Q1. How do I place an order for CFD? Who should I call to place the order?
CFD orders can be placed either through our online Maybank CFD platform or through your Trading Representatives. An email account is require for the opening of a CFD account.
Q2. How are the orders being executed at the individual exchanges?
All orders are routed straight through via the Direct Market Access platform and will be matched at the respective stock exchanges.
Q3. Am I able to trade CFD when I am overseas?
Yes. You will be able to trade anywhere as long as you can access the Maybank CFD trading platform. The CFD trading platform is web based that allows you to trade when there is Internet access. If you cannot access the Internet, you may call your Trading Representative to execute orders for you.
Q4. Will my orders be amalgamated for trades done on the same day?
Yes. All orders for the same counter, same action for the same day will be amalgamated as one contract. There will be only ONE contract for various CFD trades on the same underlying - that means you will not be subjected to recurring minimum charges.
Q5. Can I participate in pre-opening or pre-closing matching for my order?
Yes. All existing orders in the queue will also be allowed to participate in pre-closing matching.
Q6. In the event of internet/system breakdown, what should I do?
You may call your Trading Representatives immediately for order placement, withdrawal and amendment.
Q7. In the event that there is a technical glitch at SGX or any other exchange, will CFD continue to trade?
If the glitch resulted in disruptions in the underlying, CFD trading will be disrupted too.
Q8. Is the up-tick rule applicable in CFD trading?
Yes. It is applicable for Japan, Korea and Hong Kong markets.
Q9. Will Maybank Securities send a physical contract note for my every trade done via mail?
No. Only e-contract notes will be sent via email to clients.
Q10. Can I use funds from my SRS accounts to trade CFD?
No. SRS funds can only be used to trade certain shares via SGX as well as other approved products.
Q11. Can I close/sell my CFD positions held with other broking houses through Maybank CFD?
No. You can only close/sell your CFD positions executed through Maybank CFD.
Q12. If I short a stock via CFD, do I need to borrow the physical shares myself?
You do not need to borrow physical shares to initiate a short position on the CFD.
Q13. In the event of a margin call, what will happen if I fail to top up the maintenance margin to meet the call?
Maybank CFD reserves the rights to liquidate client's positions to meet the call and bring the margin ratio back to a normal level. Please refer to the information sheet for margin call computation examples.
Q14. Can I sell my shareholding to fulfill the margin call?
Yes, you can sell your shareholdings to fulfill the margin call.
Q15. Can I pledge share as initial margin or top up?
No.
Q16. Can I pledge my foreign shares for CFD trading?
No.
Q17. What are corporate actions and their effects on stock prices?
A corporate action is an event initiated by a publicly-traded company that affects the securities issued by the company. Corporate actions are typically agreed upon by a company's board of directors and authorised by the shareholders. Some examples of corporate actions are stock splits, dividends, mergers and acquisitions and rights issues.
When a publicly-traded company issues a corporate action, it is initiating a process that will bring actual change to its stock. By understanding these different types of processes and their effects, an investor can have a clearer picture of what a corporate action indicates about a company's financial affairs and how that action will influence the company's share price and performance.
It is important for an investor to understand the various types of corporate actions in order to get a clearer picture of how a company's decisions affect the shareholder. The type of action used can tell the investor a lot about the company, and all actions will change the stock itself one way or another.
Investors may obtain information (e.g. corporate action) about a listed company from the relevant exchanges website:
Q18. How does corporate action affect my CFD holdings?
Corporate actions, dividends and special dividends that affect a stock will be reflected in the value of your CFD account. The effect of corporate actions on your CFD will, wherever possible, fully replicate that of the stock on the exchange.
Q19. Where can I find out more about CFDs?
Find out more about CFDs from these articles from MoneySENSE:
This information is provided by Securities Association of Singapore and Monetary Authority of Singapore as part of the MoneySENSE national financial education programme
Q20. What are the electronic trading risks which I need to take note of?
- Live Prices
Speed and quality of internet connection will affect the performance and accuracy of live prices in the online trading platforms and mobile trading applications. It is recommended to use broadband internet connection for online trading.
- Password
Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
- Virus, Spywares and Adwares
Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
- Phishing
Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
- Wireless Network
Wireless networking works by sending information over radio waves, it can be more vulnerable to intruders. Below are some ways to keep your wireless network secure:
- Make your own unique and difficult-to-guess SSID (Service Set Identifier).
- Change the default administrator password and username for your router.
- Orders
In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.
Please kindly contact your Trading Representative or our Customer Service if you require any assistance.
Q21. Is there any credit limit for CFD trading?
The credit limit of your trading account (total value or exposure of all your positions) depends on the amount of funds deposited in your CFD account, as well as the initial margin required of the underlying CFD counters. If you wish to increase the credit limit, please inform your respective Trading Representative. Please note that all credit limit increase is subject to approval by Maybank Securities.
Q22. What other charges am I being charged for?
With effect from 1 January 2023, non-US Persons will incur the following withholding tax when they hold or sell US Publicly Traded Partnerships (PTP) securities:
- A 10% withholding tax on gross proceeds from sales of US PTP securities.
- Additional 10% withholding tax (over and above the existing 37% withholding tax) on the allotted amount of distribution/ interest.
In light of this new provision, Maybank Securities Singapore (MSSG) will:
- Cease to accept new purchases and share transfer-in of PTP securities to MSSG clients from 16 December 2022.
- Only allow the selling or share transfer-out of US PTP securities from MSSG clients in existing portfolios.
For more information on the US PTP withholding tax, click here.
For a list of US PTP Securities, click here.
