Overview
Retail investment platforms have seen an increase in the use of contracts-for-difference (CFD) trading.
In a derivative deal, an investor can make money quickly without really owning the investment. Options, futures, and contracts for difference (CFD) are just a few of the contract trading options accessible (CFDs).
A number of major advantages are provided by CFDs to traders across the board; there is no doubt that profitable chances exist for traders who have the knowledge and experience to make the appropriate trades.
But understanding and familiarity with the essential concepts of CFDs in practice is a part of that knowledge.
Unique qualities distinguish CFDs from other financial instruments. Consisting of margin traded, highly leveraged products, they are typically (but not entirely) sold off-exchange in a variety of marketplaces.
While investors should be aware of the dangers of using them, they can be a great way to profit on little market swings.
As such, newbie CFD investors would do well to invest in those assets which present a lesser risk in the markets, and in this article we explore the 10 best CFD investments for those new to the CFD trading arena.
Amazon
Amazon was valued at $300 million when it went public in 1997 at $18 a share. A total of 507 million Amazon shares, including underlying stock-based awards, were in circulation as of May 21, 2019.
In the last four years, the stock price of Amazon has increased threefold. During the same time span, their annual revenue has more than doubled.
Research has indicated that founder-led companies’ stock tends to outperform in the market. Having Jeff Bezos, who created Amazon in 1994, as CEO is a good thing.
As far as being an investment in 2025, Amazon has a P/E ratio of just over 63 at the current time. In comparison to historical norms, this represents a decrease. Investors may be afraid that the short-term difficulties may persist and limit performance in 2025 even further.
However, the opposite might be true. This might also present a terrific opportunity for new investors to enter the market.
The labor and supply chain challenges are expected to subside by 2025 at the earliest. High-margin AWS gains appear to be a long-term trend.
The company’s advertising revenue is also on the rise, which is a huge boon for the corporation. As a whole, long-term investors in Amazon stock have a bright future.
Apple
Since its founding in 1976, Apple has been a household name in the United States. The Apple II was the spark that lit the personal computer revolution back in the 1970s. The Macintosh, introduced in the 1980s, completely reimagined the PC.
The iPhone has been the most important factor in Apple’s recent success. Customers eager to buy Apple products and services have become brand loyalists due to the game-changing smartphone, which was introduced in 2007.
Investors are asking what the next big growth driver for Apple stock will be as the iPhone business matures. In answer to this, services and wearables have recently boosted Apple’s sales and earnings.
Apple’s services revenue reached $19.5 billion in the December quarter, up 24 percent year over year. The App Store, AppleCare, iCloud, Apple Pay, Apple Music, Apple TV+, and Apple Arcade are just a few examples of the many services that Apple has to offer.
As such, Apple presents a good opportunity for beginner CFD traders looking to gain on the company’s expected growth in other areas of its overall offering.
Mastercard
Until last year, the S&P 500 had been outperformed by Mastercard (MA -2.79 percent). In 2025, the stock of the world’s largest payments processor climbed just 0.7 percent, a far cry from the S&P 500’s 26.9 percent increase.
For Mastercard shareholders, the good news is that the stock seems like it’s going to resume its successful streak in 2025.
Consumers in the United States remained unfazed by high inflation in November 2025, according to the most current data. Consumer expenditure in the United States has increased by 0.6 percent so far this year.
Manageable inflation will therefore enhance the company’s revenue and profitability in the future more than it will harm it, and the increased expenses of goods and services that results from it.
It’s because of this that analysts expect Mastercard’s revenue to rise by 20 percent to $22.5 billion this year.
Microsoft
Microsoft’s stock price performance over the past few years has been nothing short of spectacular. Their share prices have been rising steadily, including a 55% increase in 2025, and 441% increase in pricing in the last five years.
Azure, Microsoft’s cloud division, has seen its stock price soar in recent years.
A bright future for Azure appears to be on the horizon. The pandemic has expedited the trend to cloud deployment, which is estimated to reach $1 trillion in market value by 2030. While Amazon still leads in the cloud division, Microsoft is fast closing the gap.
Netflix
Netflix’s growth remained steady in 2025, however, it was slower than in 2025. This was most likely owing to the dramatic increase in subscriptions that COVID lockdowns had in 2025.
Despite this, Netflix’s revenue increased by an average of 20% year over year for the last three quarters.
When it came to online video streaming, Netflix was a trailblazer. In spite of severe competition from the likes of Disney and Amazon, it still holds the highest market share in the field.
In addition, Netflix is continuously looking for new revenue streams. For example, it recently launched an interactive games division, which is a step in the right direction. Netflix’s bottom line will continue to improve as a result of moves like this.
As such, long-term investors who buy shares in Netflix shares now will benefit from the recent drop in its stock price and enjoy the company’s forecasted growth.
