When you trade on the Clarity platform you are trading with a Contract with Investec, which takes the form a standard CFD (Contracts for Difference).

What does this mean and how does this differ from buying shares?

Buying shares refers to purchasing actual ownership in a company. When you buy shares in a company, you own a portion of that company and are entitled to a share of its profits, typically in the form of dividends and voting rights.

Your Contract with Investec (CFD) gives you access to the performance of that share – including benefitting from any gains or cash flows (for instance dividends). While having exposure to the ups, downs and the cash flows in the share through the CFD, you don’t own the share and thus don’t have the voting rights.

By accessing the market through Contract with Investec, you can also buy portions of a share, which is not possible if you own the share in your own name.

By entering into a contract with Investec you need to be comfortable that Investec will be able to pay you the return in the share move, that means you take credit risk on Investec. The exposure is held by Investec Bank Limited in South Africa.