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Lingling

29 Dec 2020

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What is the difference between margin account in U.S and CFD account in Singapore for stocks? Is it the Same thing ??

May I know what’s the difference between CFD and margin account for stocks?? Is it the same thing? Becoz I noticed that they call margin account in the America and not CFD ??

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1M45

29 Dec 2020

Margin account means you can borrow $$$ from the brokerage to buy shares. You can buy the stock immediately if the price is good, then top up tomorrow.

CFD is you buying a contract, it is a leveraging tool. Eg. Now appl is $136.69. If you buy the 100 shares you need $13669. If you buy 100 CFD you only use $1366.9
CFD normally for trading. Dont over-leverage becareful of margin call.

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