How to trade or invest in the SGX Taiwan
The SGX Taiwan RIC Capped Index represents all large and medium cap securities listed on the Taiwan Stock Exchange. Find out how to trade and invest in our Taiwan Index.
Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening an account.
You can get exposure to the TAIEX via our Taiwan Index. To open a position, follow these three steps:
1. Decide whether you want to trade or invest
You can get exposure to the SGX Taiwan by trading or investing in Taiwan Index ETFs and individual shares,* or trading on the index’s value.
2. Create a trading plan
Before taking a position on the Taiwan Index, decide whether you're a short- or long-term trader – and learn how to manage your risk.
3. Open a live account
To open any or all of the following accounts – spread betting, CFD trading and share dealing – start by filling in our application form.
To help you decide whether you want to trade or invest in the SGX Taiwan RIC Capped Index via our Taiwan Index, we explain each method in detail below.
How can you trade or invest in the SGX Taiwan RIC Capped Index?
One of the most popular ways you can trade or invest in the SGX Taiwan RIC Capped Index is via our Taiwan Index, which tracks the price of the underlying.
You can:
Trade the Taiwan Index price directly
- Get exposure to the performance of Taiwan’s most popular listed companies from a single position
- Speculate on the Taiwan Index using spread bets or CFDs. While these are derivatives, this is the most direct way to trade on the price of the underlying – the SGX Taiwan RIC Capped Index
- Access the SGX Taiwan in a market with high liquidity
- Go ‘long’ if you think the price will rise or ‘short’ if you think the price will fall
- Trade commission-free with spread bets or CFDs (excluding share CFDs) as charges are included in the spread
- Choose our Taiwan Index ‘cash’ (spot) market to take a short-term position
- Place your deals almost 24/7 (excludes 10pm Friday to 8am on Saturday and 10.40pm to 11pm on Sunday)
Trade or invest in TAIEX-related ETFs
- Get broad exposure to the SGX Taiwan with our linked ETFs like the Lyxor MSCI Taiwan UCITS ETF
- Buy and own actual shares in a Taiwan-related ETF on our share dealing platform
- Invest in these ETFs with £0 commission when you have a share dealing account1
- Take a position on the price movements of Taiwan-linked ETFs without owning them, using spread bets and CFDs
- Go long or short on ETF prices, but remember that this offers lower liquidity and higher spreads than trading the Taiwan Index itself via spread bets or CFDs
- Trade on the price of the Taiwan-related ETF, calculated using the fund’s net asset value (NAV)
Trade or invest in Taiwan-listed shares*
- Buy and own physical shares in a Taiwan-listed company,* such as Taiwan Semiconductor Manufacturing Company or Chunghwa Telecom, using our share dealing account
- Invest in Taiwan-listed stocks* from £0 commission on our share dealing platform1
- Get exposure to specific stocks on the Taiwan Stock Exchange without trading the entire index
- Speculate on Taiwan-listed stock* price movements without owning the shares, using spread bets and CFDs
- Go long if you think share prices will rise, or short if you think they’ll fall
- Trade shares commission-free with spread bets. CFD share trades incur a minimum commission charge of $15
Trading the Taiwan Index price directly |
Trading or investing in a Taiwan Index ETF |
Trading or investing in Taiwan-listed shares |
|
Account types |
Spread betting or CFD trading account | Spread betting or CFD trading account to trade, or a share dealing account to invest | Spread betting or CFD trading account to trade or a share dealing account to invest |
Market hours |
24/7 (except 10pm Friday to 8am Saturday and 10.40pm to 11pm Sunday) | UK-listed Taiwan ETFs can be traded when the LSE is open – 8am to 4.30pm, Monday to Friday (UK time) | When the Taiwan Index is open – 2am to 6.15am, Monday to Friday (UK time) |
Timeframe |
Short to medium term | Short to medium term for trading and long term for investing | Short to medium term for trading and long term for investing |
Liquidity and execution |
0.014 second execution speed and unique deep liquidity | Higher liquidity offered by trading the Taiwan Index price directly | Higher liquidity offered by trading the Taiwan Index price directly |
Costs |
Commission-free, with spreads from 7 points. Trading the Taiwan Index on the spot (cash) incurs overnight fees |
Invest in UK-listed Taiwan ETFs from £3 commission per trade.1 Commission-free for spread betting, with spreads between 0.1% and 0.6%. Min commission £10 for CFD ETFs listed in the UK |
Trade or invest in Taiwan shares that are dual listed in the US. Trade via CFDs: commission is 2 cents per share, min $15 commission Trade via spread bets: 0.1% commission Invest via share dealing: from zero commission1 |
Overnight funding fees are charged on cash index, share and ETF positions held open after 10pm (UK time). These fees are not charged on futures and options.2
How to start trading or investing in the Taiwan Index
Open a trading or investing account
There are different account types you can open to take a position on the Taiwan Index with us: spread betting and CFD trading accounts, and a share dealing account.
