Trade CFDs or Forex? If you trade on MT5, you can do both (with Zero Commission)
Are you an experienced forex trader? Then you would be no stranger to the powerful multi-asset trading platform by MetaQuotes Software Corp, MetaTrader 5, better known as the MT5.
The MT5 is well known for its Expert Advisors (EA) programming which allows investors to do automated trading with the use of algorithms, as well as backtesting.
In Singapore, the MT5 trading platform is available through Phillip Futures, one of the region’s leading brokerages for the trading of global futures, foreign exchange, energy, metals and commodity futures. The Phillip MT5 platform also offers advanced charting and pattern recognition tools like AutoChartist and Trading Central indicators within its suite, which are indispensable to investors.
This is what you need to know.
What are CFDs?
CFDs, or contracts for difference, are an agreement between two parties to settle the difference between the opening and closing prices of the contract. CFDs allow investors to trade the price movements of a product (like indices, commodities and shares) without owning it.
What does this mean for investors?
For one thing, it means you can trade long and short positions, to capitalise on both rising and falling markets.
CFDs are leveraged products, which allows investors to trade on margin, and it is offered in smaller contract sizes so investors can enter the market with a smaller capital outlay. It also comes with the same risks as other forms of leveraged trading.
CFDs differ from futures contracts in that they do not have an expiration date and they are cash settled with no risk of delivery of the asset.
Shares CFD trading on the Phillip MT5
Over 50 different shares CFDs are now available for trading on the Phillip MT5 platform, including US, Hong Kong and Singapore listed companies from various industries like the medical and manufacturing, pharmaceuticals, financials, tourism, consumer, automotive, real estate, REITS, transport, offshore & marine, tech, construction and gaming sectors.
Here’s a list of some of the shares CFD that are available for trading.
Shares CFDs available on Phillip MT5 trading platform
|3M||Bank of China||CapitaLand|
|American Express||China Construction Banking Corp||ComfortDelgro|
|Baxtor International||China Mobile||DBS|
|Boeing Co.||China Resources Land||Frasers Centrepoint Trust|
|Caterpillar||Galaxy Entertainment||Genting Singapore|
|General Electric Co.||Geely Automobile||Keppel REIT|
|McDonald’s||HSBC Holdings||Raffles Medical Group|
|Merck and Co.||Henderson Land Development||SATS|
|Pfizer Inc.||Industrial & Comm Bank of China||Sheng Siong Group|
|Snap Inc.||Sands China||Thai Beverage|
|WalMart||Tencent Holdings||Venture Corporation|
|Walt Disney||Ping An Insurance||Wilmar International|
Investors can also trade from a range of indices CFDs including:
- CFD Spot AU S&P ASX (AUS200)
- CFD Spot SG MSCI Singapore (SG100)]
- CFD Spot UK FTSE (UK100)
- CFD Spot CN FTSE China A50 (CN50)
- CFD Spot US DJIA (US30)
- CFD Spot DE DAX (GER30)
- CFD Spot US Nasdaq (NAS100)
You can find the full list of available CFDs here.
Why trade CFDs on the Phillip MT5?
At the moment, Phillip MT5 is the only MT5 platform available in Singapore that is fully supported by a reputable onshore brokerage, with a 24/5 service support hotline. The Phillip MT5 platform offers very competitive spreads of as low as 0.6 pips, and is designed to help investors trade effectively and successfully, with tools like Autochartist, Trading Central indicators, and EAs.
Autochartist is one of the most advanced pattern recognition tools available on the market today, and its key features – market scanner and risk calculator – are available on the Phillip MT5 platform with a plugin. The market scanner helps investors to monitor their watchlist, identify chart patterns, and display them on their charting panel, all in real time. Its risk calculator can also help investors determine their appropriate position size based on their selected risk appetite.
Trading Central indicators, which are also available as a plugin, provide actionable insights like daily analyst views, real-time candlestick pattern recognition, and long & short entry or exit signals directly on investors’ charts, so investors can make their trading decisions more easily.
Furthermore, the Expert Advisors (EAs) trading robots on the Phillip MT5 can help investors monitor and trade multiple markets using algorithms. EAs are able to search for opportunities based on investors’ preset parameters, provide timely alerts and open or close positions automatically.
Zero Commission CFDs on MT5 promotion
What’s more, Phillip Futures is currently offering a zero commission promotion for investors who trade on MT5.
Yes, you read that exactly right. You will not be charged any commission for your CFD trades, or your forex trades as long as you are trading on the MT5. The details can be found here.
If zero commission sounds good, you can get started with the free MT5 demo account. Get a feel of the advanced pattern recognition tools, the EAs, and the technical indicators available on the platform.
Once you are ready to start trading with zero commission, you can open your account with the MyInfo-enabled account opening form, with approval expected within a few business days. Do note that CFDs are leveraged products and you will need to pass the Customer Knowledge Assessment (CKA) and acknowledge the Risk Fact Sheet to start trading CFDs.
Already a Phillip MT5 user? Then look out for the new Share CFD contracts in your Phillip MT5 platform’s market watch panel, and add them to begin trading.