Scope Markets Introduces Safer Non-Leveraged CFDs

Scope Markets introduces ‘Safer CFDs,’ a new account type designed for non-leveraged CFD trading that prioritizes investor protection. This announcement marks a significant departure from conventional practices in the CFDs market, offering traders a safer alternative for navigating the financial markets.

Introducing Scope Invest, a new account that not only provides access to over 2,000 global CFD equities for diversified investment portfolios but also prioritizes your safety and control. Unlike traditional CFD products, Scope Invest eliminates leverage for account holders and restricts trading to ‘long’ positions exclusively, effectively mitigating the risk of capital losses. This shift in approach empowers you with greater control over your investment strategies, making your trading experience safer and more secure.

Pavel Spirin, CEO of Scope Markets, emphasized the rationale behind introducing Scope Invest, stating, “While our traditional CFD products continue to enjoy popularity, the Invest account represents a paradigm shift towards a more risk-conscious approach. By eliminating leverage and limiting trading to long positions, we aim to empower traders with greater control over their investment strategies and minimize exposure to market volatility.”

Key features of the Scope Invest account include denominations in GBP, USD, or EUR, fractional share offerings, and commission-free trading services. It’s important to note that the brokerage may generate revenue through spreads, a transparent fee structure that ensures you are fully informed about the costs involved in your trading activities. This transparency builds your confidence in their commitment to fair and open trading.

Scope Markets Introduces Safer Non-Leveraged CFDs

Traditionally, CFDs have been associated with leveraged trading, enabling traders to profit from fluctuations in asset prices. Yet, stricter regulations in regions such as the UK, EU, and Australia have curtailed leverage options provided by brokers. Nevertheless, offshore brokers offer exceptionally high leverage, exposing traders to considerable risks.

Operating under six regulatory licenses including those from Cyprus, Kenya, and Belize, Scope Markets is a beacon of regulatory compliance and investor protection in the industry. Under the new non-leveraged accounts, investors will not hold the underlying assets, as CFDs represent derivative products. Nonetheless, investors will still benefit from corporate actions such as dividend payments, ensuring a seamless trading experience. This commitment to regulatory compliance and investor protection gives you the peace of mind you need to focus on your trading strategies.

In a statement addressing the rationale behind the introduction of Scope Invest, Spirin remarked, “CFDs undoubtedly offer a versatile and cost-effective means of gaining exposure to global assets. However, the inherent risks of leverage and short selling render the product unsuitable for all investors. With our Invest account, we aim to replicate the benefits of share ownership while eliminating transaction and holding costs and significantly reducing capital risk.”

As Scope Markets pioneers this innovative approach to CFD trading, the industry watches closely, anticipating potential shifts in market dynamics and heightened investor confidence in safer trading alternatives.

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