“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”
Scope Markets has announced the launch of the new Scope Invest account, with a structure that offers a low-cost and flexible solution, allowing customers to invest in more than 2,000 global CFD equities.
Regulated in six different jurisdictions and supporting customers worldwide, Scope Markets offers access to multiple asset classes and instrument types across both mobile and desktop platforms.
“Significantly reduces the risk of capital losses”
Pavel Spirin, CEO of Scope Markets, said: “As a progressive business, we are passionate about ensuring that easy financial market access is available to the widest possible audience. Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”
“CFDs undoubtedly provide a versatile and cost-effective way of gaining exposure to a wide range of assets from across the globe. However, the risks associated with leverage and short selling mean that the product isn’t suitable for all. Our Invest account provides customers with many of the benefits of share ownership but by using CFDs, transaction and holding costs can be eliminated whilst the capital risk is significantly reduced.”
Fractional trading and dividend payouts
The introduction of Scope Invest is a game-changer for the broker and its clients, who are now able to use time to their benefit. The account is on offer to Scope Markets retail customers globally and can be denominated in GBP, USD, or EUR.
The addition of fractional trading allows customers to invest in as little as 1/100th of a stock. With all trades being commission-free and with no leverage offered, there are no overnight rollover fees (swaps) to pay.
The minimum account opening deposit is $50; and, whilst investors do not own the underlying asset, they do continue to receive the benefit of corporate actions including dividend payments.
A CFD allows traders to gain the market exposure to an asset without taking physical ownership. Rather than transactions having to be undertaken on exchange – with the accompanying trading costs and access restrictions – traders can enter into the contract for difference directly with a broker, such as Scope Markets.
Traditionally, CFDs have been used on a leveraged basis, where traders only need to deposit a percentage of the transaction’s value. It is also popular for a trader to sell an asset they don’t own on the expectation the price will fall. Whilst this has the potential to increase the size of any returns, if markets move in the wrong direction, losses can quickly mount. The Invest account addresses these challenges.
