Yuanta Securities Lowers Online Fees for 'Domestic and Overseas Stock CFDs' to 0.10%

Yuanta Securities will actively support investments of CFD (Contract for Difference) users by reducing the online trading commission for domestic and overseas stock CFDs from 0.15% to 0.10%, effective from July 8, 2024.

CFD is an over-the-counter derivative product that settles only the difference between the entry and exit prices without holding the actual stocks, effectively providing the same investment effect as stock investment. Through the margin system, it is possible to achieve up to 2.5 times leverage investment effect, and since both long (buy) and short (sell) positions are possible, various investment strategies can be operated not only when stock prices rise but also when they fall. However, for domestic CFDs, short positions are temporarily restricted until March 30, 2025, due to the Financial Services Commission's ban on short selling.

Kim Su-yong, Head of Retail Strategy at Yuanta Securities, said, "CFDs offer tax-saving benefits to professional investors, and in the case of overseas stocks, they have the advantage of being able to build both long and short positions." He added, "We hope that this commission reduction, decided to reduce the cost burden for CFD users, will serve as an opportunity to enhance investment effectiveness."

CFD account opening is available by visiting any Yuanta Securities branch nationwide, and to use the service, one must register as a professional investor with Yuanta Securities and apply for over-the-counter derivative product qualification after meeting certain requirements.

Detailed information about domestic and overseas stock CFDs can be found on the Yuanta Securities website or through the customer center.

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