CFDs are revolutionising the way people trade the Australian and world markets. You can take advantage of this simple, yet powerful trading advantage by opening a CFD trading account with Titan CFDs.

*** RESULTS! CFD Trading Strategy ***

Discover why traders everywhere are turning to CFDs to magnify their returns.

What are CFDs (Contracts for Difference)?

·         CFDs are Over-the-Counter (OTC) financial products, which provide leveraged exposure to an underlying share, financial security, commodity, or Index.

·         CFDs trade at prices that mirror their underlying instrument.

·         CFDs offer the benefits of owning a share without having to physically own the stock with the benefit of participating in dividends.

What are the benefits of trading CFDs?

·         You can use CFDs to go long or short, allowing you to potentially profit from rising or falling prices.

·         CFDs are traded on margin, so you can establish a position with a relatively small proportion of the trade size.

·         CFDs are available on more than 2300 instruments to increase your trading opportunities. Trade CFDs on single shares, sectors or indices, international shares, metals, commodities and foreign exchange.

·         A variety of order types are available including market orders and limit orders, contingent and 'one cancels other' orders to limit your risk and provide flexible trading opportunities.  

·         Provide exposure to a comprehensive range of financial markets including Australian shares,     international shares, metals, commodities, foreign exchange, and treasuries.

·         Allow clients to trade on margin (up to 99% on certain instruments).  

·         Provide an attractive alternative to margin lending.

·        Allow clients to readily take ‘long’ or ‘short’ positions to hedge existing exposures or profit from falling prices.  

·        Trade in real time with prices that mirror their underlying instruments.

Trade on Margin

CFDs are traded on margin, from 3% for shares and 1% for indices. This is a more efficient use of your capital because you only have to allocate a small proportion of the total value of your position to secure a trade, while maintaining full exposure to the market. This enables you to magnify the returns on your investment.

Trading example (Telstra CFD)

Fees, charges and margin requirements vary between different kinds of CFDs and are subject to change. This example is for illustrative purposes only. It is not intended to be indicative of the performance of Telstra.

Opening position

Telstra is trading at (bid/offer) $3.99/$4.00. You want to buy AUD$10,000 (2,500 Share CFDs) worth of Telstra CFDs at the offer price of $4.00 with the view that the share price of Telstra will rise.

Share Broker Y requires an initial outlay that is 100% of the price of 2,500 Telstra shares at $4.00 (A$10,000.00). Because CFDs are a leveraged product, you will typically only need from 3% of the price of 2,500 Telstra Share CFDs (A$300) to open a CFD position with Titan CFDs, giving you exposure to the same underlying assets.

The amount of commission charged by Titan CFDs in this example is A$10 per trade compared with A$25 per trade with Share Broker Y (typical on-line Share Broker).

The total outlay of this transaction with Titan CFDs is A$310 which is A$9,715 less than Share Broker Y (total outlay of A$10,025) for the same exposure in the market.

Closing position

Telstra price rises to $4.20. Having held the position overnight, you decide to close your position by entering an equal but opposite trade, by selling 2,500 Telstra Share CFDs at $4.20.

By closing your position you realise a gross profit of A$500.00. The net profit received from Titan CFDs and Share Broker Y is calculated by subtracting commission charges and GST from gross profit (and for CFDs, the overnight financing charge).

Your net profit received from Titan CFDs is A$477.74. Alternatively, with Share Broker Y your net profit would be A$445 due to higher commission on your trade. Additionally, with Physical shares traded through a broker you will be subject to GST on commissions. CFD commissions are not subject to GST.

Return on Investment

CFDs are a leveraged product so your return on investment (ROI) from this trade using Titan CFDs is 154%, which is significantly more than your ROI from Share Broker Y – which is only 3%.

Important note: If the price had moved in the opposite direction by 20 cents you would realise a gross loss of A$500 trading with Titan CFDs and Share Broker Y. This would have resulted in a negative ROI (loss) of 154% for CFDs compared to a negative RIO (loss) of 3% from trading with broker Y. This demonstrates how leverage products such as CFDs magnify losses as well profits.

CFD fees and charges

If you trade Australian Share CFDs an exchange fee of $41.25 (non-professional investors) or $49.50 (professional investors) per calendar month may be charged. The exchange fee is debited from your account at the end of each month. Other fees and charges may apply. 

Exchange fees apply only if you trade the Australian share market. There are no exchange fees for any other market. You have the ability to turn off the price feed for Australian shares, if required, so that you do not get charged the fee. Alternatively, if you generate $100 (per month) or more in commission then we pay the exchange fee on your behalf.

Titan CFDs 

TRADE DMA FUTURES & CFDs ON-LINE

NOTE: Any fees quoted on this page may have changed since the last update.  The information presented here is for general educational purposed only and should be verified by referring to the most recent Product Disclosure Statement (PDS).

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