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F. A. Q.

Click on the links below for answers to frequently asked questions about TradeDirect365, our trading platform and CFD trading.

Why TradeDirect365 / Getting Started

Why should I change to the TradeDirect365 platform?

TradeDirect365 is a simple, easy to use online CFD and Forex provider, that was developed by a trader, for traders.

Our transparent pricing approach provides our clients with some of the lowest commission rates available, and tight 24hr FIXED spreads, all on our simple, highly intuitive trading platform.

Not only are we Australia’s best value CFD provider, we also deliver unrivalled customer service to our clients through our professional, friendly customer support service.

View TradeDirect365’s full list of benefits here

Reduce your trading fees by up to 30% with our highly competitive fees, and experience the TradeDirect365 difference for yourself!

Open a live account or try our one-click demo account

What is a CFD?

A CFD (or Contract for Difference) is an agreement to exchange the change in price of a financial asset (such as shares, currencies, commodities) from the time you open the contract to the time you close the contract.

With CFDs you can capture trading opportunities from either a rise or a fall in any of the markets. Unlike traditional buy and hold strategies, you don’t need to wait for a rising market to place a trade. You can buy a CFD (go long) if you a looking for the price to rise, or you can sell a CFD (go short) if you a looking of the price to fall.

With CFD’s you can trade without having to own the underlying asset. And because you don’t need to buy the underlying asset, you can benefit from price movements with a fraction of the capital. CFDs are a leveraged product, so you trade with a margin where you only deposit a fraction of the full cost of the asset.

Unlike some derivative products like options and warrants, CFDs do not have a time limit. You can keep your CFD position open for a long as you want to take maximum advantage of the market movements. You are not forced to close a position because of an expiry date.

Full functionality CFDs are very flexible derivatives and can cover almost any financial asset. From your TD365 CFD account, you can access Australian, US, European & UK stocks, global indices, global currencies and a range of commodities.

Why trade CFDs?

By trading CFDs, investors are provided with a much greater variety of products to trade with on financial markets. Furthermore, CFDs are traded on leverage, which allows you to trade the markets with only a small portion of the total trade value.

Leveraging also presents the opportunity for potential gains to be increased as only a small portion of the value of the trade is required, however you are still provided with access to full market exposure.

Want to know more? Read our 5 Things You Need to Know Before You Start CFD Trading

Advantages of a fixed spread over variable spreads?

The deceiving illusion of variable spreads:

Have you ever experienced the following situations?

  • A profitable trade quickly turning in to a losing trade due to a sudden spike in the spread, taking out your stop loss before moving towards your intended direction?
  • A news release is pending publication and suddenly the spreads widen, impacting heavily on your decision to execute your desired trade?

Unfortunately, the scenarios above can often be regular occurrences amongst traders whose CFD providers only offer variable spreads.

TradeDirect365 however offers tight, 24 hour fixed spreads, so our clients can be rest assured that they will not be influenced by any external market information, and will not be subject to large spikes in the spreads.

Our fixed spreads are some of the most competitive in the market, at just 0.8 pips, with NO commission on AUD/USD, EUR/USD and USD/JPY.

Fixed solutions may just be your solution to not only improved trading, but also increased returns.

Experience the difference for yourself on our TradeDirect365 live account, or try our one-click demo account

How do I open an account?

Don’t let excessive fees and wide, variable spreads eat into your profits!

A TradeDirect365 account allows you to take advantage of our highly competitive fees and our tight FIXED spreads, all on our simple to use, sophisticated trading platform.

Opening a trading account with TradeDirect365 is easy, simply just click on the link below and complete the online application form.

Open Live Account

Not ready to trade on a live platform yet? Familiarise yourself with our trading platform with our  one-click demo account

What types of accounts are available?

TradeDirect365 offers an array of accounts for clients to choose from.

These include:

  • Personal/Individual;
  • Joint account;
  • Corporate (company/business); or
  • Trust/SMSF account.

Your account must be funded before you can trade. Please see the Funding Your Account section below.

Sign up for a TradeDirect365 live account or try our one-click demo account

If you need more information about this, you can contact our Client Support team on: [email protected] or call us on 1800 886 514 and press ’2′ for enquiries.

