Yuanta Securities Opens 'Domestic Stock CFD' Service

[Asia Economy Reporter Lee Seon-ae] Yuanta Securities opened its domestic stock CFD service on the 1st and is conducting a cashback payment and online trading fee reduction event for CFD trading customers until January 28, 2022.

CFD (Contract For Difference) is a service exclusively for professional investors, which is an over-the-counter derivative product that settles the difference between the entry price and the liquidation price in cash without holding the actual stock.

Customers registered as professional investors with Yuanta Securities can trade about 2,300 stocks listed on KOSPI and KOSDAQ through the CFD service via T-Rader (HTS), T-Rader M (MTS), and branch visits.

CFD allows domestic stock investment in both long (buy) and short (sell) directions with a leverage effect, requiring only up to 40% margin. Positions held have no maturity, and by utilizing short positions, strategic operations can be conducted even when stock prices fall. Additionally, profits earned through CFDs are subject to derivative product capital gains tax (tax rate 11%, including local income tax), so they are not subject to major shareholder capital gains tax (tax rate 22% for taxable base under 300 million KRW, 27.5% for amounts exceeding 300 million KRW, 33% for holdings under one year, including local income tax), which is an advantage.

To commemorate the service opening, a cashback event will be held until January 28, 2022. During the event period, newly registered professional investors at Yuanta Securities will receive a cashback of 100,000 KRW (limited to the first 100 people) just by trading CFDs regardless of the transaction amount. Existing customers registered as professional investors can also receive a cashback of 50,000 KRW (limited to the first 100 people) when trading CFDs over 1 million KRW.

An online trading fee reduction event will also be held. All customers who open a CFD account during the event period will receive a preferential online CFD trading fee of 0.1% for three months starting from the day after the account opening.

Nam Sang-woo, Head of Retail Finance Team at Yuanta Securities, said, “Now, professional investor customers of Yuanta Securities can also use the CFD service,” and added, “As many customers have shown interest, we will support successful CFD investments for customers through various events and differentiated services.”

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