Help and advice on Contracts for Difference (CFD) trading
A CFD offers you all the benefits of trading shares without having to physically own them. Simply put, it is a contract that mirrors the performance of an underlying instrument. It is traded on margin, and just like physical shares your profit or loss is determined by the difference between the price you buy at and the price you sell at.
Margin trading allows you to free up your capital by placing only a small percentage of the value of trade in your account. Profit and loss is credited and debited to your margin deposit as the market moves. Margins are typically 10% or less on Share CFDs and 1% on Index, Commodity and Treasury CFDs.
Beaufort Securities CFDs offers commission free trading on index, commodity and treasury CFDs. A low commission charge is applied to equity CFDs. As is our commitment to offering you the most competitive trading service, it is our intention that this commission charge will be the lowest in the market.
Only financing on equity positions held overnight is charged, and this may be paid or received dependant upon the position. There may be some administrative charges associated with your account. Please speak to our Sales advisors for more information.
If you carry a CFD Share position overnight, it incurs a financing cost. Finance is calculated on 100% of the value of the equivalent position. It is calculated on a daily basis at market price. If you are long, you'll have to pay interest to Beaufort Securities CFDs; if you are short, you may receive interest from Beaufort Securities CFDs. Financing on Commodity and Treasury CFDs is factored into the futures price and therefore no overnight rates will apply. Financing is charged on any equity positions held overnight (positions open at 22.00 London time).
Yes, please refer to the Rate Schedule for the current interest qualification level and relevant interest rates.
Please call 0800 279 9831 to request the Rate Schedule.
The minimum deal size is one (1) CFD. This is the equivalent of one share.
Yes, CFDs can be traded over the telephone, although clients will generally find that trading over the internet is faster than telephone trading. There is, however, no penalty for trading over the telephone.
Trades placed on US, European or Asian markets are denominated in the currency used by the exchange. Your P/L will be reported in the currency of your choice, and different currency ledgers are created on your account.
A CFD is an open-ended contract, if you have not closed your position by the end of the trading day, then the position is rolled into the next day. At this point, financing is paid or received. Provided that you maintain enough available margin, your position is maintained indefinitely.
Yes, Beaufort Securities CFDs customers can also trade Commodities, Treasuries and Foreign Exchange from their CFD account.
Yes. Although a CFD trader does not physically own the share, s/he can partake in Corporate Actions and receive dividends. However, as the CFD trader does not own the share itself, s/he is not entitled to any voting rights.
A client can short sell Share and Index CFDs. This means that the trader can sell a CFD as an opening position. "How can a trader sell something they don't own?" This can be done as what the client is buying is a contract between themselves and the CFD provider, based upon the price movement of a share. It does not matter who agrees to buy and who agrees to sell, as neither party physically owns the share anyway. The important thing is how far the price of the Share or Index moves, and whether or not it moves the way you want it to. Using this facility, a trader may be able to profit from a falling market.
Yes, you will be charged a low rate of commission on equity CFDs. Please refer to our Rates Schedule for current pricing. Different commissions apply to Advisory accounts.
No commission is charged on commodity CFD products on an execution-only basis (Advisory commissions apply).
No you do not. Because the position is rolled upon expiry, the price you pay will already incur financing in the contract value.
Beaufort Securities CFDs' margin rate on commodity CFDs are as little as 1%.
As commodity and treasury CFDs deal on differing point increments ranging from 0.01 to 1.0, margin calculations may vary. Your margin requirement can be calculated as follows:
For example: You buy 10 USCRUDE DEC04 CFDs @USD$50
Your margin can be calculated as follows [(10 x 50) / 0.01] x 3% = USD$1500
GTC orders placed on treasury or commodity CFDs are automatically cancelled at 22:00 London Time on the Beaufort Securities CFDs expiry date for the relevant CFD contract.
No commission is charged on Treasury CFD products on an execution-only basis (Advisory commissions apply).
No you do not. Because the position is rolled upon expiry, the price you pay will already incur financing in the contract value.
All spreads are 3 pips, with the exception of long term US bills and Australian bonds. The T-Bond, 5 & 10 year T-Note have a spread of 6. Australian bonds have a spread of 4.
All pending orders are automatically cancelled by the dealing software at 19:00 London time on the day of expiry.
Currency Future CFDs are contracts over the performance of an underlying referenced currency futures contract.
Trade times are Sunday 21:00 BST to Friday 20:00 BST (Intraday trading break 22:00 BST - 23:00 BST).
Open positions are valued every night at the close of normal trading hours 22:00 (BST), at the official settlement price of the relevant underlying futures contract. Profits and losses are calculated in US Dollars.
Beaufort Securities CFDs' margin rate on currency future CFDs are as little as 1%.
No commission is charged on Currency Futures CFD products on an execution-only basis (Advisory commissions apply).
No you do not. Because the position is rolled upon expiry, the price you pay will already incur financing in the contract value.
Beaufort Securities CFDs will need to determine whether CFDs are appropriate for you, taking into account what you tell us about your knowledge and experience of the financial markets.
To open an execution-only account online please click here, or contact a member of our team on 0800 279 9831.
To open an Advisory account, please click here or contact the Beaufort Securities CFD Desk on 020 7382 8383.
No. Beaufort Securities CFDs only open deposit accounts.
Beaufort Securities CFDs have a number of dealers trading on the internet and the telephone. When you open your account you will be provided with a logon for the Marketmaker® trading software and all relevant telephone numbers.
Beaufort Securities CFDs is a trading name of CMC Markets UK Plc who are authorised and regulated by the Financial Conduct Authority (173730). CFD services are provided by CMC Markets UK Plc trading as Beaufort Securities CFDs, to whom you have been introduced by Beaufort Securities Ltd. Beaufort Securities Ltd is authorised and regulated by the Financial Conduct Authority (register 155104) and is a member of the London Stock Exchange, ISDX and APCIMS. All dealing, administration and settlement in relation to these services is undertaken by CMC Markets UK Plc. You and CMC Markets UK Plc, not Beaufort Securities Ltd, will be counterparties to each transaction.
Clients benefit from margin trading, commission free trading on index, commodity and treasury CFDs and low commission rates on equity CFDs, reduced trading costs (no Stamp Duty), quick execution and a 24 hour online trading service.
Beaufort Securities CFDs offers the instruments above in 18 different markets around the world.
Beaufort Securities CFDs is a market maker, not a broker, and acts as a principal, not as an agent.
Yes. The prices Beaufort Securities CFDs publishes are real-time and the service is price driven. Clients can execute trades and receive confirmation within seconds. The prices quoted can be dealt on at any time, at the click of a mouse. However, requotes may occur during large market movements or if share availability is exceeded by a single order or multiple client orders.
No, Beaufort Securities CFDs provides an execution only service. Beaufort Securities CFDs is able to provide factual information upon request but is not authorised to give direct or indirect trading advice. Through Beaufort Securities CFDs' Marketmaker® trading software, traders can access world-leading research and analysis from Reuters Research, advanced charting and analytic tools, and real-time news from Dow Jones.
1. Should you have reason to complain it is important that you first speak to your usual contact. Alternatively contact a member of the helpdesk staff who will also be happy to assist. Complaints will usually be resolved at this early stage.
2. If your complaint is not resolved to your satisfaction in the first instance you will be able to refer the matter to our Compliance Department, in order for them to conduct their own investigation. A final response will be issued by Compliance.
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