Meritz Securities Lowers CFD Trading Commission Rate to 0.015%... Industry Lowest

[Asia Economy Reporter Ji Yeon-jin] Meritz Securities (CEO Choi Hee-moon) announced on the 15th that it will lower the non-face-to-face account trading fee for domestic stock Contracts for Difference (CFD) to the industry's lowest level of 0.015%. This fee applies equally to both new non-face-to-face account customers and existing customers.

CFD is a product exclusively for professional investors, where customers do not actually hold the stocks but settle the difference in cash between the purchase price (entry price) and the selling price (liquidation price) as an over-the-counter derivative product. Meritz Securities' CFDs allow trading of approximately 2,500 domestic stocks (including ETFs), and plans to expand the range of tradable assets to include overseas stocks and commodities.

Meritz Securities' CFDs provide services through self-hedging operations without going through foreign securities firms. Unlike existing CFD products that receive only a portion of the stock dividends from foreign securities firms (about 75% of dividend income) and provide them to customers, Meritz offers the full amount of dividends generated from the underlying assets as CFD income to customers, providing higher returns compared to simple stock investments for investors investing in high-dividend stocks via CFDs.

The tax reduction effect also applies to ETF investments based on overseas indices. Overseas market ETFs popular among individual investors, such as the ‘TIGER China Electric Vehicle SOLACTIVE ETF’ and ‘KODEX US FANG Plus ETF’, impose a 15.4% tax burden on investment income when investors invest directly. However, when investing in overseas market ETFs through CFDs, investment gains and losses are offset, and a separate 11% derivative product capital gains tax is applied only to the net profit after deducting all CFD trading costs, making it popular among investors seeking tax savings.

Meritz Securities CFDs introduced the industry's first 100% margin account without interest costs and enabled substitution of margin not only with cash but also with held stocks through the substitute margin service.

This content was produced with the assistance of AI translation services.