FP Markets offers among the best trading environment for CFD trading in more than 10,000 Australian and international share CFDs on stock exchanges and indices across 4 continents. You can trade CFDs on the world's most famous companies across global markets and benefit from price movements in any direction.
At FP Markets, you can trade Share CFDs on two powerful platforms from the same trading account, on desktop and mobile (Apple iOS & Android).
What Are the Platform Options for Trading Share CFDs?
Iress
- Direct Market Access (DMA) Share CFDs
- Access over 10,000 Share CFDs on Global Exchanges
MT4 & MT5
- (MetaTrader) - Share CFDs
- Access 54 Shares on Global Exchanges
Direct Market Access (DMA) Share CFDs Offered through our powerful Iress CFD trading Platform
On a stock exchange, trade prices and the pending volume at each price point are publicly available in what’s known as the "order book". The ability to access the exchange order book is something unique to the Direct Market Access (DMA) pricing model and provides traders with transparent and precise execution. In additional to genuine market data, the DMA pricing model ensures you can go long on all securities on the exchange and the widest available list of shorts giving you a myriad of trading opportunities.
Equities Trading
FP Markets offers exposure to international equity markets with genuine market data, low commissions and competitive margins. See your trades using real market data and trade transparently using CFDs across 4 different continents and over 10,000 stocks. Command higher position sizes by choosing between leveraged trading accounts with competitive financing rates. With the ability to go long and short, you could potentially profit on the price movements of companies from around the globe.
In Australia, the stock market has pre-open and pre-close phases where buying and selling orders are allowed to overlap. A computer algorithm then matches these orders and determines the opening and closing price where the most amount of stocks trade through. FP Markets provides access to both these market phases and all the associated extra liquidity.
Are There Different Iress Account Types?
There are 3 account types available on Iress: Standard, Platinum and Premier. Trade Share CFDs with FP Markets, a Global regulated and award-winning forex broker, and you can take advantage of minimal fees and commissions as low as 0.08%. At FP Markets, we offer fast execution speeds* and our robust trade and risk management trading tools offer a smooth trading experience for our clients as well as the ability to access multiple instruments from one single trading account.
Here Is an Example of Share CFD Trading on Iress
Transaction
The market price for shares in company XYZ on the NYS is currently trading at $12.00/12.02. You think that the company’s shares are undervalued and will increase so you decide to buy 5000 CFDs at $12.02 each (being the price at which FP Markets is willing to enter into the CFD).
Two weeks later, shares in company XYZ have increased and are now selling at $12.52. You decide to realise your gain by Closing Out your CFD position.
FP Markets quotes you a price of $12.52/CFD (being the price at which FP Markets is willing to sell you CFDs to Close Out your 5000 CFDs). You trade at that price. The amount of profit you have made, before adjustments and tax, on the Transaction is $2500.00 (difference between 12.02 and 12.52) x 5000 = $2500). With a Margin requirement of 10% of the Contract Value, the Margin requirement for the XYZ position is $6010.00 ($60,100 x10%).
Adjustments
Company XYC paid a dividend of 10 cents per share while your position was open. Therefore you are entitled to a positive dividend adjustment of $500 (5000 x 10 cents) (this amount is posted to your Trading Account). Share CFDs are subject to a commission charge (we also call it a Transaction Fee) on the opening and closing Transactions (based on the Closing Value).
The transaction fee on this trade will be of a minimum of $15 USD or 2cents a share (depending on the greater value. In this case 5000 units* 2cents = $100 USD will be the commission charged for opening the trade as this is greater than $15 USD.
Since you hold a long Share CFD position overnight, costs are charged by way of the Finance Charge. This is calculated on your positions by applying the applicable Finance Charge rate to the daily Closing Value of the position. The formula to calculate financing is: (Quantity x Closing Price) x ((FP Markets Base Rate +/- Client Mark up) / number of days for Terms Currency)
- In this example, for instance if the applicable rate is 4.5% p.a. and the Closing Price of the CFD on a particular day is $12.20, then the overnight Finance Charge is then calculated as follows: The base rate is 2.5%;
- Client Mark up is 2.0% (5000 x $12.20 x 4.50%) / 365
- The Finance Charge on this particular day would therefore be $7.52.
