When trading a CFD, you can track the performance of a stock without owning it. Unlike stocks, CFDs are not traded on an exchange, but rather as a contract between the trader and the broker. The value of a CFD increases or decreases with the stock price, allowing the trader to profit from its rise or decline. However, CFD traders do not have voting rights like stockholders, but they may still receive dividends.

While CFD traders do not have voting rights, they are still affected by corporate actions such as dividends. At Hantec Financial, we pay dividends net of taxes for long positions before the ex-dividend date. Dividend payments are made after the exchange closes on the ex-dividend date. For short positions, dividends are paid in full if they are left open through the exchange on the ex-dividend date.