CFDsiceberg_markets_heroe34b74

Iceberg Markets offers a personal service in online or phone broked CFDs to both Institutional and Professional Individual Clients. A highly experienced team of brokers can assist you with the fast and efficient execution of your orders directly into the relevant market. We also offer web based DMA trading platforms for clients wishing to trade for themselves in the market. (Click here to view our trading platforms.)

What is a Contract for Difference?

A contract for difference is a flexible and exciting method of gaining exposure to equities without the need to hold the underlying shares. A CFD is an agreement between two parties to exchange the difference between the opening price and the closing price of a contract. CFDs allow you to profit from falling as well as rising markets and trade free of Stamp Duty Tax*. CFDs are also commonly used as a hedging tool to offset any losses incurred in your physical portfolio of shares.

*Under current UK tax laws, CFDs enable investors to trade without having to pay the stamp duty that is applicable to traditional UK stocks and shares (tax laws can and may change).

Key Benefits

  • A choice of cutting edge trading platforms

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  • Variety of segregated trading accounts including SIPP and ULIP

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  • Trade CFDs from as little as 0.1%

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  • Trade Equity CFDs via Direct Market Access

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  • Take advantage of rising and falling markets

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  • Gain greater market exposure by trading on margin

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  • Transparent pricing and order execution

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  • Dedicated telephone dealing team

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  • Market research and analysis

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CFD Markets:

Clients can execute trades via our suite of online trading platforms or over the phone with our experienced brokers. Clients also have the ability to trade the underlying equities directly.

 More Detail:

Country Exchange Large Cap Mid-Cap (Or USD 1BN+) Further Markets
United Kingdom London Stock Exchange FTSE 100 FTSE250 FTSE All Share & AIM
London London International All over USD 2BN All over USD 1BN Over USD 500M
United States NASDAQ and NYSE S&P 500, NASDQ 100 S&P 400, NASDAQ Comp Over USD 500M
Canada TSX TSX 60 TSX Composite Over USD 500M
Germany Xetra Dax 30 MDAX 50 / TecDAX 30
France Euronext Cac 40 CAC Next 20
Netherlands Euronext AEX 20 AMX 30
Ireland ISE ISEQ 20 ISEQ General Index
Belgium Euronext BEL 20 Bel Mid Index
Italy MIB MIB 40 FTSE Italia Mid Cap 60
Switzerland Virtex & SWX SMI 20 SMI Mid 30
Spain SIBE IBEX 35 MADX
Austria WBAG ATX 20 WBI Index
Finland OMX OMX H 25 OMX Nordic Midcap
Denmark OMX OMX 20 OMX Nordic Midcap
Norway Oslo OBX 25 OMX Nordic Midcap
Sweden OMX OMX 30 OMX Nordic Midcap
Turkey ISC 30 ISC 30 N/A
Australia ASX ASX 50 ASX 200
Japan Tokyo NIKKEI 225 TOPIX Mid-400
Singapore SGX STI 30 FTSE ST MID Cap
Hong Kong Hong Kong HANG SENG 45 HS Mid Cap 50
South Africa JSE JSE 40 JSE Mid Cap

Financing

Investors using CFDs pay interest on the value of the long CFDs they hold though will receive 100% net dividend of the underlying share if a dividend is attributable during that period. This means the cost of holding a CFD is the interest charge less any dividend received. A spread above (long CFD) or below (short CFD) Libor is charged on a daily mark-to-market basis though these charges are competitive and keep trading costs low.

Although holders of CFDs receive the same exposure as owning the underlying stock, they are not shareholders and do not possess normal shareholder rights.

Short selling

It is easy and convenient to take a short position using CFDs subject to short selling restrictions in certain jurisdictions and the availability of stock to borrow. Short positions profit from a fall in the underlying market but will lose if the stock rises. These profits and gains are also magnified as the margin paid upon entering the positions represents a fraction of the contract value. Please note that if you are short a CFD and the dividend is paid, you must pay the net dividend.

Risks of trading CFDs

As leverage magnifies losses and profits, CFDs are not appropriate for everyone and investors must consider their risk appetite, experience and investment strategy before opening a CFD trade. Unlike owning equities through a conventional portfolio, investors can lose more than their initial deposit. You should not invest money that you cannot afford to lose and should seek independent financial advice if you have any doubts concerning the risks surrounding CFD trading.