Because you can buy shares on the United States stock exchange with a fractional share system, some will ask whether the shares purchased are CFDs or not?
If you don't know what CFD is and before we discuss it, maybe the right question is: Are the shares I bought on Gotrade really mine?
Or, do I own the shares I bought in the Gotrade app?
The answer is, yes!
All shares that you buy on Gotrade are held by Gotrade's clearing firm partner in the United States in the form of a custodial account.
So the shares purchased are not shares in the form of CFDs, right?
You will be trading real/real stocks live on the NYSE and NASDAQ.
Then what is CFD?
CFD stands for Contract for Difference, its plural form is CFDs.
A Contract for Difference (CFD) is a contract between a buyer and a seller that stipulates that the buyer must pay the seller the difference between the current value of the asset and its value at the time of the contract.
CFDs allow traders and investors the opportunity to profit from price movements without owning the actual underlying asset.
CFD contract values do not take into account the underlying value of the asset, only the price change between trade entry and exit.
More can be read here.
So, cool, we can buy stocks on Wall Street, New York, United States directly from the Gotrade application.
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