Get exposure on over 10,000 Global and Singaporean companies
The Benefits of CFDs
Go long or short
Unlike the traditional form of share trading, it’s just as easy to potentially benefit from falling markets as rising ones when trading CFDs.
Leverage
By trading on margin, you can potentially increase the profits (or losses) you make from market movements. This means that you only need to deposit a small percentage of the full trade to take a position.
Shares vs CFDs long position example
With the same initial capital outlay of $3,800, you can increase your exposure and therefore leverage your capital with CFDs, leading to an increased return on investment (ROI). Bear in mind that more exposure also brings with it the risk of greater losses if prices fall.
With $3,800, you could get a CFD on $38,000 worth of shares:
| Singapore Telecommunications Ltd | Buying Shares | Buying CFDs |
| Buy Price | $ 3.80 | $ 3.80 |
| Shares | 1,000 | 10,000 |
| Trade Size | $ 3,800 | $ 38,000 |
| Ongoing Margin Required %* | 100% | 10% |
| Initial Margin | $ 3,800 | $ 3,800 |
| Days Position Held | 10 | 10 |
| Sell Price | $ 4.00 | $ 4.00 |
| Gross Profit | $ 200 | $ 2,000 |
| Annual Funding Charge % | 0% | 3.46% |
| Costs: | ||
| Commission - Open | $ 25 | $ 38 |
| Funding - 10 days | - | $ 36.02 |
| Commission - Close | $ 25 | $ 40 |
| Net profit | $ 150 |
$ 1,885.98 |
| ROI % | 3.9% | 49.63% |
If Singtel dropped by $0.20 and you crystallised a loss by selling out of your position: loss on share CFD will be much higher than traditional shares. Our risk management tools such as Stop Losses and Guaranteed Stop Loss orders (where available) can be used when trading CFDs to manage risk and limit any potential losses.
Notes
*Ongoing or variation margin may be required.
Buy Price: Example price. Subject to change.
Ongoing Margin: Singtel's initial margin requirement is 10%. Ongoing margin may be required depending on the change in value of your open positions.
Gross Profit: ($4.00 - $3.80) x Shares.
Annual Funding Charge %: 2.5% + 1 month SIBOR
Commission – Open: Estimated amount from local brokers.
Funding – 10 days: Example calculated basis the value of trade at point of opening, actual charge is applied daily basis closing price of stock.
ROI%: Net profit / Initial Margin.
Why trade with IG?
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Go long or short on a wide range of markets including indices, shares, FX and commodities
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World's largest CFD provider1 and the best forex provider in Singapore.2
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24/5 round the clock trading for major global indices
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Low spreads from 0.6 points on EUR/USD and AUD/USD
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Guaranteed stops available for trading in volatile markets
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We've been an established global market leader for over 40 years.
Open an account now
1 Based on revenue (excluding FX), published financial statements, February 2024.
2 Awarded the best forex provider in Singapore by the Global Brands Magazine in 2020 and 2023
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