Insights for REITs in 2024

Insights for REITs in 2024

REITS Symposium 2024 is back this year, with an exciting programme line-up and activities!

This year, join us to unveil the opportunities in REITs: Hidden Gems in 2024, as we celebrate our 10th year anniversary of hosting REITs Symposium. Our focus this year is on helping investors discover hidden gems and effectively position themselves in the face of uncertainty by providing a comprehensive outlook on REITs, addressing key factors such as interest rates, visibility, and adept navigation in the ever-evolving real estate market.

Here are the key questions we will attempt to answer during the event:

  • 2H2024 Inflation, Interest Rates & Market Outlook
  • How to shop for the RIGHT retail REITs
  • How are Global Trends Reshaping the Investment Opportunities Landscape?
  • Office REITs: Navigating through Challenges and Unlocking Opportunities

As this is a special year for us, our highlights include:

  • 2 Stages: Main Stage & Side Stage – guaranteed to help you navigate your REIT investments and beyond, with high-profile speakers from C-Suite REIT managers, industry professionals and financial influencers
  • Engaging Activities – Booth Bingo, Spot-the-difference Challenge, REITs Quiz Challenge
  • Technical Analysis Zone – Get a sense of whether it’s a good time for entry (or exit) now?
  • Lucky Draw – prizes include an iPad, vouchers and more!

While we’re still in the midst of finalising a wonderful and power-packed programme, we also can’t wait to have you securing the seats at the event!

  • Our early bird ticket sales starts now at only $5 per pax! (U.P $20 per pax) *Simply use this promo code at checkout: FAST5
  • Bring along a buddy special bundle ticket price at only $8 for 2 pax. (U.P $40 for 2 pax) *Use this promo code at checkout: 2FAST

Register here: https://reitsymposium.com/

Date: 11 May 2024, Saturday
Location: Suntec Convention Centre Hall, Level 3 (Summit 1 and 2)
Time: 9.00AM to 5.00PM

Don’t say bojio, come support us and meet your favourite REITs managers now!


InvestingNote is the largest & most active community of investors & traders in Singapore & Malaysia. Find out more about us here.

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HOW TO START TRADING IN THE INVESTSG TRADING TOURNAMENT 2024 – SIMULATED TRADING CHALLENGE [TUTORIAL]

HOW TO START TRADING IN THE INVESTSG TRADING TOURNAMENT 2024 – SIMULATED TRADING CHALLENGE [TUTORIAL]

HOW TO REGISTER FOR THIS CHALLENGE?

Step 1: Visit this link: https://www.investingnote.com/simulation_campaigns/investsg-trading-tournament-2024/

Step 2: Click the “Register for FREE” button.

Step 3: Follow the instructions and key in your full name as per NRIC and select the country you’re from. If you don’t have an existing InvestingNote account, please sign up for one. If you already have an account, simply login.

Step 4: Congratulations! You’ve successfully joined the competition!


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Terms and Conditions of Prizes Program in InvestSG Campaign

Terms and Conditions of Prizes Program in InvestSG Campaign

1.0 Introduction

1.1 The InvestSG Campaign (the “Campaign”) is organized by ShareInvestor Malaysia Sdn Bhd (the “Organizer”) and sponsored by CGS International and UBS AG (the “Sponsors”). 

1.2 The Campaign comprises two events: 

1.3 These terms and conditions (the “Terms & Conditions”) apply to the prizes for the two Campaign events. 

2.0 Winner Selection and Prizes for InvestSG Trading Tournament 2024 

2.1 The top 3 participants with the highest portfolio gains will be the Grand Winners in the InvestSG Trading Tournament 2024. 

The grand prizes for the InvestSG Trading Tournament 2024 are: 

Types of winners Amount 
Grand winners 1st: RM 4,000  
2nd: RM 2,000  
3rd: RM 1,000 

2.2 For winner selection, the InvestSG Trading Tournament 2024 will take into account both realized and unrealized profits. In the case of remaining open positions at the end of the tournament, the gain or loss will be calculated using the last traded price. 

2.3 The winners of the InvestSG Trading Tournament 2024 will be announced on the landing page no later than 14 working days after the Campaign has ended, on InvestingNote.com. The winner will also be notified via email.

