FAQs (CFD Trading)

CFD Frequently Asked Questions (FAQs)

 

-General Enquiries-

1. Who can invest in a CFD offered?

Currently, CFDs can only be traded by sophisticated investors (i.e., any person who falls within any of the categories of investors set out in Part 1 of Schedule 6 and 7 of the Capital Market Service Act 2007). CFDs are complex leveraged products and investors are advised to fully understand the risks associated with CFDs before trading them.

Sophisticated investors are high net worth individual:-

 

2. Do I need a Central Depository Account (“CDS Account”) or linkage to trade CFDs?

No, you do not need a CDS Account or linkage to trade CFD.

 

3. How long does it take to open a CFD account?

CFD account opening will take around 3-5 working days to be activated by provided all the documents and forms is ready.

 

4. What is the minimum deposit to open a CFD account?

Customers are required to fund in a minimum deposit of RM1000 to open a CFD Account.

 

5. What are the requirements to open CFD account with Phillip Futures?

Photocopy IC and a bank statement issued within the last 3 months. Additional supporting documents may be required.

 

6. Is there any maintenance fee for the CFD account?

There is NO maintenance fee or administrative fee for the Phillip CFD account.

 

7. Can I have more than one CFD account?

Each customer is allowed to open only one CFD account with Phillip Futures.

 

8. Downtime Actions

During times of system outage, kindly contact your Registered Representative or our Dealing Desk at 03-2162 1628 / 03-9212 2828

 

 

-CFD Trading –

1. What is CFD trading?

A CFD is a leveraged derivatives product that tracks the price movement of an underlying instrument. Essentially, a CFD is a contract an investor enters into with a CFD provider to gain exposure to an underlying instrument whereby differences between the closing and the opening value will be settled through cash payments without owning the underlying instruments.

 

2. What platform will be used for CFD?

Phillip Futures will be introducing a desktop platform for CFD trading, visit https://www.phillipfutures.com.my/products/poems-trader/ to find out more.

 

3. What are the type CFDs offered by Phillip Futures?

Phillip Futures is offering CFDs whereby the underlying instruments are:

  1. Shares listed on the Main Board of Bursa Malaysia (“Malaysian Shares CFD”)
  2. Shares listed on a securities exchange outside Malaysia (“Foreign Shares CFD”) and

 

4. How does Phillip Futures CFD quote its prices?

For CFDs, all Bid and Ask prices are quoted at live cash market prices, without any additional spreads. You buy at the current market ask price and sell at the current bid price.

 

5. Can my CFD trades be partially filled/done?

Yes, it can. Your orders may be fully done or partially done based on market conditions.

 

6. What are the margin requirements on CFDs products offered by Phillip Futures?

The initial margin requirement and maintenance margin charged by Phillip Futures to trade CFD as below:

CFD Contracts Minimum Initial Margin Minimum Maintenance Margin
 

Malaysia Shares CFD

Minimum 10% for index shares Minimum 10% for index shares
Minimum 20% for non-index shares Minimum 20% for non-index shares
 

Foreign Shares CFD

Minimum 10% for index shares Minimum 10% for index shares
Minimum 20% for non-index shares Minimum 20% for non-index shares

*Note: Phillip Futures reserves the right to vary the required margin for the CFD and limit each client’s trading limit due to market volatility without prior notice

 

7. Can I request for physical settlement of my CFDs position?

No. CFDs are cash settled only.

 

8. What are the lot size and minimum contract size?

You may refer to our website www.phillipfutures.com.my , under the tab Product > CFD101>  Products (CFD) for respective lot sizes and minimum contract sizes.

 

9. What are the fees and charges involved?

Market Currency Commission Minimum Commission Rates Financial Charges
Long Finances Charges

(per annum)

Short Finance Charges

(per annum)

Malaysia Shares CFD MYR 0.5% of the shares value RM60.00 5.5% of the shares value From 4% of the shares value or min charges of RM450
Foreign Shares CFD USD 0.5% of the shares value USD15.00 5.5% of the shares value From 4% of the share value

*note: These financial charges are subject to changes. ‘Finance charges’ are calculated daily based on 100% mark-to-market contract value. ‘Financial charges’ will be realized on the 30th day rollover

 

10. Under what circumstances will I receive a Margin Call?

You will receive a Margin Call when your Equity Balance falls below the required Maintenance Margin.

 

11. How do I know if there is a Margin Call?

Your respective registered representative will contact you if there is a Margin call. Your daily statement will also show margin call amount, if any.

 

 

-Account Management & Payments-

  1. How do I deposit money into my CFD Account?

Clients can only deposit money to the following segregated account and third party fund is not allowed.

Mode Details
Cheque Cheques should be crossed and made payable to “Phillip Futures Sdn Bhd”. Please state the CFD trading account number, name and contact number on the reverse of the cheque, and specify that the payment is meant for your CFD trading account.
Internal Funds Transfer Customers can initiate online funds transfer from futures trading account to CFD trading account through Dealer.
Telegraphic Transfer (“TT”) Please specify CFD trading account number and name along with the telegraphic transfer. Kindly inform your Dealer after the TT transfer that the TT amount is meant for CFD trading account. Customers are liable to pay for all telegraphic transfer charges. Below is the bank account details:

Bank: Malayan Banking Berhad

Account Name: Phillip Futures Sdn Bhd – CFD

Account No: 514012111172

 

Bank: Malayan Banking Berhad

Account Name: Phillip Futures Sdn Bhd – CFD

Account No: 714011030847 (Foreign Currency Account)

Online Transfer Please specify CFD trading account number and name along with the telegraphic transfer. Kindly inform your Dealer after the TT transfer that the TT amount is meant for CFD trading account. Customers are liable to pay for all telegraphic transfer charges. Below is the bank account details:

Bank : Malayan Banking Berhad

Account Name : Phillip Futures Sdn Bhd – CFD

Account No: 514012111172

 

Bank: Malayan Banking Berhad

Account Name: Phillip Futures Sdn Bhd – CFD

Account No: 714011030847 (Foreign Currency Account)

 

2. Are my funds deposited with Phillip Futures for CFD transactions secured?

All the monies and properties deposited with Phillip Futures by the client or received by Phillip Futures for or on behalf of the client will be segregated and paid into the client’s segregated account for the purpose of CFD trading.

 

3. Any Sales and Services Tax (SST) for CFD Trading?

Yes. All commission paid is subject to 6% SST. Please refer to the working example for CFD Trading in Section CFD Trading above.

 

4.How can I withdraw from my CFD accounts?

You may submit withdrawal request form to our company respective registered representative before 9.30am each trading day if you want to withdraw.

 

*For more information, you may refer to our Product Highlight Sheet and Disclosure Documents in Phillip Futures website:

https://www.phillipfutures.com.my/cfd/cfd-101/products-cfd/

 

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