5 reasons to consider CFDs for investment in 2026
CFDs are high-risk investments. But when handled carefully, they can work effectively within a variety of portfolios.
Sponsored by Pepperstone. To learn more about trading CFDs, visit the Pepperstone website today. Trading CFDs/FX carries risk and is not suitable for everyone. Refer to our PDS and TMD. Pepperstone Group Limited, AFSL 414530.
1. Opportunities in rising and falling markets
Traditionally, successful investing means that you profit when the market is on the rise.
"Buy low, sell high" is a familiar maxim even to those not well-versed in the world of investing.
But what about when the market isn't performing so well?
Some of the potentially negative effects can be offset via diversification across a range of companies and industries.
But this is also where CFDs can offer opportunities.
CFDs allow you to take a position on the future pricing of an asset.
This means that even if the market is seeing a downward trend, there is still the potential to make money from investing.
This doesn't come without risk; investing in CFDs can cause greater losses than your initial investment.
However, for experienced investors, they can present opportunities.
Pepperstone provides extensive resources for experienced investors, including market analysis, trading guides and webinars.
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CFD Service. Your capital is at risk.
2. Access to a variety of asset classes
One of the advantages CFD trading can offer is that it provides exposure to an asset class without actually needing to own the underlying asset.
This can mean that the initial overheads are lower, in part due to leverage (we'll talk more about that in a moment).
It can also allow for quicker turnaround times on an investment. This is due to CFDs being considered a relatively liquid asset.
With Pepperstone, you're able to access more than 1,350 CFD instruments across a range of asset classes, including:
- Margin FX
- Indices
- ETFs
- Commodities
- Cryptocurrencies
- Shares
Within these asset classes, you're also able to access a huge range of different companies and industries, too.
You can see the full range on the Pepperstone website.
Trading with Pepperstone
With Pepperstone, you're able to trade across a range of markets and platforms, while also getting access to a range of educational resources.
🏫Learn to trade and upskill
Learn the fundamentals of trading CFDs and stay up to date on the latest developments.
📈A broad choice of markets
Choose from more than 1,350+ CFD instruments to complement your portfolio.
💸Competitive pricing
Standard spreads from 0.02 on oil CFDS and 0.05 on gold CFDs
BTC/USD spreads from $15 and ETH/USD from $2.
⏰Uninterrupted 24/7 trading^
No weekend platform downtime or associated price gaps.
🪙14 new crypto CFD pairs
Including Tron, Pepe, Bonk and more.
📞Locally-based support
Get access to help 24/7, whether online or over the phone.
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CFD Service. Your capital is at risk.
3. Risk diversification
Diversification in investing is usually discussed in relation to diversification of assets.
But it's also important to think in terms of diversification of risk.
Now, this isn't simply risk for risk's sake.
Rather, it's to do with the growth potential of your overall portfolio.
Lower-risk assets typically mean that there is lower potential for growth.
Higher risk assets contain greater potential for losses -- but also for greater gain.
With this in mind, experienced investors will generally segment their portfolio into low, medium and high risk assets.
High-risk assets can contribute to short-term growth for the portfolio, with potential losses being offset by the steadier long-term growth of low or medium-risk assets.
Of course, it's important to practice first. Pepperstone offers a demo account that's tied to real-world trading values, which can help you test your strategies.
You can also read more about managing risk right here on Finder.
4. Trading with leverage
One of the primary advantages of investing in CFDs is that you're able to use leverage.
This means you're not necessarily required to invest the full amount that you would normally require.
Retail investors with Pepperstone can trade with up to 30:1 leverage.
Professional clients can trade with up to 500:1 leverage.
This can accentuate your profits.
However, it can also accentuate your risk -- you may lose more than you initially invested.
5. 24-hour trading
Trading overseas markets can be tricky due to the time difference.
However, Pepperstone offers access to the US CFD market overnight for select equities.
This can open up additional investment opportunities for your investments, while enabling you to keep a sane sleep schedule.
You can find out more about 24-hour trading with Pepperstone on Finder.
Learn more about trading with Pepperstone today
Pepperstone does not require a minimum opening deposit. Commissions vary according to the asset being traded but start at $5 or 0.07% on AU Share CFDs or $3.50 per 1 lot on FX.
