Share CFDs

Our Share CFDs give a client exposure to changes in share prices but cannot result in delivery of actual shares by or to the client.

1) Share CFDs are normally available on over 300 Australian shares, plus constituents of the FTSE 350 Index, S&P 500 Index, NASDAQ 100 Index, Straits Times, JSE 40, Hang Seng, TSE 60 and most major European indices. We also offer CFDs on a selection of IOB Depository Receipts.

2) Deals are transacted at the market bid/offer of the underlying share on the relevant stock exchange, plus a small spread as cost of IT service.

3) Commission charges for Share CFDs are calculated as a percentage of the transaction value.

4) Clients will be informed in writing of the spread rates and financing rates which apply to their account at the time the account is opened. In the absence of such information from us, spread on individual shares is charged according to the standard schedule below:

Standard Schedule

'Per side' means that spread is charged upon opening and closing the CFD.

UK tier 1 means all SETS and SETSmm shares
UK tier 2 means shares that do not trade on an electronic order book (Market Maker stocks)
Euro tier 1 includes: Belgium, Eire, France, Germany, Italy, Netherlands
Euro tier 2 includes: Austria, Finland, Portugal, Spain
IOB Shares are Depository Receipts that trade on the International Order Book on London Stock Exchange

•  Singapore shares which are denominated in US dollars and have a minimum ticket of US$25.

5) Limited Risk transactions are available on certain shares at our discretion. The premium for a Limited Risk transaction is normally 0.3% of the transaction value, with South African and IOB shares being notable exceptions: the Limited Risk premium is normally 1.0% for these shares (please note that the Limited Risk premium for all shares may be as much as 1.5% of the transaction value depending on market conditions and the volatility of the particular share).

All the Limited Risk premium is charged when the transaction is opened.

6) The Margin Percentage for any particular CFD is calculated as a percentage of the opening value of the transaction. Margin requirements for particular shares vary according to volatility and market conditions, and at the time of writing are as follows:

CFDs Margin Rates

A full list of the Australian shares we offer, and the rates they are margined at, can be viewed by clicking here .

*Stock Exchange Electronic Trading System

Consituents of the European indices listed in the table below are all margined at 10% .

European Shares Margin Rates

Other shares from around the world are margined at the rates displayed in the table below.

Other Shares Margin Rates

The Margin Percentage for a Limited Risk CFD transaction is equal to the amount which would be lost if the Stop were triggered, plus 10% to cover interest and dividend adjustments.

We reserve the right to alter the Margin Percentage at any time.

7) There is no minimum opening contract value for CFDs on individual shares.

8) Dealing hours are as follows:

Australian Shares: 10.00-16.00 (Australian Eastern Standard time)*
UK Shares: 08.00-16.30 (London time)**
American Shares: 09.30-16.00 (New York time)©
Singapore Shares: 09.00-12.30 and 14.00-17.00 (Singapore time)
European Shares: Market hours for the relevant Exchange. Please ask for current details

*It may sometimes not be possible to quote a particular share before 10.09
**Certain UK shares are also quoted between 16.30 and 21.00
©It may sometimes not be possible to quote a particular share before 09.45 (New York time)

9) For CFDs on individual shares, adjustments to reflect the effect of interest and dividends are calculated daily and posted to the client's account weekly.

i) Interest adjustments are calculated as follows:

D = n x C x i / 365

Where:

D = daily interest adjustment
n = number of shares
C = current share price
i = applicable annual interest rate

Note: The formula uses a 360-day divisor for Australian, US, Singapore and European shares and a 365-day divisor for UK shares.

The funding rates that apply will be the inter-bank offered rate for the currency that the trade is denominated in, plus/minus 2.5%. For example, a funding rate of LIBOR +2.5% will apply to long positions in UK stocks.

Interest in respect of long positions is debited from a client's account and interest in respect of short positions is credited to a client's account at rates which are agreed with each client.

ii) A dividend adjustment is applied when a share passes its ex-dividend date (including the ex-date of any special dividend) in the underlying stock market. In the case of long positions, the dividend adjustment is credited to the client's account. In the case of short positions, the dividend adjustment is debited from the client's account. The dividend adjustment for shares (Australian or otherwise) varies depending on local tax arrangements - please ask our dealers for current details.

10)  A cash adjustment will be made to the client's account to reflect the effect of a bonus share issue, scrip or rights issue affecting the underlying share if a client has an open CFD position.

11) In the special case of CFDs on shares registered in Ireland, there will be an extra 1% commission payable on all positions (long or short) held for one calendar month or more.

Limited Risk

The premium for a Limited Risk transaction is normally just 0.3%, although this may vary due to market conditions and volatility. The premium is only charged on the opening trade.