When I initially applied to open an ASX CFD trading account, the index had climbed from below 3,500 to around 3,800. Unfortunately the first lot of paperwork from eSuperfund (our SMSF administrator) was incorrectly filled in for Comsec share CFD trading, not the ASX CFDs (which include index CFDs). In the few weeks it has taken for the correct paperwork to be completed and processed the market has risen to 4,070. It would have been nice to have bought the IQ CFD at 3,800 as we would now be sitting on a $2,700 unrealised profit to act as a buffer in case the market pulls back. As it is, I'm hoping we get an opportunity to buy in when the market has another bad day.
The brokerage costs for trading ASX index CFDs appear to be relatively modest, and the holding costs appear to be around 1.5% pa above the overnight cash rate. I'll find out exactly what the total cost is after we've bought a CFD and held the position open for a year.
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