CFD or buy the stock?

Hi Guys,

I'm a fairly seasoned forex trader but recently, started dipping into buying stock for a long term hold, working out pretty nicely but it is very slow and the gains don't equate to anything like CFD trading. Yes yes, CFD's are risky (riskier), well aware so no need to assist there. I just wanted to put a simple question to those who can offer some advice.

I have shares on NIO (Chinese EV), since entering, after watching it scale down, I invested quite heavily at just below $3 per share, it now floats around $14. Great, but had I bought CFD',s I would have been much happier. After much analysis, I firmly believe this stock will continue to climb, not quite Tesla like, let's not compare but I believe the future is bright.

CFD's carry a swap fee every night, this is going to be quite costly but easily absorbed if it keeps climbing as I anticipate. Even if this were to crash to $1 I would still be OK in terms of margin. CG tax at the end of the trade yes.

If I buy the stock, I'm a little hazey, it's a slower, safer "bet" but what costs can I incur here, I can't seem to find much about it via my platform. CG tax applies, stamp duty? What else?

Any advice, please let me know, looking to learn a bit more about holding shares over CFD's, or not..

Thank you for reading.

Best Regards,
M3CSL

Im not really good at english and not really understand the whole question but i just want to tell something maybe you're already know, for me swap/tax/spread is not a big deal as long my trade is positive, good thing is my broker is swap free commission free and low spread also required a minimum deposit (suit to my financial). About the stock, you can find it on your broker website what they're charging. What i know is usually they charge you for the commission, and depends on where you lived you'll charged for every income you get per period (dividends tax). Also if you think your progress is so slow on stock, why not looking for dividen? And re-invest that dividen to the exact same company while keep investing every month?
Btw, i just know you need to paid stamp duty on stock because there's no charge on country hehehe (execp for commission)

Both are same.. You should go there where you feel comfortable.

They both have pros and cons, so it always come down to your preference. I do believe that CFDs have a higher risk of losses, but stocks can also have the same fate.

I prefer CFDs. But it has higher risk than stock. Trader can start CFDs trading with low capital and high leverage.

The risk is the same (uncertainty of returns), the only difference is that you don't hold the stock and thus receive no dividends. Also CFDs on stocks are instruments offered by offshore brokers which allow to dodge taxes. Also trading costs are cheaper for CFDs

CFD off course over buying the actual stock. With CFD your capital requirement reduces as per your leverage. But when you are actually buying a stock you need much more capital. You would need the margin if exactly equal to the value of that asset, which is definitely way more than CFD's. In the same capital, you can trade more on CFD's and earn more profits.

Both are good and same when it comes to risk of uncertainity, so I think it depends on your preference