Thursday 17 May 2012
How it Works

Choice of CFD Trading Platforms

ESUPERFUND clients can choose to trade CFDs with CMC Markets.  By limiting the CFD Brokers to CMC Markets, ESUPERFUND is able to ensure that our services are provided at a fee significantly below market.  

What are CFDs?

CFDs are powerful leveraged instruments that can give you maximum exposure for minimum outlay.  CFDs allow you to trade ASX Shares, International Shares, Sectors, Indices, Interest Rate Securities, Commodities and Foreign Exchange using a single trading account.  CFDs let you exchange the difference in the price of an the underlying asset purchased between the time a contract is opened and the time the contract is closed.  Importantly there is no expiry date with CFDs, no time decay and you'll never have to take delivery of the underlying securities.

Applying for a CFD Account

Once your SMSF has been established by ESUPERFUND you can apply to establish a CFD Trading Account with CMC Markets.  On receipt of the application, ESUPERFUND will forward to you a prepopulated CFD Trading Application for signing.

When can I start trading CFDs

On returning the prepopulated CFD Trading Application sent to you for signing, your CFD Trading Account will be established by CMC Markets.  Details of the Account Setup will be provided to you directly by CMC Markets on the Account Setup.  The process can take 1-2 weeks to finalise.

Brokerage Rates

The Brokerage Rates for trading CFDs with CMC Markets can be found here.

Only you can transact and access the CFD Account

Importantly ESUPERFUND has absolutely no ability to enter or transact on the CMC Markets CFD Trading Platform.  Only you as the Fund Trustee can login and transact on the CFD Account.

Accessing Information by ESUPERFUND

At the end of each financial year, CMC Markets will send to ESUPERFUND an annual data file of all your SMSF CFD Trades and Transactions.  This enables our office to attend to your SMSF's annual compliance obligations.  No records are required from you each year as we already have access to the data.   It is important to understand that only electronic data files are provided to ESUPERFUND.  As detailed above we have absolutely no access to your Account and cannot actually login to your CFD Trading Account to access the required data.

Avoid Audit Issues

One of the common errors identified by the ATO is clients establishing Broker Accounts in their personal name and not the name their SMSF resulting in ATO compliance issues.  By establishing the CFD Trading Account for your SMSF we ensure that the CFD Trading Account is setup correctly.  This ensures that ATO compliance issues and associated penalties are eliminated and that all CFD Trading Accounts setup by ESUPERFUND are compliant with Super Regulations.

ESUPERFUND provides No Investment Advice

ESUPERFUND do not provide Investment advice and cannot advise you on which CFD to purchase or sell in your SMSF.  You as the SMSF Trustee are responsible for making all Trading decisions for your SMSF, based on your SMSF's particular financial situation and needs.

Apply Now

To apply to establish a CFD Trading Account for your SMSF 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.