Stock CFD Introduction

Margin Requirements

Share CFDs Introduction

OTC Contracts For Difference (CFD) markets are generally organized along one of three models:

  • Direct Market Access (DMA)
  • Agency Broker Model (ABM)
  • Market Maker Model (MMM)

Interactive Brokers ("IBKR") promotes price transparency by offering Share CFD through a Direct Market Access model, the most transparent of the three models.

In the DMA model, the provider hedges the CFD order immediately in the underlying physical market and the CFD is executed at the price of the hedge. This serves to enhance pricing transparency and the provider's compensation is typically based solely upon a commission rather than a mark-up or mark-down.

With the DMA model, professionally-oriented IBKR clients have the ability to add quotes to the exchange book in the same way they would trading stocks. Because IBKR matches all CFD orders immediately with a hedge-order, a non-marketable CFD order will create a matching non-marketable order for the underlying share on the exchange. Clients can view "their order" on the Level 2 book.

In addition, all orders (whether marketable or not) benefit from IB SmartRouting technology which promotes best execution by routing the order to one of several underlying markets.

Product Overview

Underlying Asset

Shares supported by IBSJ. Please click here for available products.

Trading Hours

Regular trading hours of underlying share's primary exchange.

Order Placement Hours

24 hours on business days
Except in the event of system maintenance outside trading hours.

Trading Unit

1CFD = 1 share of underlying stock

Basic Order Types



The same spread at the exchange is applied.

Individual Account Margin Requirement

Trade Value × Minimum 20%

Institutional Account Margin Requirement

Trade Value × Minimum 10%

Interest Rate on Long Positions

BM + Annual Rate (Details)

Interest Rate on Short Positions

BM - Annual Rate (Details)
For short open positions, your account will generally be paid interest, except in cases where the contract interest rate is negative. When the rate is negative, your account will be charged interest.

Trading Comissions

Please click here for trading comissions.

Market Data Monthly Fee

Market Data subscruption for underlying shares is required to see real-time data for share CFDs. Please click here for market data.

Initial Minimum Deposit Amount

1,000,000 JPY
We ask for 1,000,000 yen when you open an account, regardless of whether you are trading CFD's or not.


There are three types of cost associated with trading share CFDs with IBKR. The costs are the same as if you were trading stocks, as you are trading cash stocks on margin with leverage.

1. Trading Commissions

The volume discount shown in the table below starts at 0.033% of the contract value and goes up to 0.0165% of contract value. The contract value is equal to the value of the underlying shares of the CFD, where each CFD unit is one share of the underlying stock. The contract value is calculated as the number of CFD units x the share price. The number of CFD units is defined as the number shares in the below explanation. For commission details, please click here.

2. Interest Equivalent

You will be charged a daily interest equivalent according to the table below for positions carried over to the next day. For more information, please click here.

Long positions※2

BM※3 + Annual rate

Short positions※2

BM※3 - Annual rate
For short open positions, your account will generally be paid interest, except in cases where the contract interest rate is negative. When the rate is negative, your account will be charged interest.

  1. The number of days is based on the number of days carried over from one day to the next.
  2. The position is the notional value of the underlying shares of the CFD and is calculated on a daily basis with the closing price.
  3. BM is the benchmark rate used by IBKR.

3. Stock Borrow Fee (Short Sale Only)

If you hold short positions, you will also be charged Stock Borrow Fee. When we receive share CFD orders, we are hedging the same volume as your order on the exchange, and if you short sell we will be required to procure the same volume of shares. Therefore, you will be required to pay Stock Borrow Fees to the lender. This is due to the fact that our share CFD is based on the DMA model, which means that we actually hedge our short positions in the market.

Please note that the Stock Borrow Fee is not a flat rate and varies from stock to stock.

Share CFD and IB SmartRoutingSM

When trading share CFD, IBKR executes your CFD order at the same time that it executes a hedge trade in the stock market. This means that the share price of the hedged trade executed by IB SmartRouting will be equal to the value of your CFD order. In practice, the best quote between the Tokyo Stock Exchange, CBOE Japan and Japannext is used as the CFD execution rate, and this rate is the same as the SMART rate for cash equity transactions.

Available Contracts

Please click here for available contracts.

Dividends and Corporate Actions

We will generally reflect the economic effect of the corporate action for CFD holders as if they had been holding the underlying security. Dividends are reflected as cash adjustments, while other actions may be reflected through either cash or position adjustments, or both. For example, where the corporate action results in a change of the number of shares (e.g. stock-split, reverse stock split), the number of CFDs will be adjusted accordingly. Where the action results in a new entity with listed shares, and we decide to offer these as CFDs, then new long or short positions will be created in the appropriate amount.

Clients' Assets Protection

In accordance with the provisions of the Financial Instruments and Exchange Act, the funds entrusted to us by our clients in relation to share CFD transactions are segregated from our company's assets and managed in a segregated trust account opened with Sumitomo Mitsui Banking Corporation.


