Ownership of Asset: When you trade CFDs on stocks, you do not own the underlying asset, but rather a contract that tracks the price movements of the stock. With equity trading, you own the actual shares of the stock.
Leverage: CFD trading gives you the opportunity to trade using leverage, meaning you can control a larger position with a smaller amount of capital. This can amplify potential gains but also increase potential losses. On the other hand, Equity (Physical Stocks) does not offer leverage, which means you must pay the full price of the shares upfront and do not get access to any leverage opportunity.
In addition, CFD trading may have lower fees and commissions compared to equity trading.
Short (Sell) Positions: CFD Stocks trading allows traders to take short (SELL) positions, which means traders can take advantage of falling prices by selling an asset without actually owning it. In contrast, Real (Physical) stock trading does not allow traders to open short (SELL) positions, as a trader has to own the stock before he is able to sell it. Therefore, only long (BUY) positions are allowed on Physical Stocks.