3.0 Lucky Draw Prizes for InvestSG Participants 

3.1 The Lucky Draw winners will be selected randomly among the participants who had joined in both the InvestSG Trading Tournament 2024 and the InvestSG Conference.

The lucky draw prizes available for InvestSG participants are as follows: 


1x iPhone 14 128GB (worth RM3,799) 


1x Xiaomi TV A Series 55″ 4K (worth RM1,999) 


1x Samsung Galaxy Buds 2 Pro (worth RM549) 


1x Essenza Mini Ruby Red D30 (worth RM649) 


20x RM50 Tounch ‘n Go eWallet Credit (worth RM1,000) 


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FAQ – InvestSG Trading Tournament 2024

FAQ – InvestSG Trading Tournament 2024

1. What is InvestSG Trading Tournament 2024? 

InvestingNote is organizing the largest trading tournament that features all the Singapore’s securities products, ranging from Daily Leverage Certificates (DLCs), Structured Warrants, Stocks, ETFs, REITs etc. Learn more about markets and pit your new skills and knowledge against other fellow traders!  

2. Who is the event for?   

This event is open to traders of all levels and backgrounds. With more than 600 stocks listed on the exchange, ETFs with over S$10 billion in Asset Under Management (AUM) and over 300 structured products offering leveraged exposure, join us today to gain exposure and a first-hand experience of trading on the Singapore securities market. 

3. How can I participate in this event?   

Head over to our website to register for the InvestSG Trading Tournament – https://investsg.asia. Upon registration, participants will receive confirmation via email notification. 

4. How do I participate in the lucky draw of this tournament? 

Participants in the tournament’s lucky draw will be randomly selected from those who have registered. To have a chance to win, each participant must:  

– Make at least 3 transactions during the competition.  
– Register and participate in the InvestSG Conference at https://www.eventbrite.com/e/824953818077/.  

Additional lucky draw entries could be earned by the participants through:  
 
– Joining Stock Market Buddies Telegram group at https://t.me/stockmarketbuddies88 (x2 chances)  
– Registering for the Sponsors’ Broker account (x5 chances) 

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InvestSG Trading Tournament 2024 – Terms & Conditions

InvestSG Trading Tournament 2024 – Terms & Conditions

The InvestSG campaign (the “Campaign”) is organized by ShareInvestor Malaysia Sdn Bhd (the “Organizer”) and sponsored by CGS International and UBS AG (the “Sponsors”).

The following terms and conditions (the “Terms & Conditions”) shall apply to the InvestSG Trading Tournament 2024 (the “Competition”).

1. Campaign Period

1.1.  The Campaign will be conducted from 25 March 2024 to 13 April 2024, both dates inclusive (the “Campaign Period”). The Campaign comprises two events: 

1.2.  The Campaign may be withdrawn by the Organizer at any time without prior notice.

2. Eligibility and Entry

2.1. To participate in the Campaign, participants are required to register for the Summit and/or Trading Competition respectively on the Campaign’s landing page (http://investsg.asia/) (the “Landing Page”) before the Campaign Period. Upon registration, participation will be confirmed upon receiving a notification via email.

2.2. Participation in the Campaign is at the Organizer’s sole discretion, and the Organizer may disqualify any person from participating in the Campaign for any reason. Without prejudice to the generality of the foregoing, participants must be at least 18 years of age, and fulfill such other requirements and pre-requisites as shall be specified by the Organizer from time to time. By signing up for the Competition, each participant represents and warrants to the Organizer that he/she fulfills all such criteria and prerequisites.

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Unleash your financial destiny with CGS International Securities’ exclusive Lunar New Year event, “Soaring with the Dragon: Navigating the Stock Market for Prosperity”

Unleash your financial destiny with CGS International Securities’ exclusive Lunar New Year event, “Soaring with the Dragon: Navigating the Stock Market for Prosperity”

Sign up for FREE using this exclusive promo code for InvestingNote’s community: INLNY

‌Learn from industry experts as they share valuable insights on how to navigate the stock market to make better investment decisions and delve into your Zodiac’s Feng Shui outlook for the year of 2024.

Whether you are a seasoned investor or just starting out, this event is designed to provide you with actionable tips and tricks to boost your investment portfolio!

‌Date & Time: 24 Feb 2024, 10am – 2pm
Venue: SGX Auditorium, Level 2, SGX Centre 1, 2 Shenton Way, Singapore 068804

Don’t miss this chance to soar to new heights! RSVP now:


InvestingNote is the largest & most active community of investors & traders in Singapore & Malaysia. Find out more about us here.