Can I apply for an account from outside Australia?

Yes

Trading accounts can be set up from outside Australia.

There may be international bank transfer costs for withdrawals.

You should only open an account with TradeDirect365 if doing so would not be contrary to local law or regulation.

Sign-up for a TradeDirect365 live account, or try our one-click demo account

Can I open a demo account?

Yes

The TradeDirect365 demo account displays an exact replica of our live trading platform and directly mirrors each financial instrument and its movement within the live market.

Hone in on your trading skills or simply familiarize yourself with the TradeDirect365 platform through our demo account which provides you with a $10,000 virtual fund balance to practice with.

The demo account can be run alongside your live account, so it’s a great way to test potential trading strategies before transferring these to the live platform.

Demo Account Activation

Open a demo account

Once the link has been activated, simply just fill in the details in the specified fields and an automatic email will be sent with an authentication code link. Once the link is activated, go to the login page and enter your login and password to access the trading platform. And you’re in!

Does the demo account work on the App?

No, the app is only available for live accounts.

Fees

The ASX (Australian Securities Exchange) charges a monthly fee for real-time price data for Australian stocks on a ‘per account’ basis. We apologise for having to pass on the ASX data fees. There are however, no other subscriptions required.

We have kept the cost we charge to an absolute minimum (AUD$27.50 per month, which is one of the lowest charges in the industry for live ASX data). However, this fee is waived if you execute 2 round turn trades (or 4 single legs) of any ASX stock CFD within the calendar month.

Subscribing to the ASX live data feed is not a necessity, however if you do wish to do so, you only need to subscribe to the months you want to receive the data for.

Note: We recommend subscribing to the live data feed at the beginning of the month as the ASX charge for the full month, irrespective of which day of the month you subscribe.

Forex Trading

What is the foreign exchange market?

The foreign exchange market, also known as FX, forex or currency market, enables investors to purchase, sell, exchange and speculate currencies. These currencies are only exchanged in pairs and enables the conversion of currencies in international markets. The forex market is the largest and most traded financial market in the world.

What are the most popularly traded currencies?

Often the most commonly traded currencies are from countries that have respected central banks, a stable political system, and low inflation rates. These currencies are termed ‘major currencies’ which account for more than 85 per cent of all daily transactions. These include:

  • Australian Dollar (AUD)
  • British Pound (GBP)
  • US Dollar (USD)
  • Japanese Yes (JPY)
  • Euro (EUR)
  • Canadian Dollar (CAD)
  • Swiss Franc (CHF)

When is the forex market open for exchange?

Essentially, the global forex market is available to trade 24 hours a day, 5 days a week. The availability of this market is a contributing factor to the popularity of FX trading as investors can respond immediately to currency fluctuations as a result of economic, political and social events at the exact time they occur, whether that be day or night.

The opening times of the major foreign exchange markets are:

  • Sydney: 8:00am – 4:00pm AEST
  • Tokyo: 9:00am – 5:00pm AEST
  • Frankfurt: 4:00pm – 12:00am AEST
  • London: 5:00pm – 1:00am AEST
  • New York: 10:00pm – 7:00am AEST

What does a ‘long’ or ‘short’ position mean?

When trading forex instruments, currencies are always traded in pairs, and therefore every forex position requires one currency to be traded short, and the other to be traded long. A long position is when one currency is purchased, with the aim to later sell it a higher price.

Therefore, those who trade using long positions benefit from a rising market due to this appreciation.

Trading with a short position is where an investor will sell a currency, in anticipation that the currency will depreciate in value. This strategy therefore benefits from a declining market.

Where is the Foreign Exchange market located?

The Forex Market does not have one central location, nor does it operate on an open exchange. Instead, the FX market is traded via an ‘Interbank’ or Over-the-Counter (OTC). This is due to the fact that there is no central exchange between banks, private investors, hedge funds or Governments and is instead transacted between two counterparts via an online electronic network or over the telephone.

Managing Risk: What are stop and limit orders?

There are a variety of ways to manage risk in forex trading, however the most common tools used are the implementation of a limit order or a stop loss order.

