Kyobo Securities Launches 100% Margin Account Event for Overseas Stock CFDs

[Asia Economy Reporter Lee Jung-yoon] Kyobo Securities announced on the 1st that it will hold an event for the launch of a 100% margin account for overseas stock Contracts for Difference (CFD) with tax-saving effects.

Existing overseas stock CFDs have a margin rate of 40-100%, allowing up to 2.5 times leverage, but the 100% margin CFD account trades all stocks with a 100% margin rate without leverage. Therefore, there is no forced liquidation or financial costs caused by leverage usage.

Additionally, when trading, a derivative product capital gains tax of 11% is imposed instead of the 22% overseas stock capital gains tax, providing tax-saving benefits, and dividend income is not included in the comprehensive financial income tax.

The currently available markets for trading are the United States, Hong Kong, and Canada, with plans to expand to 10 markets including Japan and the United Kingdom in the future.

The event period lasts until the end of September, and all customers who apply for the event will temporarily receive a US market trading commission rate of 0.1%.

Choi Doo-hee, head of the GBK department, said, "We expect this to receive great response from customers who want to invest in overseas dividend stocks," adding, "We will continue to provide products that meet customer needs in line with the rapidly changing investment environment."