Download our free app here:

apple
android

Also, join our telegram channel here: t.me/investingnoteofficial

We’re here to keep you in touch with the latest investing & stock-related news, happenings, and updates!

2024 SECURITIES PERFORMANCE REPORT IN BURSA MARKET

2024 SECURITIES PERFORMANCE REPORT IN BURSA MARKET

Malaysia’s stock market offers overlooked opportunities amongst the attention-grabbing high flyers. By utilizing ratio analysis, it is possible to identify higher-quality companies trading below their intrinsic value. This presents a chance to invest in solid businesses at attractive valuations.

We have compiled a robust financial ratio analysis of securities on Bursa Malaysia to screen for undervalued and overlooked stocks in this report. Across small caps to large caps, various filters have been applied through a systematic process, including lowest Price-to-Earnings, highest dividend yields, largest discounts to cash value, and more.

The objective is to uncover stocks that display strong fundamentals and upside potential that have been overlooked in the marketplace. The filters provided aim to present investors with a shortlist of stocks that warrant further research and evaluation.

Viewers can follow the steps below to ensure a smooth report review experience. This report is powered by WEBPRO Shareinvestor.


Step 1 – Select Your Securities to Review:

Stock (Malaysia) Warrants (Malaysia)

Step 2 – Stock Filter Available As Below:

Basic 
Lowest Price Earning Ratio (PER) 
Highest Dividend Yield 
Highest Discount To NAV 
Highest Discount to Cash Value 
Highest Dividend Payout 
Smallest Market Cap 
Largest Market Cap 
Best Shareholders Returns (3 Years) 
Best Shareholders Returns (5 Years) 
Highest Return On Assets (ROA) 
Highest Return On Equity (ROE)
Highest Earnings Margin 
Highest Revenue Growth 
Lowest Debt To Equity Ratio 
Highest Debt To Equity Ratio  
Beta 
Lowest Long Term Beta 
Highest Long Term Beta 
Lowest Short Term Beta 
Highest Short Term Beta   

Stocks Hitting Highs/Lows 
Stocks Hitting 52 Weeks Lows
Stocks Hitting 52 Weeks Highs  

CAGR 
Highest Revenue CAGR (3 Years)
Highest Revenue CAGR (5 Years) 
Highest Earnings CAGR (3 Years) 
Highest Earnings CAGR (5 Years)  

Trailing EPS vs Historical EPS 
Best % Change 
Worst % Change 
Best Absolute Change
Worst Absolute Change
Lowest Trailing PE 
Highest Trailing PE

WarrantsFilter Available As Below:

Warrants: 
Cheapest Warrants 

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United Hampshire US REIT: Why you should take a closer look at this resilient S-REIT with over 12% yield and 0.6x price to book ratio

United Hampshire US REIT: Why you should take a closer look at this resilient S-REIT with over 12% yield and 0.6x price to book ratio

This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with a username known as @Smallcapasia and has 982 followers.

Listed on SGX on 12 March 2020, United Hampshire US REIT (“UHREIT”) is one of the newer Real Estate Investment Trust (“REIT”) that might not catch much attention from the investment community.

For those who are not familiar with this REIT, it was established with the principal investment strategy of investing in a diversified portfolio of stabilised income-producing grocery-anchored and necessity-based retail properties and self-storage properties, located in the U.S.

The CEO is Mr. Gerard Yuen, who played a pivotal role in the successful listing of UHREIT when he was the Chief Financial Officer. As CEO, Gerard works closely with the Board to determine the strategy for UHREIT and oversees overall day-to-day operations, working closely with the investment, asset management, financial and compliance personnel to achieve the strategic, investment and operational objectives of the REIT.

I caught up with Gerard recently and took the opportunity to post some questions to acquire a better understanding of the REIT. Without further ado, let’s jump into some key takeaways from our discussion.

Takeaway #1: Addressing the Elephant in the Room

‌Before we touch on other aspects of UHREIT, let’s address the main ‘elephant in the room’ first. The recent turbulence in the share prices of US office S-REITs has raised concerns among many REIT investors.

