Saturday, January 1, 2011

What is a CFD?

A CFD ( Contract For Difference) is an agreement to exchange the difference in value of a particular share between the time at wich a contract is opened and the time at which it is closed.

There're 2 top CFD providers in Singapore :
1) IG Markets (
2) CMC Markets ( )

I have both accounts. I personally prefer IG Markets, where it provides the best user-friendly trading platform with cheap transaction fee.

Long/Short Strategy :-
With CFDs you can buy or sell at the quoted price, to profit from rising or falling markets. Other methods of shorting shares are often inconvenient and expensive.

Advice :-
Geared products like CFDs can help you make the most effective use of your investment capital, but it is important to appreciate that the amount you could lose relative to your initial investment is greater for geared products than for non-geared products.


  1. CMC MarketMaker is computer resource intensive. It's feature rich but you do need a fast computer to run it. You need to install the windows program

    IG Market is web-based, simple and fast.

    CityIndexAsia is web flash-based, basic and simple.

    I tried all 3 providers demo account and picked CityIndexAsia for lowest transaction fee. (For Singapore CDF, it's S$10/transaction regardless of trade amount)