This post was written in collaboration with IG. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best recommendations and advice in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.
It is no secret that Singaporeans love to travel, and even more so, get a good bargain on their flights tickets. A good way to marry these two and get discounted air ticket prices is by using KrisFlyer miles, especially for long haul flights that might cost a hefty sum. These KrisFlyer miles are traditionally attained when you purchase flights via Singapore Airlines and collected when you travel.
But what if we were to tell you that you could now earn KrisFlyer Miles through the investments you make? Now before you get us totally wrong, it doesn’t mean that your returns from your investments come in the form of KrisFlyer Miles. What we are talking about is a new promotion by IG, the No.1 CFD provider* in Singapore.
How do you earn KrisFlyer miles whilst trading?
Follow these 4 simple steps to start earning KrisFlyer miles from your trades.
- Open an account from this link before 31 December 2018
- Get a confirmation email upon opening your account and register your KrisFlyer membership details
- Fund your account with a minimum of $5,000
- Place trades by 31 January 2019 and earn KrisFlyer miles according to your aggregated contract value (USD).
Here’s a simple video to summarize all this:
How much can you earn?
|Initial Deposit||Aggregate Contract Value (USD)||Bonus KrisFlyer miles payable to new clients|
All the miles you have accrued will be credited within 21 working days after the end of the trading period (i.e 31 January 2019), which means you can accumulate trades across the duration of the promotion. This means you don’t have to worry about hitting that highest tier at one shot.
Why is the Aggregate Contract Value so much higher than my initial deposit?
You might be wondering how you are going to reach such a high contract value with such a small deposit, here’s a quick summary of how Contract for Difference (CFD) products work:
Essentially, a CFD is basically the difference in price between when a trade was entered and when it was exited. The CFD follows the movement of the asset underlying it, e.g. a stock so you don’t actually own the asset, but you realise either a profit or a loss when the underlying asset moves either upwards or downwards in relation to the initial purchase price. It is called a contract because this is essentially a contract between you and the broker to trade the stock without actually owning it.
One of the key difference between trading CFDs and normal stocks is that CFDs allow you to trade on a margin, which means that your initial capital required to make the trade is a lot lesser than purchasing the same quantity of the actual stock itself. This allows people to use a leverage where they are able to buy a much higher position for much less. Let’s say a CFD broker provides you with a leverage of 50:1, you could essentially trade a CFD by starting a position of $50,000 with only an initial investment of $1,000.
As you can see, this is why the aggregate contract values are higher. It is also important to recognise that there are risks present with any investment, the good thing is that there are many features on IG’s platform that allows you to mitigate your trades losses by placing guaranteed stops. If you haven’t read our article on how effectively using the alerts on their platform can make trading a lot more stress free, you should.
Summary of promotion
Here are the key details of the promotion:
- Date to open an account: 17 September 2018 – 31 December 2018
- Minimum funding amount : SGD$5,000
- Trading period: 17 September 2018 – 31 January 2019
- Where to sign up for the account: ig.com.sg/KF
Want to find out more and be closer to redeeming your next holiday?
Head on over to the IG website for more information.
Personal finance tips delivered to your inbox!
Receive news, subscriber-exclusive promotions and guides on how to become smarter with money.
We promise never to spam you!