Spread betting and CFD trading |
Share dealing |
| Speculate on the price of stocks, ETFs and index prices rising or falling | Buy and sell underlying stocks* and ETFs |
| Leverage your exposure – you’ll only pay a deposit3 to get exposure to the full position size | Pay the full value of the shares or ETFs you buy upfront |
| Leverage means both profit and loss will still be magnified to value of the full trade – so you could gain or lose money faster than you’d expect. Always take steps to manage your risk | You may get back less than you put in because the value of shares and ETF can fall as well as rise |
| Trade tax-free with spread bets and offset losses with CFDs3 | Invest tax-free with a stocks and shares ISA3 |
| Take shorter-term positions | Focus on longer-term growth |
| You can look to hedge your portfolio when trading | Build a diversified portfolio |
| Trade without owning the underlying asset | Take ownership of the underlying asset |
| No shareholder privileges | Gain voting rights and dividends (if paid) |
| Trade in both our spread betting account and CFD account | Invest in our share dealing account or with a ready-made Smart Portfolio |
Learn what moves the Taiwan Index’s price
- Economic events – China’s political and economic climate plays a big role in influencing the Taiwan Index’s price movements, as key stocks can be impacted by moderate to significant changes
- News – any global events generally have an impact on the price of an index, for example the 2019 pandemic
- Earnings reports – when constituents of the SGX Taiwan release their earnings reports, it’s important to keep an eye on big changes to each company’s market cap. If a company has significant weight in the Taiwan Index, it can sway the index’s price
- Interest rate decisions – short-term volatility caused by interest rate decisions by major central banks can affect the Taiwan Index’s price
- Currency rates and fluctuations – the strength of currencies like TWD and RMB often have a direct impact on the performance of the companies within the Taiwan Index, as its constituents do business with countries around the world
Hone your Taiwan Index trading strategy
Follow these tips when creating your Taiwan Index trading strategy:
- Pick a trading style: decide how you want to trade the index based on your risk appetite and how much time you have. Read about the four trading styles suited to different types of traders
- Look at charts and price action: use HS50 price charts to help you determine market sentiment. It’s important to know how to use charts when trading
- Make use of technical analysis and indicators: see how technical analysis and trading indicators can help you to identify chart patterns, trading signals and trends in the markets
- Set trading alerts: set criteria for your trades and get notified when they’re met. This gives you an opportunity to act faster when you think the market price may move in a certain direction
Take your first Taiwan Index trading or investing position
Discover the various ways you can open a position via spread betting, CFD trading or share dealing below.
Spread betting on the Taiwan Index
When you spread bet, you put up a certain amount of capital per point of movement in the underlying market – in this case, the Taiwan Index. Your profit or loss is calculated by multiplying your bet size by the number of points of movement. Note that spread betting is a complex product and comes with a high risk of losing money rapidly due to leverage.
There are various ways to spread bet on the Taiwan Index.
- Cash indices: deal at the current price of the underlying market with tighter spreads. Short-term traders prefer cash (or spot) trading
- ETFs: speculate on all Taiwan-related stocks in a single position. Trade on the spot or using forwards (the name for futures when trading ETFs)
- Shares: trade on rising or falling prices of Taiwan-listed shares without owning them
For example, you want to trade the cash index because you think the price of the Taiwan Index is going to rise from its current level of 1,750. So, you go long at £10 per point and open your position by clicking ‘buy’ on our platform.
If the index’s price increased to 1,850, you’d make a profit of £1000 (100 points x £10 per point) excluding any other costs you might incur, such as overnight funding.
