CFD vs stocks
A stock is a share in a company; a CFD on a stock is a contract on its price. Different psychology, holding costs and supervision.
| Criterion | CFD on a stock | A stock in a brokerage account |
|---|---|---|
| Ownership | None — a contract on the price move | A share in the company (dividends, rights) |
| Holding costs | Overnight financing / swap on the position | None — you hold it as long as you like |
| Leverage | Yes — higher risk, possible liquidation | Depends on the broker; as a rule no leverage for retail clients |
| Tax | Tax on capital gains (Belka) | Belka on a sale + dividends |
Worked out on one example
The same capital in a stock and in a contract on its price. We calculate a year: the dividend after tax and the cost of financing.
Example assumptions
- A position worth 10,000 PLN (Polish złoty) in both variants.
- A dividend of 4% a year, capital-gains tax of 19%.
- CFD: a financing cost of 0.02% of the value per day — a value assumed for the calculation.
The arithmetic
- Gross dividend 10,000 PLN × 4% = 400 PLN
- Tax on the dividend 400 PLN × 19% = 76 PLN
- Net dividend 400 PLN − 76 PLN = 324 PLN
- CFD financing cost per day 10,000 PLN × 0.02% = 2 PLN
- A year of holding the contract 365 × 2 PLN = 730 PLN
- Balance of those two items 324 PLN − 730 PLN = −406 PLN
At the assumed financing cost, holding a contract on a stock for a year costs 730 PLN, while the net dividend from the same position brings in 324 PLN. How a broker settles the dividend adjustment on a CFD depends on its agreement — check the KID and the fee schedule, because that is what this calculation rests on.
The arithmetic rests on the assumptions stated above — it is not a forecast and not market data. Put in your own numbers: Position size calculator.
This comparison describes differences in mechanics; it does not recommend a choice. The fit depends on your horizon, capital and risk tolerance. Educational content — not investment advice.