CFD vs. Stock
Which is Better For You?
Contract for difference or CFD is a financial trading instrument where the investor enters into a contract with a broker that stipulates that the investor must pay the difference to the seller the difference between the current value and the value at the time the contract ends of an asset.
Stocks represent ownership (equity) of a fraction of a publicly listed company. This gives stock ownership of the company's assets as well as profits as per the number of stocks they own. These stocks are traded on a stock exchange, for example, the London Stock Exchange or the New York Stock Exchange.
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