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Trading the Shrinking Dollar for More with US Equities CFD Direct

Trading the Shrinking Dollar for More with US Equities CFD Direct Market Access

With the Singapore dollar getting stronger against the US dollar in recent months, it seems like US equities are getting more attractive to local investors. Savvy investors are getting into the action through products such as Contracts For Difference (CFD), which allows them to trade US stocks and ETFs with a lower capital output due to it being a leveraged product.

Moreover, the fact that all US Equities CFD by Phillip CFD, part of Phillip Securities which is Singapore’s most established securities firm, are Direct Market Access (DMA) implies greater transparency. Phillip CFD now has a promotion where commission is lowered and instead of a per-trade basis, it is now charged on daily amalgamation for US Equities CFD, meaning that clients will enjoy savings on their US trades!

What is commission amalgamation and how do clients save on commission using this model?

For example, a client buys ABC stock with contract value of US$5,000 and sells it off at US$6,000.

Take commission rates to be 0.18% with minimum commission as US$15.

Opening commission = US$5,000 x 0.18%
= US$9
Closing commission = US$6,000 x 0.18%
= US$10.80

Per trade commission Amalgamated commission
Total commission paid
= US$15 x 2
= US$30
Total commission paid
= US$9 + US$10.80
= US$19.80

Why does DMA CFD offer better transparency?

  • Your order will participate in the order book of the exchange
  • You will be participating in the liquidity of the exchange
  • You can participate in the pre-opening and preclosing trading sessions
  • You will be a price bidder and price maker on the market
  • Orders are done based on last done price and price/time priority (not bid/ask prices)

To find out more about DMA CFD and US Equities CFD, please visit www.cfd.sg or call Phillip CFD at 6336 4564 for more information.