Calling MT5 users. Now you can trade CFDs on your favourite platform!
CFDs work through an agreement between two parties to settle the difference between the opening and closing prices of the contract. It allows customers to participate in the price movement of an underlying product without ever owning the asset.
Here are some of the unique features of CFDs.
About CFD Trading
CFDs allow investors to enter both long and short positions, which means investors will be able to trade in both bull and bear markets.
CFDs also offer smaller and more flexible contract sizes, so investors would only require a smaller capital outlay to start investing.
On top of that, CFDs also do not have a fixed expiration date so CFDs can be held to perpetuity – although that will incur overnight funding costs. They are cash settled and do not offer any risk of the delivery of the physical asset.
Both FX trading and CFD trading are powerful tools that you can use to achieve your investment goals, when used appropriately. Here’s some of the key similarities and differences between the two investment tools, and with a better understanding of how CFDs work, you’ll be able to utilise both in your trading strategy.
Similarities and differences between CFD and FX trading
Like FX trading, CFDs are over-the-counter (OTC) products, so they are not traded on a centralised exchange. Instead they are transacted through a network of financial institutions.
CFDs also offer investors access to leverage, though the margin on CFDs are given as a percentage of the size of the trade position, while that on FX trades are given as a ratio. As with all leveraged investment products, an investor’s potential gain or loss will be magnified when the market moves with or against them.
There are also some important differences in trading FX and CFDs. While FX can be traded almost round the clock, the trading times for CFDs depends on the trading times for the underlying asset. On the flipside, CFDs are available on a wider range of contracts and investment assets, such as indices, commodities and currencies.
Most importantly, both of them can be traded through the same platform: the MT5. That means experienced traders using MT5 can easily start trading CFDs without having to learn a new platform.
Trading CFDs on Phillip MT5
Here’s a sample of some of the CFDs offered on the platform, with its margin rate, minimum spread and trading hours.
|Product Name||Product Type||Margin Rate from||Trading Hours (domestic time)|
|CFD Spot SG MSCI Singapore [SGD10 x Index]||Global Indices CFD||10%||8:30 AM – 5:20 PM, 5:50 PM – 5:15 AM|
|CFD Spot AU S&P ASX 100 Index (Australia)||Global Indices CFD||5%||9:50 AM – 4:30 PM (Sydney), 5:10 PM – 7:00 AM/ 5:10 PM – 8:00 AM (DST)|
|CFD Spot CN FTSE-XIN China A50 Index (China)||Global Indices CFD||20%||9:00 AM – 4:30 PM, 5:00 PM – 4:45 AM|
|CFD Spot HK Hang Seng 50 Index (Hong Kong) G||Global Indices CFD||10%||9:15 AM – 12:00 PM (Hong Kong), 1:00 PM – 4:30 PM (Hong Kong), 5:15 PM – 3:00 AM (Hong Kong)|
|CFD Spot UK FTSE 100 Index||Global Indices CFD||10%||1:00 AM – 9:00 PM (London)|
|CFD Spot US DJIA 30 Index||Global Indices CFD||5%||6:00 P.M – 4:15 P.M (New York), 4:30 P.M – 5:00 P.M (New York)|
|CFD Spot US S&P 500 Index||Global Indices CFD||5%||6:00 P.M – 4:15 P.M (New York), 4:30 P.M – 5:00 P.M (New York)|
|CFD Spot Brent Crude Oil||Commodities CFD||20%||1:00 AM – 22:00 PM (GMT)|
If you would like to check out the full list of available CFDs, you can get it here.
Trading with an award winning broker
Let’s not forget the other benefits of the Phillip MT5. The Phillip MT5 platform offers access to advanced pattern recognition tools like Autochartist and Trading Central. It also provides free live prices, data and real-time charting with sophisticated charting tools, 24/5 service support, as well as $0 commissions and competitive spreads.
Investors will also have absolute peace of mind when trading with a trusted, award winning brokerage like Phillip Futures, one of the region’s top futures, forex and commodities brokerages. The firm was founded in 1983 as a member of PhillipCapital Group, and was one of the founding clearing members of Singapore Exchange Derivatives Trading (SGX-DT).
Today, it offers investors a comprehensive range of futures, options, bullion and foreign Exchange products and provides direct-hub access to global exchanges like BMD, CME, CBOT, NYMEX, COMEX, HKEx, ICDX, JPX, SGX and TFEX.