No Additional Spreads
Phillip CFD does not quote additional spreads on market prices
In Shares CFD trading, the brokerage firm acts as the liquidity provider for all clients trading with them. The firm creates its own ‘artificial market’ for the product, and is able to quote its own prices for the stocks.
We understand that price transparency is important to every trader. This is why we have committed to not quoting additional spreads on top of market prices for Equities CFD, which is inclusive of Shares CFD and Direct Market Access CFD. The prices mirror the cash market’s prices. With the CFD Bid & Ask prices being exactly the same as the cash market’s Buy & Sell prices, all you knew about the cash market would be directly reflected in the CFD prices too.
For instance, if stock ABC’s cash prices are:
| Buy | Sell |
|---|---|
| 1.00 | 1.01 |
Then the prices of stock ABC CFD will also be:
| Buy | Sell |
|---|---|
| 1.00 | 1.01 |
With no additional spread quoted on top of market prices, clients can trade on the CFD markets with transparency. Investors can be rest assured that the trading experience would be similar and seamless between the two trading instruments.
Investors need to take note that Shares CFD trades are done based on bid/ask prices and not last done prices, while DMA CFD trades are done based on last done prices, based on price/time priority. For more information on this, please click here.
