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Short or Long SG, US and HK Markets with UTRADE CFD.
 

From now till 28 February 2017, all new UTRADE CFD accounts will enjoy a S$88* rebate on the first 5 opening trades in any market.

Plus, open a UTRADE FX account and perform 5 trades of any size to receive up to S$188* trade rebates in total!

 
Our short financing promotion has also been extended till 30 June 2017, you can now enjoy rates as low as 3%* on more than 500 counters!
 
 

Why UTRADE CFD?

Reduce counterparty risk with the largest broker in Singapore
Trade with the assurance of a strong and stable counterparty. When you trade with UOB Kay Hian, you trade with the largest broker based on shareholders’ funds1. As part of the UOB Group, we are also the first local bank-backed broker to offer Contracts for Difference (CFD) trading.

More trading power with up to 10X leverage
With margin financing of up to 10 times your initial equity, you have the ability to multiply your potential gains on your capital.

Browser-based & mobile platforms to monitor and trade wherever
With a complete suite of trading platforms accessible from desktops and smartphones, you can monitor your CFD trades wherever you are.

Greater price transparency with Direct Market Access (DMA)
Enjoy transparency in your trades as your orders participate directly in the underlying exchange and will be executed at true market prices without any hidden spreads.

Advanced order types to react better to volatility
Take control of your trades with stop-loss and contingent order types to help mitigate unstable market activity.

Short sell easily with one of the largest share inventories
Make the most of bearish market conditions with one of the largest inventories of stocks available for short selling.

 
 

Why is counterparty risk important?

 

CFD is an over-the-counter (OTC) product where you enter into a contractual agreement with the counterparty, i.e. the CFD broker. You may suffer financial losses if the counterparty fails to honour their contract with you. Reduce this risk by trading with the broker with a strong and sound credit standing.

 
Comparison of CFD Against Regular Share Trading
 

CFD

Regular Share Trading
 Prerequisites CKA2 NA
 Account Opening Deposit $3,000 $0
 Short Selling Yes NA
 Commission Payment Auto-debited from client's CFD account on Trade Date Up to Trade Date + 3 to make full payment of contract value3
 Leverage Factor Up to 10X NA
 Financing Rate 4% NA
 Financing Payment Auto-debited from client's CFD account on daily basis NA
 Realised P&L Auto-credited/debited from client's CFD account Contract Note will be issued for payment
Example: Contract to buy $100,000 worth of Share A
 Trading Cost on Day 0
 (No financing)
$250 $220
 Trading & Financing Cost
 after 3 Days
$282.88 $2203
 Cash Upfront Due for Open
 Position on Day 3
$10,000 $100,000
Assuming contract appreciation to $101,000

 Gross Profit on Day 3

S$1,000

S$1,000

 Gross Return on Equity 9.90% 1.00%
 Net Return on Equity4 7.10% 0.78%
Assuming contract depreciation to $99,000

 Gross Losses on Day 3

S$1,000

S$1,000

 Gross Return on Equity ‒ 10.10% ‒1.00%
 Net Return on Equity4 ‒ 12.96% ‒ 1.22%

 
* Terms and conditions for CNY Rebates Promotion
* Terms and conditions for 3% Short Financing Promo
 

Notes

1 Based on Accounting and Corporate Regulatory Authority figures as of December 2014.
2 Customer Knowledge Assessment as mandated by the Monetary Authority of Singapore.
3 Regular share trading must be settled within Trade Date + 3. Failure to do so may result in forceselling or incremental brokerage costs involved in closing the existing position and reopening a new position for another three days. No such rollover costs are incurred for CFD trading.
4 After deducting trading and financing costs.

 

 

Disclaimer

CFDs are leveraged products and can result in losses that exceed your initial deposit. Please ensure that you have fully understood the risks involved as CFD trading may not be suitable for every investor. Our full Terms and Conditions are available on www.utrade.com.sg or via our hotline.

The information herein does not constitute an offer, solicitation or invitation to make an offer to buy or sell any securities or options, futures or other derivatives related to securities or any financial instrument. The information is meant for general consumption and does not take into account the specific investment objectives, financial situation or particular needs of any person. UOB Kay Hian Pte Ltd accepts no liability whatsoever with respect to the use of this information.

 


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