Competitive, transparent rates and fees

Finance Charges

CFD finance is a cost you incur for borrowing money overnight from Global Trader with which you are trading in the market. The amount of interest charged is calculated in relation to the SAFEY reference rate. If you hold an overnight long position you are charged SAFEY + approximately 2.5%. If you hold an overnight short position you are paid interest, usually SAFEY – approximately 2%.

Market maker's costs

Global Trader takes a cost of 0.5% on the value of every transaction, on entry and on exit.

Margin Rates

The margin rates usually range between 10% and 35%, depending on the volatility and liquidity of the underlying asset

Risks you should be aware of

Trading in CFDs is risky – so Global Trader gives you access to the best risk management tools on the market.

# 1 Risk: Volatility

Rapid gains and losses in the prices of CFDs can put you on a rollercoaster ride to riches or ruin. So Global Trader has a number of safety nets in place to help you plan for a gentle landing.

#2 Risk: Leverage

Leverage allows you to make far bigger investments than your available capital would otherwise allow. While you can make substantial gains on a leveraged instrument, you also run the risk of making substantial losses. Use Global Trader's market leading risk management tools to protect yourself.

You should have some investment experience and knowledge to trade in CFDs. Investors should also make sure that they read and understand the risks as set out in the CFD terms and conditions

Global Trader's CFD Markets

International Equities

Use our GTi Platform to take advantage of growing opportunities to enter short bond positions as Governments worldwide are implementing huge fiscal stimulus programmes which, in the medium term, can only be paid for with increased access to the bond markets. The result is an increasing supply of bonds in markets from Japan to the US to the Eurozone

Currencies

Currency pairs such as EUR/USD, USD/JPY and GBP/USD are the new economic battleground. Traders and speculators have many opportunities on our GTi Platform to trade not only short term and volatile movements in the currency markets but also long term trends. Currencies usually trend in one direction over a number of months or years as the financial markets adjust to new growth and return prospects. These markets are both liquid and available virtually 24 hours a day.

Commodities

Some of the hottest action in financial markets over recent years has been in commodities. Many fuels, metals, and agricultural products have experienced enormous price swings. Crude oil, for example, shot up by over 50% in the first seven months of 2008, before collapsing by 75%. Such movements have created exciting opportunities for traders on our GTi Platform.

Global Indices

International indices such as the Dow, FTSE and Nikkei are completely divorced from any South African influence and provide South African traders with great opportunities for diversification on our GTi Platform. High volatility in global equity indices since October 2007 is the result of the credit based financial and economic crises. While there have been declines of anywhere between 40% and 70%, there has been some recovery since March 2009.

JSE Equities

Trade on 100+ JSE Equities on our EQ Trader. The volatility in the South African equity market is very attractive for short term traders. Smaller, more volatile capitalization stocks combined with the leverage of CFDs and Spreads products ensures almost constant trading opportunities

What Global Trader offers you

A convenient, simple and inexpensive instrument for trading a wide range of markets – shares, indices, futures and commodities. It is as easy to trade on the price movement of commodities such as oil or gold, as it is to trade an individual equity.

Trade on 100+ JSE equities in ZAR

Low capital requirements: Enjoy leveraged trading up to 100:1 with Global trader

Profit from both rising and falling markets. You can go both long and short on shares without holding the underlying asset

No exchange fees (STRATE, Insider Trading Levy, VAT and Securities tax) because you are not making a physical purchase

No delivery or trading expiration period for equity CFDs

Dividend adjustment credits on long positions

Dividends are settled in cash, adding to the transparency of the product

Anonymity: your identity is not disclosed in a CFD transaction; only the CFD writer is disclosed to the share transaction

A fast, easy and alternative solution

Simply speaking…

A Contract for Difference (CFD) is an agreement between two parties to settle in cash, the difference between the buying and selling price of an asset. CFDs allow you to speculate on the price movements of an asset without having to physically own it.

CFDs are a derivative product

While CFDs imitate traditional share trading, they differ because you don't actually own the underlying shares. For example, you can enter into a contract where you buy a CFD on 200 shares of IBM, without having to buy the actual 200 shares on an exchange. The CFD transaction will deliver the same economic outcome as you would have if you traded in the actual shares.

CFDs are a leveraged product

This means that you do not need to fund the entire position, but simply put up a percentage (margin) which is determined by the CFD broker. Leverage enables you to profit substantially if the market moves in the direction that you expect, but at the same time you risk substantial losses if the market moves against you.

Derivative Instruments: CFDs