A stop loss order is an order whereby a specified position in the market is liquidated once it reaches a pre-determined price if the market were to move against an investors position which can assist in reducing potential losses.

A limit order is an order that restricts that maximum price you wish to pay or the minimum price you wish to receive.

What is a Pip?

Pip is the acronym for price interest point, which acts as a measurement to the amount of change in the exchange rate for a currency pair.  A pip is the smallest movement in price that an exchange rate makes which is based directly on market convention.

As majority of prices for major currency pairs are made to 4 decimal places, the smallest change that these decimal places has on the total value of the currency will be the last decimal point, which usually is the equivalent of 1 out of 100, or 1 per cent.

For example, if the EUR/AUD moves from 1.4932 to 1.4933, that 0.0001 EUR rise in value is one pip.

Funding Your Account

How are my funds held?

Deposited funds are held by FINSA in a segregated client account with a top-tier Australian bank.

These funds are NOT used for hedging purposes, meeting the trading obligations of other customers or any other business dealings.

If you would like to know more, visit our Client Money Policy for additional information.

What is the minimum deposit to open an account?

There is no minimum deposit to open an account.

Your account has to be funded before you can trade.

How do I transfer funds to my account?

There are several ways you can fund your account outlined below. Please note that due to money laundering regulations enforced by ASIC, we are unable to accept funds from any other source than the account holders own funds.

Bank Transfer / Wire
Our bank accounts are held at Westpac, Australia.

Bank details for payments:

      • Account Name: TD365 Client Money Segregated Trust Account
      • BSB Number: 034008
      • Account Number: 188015
      • SWIFT Code: WPACAU2S

Please note: Finsa Pty Limited can only refund money to the bank account from which the funds were originally received.

BPAY
Transfer to your TradeDirect365 account via BPAY

Deposits: 24-48 Hours on business daysAustralian members can use BPAY to deposit funds into their account via internet or telephone banking.

To make a BPAY deposit, log into your financial institutions online or telephone banking portal and follow the prompts to make a BPAY Bill Payment. You will be required to enter the below Biller Code and Customer Reference number. For further assistance with completing a BPAY deposit, please contact your bank.

Learn more about BPAY

Biller Code – 225052
Customer Reference – [your TD365 account number]

** Your BPAY Customer Reference number can be found by logging into your live account and selecting the ‘My Account’ button on top right of screen. From here select the ‘Transfers’ tab followed by the ‘BPAY’ tab. On this screen you’ll see your unique ‘Customer Reference’ number listed to use.

Cash payments are not permissible.

What is the Base Currency?

The Base Currency is the default currency of your account, which will be in Australian dollars.

Funds received in a different currency from your Base Currency will be converted into the Base Currency at our bank’s exchange rate.

When you trade a CFD that is denominated in a currency other than your Base Currency, all financing adjustments are made in that currency and then converted to your Base Currency at our current exchange rate.

Want to know more about trading terms? Visit our Glossary of Terms 

Making Trades

Can I place orders over the phone?

Yes

Should you wish to make a trade over the phone, you can contact our 24 hour trade desk directly at:

Phone: 1800 886 514 and Press ’1′ for Trade Desk (Monday-Friday, 24 hours)   Phone: 1800 886 514 and Press ’1′ for Trade Desk   (Mon-Fri, 24 hours) or +61 (0)2 8310 4713 (from outside Australia)

What markets/instruments can I trade?

TradeDirect365 offers a wide range of trading instruments including CFDs on Australian, US, European and UK shares, indices, commodities, and currencies.

We also offer access to over 500 ASX listed shares!

To find out more about these ASX shares, visit the ASX website

For a complete list of products, spreads, and trading hours, please see our Market Information sheet.

What is the minimum contract/lot size available?

The minimum contract size available is a ‘mini’ contract.

Do you have ‘hedging’ facility?

Yes

You can take long and short positions at the same time on the same product.

Tick the “Hedging” checkbox on the deal ticket to place your hedge.

How do I place a trade?

You can place a trade online using TradeDirect365’s trading platform or by telephone.

If you need assistance in using our online trading platform, please view our ‘How To’ Guide.

