CFDS (Contracts for differences)

Risk Warning: Trading Contracts for Differences (CFDs), carries a high level of risk to your capital, and is not suitable for all investors. Losses can exceed deposits.

    Vinco Wealth Management offers an advisory service that specialises in trading CFDs as part of a balanced investment proposition.

    CFD trading deals with price movement of instruments such as shares, indices, sectors, currencies and commodities without actually owning the underlying asset. The aim is to profit from the price moving in the client’s favour, which can be on a rising (going long) or falling price (going short).

    We prefer to trade with large capitalised companies based on the FTSE 100 and Dow Jones Industrial Average where liquidity is available when dealing in size. Margin requirements can be as low as 5% on the top 25 capitalised stocks complemented by greater worldwide broker coverage.

    Taking into consideration the high risk nature of the CFDs, we advise a stop loss on each trade and guaranteed stops are available dependant on the size of the transaction.

    Vinco Wealth Management CFDs service provides the following bespoke offering:

    • A dedicated personal advisor to guide you through the markets
    • Well researched proactive trading ideas
    • Daily market updates by method of choice
    • Professionally worked orders to ensure best execution
    • Competitive commission, margin and daily finance rates
    • Access to monitor clients’ positions via a mobile app which includes live prices
    • Daily e-mailed statements and text alerts on executed trades
    • Breaking news alerts covering broker grade changes, corporate and economic data releases

    What are the advantages of CFDs*

    • CFDs are currently exempt from stamp duty
    • It is not necessary to pay the full cost of the trade upfront
    • Guaranteed and normal stop losses available
    • Margin rates from 5%
    • Competitive commission rates
    • Ability to profit from both rising and falling prices

    What are the disadvantages of CFDs*

    • Losses can exceed deposits
    • Leverage means potential losses are magnified
    • Interest is charged overnight on the total value of the trade
    • No voting rights

    Potential trading strategies available

    • News trading/corporate and economic releases
    • Trading on analysts’ upgrades/downgrades
    • Dividend stock trading
    • Range trading
    • Momentum/breakout trading
    • Pairs trading
    • Acquisitions and takeover targets

    *Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

RISK WARNING
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