Trading CFDs

Let me start with a risk warning. Leveraged investments through CFD accounts are not for non-experienced investors plain and simple. Leveraged investments declining in value force the investor (trader) out of the game through margin calls and are, therefore, a form of gambling with pretty much the same odds. For a number, it will end in tears. But if you do, do it with a small part of your capital.

If you are “long” a CFD and hold overnight you will also have financing charges because a CFD is a geared instrument i.e. you only put up say 10% of the cost price (depends on what you are trading) and are effectively borrowing the remainder. If you intend to trade Index CFDs be wary- it can be cheaper to trade the futures contract although then you have to trade with much bigger amounts.
You do pay financing charges but the balance of the cash that you would have spent on actually acquiring the shares instead of a CFD can be put on deposit. Depending on your financing rate the cost of the CFD could equal UK stamp after a few months

How experienced are you? CFDs are probably not appropriate for a buy and hold strategy as your cost of finance will over time negate the benefit of not paying stamp duty.
Another benefit of CFDs is the ability to go short – not just individual stocks but the entire market (say by selling an ETF).