Many investors may not realise that UHREIT unit price has stayed relatively stable as compared to US office property REITs and has delivered a positive year-to-date total return of 8% (including March 23 and September 23 dividend payout of 5.62 US cents). It’s crucial to differentiate UHREIT from the US Office and Hotel REITs because they own very different asset classes that perform very differently.

With a focus on predominantly grocery-anchored and necessity-based retail properties, UHREIT has stayed resilient, withstanding economic uncertainties, backed by a diversified, cycle-agnostic tenant base providing day-to-day necessity goods and services.

The REIT’s Self-Storage properties have also performed well, benefitting from work from home dynamics, coupled with an undersupply of self-storage facilities in the New York Metro Area. This contrasts with the US Office REIT sector which is facing headwinds from a weak business outlook and pressure from remote work.

Read more: United Hampshire US REIT: Why you should take a closer look at this resilient S-REIT with over 12% yield and 0.6x price to book ratio

From UHREIT’s latest 1H2023 results presentation, we can see that UHREIT’s top 10 tenants comprise of familiar retail brands like Walmart, Lowe’s Companies, LA Fitness and Home Depot.

Based on the Trade Sector Breakdown, essential services comprise 63.3% of the whole portfolio and as a whole, it translates to a long Weighted Average Lease Expiry (“WALE”) of 8.1 years – pretty awesome if you compare the figure to other S-REITs with an average 3 – 5 years WALE.

Takeaway #2: Not Resting on Their Laurels

‌‌On top of that, UHREIT isn’t merely maintaining the status quo; it’s actively pursuing growth opportunities too.

If you were to keep track of its track record since IPO, UHREIT has completed several yield-accretive acquisitions as well as several opportunistic divestments at a premium above valuation.

One recent example is their divestment of Big Pine Center, done at a good premium of 3.7% over the appraisal value of US$9.5 million, and a 7.7% premium over the purchase price of US$9.2 million.

In addition, I noticed that UHREIT also embarked on Asset Enhancement Initiative (“AEI”) early this year. It has undertaken an expansion project on existing excess land at its Floria property, Port St Lucie to construct a new 63,000 sq ft store, which has been pre-leased to Academy Sports + Outdoors and is on track to be completed in 2024.

In my opinion, this proactive approach from the Manager to pursue AEI and investment opportunities sets itself apart from other REITs which simply go for the traditional ‘rights issue for acquisitions & repeat’ strategy.

While the strategy to enlarge a REIT’s portfolio size via issuance of rights units has worked its charm during a low interest rate environment, it is detrimental and highly dilutive in this current ‘higher for longer’ interest rate outlook.‌

UHREIT has proven that it can continually optimise its portfolio through successful acquisitions, divestments and AEI, which should be something worth highlighting for REIT investors these days.

Takeaway #3: Strong Sponsors and an Experienced Management Team

‌When we talk about strong sponsors, the common names like CapitaLand, Frasers and Mapletree will pop up.

That said, not many would have been aware that UHREIT actually benefits from two reputable sponsors, UOB Global Capital LLC & The Hampshire Companies LLC (hence the name United Hampshire US REIT).

UOB Global Capital is a subsidiary of United Overseas Bank Limited and has a US$3.0 Billion AUM while Hampshire is a privately held, fully integrated real estate firm with over 60 years of track record.

Hampshire currently owns and operates a diversified portfolio of 190 properties across the U.S. and a US$2.0 billion AUM. Hampshire is also the asset manager of UHREIT.

Together, they have a synergistic long-term partnership of over 10 years and co-managed 3 funds together.

To top it off, UHREIT boasts of a dynamic management team. As previously mentioned, CEO Gerard Yuen has more than 20 years of experience in investment banking, finance and the public sector. UHREIT’s senior management team also comprises highly experienced professionals with experience in real estate, finance and accounting and investor relations.

The Chairman Mr. Tan Tong Hai, the former President and Chief Executive Officer of Starhub Ltd, is a well-known corporate leader in Singapore. Mr. James Hanson, President and CEO of The Hampshire Companies, and Mr. David Goss, co-founder and Managing Director of UOB Global Capital are also on the Board.

With such an experienced leadership team in place, UHREIT is well-equipped to navigate the complexities of the real estate market and continue its growth trajectory.

Takeaway #4: Consistent Operational Performance since IPO

‌UHREIT has demonstrated a remarkable track record of consistent operational performance with a high tenant retention of 92.0% since its IPO.

