FXTM offers stock trading and stock CFDs for US stocks. You'll be able to trade stocks on our Advantage Stocks MT5 Accounts. This article aims to provide clear information about our stock trading services.
What's the difference between trading stocks and stock CFDs?
When you buy and sell stocks, you own them outright. Stock CFDs are a type of asset that allows you to trade the price movements of stocks, without owning any shares in that company at all. Another difference is that you can trade with the expectation that a stock's price will actually fall in value - not just rise. You can't do this with normal stock trading.
FXTM offers two types of stock instruments: CFD Stocks and Cash Stocks. CFD Stocks allow short positions and offer leverage up to 1:25, with spreads and swaps applicable, and a swap-free period of 3 days. They are available on Advantage and Advantage Plus accounts via the MT5 platform. In contrast, Cash Stocks do not support short positions, swaps, or swap-free periods, and are traded with 1:1 leverage exclusively on Advantage Stocks accounts using MT5. Commissions are not applied to either instrument type.
For more information, please visit our website.
** It’s not possible to go short on an Advantage Stocks account because the stocks here are real, tangible assets — actual shares of ownership in a company. When you buy a stock, you're purchasing a piece of that company. That’s why traditional short selling isn’t available.
However, you can trade in both directions (buy and sell) using instruments like Stock CFDs (Contracts for Difference) on Advantage MT5 and Advantage Plus MT5 accounts. These accounts let you speculate on price movements without owning the underlying asset.
Key benefits of trading stock CFDs:
- Open long and short positions on stock prices.
- Benefit from leverage, which you can't do when trading stocks.
- Choose from a wide range of stock CFDs from the biggest exchanges in the world.
- Trade fractional shares such as 0.3 lot.
If you are looking to start trading Stocks, check out this article to get the requirements: What are your stock trading requirements?
When can I trade stocks?
US stock trading hours are 16:30 - 23:00 server time.
Extended Trading Hours
Extended trading is available outside the regular US stock market session (16:30 – 23:00 server time, GMT+2). These sessions allow you to react to market-moving events before and after the main session.
- Monday:
- 11:00 – 16:29 (Pre-market)
- 16:30 – 23:00 (Regular)
- 23:01 – 23:59 (Post-market)
- Tuesday to Friday:
- 00:15 – 03:00 (Early post-market)
- 11:00 – 16:29 (Pre-market)
- 16:30 – 23:00 (Regular)
- 23:01 – 23:59 (Post-market)
Do you charge a commission on your stocks?
All US stocks are commission-free.
Do you charge withholding tax on US stocks?
Yes, there'll be a 30% dividend withholding tax charged directly to the client's account when receiving a dividend. For example, if the dividend amount is $10, you'll receive a net dividend of $7 (30% withheld) in your account.
