Three Years of StoX: CAPEX.com’s Game-Changing CFD Stock Trading Feature
When I launched the StoX feature on the CAPEX.com platform, I had no idea it would achieve such success in only three years.
My aim has always been to give everyone access to the financial markets through my CAPEX.com brokerage company. Therefore, I wanted individuals to be able to take advantage of stocks without having to own the actual shares.
A great way to participate in stock trading is through a contract for difference (CFD). It allows individuals to benefit from price differences without owning the physical asset.
How do you trade CFDs?
The concept of predicting the price of an equity without owning it became very popular with traders and investors.
When you trade CFDs, you purchase a contract for the specific stock that you are trading. The transaction will be to either buy or sell the stock. The net difference in the price of the asset from the date of purchasing the contract until expiry equates to the profit that you can generate.
Once the asset price increases, you can sell the contract and profit from the net difference between the purchase and selling price. The same applies if the price declines and you open a sell position. The price difference is your profit, which is booked into your account.
Our platform offers stocks, forex, commodities, indices, and crypto CFDs. The wide selection of asset classes allows investors to diversify their portfolios.
It might sound simple to trade CFDs; however, it involves risks like any other form of investing. In-depth knowledge of the financial markets, technical skills, trading psychology, and risk management are crucial.
How can you access the CFD market?
The CFD market is more accessible now than it was many years ago, and there are multiple ways to access it. Our StoX feature gives traders direct access to trade CFDs on over 50 US-listed shares, including Tesla, Apple, and Netflix.
We understand that stock trading can become expensive as many brokers charge swap or roll-over fees. Swap fees are the interest rate differential between the central banks of the assets that you trade. They are highly influenced by market rates and spreads.
Furthermore, swap fees can add up significantly, which, in the case of a large portfolio, can reduce your profits. This is why we charge zero swap fees on long (buy) positions when using our StoX feature. StoX also offers 1:1 leverage, which allows you to maintain a balanced portfolio.
Why have CFDs become so competitive?
As an entrepreneur specializing in fintech, I always keep a close eye on the latest developments in the financial markets. The CFD trading sphere has changed due to many factors. The industry has become more competitive as traders’ goals and expectations evolved; companies had to keep up with their demands.
The main reasons for the competitive industry are individuals seeking more leveraged opportunities, advanced technology, and alternative assets to invest in besides stocks.
The artificial intelligence (AI) revolution has further boosted this need since it can process large data sets efficiently and, in that way, automate transactions. This gave birth to AI bots, which offer convenience as they can replace a human trader. These AI bots can predict market trends and assist traders in making informed decisions.
As a trader, you should pay attention to the fundamentals of the markets, as they are unpredictable and influenced by multiple global factors. Even AI systems are not immune to the risk of trading and investing.