Adding on to what I have shared throughout the whole article, grocery & necessity properties tend to have long leases.

From the picture above, we can see how it plays out as the REIT has minimal leasing risk with only 0.9% lease expiring in 2023 and the bulk ~70% balance expiring only beyond 2027.

According to an article by WSJ, the demand for retail space has remained robust despite inflation pressures, high interest rates and some liquidations going on. This is due to a combination of factors:

  1. Supply of retail space has gone down sharply as construction has slowed down big time since the 2008-09 financial crisis.
  2. Remote working from home trend has propped up demand in sub-urban areas.
  3. Predictions about how E-commerce will wipe out physical retail is not materializing. In the contrary, Retailers have started using online analytics to pinpoint locations for successful stores.

The decline in supply and heightened demand bodes well for UHREIT, offering it more pricing power to further increase asking rents in the future.

Moving on to the recent financial performance, UHREIT has done well in growing the top- and bottom-line too. 1H2023 gross revenue is up 13.3% to US$36.0 million and net property income is up 14.0% to US$25.8 million on a year-to-year basis.

This stable performance is a testament to the REIT’s well-structured portfolio composition and effective management.

Takeaway #5: Attractive Valuation and Yield with Efficient Capital Management

‌Last but not least, we are always looking for the best bang for the buck as investors.

UHREIT stands out to me due to its low price-to-book ratio of only 0.6x and an impressive yield exceeding 12%.

One may say that the high interest rate environment is impacting REITs’ property values, especially the US-domiciled REITs. While this notion makes sense but it’s true only to a certain extent.

You can see that based on the Green Street Commercial Property Price Index, for the 3-year period from June 2020 to 2023, strip centers (shopping centers) and self-storage sectors in the US have increased their valuations by 19% and 58% respectively, underpinned by the work-from-home trend that’s here to stay.

To sum up, this combination of stable portfolio assets, attractive valuation and mouth-watering yield is hard to come by if there isn’t any fear imposed by the macro-economic risks out there.

Conclusion

In a landscape where US commercial real estate is facing a boatload of challenges, United Hampshire US REIT stands as a bright spot due to its unique portfolio, comprising of grocery-anchored and necessity-based retail properties along with modern self-storage facilities.

Moreover, I feel that UHREIT ticks all the boxes even when you refer to things like the management team, operational performance as well as the enticing cheap valuation and high yield.

Long story short, UHREIT does sound like a compelling hidden gem where you can get the best of both worlds – potential capital gains while you milk that >12 % yield that comes your way.

This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with a username known as @Smallcapasia and has 982 followers.


InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

Download our free app here:

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Also, join our telegram channel here: t.me/investingnoteofficial

We’re here to keep you in touch with the latest investing & stock-related news, happenings, and updates!

https://www.smallcapasia.com/united-hampshire-us-reit-why-you-should-t…
KOPI MONEY CHALLENGE 2023 – WIN up to S$7000 Worth of Prizes, including Nespresso Coffee Machines!

KOPI MONEY CHALLENGE 2023 – WIN up to S$7000 Worth of Prizes, including Nespresso Coffee Machines!

KOPI MONEY CHALLENGE 2023 – WIN up to S$7000 Worth of Prizes, including Nespresso Coffee Machines!

Kopi Money Challenge is a 3-week long challenge from 9 Oct to 27 Oct 2023 where there will be weekly quizzes and weekly webinars hosted by financial influencers, all revolving around Daily Leverage Certificates (DLC) related questions. With these activities, we’re aiming to help retail investors to challenge themselves to earn consistent trading income, hence the term “Kopi Money”.

This 3-week Kopi Money Challenge consists of 2 categories: Quizzes + Webinars:

✅ Quizzes: Participate in our weekly quizzes & stand to win grand prizes worth up to S$7000 over 3 weeks! (13x winners)

✅ Webinars: Catch our YouTube livestreams & like and comment your insights on either @robinho , @lynlynnakamori or @dAn_chang #Kopimoneychallenge posts to stand a chance to win S$100 eCapitaVoucher/RM300 Touch ‘n Go credit! (15x winners)

Do the quizzes & watch the webinars via this link: https://bit.ly/KMC23

Prizes to be won:
? Grand Prizes (3x lucky winners):  Nespresso Lattisma One & S$500 eCapitaVoucher (worth S$1000)
? 5x winners: Nespresso Essenza Mini & S$100 eCapitaVoucher (worth S$300)
? 5x winners: S$200 eCapitaVoucher/RM600 Touch ‘n Go credit
Weekly Webinar Prizes (15x winners): S$100 eCapitaVoucher/RM300 Touch ‘n Go credit

To be eligible to win these prizes, you must participate in all three weekly quizzes!