Currently, CFD trading is available for selected global shares supported by IBSJ, excluding ETFs and REITs as underlying assets. The number of individual stocks will be expanded in the future. For more details, please refer to the list of contracts available for CFD in the page "Products and Exchange Search".

The prices of share CFDs are determined by the market price of the underlying stocks in the market that we selected as the best execution market. We do not make any spread adjustments or hold any positions against you in determining the price.

We use the DMA model for share CFDs trading, which means that non-immediate, non-marketable orders (limit orders) will remain on the exchange book where they are traded. Clients are able to trade at the same price as the buy or sell quote for the underlying Japanese stock.

We calculate risk-based margins based on the historical volatility of each underlying asset. The margin requirement for retail accounts is at least 20% and for corporate accounts it is at least 10%. Most of our share CFDs are subject to these margin rates, which allow for more leveraged trading compared to physical trading of the underlying asset. Even if a client has multiple positions in CFDs on Japanese stocks (or underlying stocks) that can offset market risk, the margin will be applied to each share CFD and will not be reduced. If you have more than a certain amount of positions, you may be required to pay additional margin. For more details, please refer to the page "Margin Requirements".

A compulsory repurchase occurs when, for whatever reason, you are unable to continue to borrow shares after a short sell share CFD order has been executed. Therefore, if you have held such a CFD position, it will be subject to compulsory repurchase.

We process corporate actions for clients who hold CFD positions to ensure that they receive the same economic benefits as holders of the underlying shares. Dividends will be reflected in the client's account through the receipt of a dividend equivalent, while other events will be reflected through the receipt of an adjustment or position adjustment. For example, if a corporate action results in a change in the number of shares (e.g. a stock split or reverse stock split), the volume of share CFDs held by the client will be adjusted accordingly. In the event of a new share issue, we will provide you with a CFD on the new shares, which will create a buy/sell position in line with the volume of the underlying shares.

Please note that in the event of a complex corporate action, such as a takeover, it may not be possible to adjust the CFD trading volume appropriately. In such cases, we will suspend CFD trading prior to the record date.

You can trade share CFDs if you have an IB-JP account with Interactive Brokers Securities Japan, Inc. Please note that you will need CFD trading permission prior to trading.

You will need to apply for CFD trade permission via the Client Portal to trade share CFDs. Once the trade permission has been approved in your account, you will be able to trade. Please note that you will be required to agree to a risk disclosure document in connection with your application. Please read it carefully before applying.

Market data on the underlying shares are usually required for trading share CFDs. If you wish, you can subscribe to the relevant exchange's market data on request (for a fee). If you have already subscribed to such market data, you do not need to subscribe to new market data.

You can find the execution history of your CFD trades in the "CFD" section of the "Trades" section of your Activity Statement and your open CFD positions in the "Open Positions" section.

Yes, you can.

Share CFDs are traded by us as your counterparty and are not cleared through an exchange or a clearing house. As such, you bear the financial and business risks, including our credit risk.

All client assets, whether individual or corporate, are segregated from our assets in a trust account with Sumitomo Mitsui Banking Corporation.

For more information on the risks associated with share CFD trading, please refer to the risk disclosure document on Over-the-Counter Derivatives Trading such as share CFDs.

You can trade CFDs on both accounts (subject to prior approval for the relevant trade permission).

There is no limit to the amount of positions that can be held in share CFDs. However, please note that if you hold more than a certain amount of positions, you may be subject to additional margin requirements. Please refer to Margin Requirements for more details.

We do not accept telephone orders, except in exceptional circumstances where we are placing a closing order for an open position.


Commissions and Fees
Trading commissions and other fees are payable in accordance with the rates, amounts and methods described in the "Commission Guidelines" for trading share CFDs.

In order to conduct share CFD trading, the client is required to deposit margin (cash only) as collateral as stated in our risk disclosure document.

Risk of loss of principal due to price fluctuations
Our share CFD transactions are conducted using the prices of individual stocks as the underlying assets. These prices may fluctuate, which may result in a profit or a loss.

Risk of loss in excess of principal due to price fluctuations
Share CFD transactions are high-risk transactions, and the amount of loss may exceed the amount of margin. Share CFDs have a leverage effect and are high-risk transactions where losses are largely dependent on fluctuations in the price of the underlying asset. The amount of loss may exceed the amount of margin because the amount of transaction is larger than the amount of margin required to be deposited by the customer for the transaction.

Risk associated with liquidations
To prevent clients from incurring losses in excess of the amount of margin deposited when trading share CFDs, we have established a rule to liquidate open positions in certain cases, but there is a risk that losses in excess of the amount of margin may occur due to sudden changes in market conditions.

Clients should monitor the status of their trading account at all times to ensure that they maintain sufficient funds to meet the margin requirements set by IB. IB will not notify Clients in advance of any margin shortage in the case of compulsory liquidations of open positions in the Client’s trading account or in the case of taking any other action stipulated in the General Terms and Conditions. In other words, in the event such as the margin ratio falling below a predetermined level, we will execute a mandatory liquidation to restore the margin amount without any intraday grace period, such as issuing a margin call to the Client.