If you hold a stock CFD product, you will be involved in the distribution of dividends.
Your equity will be registered when you hold a long position on the stock overnight (22:00 London Time) on the day before the date of the ex-divided date. Your dividend rights will be registered as debt against you when you hold a short position on the stock overnight (22:00 London Time) on the day before the date of the ex-divided date. When the stock market opens the next day, the ex-dividend price will cause the price to change. In the next few days, you will receive a registered dividend or debt and will be reflected directly in your trading account. If you received a dividend, it will be deducted a short-term withholding tax of 30% according to the the US IRS. Since we are an OTC broker, we will not process your W-8BEN-E form regardless a treaty between US and your residence country.
For example, Apple Inc (AAPL^) announced a corporate action to pay a $1-per-share dividend. If you hold a stock CFD AAPL^ long 120 shares overnight the night before the ex-divided date, you will receive "120 shares x 1 USD x (1-30% Tax) = US$84" in dividend income over the next few days. But if you hold 50 shares overnight the night before the ex-divided date, you will be deducted "50 shares x $1 = $50" in debt from your trade account over the next few days.
If you hold a stock CFD product, you will also be involved when the stock is in splitting or consolidation.
If you hold a stock CFD position that the underlying stock split or consolidation has been made, and we will also split or consolidate your positions on the same date. If after a split or consolidation, a non-integer portion of your position appears, we will rounded it to the integer section according to the circumstances at the time, and will value the non-integer portion that being rounded as the adjustment in your account balance.
There is a corporate action section on the Stock CFD, which is published in the "System Status" in our website, and you can generally see these messages a week in advance.