Thereafter, to increase your chances of winning you can do the following:

  • (+1x chance) – Subscribe to Societe Generale DLC weekly newsletter
  • (+2x chances) – Like and comment on posts related to any of the financial influencers’ #Kopimoneychallenge or webinars
  • (+3x chances) – Share your own past or potential DLC kopi money trade idea by commenting and tagging the DLC in their posts

The more you engage, the higher your chances!

So, by simply participating in the quizzes and watching our webinars, you’ll stand a chance to WIN prizes, including Nespresso coffee machines that will elevate your mornings!

Mark your calendars as the Challenge officially starts next week, 9 Oct Monday!  

Learn more about this 3-week Challenge and all quizzes & webinars will be via this link: https://bit.ly/KMC23


InvestingNote is the largest & most active community of investors & traders in Singapore & Malaysia. Find out more about us here.

Download our free app here:

apple
android

Also, join our telegram channel here: t.me/investingnoteofficial

We’re here to keep you in touch with the latest investing & stock-related news, happenings, and updates!

CMC Markets CFD and MT4 FX Active Offering Platform Review

CMC Markets CFD and MT4 FX Active Offering Platform Review

Among the plethora of brokerage offerings for consumers to choose from, CMC Markets is one of the most competitive platforms that stands out due to its stellar reputation, wide range of products, sleek and seamless UI/UX experience, and competitive fees and spreads.

To sign-up for the Next Generation account, please click here.

For MetaTrader4 account, please click here to get started.

Founded in 1989, CMC Markets is a well-established, publicly traded, and highly regarded U.K. forex broker that has successfully adapted to the ever-changing online brokerage landscape. The company is listed on the London Stock Exchange (LSE) under the ticker symbol, CMCX.

CMC Market’s flagship platform features a rich and engaging web-based offering aptly named “Next Generation.” This, coupled with the ubiquitous Metatrader MT4 platform and an updated mobile application, offers a good combination of trading products and tools to their targeted customers.

CMC Markets provides traders and investors access to an extensive range of instruments, including Contract for Difference (CFD) across many different asset classes such as commodities, equities shares, and indices. In addition, CMC Markets offers competitive spreads for Forex traders, which are dynamic in nature and provides real-time updates to news and publications.

On top of all these bells and whistles, if you trade with high volume, you may stand to gain access to CMC Markets Alpha and enjoy extra perks from your active trading.

CMC Markets Alpha is a premium service which is created to take your average trading experience to an entirely new level. Client benefits include differentiated pricing schemes & rebates, premium support, and more! (more information at the end of the article).

Contract For Difference (CFD)

To give some background of what a Contract for Difference (CFD) is, it is essentially a leveraged derivative tool that allows users to trade on margins, meaning that with a small amount of capital, they can gain exposure to a larger amount of assets, thereby enhancing the potential profits one could make.

Currently, CMC Market offers the following types of CFDs:

  • Forex CFD
  • Global Indices CFD
  • Commodities CFD
  • Shares CFD
  • Treasuries CFD

CFD contracts generally have no expiry dates, which means that investors can keep the CFD positions open for as long as they maintain the margin requirements. However, the open positions are subjected to a charge called the “holding cost” which can vary across different products.

Margin Requirement

When you are trading in CFDs, you are leveraging your capital, which means any gains or losses will be magnified.

As a trader, it is important to keep track of the overall margin requirements to avoid a margin call. You may also close your positions to maintain the required capital to sustain other positions.

To illustrate an example:

The margin for 1 CFD on Dow Jones Industrial Average Index (DJI) is at 5%.

When you buy 1 contract at the prevailing market price of USD33,000, the initial margin you will have to cough up is USD 1,650.

In the event that global markets fall and the Dow Jones Index drops to USD30,000, the notional value of your contract is now worth USD 30,000.

