Stock CFDs

Trade over +2100 large-cap Stocks CFDs across the ASX, NYSE and NASDAQ stock exchanges with superior execution and tight pricing exclusively on the IC Markets MetaTrader 5 platform.

IC Markets single stock CFDs give traders the ability to trade the world’s most popular companies such as Apple or Facebook.

We’ve listed the most popular stocks across the US markets to give you the best trading opportunities. Alternatively you can trade global macro themes with our special selection of US Exchange listed CFDs including a range of emerging markets Indices and popular such as the VanEck Vectors Gold Miners (GDX). Stocks are available exclusively on the IC Markets MetaTrader 5 platform which offers advanced functionalities for both new and experienced traders who require world class execution and superior charting tools.

Stock CFDs

Facts

How does Stock CFD Trading work?

Stock trading involves buying or selling a share of ownership in an individual company listed on an exchange such as the ASX or NASDAQ. Stocks are typically traded without leverage and through a stock exchange. Stock CFDs however can be traded using leverage and are done so over-the-counter (OTC). Participants are able to access stocks of individual companies, building positions in an individual company or in a specified sector of the economy. Participants often build strategies with diversification in mind to diversify away unsystematic risk across a number of companies or a range of sectors. Investors may choose to build positions in defensives if they are predicting volatility. Similarly, investors may decide to build a portfolio around a growth strategy consisting of small to mid-cap technology stocks.

The gross loss on your trade is calculated as follows:

Opening Price
$152 x 100 shares = USD $15,200
Closing Price
$134 x 100 shares = USD $13,400
Gross Loss on Trade
USD $13,400 – $15,200 = $-1800

Opening the Position

Apple is trading at 150/152 and you are of the view that Apple’s latest product release will boost sales. You decide to purchase 100 shares of AAPL. For each contract, one point (a price movement of 0.01) is equal to $1 USD. With 100 contracts, every point that the bid quote on AAPL rises above 152 you will make a profit of $100 USD, and for every point the bid quote falls below 152 you will lose $100 USD.

Closing the Position

1 month later, after sales results are released, the price of AAPL has decreased to 134/136 and you decide to get out of the losing trade by selling 100 AAPL Stock CFD contracts. To calculate the net loss, you must include any financing or dividend adjustments. In the case of a ‘long’ position interest is credited and in the case of a ‘short’ position interest is debited.

The gross profit on your trade is calculated as follows:

Opening Price
$152 x 100 shares = USD $15,200
Closing Price
$170 x 100 shares = USD $17,000
Gross Profit on Trade
USD $17,000 – $15,200 = $1,800

Opening the Position

Apple is trading at 150/152 and you are of the view that Apple’s latest product release will boost sales. You decide to purchase 100 shares of AAPL. For each contract, one point (a price movement of 0.01) is equal to $1 USD. With 100 contracts, every point that the bid quote on AAPL rises above 152 you will make a profit of $100 USD, and for every point the bid quote falls below 152 you will lose $100 USD.

Closing the Position

1 month later, after sales results are released, the price of AAPL has increased to 170/172 and you decide to take profit by selling 100 AAPL Stock CFD contracts. To calculate the net profit you must include any financing or dividend adjustments. In the case of a ‘long’ position interest is credited and in the case of a ‘short’ position interest is debited.

US STOCK TRADING

The US Internal Revenue Service (IRS) requires all non-US resident holders of US equity derivatives – (this includes CFDs ) to be taxed on dividend adjustments.

What does it mean for me?
When trading any US listed equities with IC Markets, the Dividend adjustments on your long positions are credited to your account, and the applicable withholding taxes are automatically deducted.

How much will be deducted?
The deduction rate varies depending on the underlying market.

What should I do?
If you are an INDIVIDUAL and want the applicable reduced rate, please fill out “FORM W-8BEN” and upload it to your Client Area.
If you are an ENTITY and want the applicable reduced rate, please fill out “FORM W-8BEN-E” and upload it to your Client Area.
For further information please do not hesitate to contact our SUPPORT TEAM