTrade platforms to help you to protect your capital as much as possible.

Traders at AvaTrade UK are able to access over 100+ different stocks on the different exchanges in the United Kingdom, the US, Germany, Spain and many more. Some of the stocks one can trade include HSBC, Vodafone, Barclays, Apple, Berkshire Hathaway, Coca-Cola, Google, Groupon and many others.

Visit our Financial Instruments Index list to get more information above each share offered by AvaTrade for our UK traders.

Stock CFD Trading

Trading share CFDs (contracts for differences) are popular among new and professional traders worldwide. The main reason for this is that with CFD trading, you are not purchasing the actual underlying financial instrument but instead, you are speculating on the direction that the price of the stock will move. In other words, you will buy a contract with AvaTrade UK, to then settle the difference between the value of the entry/exit price of that share. Since CFDs are not physical shares of a company, you do not have any voting rights on the underlying companies. CFD trading therefore offers traders the increased flexibility that is absent in the traditional stock markets.

Another advantage of trading CFDs is that they allow you to buy stocks online and then sell them quickly and easily. This is one of the most effective ways to profit from movements in both bullish and bearish markets. Plus, since you are not purchasing the actual financial instrument, at AvaTrade, you can enjoy 20:1 leverage. What this means basically, is that for a few quid, you can take a large investment position without laying out a large sum of trading capital. Be advised though that leverage can increase your profits, or your losses, so take the time to fully understand the risks and never trade with capital that you cannot afford to lose.

Why Should You Trade Stocks Online With AvaTrade?

At AvaTrade, we are fully committed to making it as easy as possible for you trade stocks through our powerful trading platforms. We provide all the necessary tools, services and features that will enable you to step into the shares trading arena with confidence.

Our sophisticated trading platforms are easy to use and to navigate and this will make it easy for you to instantly trade a wide range of stocks and shares online. You can also manage your trading portfolio based on your trading needs and style and can use stop orders, limits, and other effective orders that will give you full control over your trading activities. At AvaTrade, our trading platforms make it very easy for you to monitor all of your trading activity from a single screen, including the trading of stocks, forex, commodities, cryptocurrencies and other financial instruments available on our platforms.

• MetaTrader 4 (MT4) – MetaTrader 4 (MT4) is a world-famous and industry leading trading platform. Most online traders are familiar with this platform and it offers a comprehensive range of trading tools and financial instruments to compliment your trading activities. With MetaTrader 4, you can enjoy access to expert advisors, advanced charting capabilities, and automated trading at the click of a button. Over the years, the MetaTrader 4 platform has offered powerful tools for derivative trading, and with CFDs available, the platform has now opened a new world of possibilities for stock trading enthusiasts.
• MT4 Floating Spreads – The MetaTrader 4 floating spreads ensure that you are able to trade on the lowest spreads in the market, available from our many liquidity partners in stocks, indices, commodities and forex. Floating spreads vary throughout the day and represent the best bid and ask prices we are able to secure from our liquidity providers.  The major benefit of floating spreads is that traders receive the best current market price at the time they are trading, and this can really reduce trading costs and impact your bottom line. For instance, if you wish to trade UK stocks, it would be advisable to do so during UK market open hours when there is sufficient liquidity. However, floating spreads can sometimes widen on a particular stock around the time that high-impact data is set to be released.
• Automated Trading – To enhance the convenience for our traders, AvaTrade offers its UK traders access to auto trading. Now you can easily copy all the trading activities of experienced trading professionals. We offer a range of automated trading solutions to complement your trading methods and strategies, including DupliTrade and ZuluTrade. With these tools, traders are able to track the best performing and consistent traders on the AvaTrade platform and replicate their trades on their accounts. This is an excellent way to diversify your trading portfolios and to learn new trading skills.
• AvaOptions – This technologically advanced trading platform offers increased flexibility on forex pair options, including forex spot trading opportunities on over-the-counter Vanilla Call and Puts. There are currently offer 40+ trading instruments available to trade on our AvaOptions interface. In addition, you are able to tailor your strategies according to your trading preferences and risk appetite.
• Mac Trading – Mac trading runs on Java and it is compatible with multiple firewalls on web-based Mac trading platforms. Simply login from the AvaTrade website and enjoy lightning-fast executions of trades on your favourite Mac device.
• Web Trading – Trading on the web is available 24/5 on the AvaTrade online trading UK platform. Our web trading platform is compatible with most browsers, and you can easily login from anywhere and at any time to ensure you never miss a lucrative trading opportunity.

More Reasons to Trade with AvaTrade UK

• A regulated and trusted broker with over 10 years of industry experience
• Award-winning innovative broker – Winner of the Best Broker Award
• Professional and responsive customer service 24/5 available in your language
• Over 250+ financial instruments to trade including CFDs for stocks, forex, indices, commodities, and cryptocurrencies
• Safe and secure transactions plus client funds are kept in segregated accounts with leading international banks
• Trade on the move at any time and from anywhere with our innovative AvaTradeGO app

How to Buy Shares Online – Learn, Practice and Trade with AvaTrade

As in all specialised fields, long term, consistent success in stock and shares trading can only be achieved when one has the requisite knowledge and relevant experience. AvaTrade recognizes this and our UK site features a fully stocked academy for all your educational needs. Whether you are a newbie or a seasoned professional trader, you will find all the tools and resources you need to get started in the online trading space. Our UK website offers a wealth of resources including videos, webinars, access to an eBook, Economic Calendar and much more. In addition, we give all our UK traders access to Sharp Trader, our exclusive educational portal.

At Sharp Trader, educational tools are structured in a systematic way, so both new and advanced traders can learn at their own pace. There are plenty of free eBooks, videos, recorded webinars, market news and updates, trading insights, trading reviews as well as fundamental and technical analysis. We do not only provide general information, but also offer daily market commentary from resident as well as outsourced veteran traders and financial markets experts.

For stock traders, having access to educational resources, as provided by AvaTrade, will save countless hours of research into individual company reports, industry trends or market sentiment. There is also a real time economic calendar that helps traders track any relevant news that may impact the prices of their favourite stocks. For instance, traders can know, well in advance, the schedule of various companies’ yearly report releases, so they will be more accurate with their stocks and shares trading.  In addition, there is a daily auto-chartist commentary which can help traders to pick out high quality entries in the markets. These tools can help traders make informed shares trading decisions under real-market conditions.

Start trading shares CFDs with AvaTrade today and enjoy the many services, features, benefits and competitive spreads that you would expect from the UK’s #1 regulated and award-winning broker!