KB Securities, Overseas Stock CFD Trading Service Launch Event Held

[Asia Economy Reporter Minji Lee] KB Securities announced on the 31st that it will hold an event offering special online trading commissions and mobile gift certificates to commemorate the launch of its overseas stock CFD (Contract For Difference) trading service.

CFD trading refers to over-the-counter derivative transactions where the difference between the entry price and the settlement price is settled in cash without holding the actual stock. Only individual and corporate professional investors can trade CFDs; general investors are not allowed to trade.

This event will run for about three months until April 30, targeting non-face-to-face individual customers who are new to CFD trading or have not traded CFDs since October 31, 2022. Event applications can be made by calling KB Securities' Global Derivatives Department.

During the event period, customers who apply for the event will be offered special online trading commissions of 0.07% (overseas stock CFDs) and 0.02% (domestic stock CFDs). Additionally, the first 100 customers who trade at least one CFD share will receive a mobile department store gift certificate worth 30,000 KRW.

A dedicated CFD account is required for CFD trading, and non-face-to-face account opening is available through KB Securities' MTS, ‘M-able (Mable)’.

The main features of CFD trading include the ability to trade with up to 2.5 times leverage with a minimum margin of 40%, and the possibility to enter new short sales (short selling) only on sellable stocks, enabling two-way buying and selling strategies such as short selling when stock prices fall. Furthermore, as CFDs are classified as derivatives, an 11% derivative capital gains tax applies only to net profits, so major shareholder capital gains tax does not apply. Notably, KB Securities’ overseas stock CFD trading service allows real-time trading of about 10,300 US stock items.

Lee Hong-gu, Head of WM Sales Division at KB Securities, said, “With the launch of the overseas stock CFD trading service, we aim to expand the range of tradable stocks from domestic to overseas stocks, offering professional investors a more diverse investment portfolio. We will continue to do our best to improve the investment environment so that global market products can be traded more conveniently.”

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