If the index price dropped to 1,650 instead, moving 100 points against your prediction, you’d make a loss of £1000.
Trading CFDs on the Taiwan Index
A contract for difference (CFD) is an agreement to exchange the difference in price of an underlying asset from the time it’s opened to when it’s closed.
So, however much the price of that asset has risen or dropped since you opened your position is what you stand to make as a profit or a loss. CFD trading is a complex product and comes with a high risk of losing money rapidly due to leverage.
You can trade Taiwan Index CFDs in a variety of ways.
- Cash indices: trade on the current price of the underlying market (the index) and get tighter spreads. This is popular among those with a short-term view
- ETFs: get exposure to a basket of Taiwan stocks, on the spot or using forwards, in a single position
- Shares: speculate on Taiwan-listed shares’ prices rising or falling without owning them
Here’s an example of how CFD trading works. Let’s say you think that the Taiwan Index price is going to rise from its current price of 1,750. You buy 10 CFD contracts on our index worth £5 per contract. If your prediction is correct, and you close your position when the sell price is 1,850. The difference is 100 points, multiplied by the £5 per contract multiplied by 10 contracts, so your profit is £5000 – excluding other costs.
If your prediction is incorrect and the market drops, and you closed your trade at a level of 1,650, your loss would be £5000 – excluding other costs.
Investing in the Taiwan Index with share dealing
You can invest in Taiwan-related ETFs and stocks listed on the index* via our share dealing account. Investing in shares means you own them, so you can only ‘go long’. It’s more suited to those who take a longer-term view of the market.
Share dealing is non-leveraged, which means you’ll commit the full value of the investment upfront – not just a deposit.
You can invest in Taiwan Index:
- ETFs: buying Taiwan-tracking ETFs is a common way to get exposure to the entire index from a single position
- Shares: purchasing some of the top Taiwan stocks* outright is also popular, as it’s a way to own a piece of a company you value, while earning possible dividends and voting rights
- Ready-made portfolios: get access to the Taiwan Index and its stocks through an investment portfolio that’s managed by experts
FAQs
What are the ways you can trade or invest in the Taiwan Capitalization Weighted Stock Index (TAIEX)?
You can trade or invest in Taiwan-listed stocks* or related ETFs on our share dealing platform. You can also get exposure to our Taiwan Index, which tracks the movements of the SGX Taiwan.
You can trade using spread bets or CFDs to speculate on the cash index, ETFs and shares. Alternatively, you can invest in Taiwan-listed stocks and related ETFs via share dealing.
What should you know before trading the Taiwan Index?
Before trading on the Taiwan Index, it’s important to do your research and understand how the index works – including how it’s calculated and what affects its price. Then, decide whether you want to trade or invest in it.
Try out our demo platform, or open a trading account if you’re ready to take on the live markets.
How is the price of the Taiwan Index calculated?
The Taiwan Index represents all large and medium cap securities listed on the Taiwan Stock Exchange. Constituents are capped quarterly so that an individual stock isn’t weighted more than 20% of the index. For constituents that have a weight of 4.5% or more, the sum of these weights shouldn’t exceed 48% of the net index weight.
How do companies get onto the SGX Taiwan RIC Capped Index?
The constituents of the SGX Taiwan RIC Capped Index are all common stocks listed on the Taiwan Stock Exchange – excluding Taiwan Innovation Board-listed shares. The SGX Taiwan is highly correlated to the on-shore cash index and futures. The capping methodology reduces concentration and increases diversification amongst Taiwanese equities.
What are the Taiwan Index trading hours?
The Taiwan Cash Stock Index trades between 2am and 6.30am UK time (9am and 2.30pm Taiwan time), Monday to Friday. Our indices, including the Taiwan Index, are normally available for dealing 24 hours a day between 23.02 Sunday and 22.15 Friday (London time) each week. Note that daylight savings time might affect these hours.
1 See our full list of share dealing charges and fees.
2 Overnight funding is the charge you pay for keeping daily funded bets or cash CFD trades open past 10pm UK time; we’ll make an interest adjustment to your account to reflect the cost of funding your position. Learn more about how overnight funding is calculated.
3 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
* You can only invest in Taiwan-listed stocks with us if they’re dual listed on a US exchange.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.