Nike
Nike is now a Dow Jones Industrial Average member with a staggering $229 billion market worth, making it one of the world’s largest corporations. With the signing of Michael Jordan in the early 1980s, it has expanded to sponsor dozens of the world’s top athletes and produce $46 billion in income in the last year. It has grown enormously since then.
Nike has responded to the pandemic well, increasing the profitability of its e-commerce platform. Direct-to-customer sales could boost profits in the long run if they increase in number.
While Nike’s growth going forward might remain in the single-digit realm, it presents a great opportunity for steady long-term growth and great yields down the line.
Shopify
Ottawa, Ontario-based Shopify was established in 2006 as a Canadian e-commerce start-up. An array of services are available through the company’s primary platform including marketing, payment, and shipping capabilities.
Shopify is used by more than 1.7 million businesses in 175 countries. The company advertises itself as an all-in-one commerce platform that enables businesses to start and flourish because anyone can set up an account online and sell their items. A point-of-sale (POS) system can be used for this, either online or in person.
Shopify has a lot of the features that investors are searching for in a platform. 2019 and 2025 were its best years yet, cementing its position as a serious challenge to eBay and Amazon.
Acquisitions and expansions will provide the company with additional room to flourish. New and extended relationships like JD.com, TikTok, Google, Facebook, and Alibaba might have a significant impact on the company’s growth.
Tesla
Tesla was created in 2003 by a group of engineers who wanted to prove that people didn’t have to compromise to drive electric – that electric vehicles can be better, faster, and more exciting to drive than gasoline cars.
Today, Tesla produces not only all-electric automobiles but also endlessly scalable sustainable energy generation and storage devices.
In terms of Tesla’s prospects in 2025, analysts estimate a 60 percent increase in Tesla’s shipping growth, which will help the stock reclaim some of its lost ground and climb higher. Tesla is expected to post a record profit and urge investors to expect a significant increase in sales.
Having delivered 936,000 vehicles in 2025, analysts estimate Tesla to deliver 1.5 million vehicles to customers in 2025 — an increase of 60% and greater than the company’s expected 50% annual growth rate in deliveries over the next few years.
Spotify
Spotify’s stock price has fallen even further since the trough of the pandemic-driven market crash in 2025 after a massive devaluation in 2025. SPOT may be in a “buy the dip” situation at this point.
As of 2025, Spotify is expected to begin generating consistent profits. First-quarter earnings per share (EPS) are expected to be $0.20.
Spotify’s stock could rise in value if it satisfies expectations, which include making a profit and providing more value to its stockholders.
When it comes to valuation, Spotify has a lot going for it. As a result, the company’s supremacy in audio streaming, as well as hopes that it will begin earning regular profits within a year, are the most significant factors.
Consider that the company is currently trading at a discount to its early 2025 highs, and it’s easy to see why some long-term investors believe Spotify shares represent an excellent entry position.
Anglo American PLC
While relying on diamonds and iron ore to boost its performance in 2025, Anglo American anticipates that its Quellaveco project in Peru will provide some early copper.
Most of Anglo American’s output and investment capital is concentrated on future-enabling items, such as metals and minerals critical to decarbonisation and global consumer demand.
The company’s integrated technology and sustainability program enables it to run the business safely and sustainably, increase its competitive position, and deliver value-added growth as a foundation for future returns.
Frequently Asked Questions
What are CFDs?
Through the use of Contracts for Difference (CFDs), traders and investors can profit from price movement without having to hold the actual assets themselves. The underlying value of an asset is not taken into account when calculating the value of a CFD contract.
Clients and brokers enter into a contract to do this, and no stock, FX, commodities, or futures exchanges are used in the process.
How do I trade CFDs?
To begin trading CFDs, you must first understand how they function. CFDs differ from other kinds of trading in a number of ways, and recognizing these distinctions can help you make better trades.
After that, opening an account with a broker to trade CFDs is a simple and quick process that normally only takes a few minutes.
Are CFDs riskier?
Because you’re trading with borrowed money, trading CFDs has a higher level of risk than regular stock trading.
Trading in CFDs requires only a tiny portion of the entire value to be put up, often just 5%. But if the trade goes in the favour of the CFD provider, they are entitled to a full 100% of the profit.
You’re signing a contract with the CFD provider when you trade CFDs. In the contract, you explain your assumptions about the value of the financial product or the underlying asset.
Hidden clauses in the contract could cost you money if you don’t know what you’re doing or have the time and patience to read the fine print.
What are the advantages of trading in CFDs?
CFD trading gives you the flexibility to profit from both rising and falling markets by allowing you to open contracts in both directions.
As a result, traders have more control over the timing, location, and method of opening positions in a market.
CFD brokerage fees are far less expensive than those of traditional trading methods. Brokers often make their money by taking a daily portion of the transaction’s financing proceeds.
Which are the best CFDs for beginners?
Beginner traders of CFDs will do well to invest in shares that show strong potential for mid to long-term growth
Top 4 Brokers
