When it comes to choosing a CFD provider, Singapore traders have a wide range of options. However, not all CFD providers offer the same products and services. Some may focus on forex trading, while others may provide a more comprehensive suite of products that includes shares, indices, commodities and more. Navigate here for more information on CFDs in Singapore.
So, what types of CFDs can you trade in Singapore? We’ll have a look at some of the popular options:
The foreign exchange market is the largest and most liquid financial market globally. Trading forex CFDs gives traders access to this market, allowing them to speculate on the movements of currency pairs. Most CFD providers will offer a selection of the principal, minor and exotic currency pairs. The most popular currency pairs typically involve the US dollar, such as EUR/USD, GBP/USD and USD/JPY.
Share CFDs give traders exposure to the underlying share price of a company listed on a stock exchange. You don’t own the shares when you trade CFDs, but you can still benefit from price movements. Share CFDs can be traded on a wide range of stock exchanges worldwide, including the New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange (LSE) and more.
An index CFD tracks the performance of a group of stocks or commodities. Index CFDs allow traders to speculate on the overall performance of an index without having to trade each stock or commodity. Some of the most popular indexes traded as CFDs include the Dow Jones Industrial Average (DJIA), S&P 500, Nasdaq Composite and FTSE 100.
It’s a physical good that can be sold and bought, such as gold, silver, oil and copper. Trading commodity CFDs gives traders exposure to the underlying price of the commodity without having to take delivery of the actual physical product. Commodities are typically traded as CFDs on futures exchanges such as the Chicago Mercantile Exchange (CME) and New York Mercantile Exchange (NYMEX).
Cryptocurrency CFDs are a relatively new asset class that has gained popularity in recent years. Bitcoin, Ethereum, Litecoin and Ripple are just some of the cryptocurrencies that can be traded as CFDs. Crypto CFDs give traders exposure to the underlying price of the cryptocurrency without purchasing the digital coin.
Bonds are debt instruments that governments and corporations issue. They typically have a fixed interest rate and maturity date. Bond CFDs give traders exposure to the bond market without purchasing the bonds. Bond CFDs can be traded on various exchanges, including the CME, NYSE and LSE.
ETFs are exchange-traded funds that track an underlying index, commodity or basket of assets. They trade on the exchanges like stocks and can be bought and sold through a broker. ETF CFDs provide traders with exposure to the underlying price of the ETF without having actually to purchase the ETF units.
Options are contracts that let investors buy or sell an underlying asset at a given price before a specific date. Options CFDs give traders exposure to the option’s underlying price without actually purchasing the option contract. Options CFDs can be traded on a wide range of exchanges, including the CME, NYSE and LSE.
A future is a derivative contract in which the buyer has the right but not the duty to buy/sell an underlying asset at a specific price on or before a set date. Futures CFDs give traders exposure to the underlying price of the future without actually purchasing the futures contract. Futures CFDs can be traded on various exchanges, including the CME, NYSE and LSE.
The fx market, or forex, is the largest financial market globally, with over $5 trillion in daily turnovers. Currency trading on the forex market is done through CFDs. Forex CFDs give traders exposure to the underlying price of a currency pair without actually purchasing the currency. Forex CFDs can be traded on a wide range of exchanges, including the CME, NYSE and LSE.