CFD account
07-02 17:55uSMART

How to open CFD account on uSMART app?


Step 1: Go to [Trade] > [Forex]


Step 2: Tap "Open a CFD Account"


Step 3: Key in personal particulars



Step 4: Acknowledge client agreement and risk fact sheet for CFD, and key in your digital signature.


Requirements for opening a CFD account

1. Only margin accounts can open CFD accounts.

2. If it is a cash account, guide the user to upgrade to a margin account first. If it is an institutional cash account, guide to upgrade offline to a margin account first.

3. If the securities account is not open, individuals must first open a securities account. Institutional investors must register and open an account offline before being able to log in to the app.


What is auto-balancing of funds between securities and CFD account?

As FX CFD is a high-risk investment due to low industry regulations and potential lack of liquidity, clients are required to maintain an adequate margin from leveraged losses. It is to buffer for any potential loss if the market moves against the position. The risk level and purchasing power of securities and CFD accounts are combined. Therefore, the system will automatically transfer funds between both accounts to maintain the risk level as long as there is sufficient fund in the securities account.


You may refer to the table below for more details:



New CFD position has been opened.

System will automatically transfer fund from securities account to CFD account for the CFD position’s initial margin requirement if there is insufficient fund in the CFD account.

Closure of CFD position

System will automatically transfer excess fund from CFD back to securities account upon closure of CFD position.

When CFD account Initial Margin / Net Equity is equal or greater than 105%

System will monitor and automatically transfer fund from securities account to CFD account if CFD account initial margin divided by net equity is equal or greater than 105%.

Daily account cash rebalancing

System will automatically transfer fund as required between security and CFD accounts to maintain CFD account’s Initial Margin divided by Net Equity = 1 at the end of each trading day. Any excess equity in CFD account will be transferred back to securities account while fund will be transferred to CFD account from securities account if CFD equity is insufficient.