The difference between CFDs and share dealing
The main difference between these products is that CFDs are leveraged, unlike share dealing.
With traditional share dealing, you need to buy the shares for the full amount. CFDs allow you to get full market exposure while only depositing a fraction of the trade's full value to open a position. This deposit is called a margin, and it can amplify your profits but can also increase your losses.
*Tax laws depend on individual circumstances and can change or differ in a jurisdiction other than the UK.