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What are CFDs

A CFD is an agreement between two parties to exchange the difference between entry price and exit price of a financial instrument or security.
CFD trading allows you to trade Australian shares on margin without having to physically own them. Therefore when opening a CFD position you are not required to outlay the full value of your market exposure. TradingPro requires a deposit which is pledged as collateral to open a CFD position. This deposit (known as your CFD margin) starts at 5% of the total value of the trade. This margin requirement will vary depending on liquidity and volatility of the underlying share.
Direct Market Access (DMA) CFDs are an Over the Counter (OTC) derivative product which derives their prices and volumes directly from the underlying share. TradingPro offer Direct Market Access (DMA) CFDs so all your orders will flow directly onto the ASX which not only guarantees ASX prices but also enables you to receive all of the benefits of regular share trading such as dividends, waiting in a bid or offer queue and participating in the opening and closing price auctions.

Major features of CFDs

  • Simple and flexible: You can benefit from rising AND falling share prices by taking either a long or short position. If you believe the share price is undervalued you can buy share CFDs and take advantage of rising prices. If you believe the share price is overvalued you can short sell CFDs and take advantage of falling prices. With CFDs, you can profit from bull and bear markets and CFDs do not expire.
  • Leverage: CFDs are a leveraged product. TradingPro requires an initial margin to provide you with exposure to an underlying security. Margin requirements vary depending on the volatility and relative risks associated with the underlying security.  The inherent leverage in CFDs allows for higher percentage returns but also higher percentage losses.
  • Variety: Trading CFDs with TradingPro gives you access to the top 500 Australian companies for a fraction of the costs of purchasing the underlying share. We believe that liquidity is an essential element when transacting trades and the top 500 companies offer adequate liquidity.
  • Transaction costs: Brokerage starts at 0.125% for online and email orders. This would equate to $12.50 when gaining exposure to $10,000 worth of an underlying security.
  • Increased risk: The inherent leverage available through CFDs allows higher percentage returns but will result in larger percentage losses if the position goes against the trader. The trader can lose more than their initial cash outlay if the position goes against them.

Leveraged products including derivatives trading such as trading in CFDs, futures or option contracts involve the risk of loss as well as the potential for profit. Traders can lose money trading those markets including additional capital to which you have lodged as margin. Trading derivatives is not appropriate for everyone and you should thus carefully consider if trading these markets is appropriate in light of your personal circumstances and risk profile. Refer to a Product Disclosure Statement for further details.

Order Placement

Different traders have different priorities and styles. With this in mind, TradingPro provides multiple options for order placement. Email orders are encouraged and will be subject to an order integrity check. This process will highlight any potential errors that may have inadvertently been made (on a best endeavour basis). We also take telephone orders at no extra cost.
For those wanting an electronic dealing platform, we provide our clients with webIRESS. webIRESS is a user-friendly online trading platform that offers CFD traders with unmatched speed, security and reliability enabling straight through processing direct to the Australian Stock Exchange. Customers can obtain a wide range of market information including live prices, full market depth, news and charting.
Click here for you free 14 day trial of webIRESS

Which markets do we trade?

We are able to execute CFD orders on numerous exchanges worldwide. Pick which markets you wish to trade at which time and reap the benefits of a globally diversified portfolio.
We can execute CFDs in:

  • Australian Shares (ASX Top 500)
  • Japan
  • Hong Kong
  • Singapore
  • UK
  • Europe
  • US

Why TradingPro for CFD's

  • Direct Market Access to the top 500 Australian Share CFDs. TradingPro's CFD orders flow directly onto the underlying market guaranteeing you receive true ASX prices. This allows clients to be a price maker as well as a price taker.
  • Low commission starting at 0.125% for online/email orders. Volume discounts are available
  • Daily recommendations for Australian Share CFDs with fully disclosed performance figures. TradingPro is the only provider who tracks performance in this way
  • Multiple options for order placement including email/phone and online orders
  • Multiple order types at no extra charge
  • Access domestic and international markets easily and cost effectively
  • Participate in opening and closing auction
  • 24 hour access to webIRESS
  • Private account manager
  • Weekly commentary and monthly support sessions
  • A comprehensive Home Study Course (Optional extra)
  • Unlimited phone, email and online support

Fees & Charges

Commission:
On-line: 0.125 % of consideration (underlying share price times number of shares) with a minimum of $ 12.50 (0.10 % of consideration if your monthly contract value turnover exceeds $ 1 M)

Phone / Email: 0.20 % of consideration (underlying share price times number of shares) with a minimum of $ 20. All phone / email orders are checked by us on a best endeavour basis and we will pick up most errors thus avoiding costly mistakes. Although we do our best to pick up all errors and discrepancies in your orders we are not held if we miss an error. The trader is solely responsible for all orders placed.
Financing:
Long positions: Base Rate + 3 %
Short positions: Base Rate - 3 %
Free equity: Base Rate - 1 %
The base rate tracks but does not necessarily mirror the Reserve Bank of Australia Interbank Cash rate.
Platform charge:
If you use our online platform webIRESS, the following charges for Australian CFDs will apply:


Log on
during month

Number of Trades
during month

Costs

Rebate

Net Cost

Yes

0-7

Software: $ 40.70
ASX: $ 41.25

None

$ 81.95

Yes

8 to 15

Software: $ 40.70
ASX: $ 41.25

Software: $ 0
ASX: $ 41.25

$ 40.70

Yes

> 15

Software: $ 40.70
ASX: $ 41.25

Software: $ 40.70
ASX: $ 41.25

$ 0

No

N/A

Software: $ 40.70
ASX: $ 41.25

Software: $ 40.70
ASX: $ 41.25

$ 0


Performance of recommendations

Click here to receive performance figures.