CFD

European regulators (ESMA, and the CNMV in Spain) require CFD brokers to publish the percentage of retail accounts that lose money: historically between 70% and 85% depending on the firm. Since 2023 the CNMV also restricts CFD advertising in Spain. This is not a footnote: leverage plus daily costs mean time works against you.

CFDs and dividends: the nuance that matters

With a CFD on a stock you collect no real dividends: the broker credits a cash "dividend adjustment" (and charges it if you are short). That adjustment is not a dividend for tax-treaty purposes and carries no shareholder rights. If your strategy is building income with dividends, a CFD builds nothing: no shares, no ownership, no compounding on real holdings.

What they are for (and for whom)

Their legitimate use is short-term trading and occasional hedging: they make shorting easy and allow intraday trading with little capital. For long-term investing they are objectively inferior to buying the asset: you pay daily financing for something you could simply own. The practical rule: if your horizon is measured in years, buy stocks or ETFs; if it is measured in hours or days, be sure you understand you are speculating, not investing.