Love To Trade And Love To Travel? Here Is How You Can Do Both
IG, Singapore’s leading CFD provider, has launched an exclusive promotion. Investors who open a trading account with IG can now earn KrisFlyer miles that can be redeemed for air tickets on Singapore Airlines.
This is a first for any brokerage in the country. The distinctive feature of the promotion is that you can earn up to 30,000 KrisFlyer miles when you open an account and trade with IG. That means you can now trade and earn miles for your next holiday!
But before we get into the specifics of the tie-up between IG and KrisFlyer, let’s understand what CFDs are and why you should consider trading them.
What is CFD trading?
CFDs or contracts for difference, allow you to speculate the movement of the asset in the financial markets. You can trade into shares, commodities, forex, indices or cryptocurrencies. IG offers you access to over 15,000 markets.
Remember that a CFD is a type of derivative. When you buy, say, share CFDs, you are not purchasing the underlying asset. You are entering into an agreement with the CFD provider to exchange the difference in the price of the shares between the time of purchase and sale.
So, why buy a CFD and not the share itself?
⇨ You can enter into leveraged trades – this means that for a relatively small amount, you can trade into a significant position. If you are buying a share CFD, you would only need to put up a fraction of the cost of the actual share.
The extent of leverage varies across markets. In forex, you could enjoy leverage of 50:1. However, the leverage in less liquid markets would be lower.
⇨ 24-hour trading for major global indices – you don’t have to wait for the markets to open to start trading on major global indices.
⇨ Hedging – many investors use CFDs as a hedging technique. If they expect the price of an asset that they own to fall, they could enter into a short it. In this type of transaction, you make a profit if the price of the asset falls.
How to start earning KrisFlyer miles with IG
All you have to do is to follow these 4 steps:
Step 1 – Create an account before 31 December 2018
Step 2 – Enter your KrisFlyer membership details upon account confirmation. What if you aren’t a KrisFlyer member? That isn’t a problem. You can join KrisFlyer immediately. Membership is free.
Step 3 – Deposit a sum of at least S$5,000 into your new IG trading account.
Step 4 – Place your trades by 31 January 2019.
What if you are new to CFDs and aren’t very confident? You can open a demo account and learn the ropes without risking a single dollar.
When you reach Step 4, you can start accumulating KrisFlyer miles. Here is how much you can earn:
Earning KrisFlyer miles by trading on the IG platform
|Initial deposit||Aggregated contract value||Bonus KrisFlyer miles payable to new clients of IG|
In a nutshell and important notes:
⇨ Open your account with IG by 31 December 2018.
⇨ Place a deposit of at least S$5,000
⇨ Place your trades by 31 January 2019 to accumulate KrisFlyer Miles. Your aggregate contract value is based on the total amount of the contract which you are leveraging on.
⇨ The KrisFlyer miles will be credited within 21 business working days after the end of the trading period(i.e. 31 January 2019)
Why you should trade with IG
The KrisFlyer promotion is just a cherry on top of the sundae. There are a host of other factors that make IG the ideal choice as a CFD provider.
IG is the world’s No.1 CFD provider. This ranking is based on its total revenues excluding FX. It is licensed by the Monetary Authority of Singapore (MAS), the country’s central bank and financial regulatory authority. IG is also registered with Enterprise Singapore, a statutory board under the Ministry of Trade and Industry.
IG’s lineage goes back to 1974. It currently has offices across 15 countries.
Bear in mind that the money that you deposit with IG remains completely secure. It is held in a segregated account at a bank that is regulated by MAS. IG does not use your funds for its business activities. Additionally, your money is “ring-fenced” in accounts that are held in trust with you as the beneficiary.
How to make the most of your CFD trades
CFD trading is a high-risk activity. If you are successful, you can make a significant profit. However, it is equally possible to make losses.
What can you do to ensure that you trade successfully? Here are some tips that you may find useful:
⇨ Don’t expect to make a profit on every trade. Even the most successful traders win on some trades and lose on others. Your effort should be to come out ahead on an overall basis.
⇨ Decide in advance on your entry and exit points. You should not change your mind midway. Trading requires discipline, and it is this which attribute that differentiates winners from losers.
⇨ Don’t be afraid to make losses. You should get out of losing trades as early as you can. The corollary to this rule is that you shouldn’t be in a hurry to take your profits too soon. Getting out of a winning trade too early may see you sacrificing your potential gains.
If you are new to trading, it is important to implement risk management tools to mitigate your losses. A key feature on IG called the guaranteed stops helps you close your position at the specific price which you indicate and will only require you to pay a premium if it is triggered.
Get ready to trade to your next holiday
Trade and earn up to 30,000 KrisFlyer miles, enough for a return trip to Hong Kong.
Of course, you could choose to add your KrisFlyer miles to your existing miles balance and plan a holiday to some other destination.