FxPro: a price contract on world shares

A price contract on a world share, beside stocks recorded through PDTC in your name

A contract for difference on a share is a contract on the price of that share. No share is bought, nothing is registered in the reader's name at any depository, and the holder has no vote and no shareholder rights. This is different from buying a share through a local broker and depository, which is what this site's guides describe. The local share is recorded through the Philippine Depository & Trust Corp. and cleared by the Securities Clearing Corporation of the Philippines; a CFD has no such record.

This site does not state whether FxPro lists any share from this country's exchange. What the broker's account offers is a price contract on global shares and indices. A reader who wants a PSE-listed share in their own name needs a licensed trading participant of the exchange, not a CFD.

Why a contract has no board lot and no stock transaction tax

A CFD is not a purchase of shares, so the Philippine board lot rule does not apply to it. The board lot sets the minimum number of shares for an order on the exchange; a CFD is a contract between the reader and the broker, and its minimum size is set by the broker's terms. Similarly, the stock transaction tax on the value of a sale applies to sales of shares on the exchange, not to the closing of a CFD position.

Any dividend-related payment on a share CFD is a cash adjustment made by the broker around the ex-dividend date under its own contract terms. It is not a dividend paid by the company, and its size and tax treatment are set by the broker's terms, which this site does not state. The reader must read the contract specification before relying on it.

What to read in the terms before an account is opened from the Philippines

A CFD is a leveraged product and losses can be fast. The broker states that clients cannot lose more than the funds they deposited (negative balance protection) and offers a free practice account. Opening an account requires identity verification. Platforms include MetaTrader 4, MetaTrader 5, cTrader, a browser platform and a mobile app.

FxPro is not supervised by the Securities and Exchange Commission of the Philippines. A Filipino resident who opens an account deals with a foreign firm outside local supervision. A CFD on a share is not recorded at the Philippine Depository & Trust Corp. The reader should read the contract specification, the order execution policy and the terms on deposits and withdrawals before opening an account.

FxPro is not licensed by the Securities and Exchange Commission of the Philippines. An account is opened with a company regulated outside the Philippines - the group's companies are authorised by regulators such as the FCA in the United Kingdom - so a resident here deals with a foreign firm and the protections of a locally licensed one do not apply. A contract for difference on a share is not ownership of a share and is not recorded at the Philippine Depository & Trust Corp. Sending money abroad is subject to Bangko Sentral ng Pilipinas rules. Nothing on this site is investment advice.