A price contract on a world share

A price contract, beside a share whose close you can check here

FxPro offers contracts for difference, including CFDs on shares of companies listed around the world and on stock indices. A CFD 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. The price on the contract tracks the share's price, but the contract itself is a different instrument.

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, which is a different thing from buying a share through a local broker and depository, which is what this site's guides describe. A reader who wants the close of a JSE-listed company can check it on this site, but that close is not the same as the CFD price.

Why a contract can be quoted to the cent and a JSE share to the cent, yet mean different things

A JSE share price is quoted in cents, and a CFD on a share may also be quoted to the cent. But the cent on a share is a price for one share in the local market, settled through Strate, the central securities depository. The cent on a CFD is a price on a contract between the client and the broker, with its own terms. The underlying share may be the same, but the rights and risks are not.

Where a share CFD is offered, any dividend-related payment 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. A CFD is not recorded at Strate.

What to read in the terms and check on the FSCA register before an account is opened from South Africa

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: MetaTrader 4, MetaTrader 5, cTrader, a browser platform and a mobile app.

FxPro's own FAQ says it is regulated by the FSCA in South Africa; this site cannot confirm the licence number or which FxPro company serves a South African resident, so it must not state a licence number and must tell the reader to check the FSCA register. The reader must read the contract specification before relying on any dividend-related payment, and check the FSCA register for the exact legal name and licence status.

FxPro states that it is regulated in South Africa by the Financial Sector Conduct Authority (FSCA) for its South African business, but which company of the group would hold a particular reader's account, and under which licence, is not stated here: check the FSCA's register of authorised financial services providers before relying on any of it. A contract for difference on a share is not ownership of a share and is not recorded at Strate. Sending rand abroad is subject to South African exchange control rules. Nothing on this site is investment advice.