WHY TRADE CFD

Trading on margin

CFDs allow you to obtain exposure to a stock for a fraction of the price of buying that underlying stock. An initial margin of only 10% is required to secure a trade. This means that a deposit of $10,000 will allow to trade (buy or sell) the CFD up to a value of $100,000.

Online trading

All CFD trading, is conducted online unless explicitly requested otherwise. Online trading means no administration fees and/or custodian fees. Since no actual stock ownership takes place, the entire process is virtually paperless. Trading takes place through the Monex Trader which uses the critically acclaimed MetaQuotes engine.

Ability to go short

Due to the fact that is possible to choose to go either ‘long’ or ‘short’ when trading CFDs (unlike shares, when only buying is possible), traders can profit in both a bullish as well as bearish market.

No expiry date

CFDs unlike futures do not have the distinct disadvantage of an expiry date, and is hence a continuous instrument. This is no pre-determined limit to how long an investor can hold any given position. Trades held overnight are subject to a financing cost (or benefit) at that moment. 

Ability to place orders

Orders can be placed on CFDs just like in ordinary stock markets. We allow the full range of orders to be placed in CFDs just as is available in shares. This would include market, limit/stop, If-Done, OCO as well as Day Orders.

Low commission and spreads

A low spread is offered on CFD trading. Commissions are competitive and are only a small fraction of the share value. For more comprehensive details click here

Dividend participation

Holders of long CFD positions stand to gain on dividends if and when they are distributed. Likewise holders of a short CFD position will have to pay an amount equal to the dividend paid on each underlying share.

Hedging

A CFD can be used to protect/hedge against a falling stock position. One does not have to corcibly lose  ones position during a market correction. You can take a short position as long as you to wish to, until you are more sure of the market movement.