Synthetic shares are the unleveraged CFD derivative product with specific shares as the underlying asset. The execution of Synthetic shares doesn't require Direct Market Access (DMA) to the electronic facilities and order books of exchanges.
Similar to ordinary CFDs on shares, synthetic shares have their price pegged to real assets such as TSLA or AAPL. Also referred to as “synthetics,” these derivative products track price changes of traditional assets without requiring access to the underlying markets.
Since synthetic shares are derivatives, their value is derived from an underlying asset tradable on a real exchange. Brokers purchase underlying assets based on their clients’ orders book.
Why invest in Synthetic Shares?
You pay NO commissions when investing in unleveraged BUY positions on Synthetic Shares. This benefit does not apply to investing in leveraged CFDs on stocks.
Having almost the same features as ordinary stock CFDs, synthetic shares allow you to trade with*:
No markup fees
No management fees
No rollover fees (swaps)
*Other fees may apply. Kindly refer to our Cost and Charges to see the detailed information about commissions charged.
Another feature of synthetic shares is that they are available as fractional shares, i.e. you can trade micro lots.
How to invest in Synthetic Shares?
Open MT5 trading account
Choose Synthetic shares you wish to invest in