Brokerage and Day Trading

Traditionally, the capital market was only available to large entities trading for commercial and investment purposes through banks, however, now electronic trading platforms have allowed smaller financial institutions and retail investors to access a similar level of liquidity as the major banks by offering a gateway to the primary and interbank market.

Contract for Difference

The 'CFD' (Contract for Difference) are any type of financial instrument including shares, Forex, indices and commodities, and were developed to provide clients with the benefits of owning a stock, Forex, index or commodity position without having to own the instrument itself. For example, instead of purchasing 1,000 shares of a company from a stockbroker, a client can instead buy 10 CFDs on a trading platform. A $5 per share rise in the price of any given company gives the client a $5,000 profit, just as if he had purchased the actual shares traded on the exchange. The major benefits of trading with CFDs are that there are no exchange fees and that many of the inefficiencies of trading with shares on the exchange are eliminated. The other major benefit of trading a CFD is the fact that the client can trade on margin. CFD trading means clients can trade a full portfolio of shares, indices or commodities without having to tie up large amounts of capital. Using the example above, a client purchasing $50,000 worth of CFD shares will only be asked for $1,000 margin.

Brokerage Accounts

Committed to improve our clients' trading experience, our partners offer a whole range of accounts to suit all kinds of trader preferences. Some of the accounts are more suitable for trading smaller amounts, whilst others are more suitable for larger trading volumes and professional-level trading. We also accept existing brokerage accounts, however, under the condition that they're able to open up accounts for Cayman Island companies. Therefore it is crucial to contact us before you open any brokerage account so that we can prepare all the paperwork for you.

Risks and Alternatives

Trading does however include risks, as the majority of market participants fail to achieve a positive performance. This is due to people acting irrationally because of behaviour anomalies, such as emotions like fear, greed and arrogance. For this reason only experienced traders should open up a brokerage account. For investors without the time and the experience Cayman Invest offers traditional saving accounts or mutual funds. Please contact us if you wish to combine these products with our Offshore solutions.