What is CFD trading?

A CFD or “Contract For Difference” is a derivative product which allows you to trade on the price movements of assets and indexes across local and international markets. While being complex, what they offer traders is quite simple. CFDs enable you to enter the market with only a fraction of the value of the asset you are buying, amplifying the potential for gains and losses, also known as leverage. Because a CFD focuses on price movements it is also possible to short a product, meaning the trader expects the price of an asset to decrease and profit from this movement.

Lastly they enable the trader to take a position without having to take ownership of the underlying asset. This makes CFDs ideal for traders who want to gain a larger market exposure for a fraction of the full value while being able to enter and exit trades quickly.

Why trade CFDs with FP Markets?

How to trade CFDs with FP Markets

Trade on a highly awarded, fully customisable, technically advanced platform

The IRESS platform suite

Get access to institutional grade trading solutions with FP Markets’ CFD platform. Take advantage of Direct Market Access pricing, global market access, superior execution speed and highly sophisticated charting. Everything the active trader needs accessed from easy to use desktop and mobile solutions.

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CFD types

Access a wide range of products across all major global exchanges.

Equity CFDs
Exchanges Available Shares
DMA CFD Equity 12916
Australia 2087
UK – LSE 2282
US- NAS 2066
US- NYS 2800
Hong Kong 1866
Singapore 781

Equity CFDs offer exposure to the price movement of a stock without owning the underlying stock. Trading equity CFDs reflects the profit and losses of the stock with instant settlement, including exposure to dividends, stock splits and bonus issues.

FP Markets offers exposure to international equity markets with genuine market data, lower commissions and better margins. See your trades transparently using Contracts for Difference (CFDs) across 3 different continents and over 10 000 stocks. Command higher position sizes by choosing between leveraged and non-leveraged trading accounts with competitive financing rates. With the ability to go long and short you could potentially profit on the price movements of the market in either direction.

Index CFDs
Available Indicies
DMA Indicies  (8) CFD Indicies (9)
NASDAQ 100 E-MINI DJ30
NIKKEI 225 (CME) US500
S&P500 EMINI NAS100
DJIA MINI e-CBOT UK100
DAX INDEX STOXX50
EURO STOXX 50 GER30
Mini SPI 200 JP225
SPI 200 HK50
AUS200

Index CFDs offer exposure to the movement of stock indices and suit traders who do not wish to take a stance on a specific stock but a market in general. Index CFDs trade nearly 24 hours a day across the week day and are a valuable tool for hedging systematic risk (market risk) as part of an asset allocation strategy.

Get exposure on major stock indices by trading FP Markets’ Index CFDs. Margins start at just 1% (SPI 200 Futures start at $25 AUD per point. AUS200 cash indexes are $1 AUD per point and are available on our MT4 platform) and are an affordable risk management tool for your portfolio. FP Markets’ Index CFDs reflect the underlying index futures contracts – trade the price movement of the real futures contract and select the contract expiry you want using live exchange data. Stay on top of overseas stock index movements with access to Nasdaq, S&P 500, EUREX indices and more.

Commodities CFDs
DMA Commodities  (15) CFD Commodities (3)
WHEAT (CBT) LEAN HOGS WTI
CORN LIVE CATTLE Gold
SOYBEAN OIL WTI CRUDE Silver
OAT GASOLINE RBOB
SOYBEAN NATURAL GAS
SOYBEAN MEAL NY Harb ULSD (heating oil)
CATTLE FEEDER PALLADIUM
PLATINUM

FP Markets offers a wide range of commodities futures products, including interest rates, currencies, metals, energy and agriculture. FP Markets’ commodity CFDs help you find the right exposure you need. Traders can hedge their portfolios using interest futures or diversify their assets using commodity and currency futures that can have low correlation to stocks.

Trade real commodity contracts with live exchange data and participate in the opening auction. Commodity CFDs reflect the real futures contract and give traders exposure to the expiry period they want. Take advantage of near continuous trading throughout the weekday allowing you to manage risk and opportunity around the clock.

Futures CFDs
Available Indicies
DMA Indicies  (8) CFD Indicies (9)
NASDAQ 100 E-MINI DJ30
NIKKEI 225 (CME) US500
S&P500 EMINI NAS100
DJIA MINI e-CBOT UK100
DAX INDEX STOXX50
EURO STOXX 50 GER30
Mini SPI 200 JP225
SPI 200 HK50
AUS200

A futures contract is an agreement to buy or sell a specified commodity or financial instrument at a predetermined price in the future. Trading futures CFDs gives exposure to the price movements of these contracts. Common futures CFDs include index futures, speculating on the future price of a stock index; currency futures, used to lock-in the future price of currencies and commodity futures, commonly used to lock-in the future price of certain agricultural products, energy and metals.

Trading futures CFDs at FP Markets uses real exchange data. You can choose the expiry you want by choosing the expiry contract month and get exposure to the real futures contract. With a large selection of contracts to choose from, including major commodity futures such as Crude Oil, Live Cattle, Corn, Platinum and SFE SPI 200 FP Markets’ futures trading offers the exposure you need to get ahead.

CFD account types

Customised accounts for new and experienced traders
  Professional Platinum Premier*
Minimum Opening Balance $ 1,000 $ 25,000 $ 50,000
Brokerage Rate $10 min, then 0.1% $9 min, then 0.09% No min, then 0.08%
Financing RBA +3.5% RBA +3.0% RBA +2.5%
IRESS Trader & Fee $55 inc. GST fee is waived if you generate $150 in comm/month. $55 inc. GST fee is waived if you generate $150 in comm/month. Platform fee is waived.
IRESS Investor & Fee Free Free Free
ASX Live Data fee $22.00ASX Inc GST fee is waived if you generate $50 in comm/month. $22.00ASX Inc GST fee is waived if you generate $50 in comm/month. ASX royalty fee is waived
ASX Delayed Data Free Free Free
Telephone Trades& Fee No additional charge No additional charge No additional charge
Account Description& Fee Our professional account provides access to competitive DMA commission and margin rates with our professional trading platform options. The platinum account offers even lower commission and financing rates on our professional trading platform. For the professional trader we offer no platform fees and no minimum brokerage charge.

CFD Costs

What are the costs when trading CFDs?

Equity CFD

Country Commission per Side Minimum Charge
Australia 0.08%** 0 AUD**
Singapore 0.15% 25 SGD
Hong Kong 0.30% 100 HKD
London 0.10% 10 GBP
Frankfurt 0.10% 10 EUR
NY NYSE 2 cents/share 15 USD
NY NAS 2 cents/share 15 USD

Index CFD

Exchange Products Offered Standard
SFE ASX SPI200 (AP) 15 AUD
Eurex DAX (FDAX), SMI (FSMI), DJ Euro Stoxx 50 (FESX) 15 EUR
CME E-Mini S&P500 (ES), E-Mini NASDAQ 100 (NQ) 15 USD
CME Nikkei 225 USD (NKD) 17.5 USD
CME Nikkei 225 JPY (NIY) 1750 JPY
CBT E-Mini DOW (YM) 15 USD
NYM Light Sweet Crude Oil (CL) 15 USD

Forex CFD

Exchange Commission per Side
FX 0 (built into the spread)