Stock CFDs are commonly offered by low spread forex & CFD brokers as an alternative to other frequently traded assets. Since stocks move in a very different way from currencies, they could offer good diversification benefits for traders and investors. It could also be that some trading strategies that don’t work very well in the forex market, will perform well with stock CFDs.
To improve your odds at becoming a profitable stock CFD trader, it is important to look for brokers with the lowest spreads and commissions. In particular for traders who are trading on a very short time-frame, costs quickly add up, and they can easily eat away hard-earned trading profits.
Most low spread forex brokers today offer CFDs on at least some well-known companies. Among the most common ones are large American tech companies like Apple, Alphabet (Google), Facebook, and Amazon.