If you would like to place a trade by phone, you can call TradeDirect365 on 1800 886 514 (Press ’1′ for Trade Desk).

Familiarise yourself with the TradeDirect365 platform with our one-click demo account

What are your trading hours?

Market trading hours are from Monday 8:00AM to Saturday 7:00AM AEST.

More information on trading hours for each instrument can be found on the trading platform, or in our Market Information Sheet.

For those trading international markets such as the UK, Europe and the US, we have a 24-hour Dealing Desk available to assist you with any questions you may have.

Do you offer Guaranteed Stop Loss Order (GS Order)?

Yes

The TradeDirect365 trading platform will allow you to use a Guaranteed Stop Loss Order (GS Order). You can nominate to use the GS Order when you open a trade.

A GS Order is a form of risk management that may assist you in limiting your losses if the market goes against your position.

There is a minimum charge to use a GS Order and a set distance where you can select your Stop Loss level.

A GS Order is an instruction by you to close a CFD position at the exact price that you set, even if our quote goes through that price. It is effectively a form of insurance that guarantees your exit price even when a market is experiencing high volatility or illiquidity and when the market gaps.

You may set a GS Order at the following times:

  1. When you place a trade which then acts as a Guaranteed Stop Loss Order instruction to close the Open Position at a certain level; or
  2. When you place an Order to Open which then acts as a contingent GS Order instruction once the Order to Open has been executed.

Please note that there is a minimum distance away from the quote that a GS Order can be placed. This information, along with GS charges, is set out in the Market Information Sheet.

Guarenteed Stop Loss Order Example:

The market price for BHP Billiton is 44.19-44.20. You believe that BHP Billiton will rise and so you Buy 100 CFDs at 44.20.

You are concerned about market volatility and wish to guarantee the level at which you will exit the trade if the market goes against you. You place a GS Order at 41.00. The cost of placing the GS Order is $13.26 (100 x 44.20 x 0.3%).

The price of BHP drifts lower and the market closes. Whilst the market is closed there is much negative sentiment in global markets and as a result BHP reopens lower at a price of 39.99-40.00. Your GS Order is executed at the guaranteed level of 41.00 and you incur a trading loss of $320 [(44.20-41.00) x 100].

If you had set a Stop Loss Order as opposed to a GS Order, the trading loss incurred in closing the position at the first available market price of 39.99 would be $421 [(44.20-39.99) x 100].

You can place or amend a Guaranteed Stop Loss Order at any time when the underlying market is open and any amendment to the level has to be at least the minimum distance (minimum, plus the market’s spread) from the current quote.

Guarenteed Stop Loss Order Fee?

For Share CFDs the guaranteed stop loss is 0.3% of the trade value.

For FX and Indices it is usually 3pts/pips added to the trade on position close.

For information on the GS Order cost, click the information button

Can I use a Trailing Stop?

Yes

The TradeDirect365 trading platform allows you to use a Trailing Stop when you place a trade. On the trade ticket, you need to tick the “Trailing” button if you wish to use the trailing stop feature.

Once you have ticked the “Trailing” box you need to set the distance you want your Trailing Stop away. If the market then moves in your favour, the Trailing Stop will move in that direction at a set size of increments.

Be aware that Trailing Stops are not guaranteed. Therefore, you may still be subject to slippage in volatile market conditions.

There are no extra charges for using a Trailing Stop.

Details of the minimum distances and set size of increments applicable to Trailing Stops can be found on the order section of the trade ticket.

Margin Requirements

For Forex trading, the margin required is generally 0.5% depending on the instrument traded.

ASX share CFDs range from 5% for the most liquid through to 30% for more illiquid stocks. 

The margin requirements are reduced when a stop loss is placed at the time of the order.

The calculation is made based on the distance of the current trading price to the stop loss level.

How do you place a profit limit on a trade?

Profit Limit Example:

You currently hold a short position at $1.00 and you want to place a ‘buy’ to close the position at $0.90.

To do so, follow these simple steps:

  1. Click the “Trade” button to open the trade box.
  2. Enter the quantity and the sell at $1.00.
  3. In the “Limit” level box enter $0.90. This is the profit target level.
  4. Once the buy price gets to $0.90 the trade will close and the profit will go to your account.

