1. What does investing with CUSP Wealth mean?
When you invest with CUSP Wealth, you buy real shares and become a part-owner of that company. You can hold it for as long as you like, receive dividends if the company pays them, and sell whenever you choose.
You can also build a diversified portfolio by holding shares across many companies and sectors, helping spread your risk instead of relying on a single business.
On CUSP Wealth, your investments are held in your name through our US custodian, Alpaca Securities, and protected by SIPC insurance up to $500,000.
2. What are Forex and CFDs?
Forex (foreign exchange) involves trading currency pairs — for example, betting that the US dollar will rise against the euro.
CFDs (Contracts for Difference) are financial contracts where you speculate on the price movement of an asset without ever owning it. With CFDs, you're essentially making an agreement with a broker about a price change — no real shares, no real ownership.
Both Forex and CFDs typically involve leverage, meaning you trade with borrowed money. This can amplify gains but also amplify losses significantly.
3. What are the key differences?
Ownership: With CUSP Wealth, you own the actual shares. With CFDs, you never own anything; you're only speculating on price movements.
Leverage and risk: CFD and Forex platforms commonly offer high leverage (sometimes 30x or more), which means you can lose more than your initial deposit. CUSP Wealth does not use leverage or margin — you only invest the money you deposit.
Dividends: When you own real stocks, you may receive dividend payments. CFD holders do not receive actual dividends from the company.
Protection: Your investments on CUSP Wealth are held separately from company funds and protected by SIPC insurance. CFD positions typically do not carry equivalent investor protection.
Time horizon: Investing with CUSP Wealth suits both short-term and long-term goals. CFDs are designed for short-term speculation and often carry overnight fees that make holding them costly over time.
Regulation: CUSP Wealth is regulated by the DFSA (Dubai Financial Services Authority) and your assets are custodied with an SEC and FINRA-regulated U.S. broker. CFD regulation varies widely and many offshore brokers operate under lighter oversight.
4. Why does CUSP Wealth offer stocks instead of CFDs?
CUSP Wealth is built for investors who want to build real, long-term wealth — not speculate on short-term price swings.
When you invest through CUSP, you're buying real shares in real companies, held securely in your name.
There are no hidden leverage risks, no overnight fees, and no complex derivative contracts. This approach keeps things transparent, simple, and aligned with the goal of growing your wealth over time.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. All investing carries risk, and past performance does not guarantee future results.