Thursday 17 May 2012
CMC Markets CFDs

Who is CMC Markets?

CMC Markets is a leading independent financial services provider and is a pioneer of CFD trading in Australia and a world leading CFD provider.  With offices in London, Frankfurt, Dublin, Madrid, Vienna, Sydney, Tokyo, Toronto, Beijing, Auckland, and Singapore, CMC Markets represents clients in over 70 countries. The company was founded in 1989 and is regulated by ASIC in Australia. CMC Markets Stockbroking is a participant of the ASX Group.

What can you Trade using CMC Markets CFDs

With CFDs you have access to financial markets around the world, and thousands of global instruments including:

Australian Shares

Trade Australian Share CFDs for major companies including BHP, Rio Tinto, CBA and ANZ, with as little as a 3% margin.

International Shares

Trade International Share CFDs in nearly all global exchanges including Australia, the UK, the US, Japan, Hong Kong, New Zealand, Singapore and more.  This allows your SMSF to purchase major overseas companies including Google and Apple, with as little as a 5% margin.

Global Indices

Trade Global Index CFDs including the AUSSIE200, UK100, the US30 and the German30 and mini indices including Australian finance and mining sectors.

Foreign exchange

Trade FX CFDs with CMC Markets 24 hour global trading and liquidity.  FX Markets include the Australian Dollar (AUD), the US Dollar (USD), Euro (EUR), British Pound (GBP), Swiss Franc (CHF), Japanese Yen (JPY) and more.

Commodities

Trade a wide range of base and precious metals, agricultural, energy and other commodities including, gold, oil coffee and sugar.  CFDs allow you to bypass standardised futures trade sizes and trade smaller quantities.  Trading Commodities is hassle free and there is no risk of delivery.

Interest Rate Security Bonds

Trade in interest rate security CFDs over bonds including UK Gilts, Australian Treasury Bonds, Japanese Government Bonds and Euro Bonds.

Sectors

Sectors give you a wider view of a market by trading a basket of equities from particular industries instead of individual company stocks, allowing you to avoid individual company risk.  With CMC Markets CFDs you can trade CFDs in both Australian and global banking, mining and pharmaceutical industries.

Equity Markets Available

Equity Markets available under the CMC Markets Platform are detailed below: 

International
Market
CMC
Markets CFDs
Australia  Yes
United States Yes
United Kingdom Yes
Australia Yes
Hong Kong Yes
Singapore Yes
Japan Yes
France Yes
Germany Yes
Ireland Yes
Switzerland Yes
Finland Yes
Norway Yes
Denmark Yes
Holland Yes
Sweden Yes
Spain Yes
Portugal Yes
Italy Yes
Canada Yes
New Zealand Yes

No Direct Share Ownership

It is important to understand that when you purchase Shares using CFDs with CMC Markets, your SMSF is not the actual owner of the Shares.  CFDs are simply a contract between you and the CFD Provider (ie CMC Markets) that could result in either a profit or a loss from either rising or falling prices.  

Trade CFDs Long or Short

CMC Markets CFDs allow you to trade either Long or Short.  This means that you can trade whether you think the price of a stock or asset is likely to appreciate or fall in value.  With CFD trading, your profit or loss is determined by the difference between the buy price and the sell price of the financial instrument you are trading.

Brokerage Rates

You can trade Australian Shares CFDs for as little as $7 per trade for trades up to $7,000, one of the lowest Brokerage Rates in Australia.  Australian Share CFD Trades over $7,000 can be traded for as little as 0.10% of the trade.  You can trade Indices and FX for no commission at all!  For full details of Brokerage Fees click here.

Margin Rates

You can trade some of Australia's most popular stocks with as little as 3% margin.  This means for example that you can purchase $10,000 worth of say BHP for only a $300 margin payment.  This gives you maximum leverage to maximise your returns.  But always be careful because the higher your leverage the more potential for gains and losses!  To lessen the risk many clients leverage more conservatively.  For example in the above example you may purchase $10,000 worth of BHP but contribute $5,000 in equity to maximise your equity and lessen your leverage risk.  To avoid all leverage risk you can contribute the full cost of the trade as a margin payment.  For details about Maximum Margin Rates click here.

Financing Rates

It is important to understand that when you leverage your CFD position you are effectively borrowing to acquire the CFD position.  For example if you purchase $10,000 worth of BHP and make a $300 margin payment, the balance of $9,700 is effectively being financed much like a Margin Loan.  Strangely, whilst Margin Loans are not allowed in a SMSF, CFD leverage is!  In the above example the amount financed of $9,700 is charged interest as is usually the case on borrowed funds.  Financing Rates can be found here.

Spreads 

No Brokerage is payable on Index and FX Trades.  The cost of trading is built into the Buy / Sell Spread.  CMC Markets offer narrow spreads, which keep your trading costs down in two ways.  Firstly, a narrow spread means that your CFD buy price and sell price are close together meaning you need fewer ticks in your favour before you can recoup your costs.  Secondly, the smaller the spread the closer you can place your stop loss order.  Details of Spreads can be found here.

Education

CMC Markets have a wide variety of Education exclusively available to all CFD clients.  The CMC Markets Education Platform has been developed to house all training materials in one place.  It offers you the ultimate online trading environment.  Details about the Education received as a CMC Markets follow.

Trading IQ online

Trading IQ is a CFD education program for new CFD traders.  Available online, Trading IQ includes an eight module trading guide, a trading plan and a diary to help you start trading.  Trading IQ Online is an invaluable addition to your trading reference library because it allows you to learn about CFDs at your own pace.  In eight easy-to-follow online modules:

You will learn about leverage and exposure, limit and stop orders, and technical analysis 
You will gain an understanding of the risks associated with trading CFDs and ways to manage them 
You will get hints and tips from the CMC Markets trading floor 
CMC Markets will run you through practical CFD trading strategies

Video Walkthroughs

CMC Markets have created video walkthroughs to help you find your way around its Trading Platform to help you trade more efficiently and effectively.

Education on Demand

Watch online videos covering a wide range of trading topics including technical analysis, foreign exchange and trading psychology.

Trading Library

Dip into over 400 pages of trading literature for beginner, intermediate and expert traders.  CMC Markets have got a multitude of trading strategies covered, and you will get essential support.

Trader's Quiz

Test yourself on the material you have covered in the Education Zone and monitor your progress by answering quiz questions.

Trader Health Check

The trader health check test helps pinpoint education levels. There are beginner, intermediate and advanced traders programs.
For more about Education Resources provided to you when you establish a CFD Account with CMC Markets click here.

More Information

For more information about the CMC Markets CFD Account click here.

CMC Markets CFD Account Queries

If you have any queries about your CMC Markets CFD Account please contact CMC Markets directly.  Please do not contact ESUPERFUND directly in relation to queries about your CMC Markets CFD Account as unfortunately we will be unable to assist you with your queries.  Contact details follow:

New Account Enquiries Phone:                1300 303 888
Client Services Phone:                               1300 660 262 or 02 8221 2180
Client Services Fax:                                     02 8915 9484
Client Services Email:                                 clientservices@cmcmarkets.com.au
Dealing Desk:                                               1300 789 181 

CMC Markets Login

To login to the CMC Markets CFD Account click here.

Apply Now

To apply to establish a CMC Markets CFD Account click here.

 

 

General Advice Warning

The contents of this website are of a general nature only and have not been prepared to take into account any particular investor's objectives, financial situation or particular needs. Where this publication refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product. We also recommend that you should seek professional advice from a financial adviser before making any decision to purchase any financial product referred to on this website. While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.