At Eurotrader, we believe that understanding key market concepts is essential for making informed trading decisions.
Eurotrader offers trading exclusively through Contracts for Difference (CFDs). When trading CFDs, you do not own the underlying asset, such as shares or index constituents. Because of this, traders are not entitled to receive real dividends in the same way as shareholders who own physical stocks.
Why Dividends Are Not Paid in CFD Trading
Dividends are paid only to shareholders who own actual shares of a company. Since CFDs are derivative instruments:
- You do not hold ownership of the stock or index
- You do not have shareholder rights
- You are not eligible to receive dividend payments
CFDs are designed to allow traders to speculate on price movements, not to generate dividend income.
Although Eurotrader offers CFDs on stocks and stock indices, this does not change the nature of CFD trading:
-
Stock CFDs reflect the price movement of individual shares
-
Index CFDs reflect the performance of a basket of shares
-
Neither instrument provides ownership of the underlying asset
As a result, no dividends are paid directly to traders.
For traders seeking exposure to market volatility and flexible trading opportunities, CFDs remain a powerful tool—provided their characteristics and limitations are fully understood.
Need more details? Our support team is always here to help.
Open an account with Eurotrader today!