Assuming the margin requirement to maintain the contract is at USD 1,500, this means that you would have to top up USD2,850 ($1,650 – $3,000 – $1,500) in order to avoid a margin call and have your positions stay open.

Alternatively, by closing your existing position, you can work out the different scenarios in place to ensure that you have a margin of safety and buffer for your capital, so your positions remain solvent.

CMC MT4 Platform – Sleek and Seamless UI/UX

CMC Markets MetaTrader 4 (MT4) is one of the most popular forex trading platforms.

The platform’s popularity has emerged thanks to its Expert Advisor’s (EA’s) automated trading ability, advanced order types, technical analysis, and user-friendly interface. MT4 also encompasses advanced features for trading strategies including both pattern recognition and an economic calendar.

Friendly UI/UX interface designs are also always a bonus point when it comes to selecting the right brokerage platform to trade.

The interface works well in desktop web application, making it very easy for both beginners and advanced players to navigate.

It also has a clean and eye-catching design with a perfectly blended colour scheme that contrasts red and green, making it easier for users to identify profits or losses, up or down candles, and buy or sell prices. The overlapping of graphs, icons, and information about the company or FX pairs also makes it very user-centred and easy to digest.

Additionally, the platform allows you to access draw tools, studies and overlays, as well as advanced chart types that can help you navigate the pattern and where it is heading over the next few days or weeks.

An illustration below shows the Fibonacci support line for the AUD/USD pair which has been trending sideways for quite a while.

When it comes to placing trades, the platform provides a wide range of order types. Examples include:

  • Market order – which is used to open or close trades at the current market price.
  • Limit and stop entry orders – which is used to enter or exit the market at a specific price.
  • Stop loss order – which is used to specify the price at which a position will be closed if the market moves adversely.
  • Trailing stop loss order – which is used to follow market price as it moves in your favour.
  • Guaranteed stop loss order – which is used to provide certainty that your stop-loss will be executed at your desired price.
  • Boundary order – which is used to allow you to set a price range that you are willing to accept.

The trading platform also allows you to try out trading on a demo account for CFD and Forex. This grants users a realistic environment to test trading in a simulated real-time environment.

Competitive Commission Fees

CMC Markets earns money mainly from spreads between the bid and offer prices of an asset. In the case of stock CFDs, commissions are also charged.

Spreads at CMC Markets are among one of the tightest in the industry, making it a competitive proposition for active traders. Rebates are also given to active traders who trade a high-volume amount with the brokerage.

CMC Markets recognizes that keeping commissions low and competitive is an important consideration for users because they will not want to incur a hefty part of their overall transactions on fees.

For CMC Markets, their commission fees on CFD vary by country of origin, with most markets charging commission fees of just 0.10% except in a few countries such as US, UK, Australia, and Canada. Moreover, there are minimal commission fees imposed so even if you just buy 1 lot of 100 Singapore shares, your minimum commission fees would amount to SGD10.

Like all CFD brokerages, there is a holding fee that is accrued daily should you hold the position overnight.




Trade with CMC Alpha Advantage

Now, if you are someone who frequently trades in high volume orders and looking to enjoy a little bit more perks from your transaction, then you need to consider the CMC Markets Alpha.

Introducing CMC Markets Alpha, a premium service brought to you by CMC Markets – this will take your average trading experience to an entirely new level.

As an Alpha client, you get to enjoy benefits such as:

  • Volume-based discounts & friendly pricing schemes (example: rebates)
  • Premium support from the client’s personal account manager
  • Exclusive invites to VIP events & seminars
  • Personalised research consisting of market insights & technical analysis

For more information on what CMC Markets Alpha can offer, please visit their website herefor the full benefits detailed breakdown.

Conclusion

Overall, we were quite impressed by the proposition that CMC markets offers.

Whether it is reputable branding, functionality, variety in product offerings or competitive commission fees, CMC Markets stands above the competition as one of the most competitive brokerages in the industry.

These factors make CMC Markets an all-round winner and a serious contender whether you are a beginner, an intermediate, or advance traders.

To sign-up for the Next Generation account, please click here.

For MetaTrader4 account, please click here to get started.

Disclaimer: This article is written in collaboration with CMC Markets Singapore. All views expressed in the article are the independent opinions of mine. This article is intended for information purpose only and should not be construed as financial advice. This article has not been reviewed by the Monetary Authority of Singapore.