Managing Your Account

How do I obtain an account statement?

Account statements are emailed to you automatically on a weekly or monthly basis.

Your account history can also be viewed, and exported to a csv file, via the ‘Account History’ tab within the TradeDirect365 trading platform.

What do I do if I have forgotten my username or password?

If you have forgotten either your username and/or password, please contact TradeDirect365 by telephone on 1800 886 514 (Press ’1′ for Trade Desk).

How do I access the history of my trades?

To access your trade history click on the “Activity History” tab in the lower section of the platform and select the history date requirements.

General

Do you have an online help guide for using the platform?

Yes

Our trading platform is extremely easy to use, however we also have a detailed ‘How-To’ Guide which covers all aspects of the platform, including how to view, open, close and amend trades, charting, portfolios (watchlists), etc.

Familiarise yourself with the TradeDirect365 platform with our one-click demo account

What happens when a share goes ex-dividend?

If you hold a long open position in a share CFD at the close of the business day before the underlying instrument goes ex-dividend then your account will be credited with 100% of the net dividend. You should note that we pay a net amount. This is net of any withholding taxes, local taxes or other charges that may apply from jurisdiction to jurisdiction.

For Australian share CFD transactions, you will not receive any franking credit benefit. If you hold a short open position in a share CFD at the close of business before the underlying share goes ex-dividend then your account will be debited to reflect 100% of the gross dividend. You should note that you would pay the gross amount. This includes any applicable withholding taxes, local taxes or other charges.

How is your overnight financing calculated?

All cash CFD transactions that are held overnight incur an overnight financing charge.

We take the notional CFD transaction value of a position and calculate a daily interest charge for that position.

For long positions: 2.5% finance fee + RBA rate per annum on ASX CFDs.
For short positions: 2.5% finance fee – RBA rate per annum on ASX CFDs.

What is your margin process?

You are responsible for monitoring the margin required to maintain open positions at any one time.

The TradeDirect365 platform uses an automated risk management system to control client liability. This policy works as a margin call policy.

If the cash on your account and the value of your open positions (and amount of credit where applicable) falls below the margin required on your account, you will be required to fund the shortfall. In such circumstances the amount that you would have to pay would be sufficient to ensure that you have covered the margin required to maintain all of the open positions on your account.

We may contact you to inform you that you are required to make an additional margin payment, otherwise known as a margin call, but we are not obligated to do so. Our failure to contact you and inform you of a margin call in no way negates your obligation to monitor your open positions and pay any margin shortfalls when necessary.

As per the Client Agreement, we have the right to close out your open positions when the equity on your account [cash balance + open position P&L (+ credit where applicable)] falls to or below 20% of the margin required to support those open positions.

Please refer to section 11 of the Product Disclosure Statement (PDS) for full margin requirement details.

Where can I view your Client Agreement, FSG, PDS & Disclosure Policy documents?

To view the following documents, simply just click on links below:

Client Agreement

Financial Services Guide (FSG)

Product Disclosure Statement (PDS)

For further information about TradeDirect365’s policies and to access relevant documents, please view our Policies, Terms & Agreements here

Explain cash balance and trading resources

The cash balance is the balance of closed trades without taking into account fluctuating live positions.

Trading resources takes into account live positions and margin requirements.

Trading resources is the cash balance + or – open position P&L (depending on whether you have current profit or loss) less the current margin in use.

Technical

Which web browsers will the platform run on?

The TradeDirect365 platform runs on Chrome, Firefox, Safari and Internet Explorer 10+ web browsers.

A combination of AJAX, HTML5 and CSS3 have been used to build a real-time low latency web trading platform with full cross browser support and fast order execution.

Open a TradeDirect365 live trading account or try our one-click demo account 

Can the platform run on an Apple Mac?

Yes

The platform runs on both the Safari web browser and Google Chrome browser for Mac.

Safari is a web browser developed by Apple Inc. and included with the Mac OS X and iOS operating systems.

Open a TradeDirect365 live account or try our one-click demo account