Interactive Brokers Launches Global Contracts for Difference (CFDs) in Japan
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Insights
Interactive Brokers' expansion into the Japanese market with the introduction of Global Contracts for Difference (CFDs) signifies a strategic move to increase its footprint in Asia. Leveraging US stocks and ETFs could potentially attract a diverse set of investors looking for exposure to foreign markets with the added advantage of trading on margin. The transparent, low commission structure is a competitive advantage that could influence trading volumes, benefiting from the economies of scale.
While the offer appears cost-effective, investors must be aware of the inherent risks associated with leveraged products like CFDs, especially in volatile market conditions. The impact on Interactive Brokers' bottom line will largely depend on the uptake of these products and monitoring this trend could give us insights into the company's growth trajectory in the Asian markets.
IBKR Desktop, the next-generation trading platform, is a testament to Interactive Brokers' commitment to technological innovation. Traders increasingly demand intuitive user interfaces combined with powerful trading tools and this platform seems to cater precisely to these needs. The expansion of Overnight Trading Hours and introduction of Fractional Shares Trading could resonate well with clients catering to a broader range of investment strategies and time zones.
For investors, the tech enhancements imply more control over their investments and the ability to act swiftly on market movements. However, it's important to assess the adoption rate and usability of these platforms to gauge their success and contribution to customer retention and revenue growth.
Japanese Investors Can Trade US Stocks and ETFs with Leverage
Japanese clients can now invest in CFDs alongside global stocks, options, and futures. The CFDs let clients trade US stocks and ETFs with leverage, enhancing their trading capabilities and enabling more flexibility in their investment strategies. The CFDs are a welcome addition to IBSJ’s existing product array and have transparent, low commissions and financing rates.
Commissions for US Share CFDs start at just
“We are pleased to introduce CFDs on US and global stocks to our Japanese clients. This addition allows them to actively trade US stocks and ETFs with leverage, providing a dynamic tool for enhancing their investment strategies and maximizing their trading potential,” said Dan Kerrigan, Chief Executive Officer of Interactive Brokers Securities Japan Inc. “With this launch, we reaffirm our commitment to
The following new features are available to Japanese clients:
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IBKR Desktop: This next-generation desktop trading application for Windows and Mac is engineered for today’s traders who demand simplicity but value Interactive Brokers’ powerful trading tools. IBKR Desktop marks a new chapter for innovation and focus on the intuitive user experience at Interactive Brokers.
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Expanded Overnight Trading Hours Service: Interactive Brokers was one of the first brokers to introduce Overnight Trading on US stocks and ETFs, now listing over 10,000 US stocks and ETFs. This allows Japanese clients to trade an even broader range of US equities nearly 24 hours a day, five days a week. Clients now have the flexibility to trade more US stocks and ETFs when convenient, and clients in
Asia can trade a wider variety of US equities during local market hours.
- Fractional Shares Trading: With fractional shares, clients can trade eligible US, European and Canadian stocks and ETFs, providing a simple way to build a balanced portfolio and invest in shares regardless of the share price.
- Enhanced Japanese Website: A new website dedicated to Interactive Brokers Securities Japan Inc. is available in Japanese and English. With a streamlined navigation process, investors can find materials about products, platforms and tools with ease.
Interactive Brokers Group is in its 47th year as a broker/dealer, giving sophisticated individual and institutional investors clients worldwide access to global trading, including the US and other major markets and the ability to trade a broad range of investment products from a single unified platform.
For almost twenty years, Interactive Brokers Securities Japan Inc. (IBSJ), an affiliate of Interactive Brokers, has served the distinct financial objectives of investors in
A testament to ongoing success, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its 2023 Best Online Brokers Review, BrokerChooser rated Interactive Brokers the Best Online Broker for 2024, and StockBrokers.com presented Interactive Brokers with numerous 2024 accolades, including #1 for International Trading, #1 for Platform Technology and #1 for Platforms and Tools, among other awards.
For additional information, please visit: https://www.interactivebrokers.co.jp/en/trading/products-cfds.php
About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, and foreign exchange around the clock on over 150 markets in numerous countries and currencies, from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. For the sixth consecutive year, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its June 9, 2023, Best Online Brokers Review.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240417597104/en/
Contacts for Interactive Brokers Group, Inc. Media: Katherine Ewert, media@ibkr.com
Source: Interactive Brokers Group, Inc.
FAQ
What new investment options did Interactive Brokers launch for Japanese clients?
What are the commission rates for US Share CFDs for Japanese clients?
What are the key features of IBKR Desktop for Japanese clients?
What is the benefit of Fractional Shares Trading for Japanese clients?