Most shares trading takes place on stock exchanges, where public companies are listed. Only registered participants are allowed to trade directly with stock exchanges, so the majority of traders will do so via a stockbroker.
As well as trading on exchanges, it is possible to use derivative products like
CFDs to participate in the shares market. These allow for more flexibility than traditional trades, with the opportunity to take
short positions to trade in both bull and bear markets.
These products operate on leverage, to increase exposure on a position without the use of more capital. However, this means CFDs also carry greater risks: including the risk that your losses could exceed your deposits.