At Bernstein Bank, clients are able to profit from rising as well as falling exchange rates with contract for difference (CFD) online trading. A CFD is a contract between a CFD broker and the client that stipulates that the seller will pay the buyer the difference between an asset’s current and original value at contract time. For negative values, the buyer pays the seller. CFDs are synthetic investment vehicles. The underlying baseline values like stocks, indices, and commodities are not delivered physically.
Compared to options or certificates, the major advantage of CFD online trading is its price transparency. A CFD is always quoted at almost the same level as the underlying assets and adjusts its price accordingly. CFDs can also be traded on margin. This means that investors and traders can move a multiple of the traded position value on the market with a percentage margin of that value.
MetaTrader 4 (MT4)
As your CFD broker, Bernstein Bank provides MetaTrader 4 (MT4) by MetaQuotes, the most popular CFD and forex trading platform, at no cost to you. Its extensive functionality and intuitive user interface make MT4 an ideal choice for implementing your CFD trading strategies.
MT4 provides Bernstein clients real-time rates, charts, and wins and losses for CFDs, foreign exchange, commodities, and stocks. MT4’s intuitive design helps clients perform chart analyses, place orders, and manage open items with ease.
MT4 users can also use the MQL4 programming language to create and use programs, scripts, and indicators for automated CFD trading.
As your CFD broker, Bernstein Bank provides a multiple security measures for your deposits. We are affiliated with the Compensatory Fund of Securities Trading Companies (EdW – Entschädigungseinrichtung der Wertpapierhandelsunternehmen) and the Omnibus Trust Bank in accordance with the Deposit Guarantee Scheme of German Banks (EdB – Entschädigungseinrichtung deutscher Banken). Clients are protected from a negative balance – if their CFD trading strategies do not perform, our clients’ losses will never exceed their deposits. Clients deposit their funds into segregated omnibus escrow accounts with a German deposit-taking credit institution that is also a member of the Association of German Banks (BdB – Bundesverband deutscher Banken). The client’s money in this escrow account is guaranteed via the BdB and the German deposit guarantee scheme, protecting them on multiple levels so they can concentrate fully on their trading.