Author: Cubone Wu Blockchain
This article does not constitute any investment advice. Readers should strictly comply with local laws and regulations and not participate in illegal financial activities.
On May 19, 2025, Bybit launched US stock CFD (Contract for Difference) functionality on its MT5 Gold & FX platform, initially supporting 78 listed US companies across technology, finance, consumer, and other industries. Most targets provide a default maximum leverage of 5x, which users cannot manually adjust, with specific multiples available on the official website.
CFDs allow users to trade in both directions without actually holding stocks, enhancing capital efficiency through leverage, but also requiring users to bear higher volatility risks. Since users do not own the underlying assets, they do not enjoy shareholder rights such as voting. When a company distributes cash dividends, the platform will make cash adjustments based on user position direction: long positions receive compensation, while short positions need to pay the corresponding amount. For stock dividends involving company stock issuance, the platform will not issue or deduct rights.
Account Opening Process and System Configuration
Users can open an MT5 account with one click on the "Gold & Forex" page of Bybit's web or mobile platform, with the system automatically assigning login ID and investor password (read-only). Real-time internal transfers are supported between the main site USDT wallet and MT5 account, allowing flexible and efficient fund allocation.
Using MT5 functionality requires completing KYC Level 2 or enterprise certification to meet anti-money laundering compliance requirements.
Trading operations are executed through the MetaTrader 5 client, with MT5 services provided by Infra Capital Limited, and Bybit has signed a related cooperation agreement with Infra Capital Limited.
Major Risk Warnings
1) Leverage Risk: The platform provides up to 5x leverage, amplifying potential losses while increasing potential gains. When the account margin level drops below 50%, the forced liquidation mechanism will be triggered, closing positions in order of "maximum loss priority" using market prices at the time, which may deviate from expectations.
2) Liquidity and Execution Risk: The platform uses an ECN-like spread structure, providing original market quotes without additional points. However, without disclosing liquidity providers, order execution paths, and transaction quality reports, users may find it difficult to verify transaction reasonableness during extreme market conditions, presenting risks of slippage and insufficient transparency.
3) Asset Rights Restrictions: CFDs are derivative financial instruments. Users do not actually hold underlying stocks and cannot exercise voting rights or participate in corporate governance. During cash dividend distribution, the platform will adjust cash based on user position direction: long positions receive compensation, short positions pay the corresponding amount. For stock dividends involving company stock issuance, the platform will not issue or deduct rights.
4) Judicial Compliance Restrictions: Bybit's user agreement explicitly states that the platform cannot provide CFD services to users in restricted jurisdictions such as the United States and Japan. Users must understand and confirm local regulatory requirements to ensure legal and compliant trading.
5) Position Cost Risks: Trading involves spreads, opening commissions, overnight interest (Swap), etc. Especially during long-term holding, these costs may continuously erode returns, potentially causing net value decline even without significant losses.
Additionally, MT5 charts default to displaying only Bid prices, while buying or closing short positions typically execute at Ask prices, creating a systematic price difference between chart display and actual transaction prices, which is a platform design setting, not a matching anomaly.
Transaction Costs and Advantage-Disadvantage Analysis
Bybit stock CFD adopts a fixed commission model: 0.04 USD per share for opening, with a minimum of 5 USD, and no fees for closing. Overnight interest settles daily at UTC+3 00:00, with triple inventory fees on Fridays to cover weekends, and holiday adjustments as announced.
Compared to traditional financial platforms, Bybit has certain advantages:
1) Lower account opening threshold: Users can open MT5 through the main site crypto account without providing traditional background information like investment experience or asset sources, with a streamlined process suitable for crypto-native users.
2) Convenient fund transfer: Supports USDT as margin and settlement unit, with instant internal transfers between main site wallet and MT5 account, avoiding bank wire or third-party payment channel time and costs.
3) More friendly to small-scale traders: Compared to IG (0.02 USD/share, minimum 15 USD) and CMC Markets (0.02 USD/share, minimum 10 USD), Bybit charges a fixed 0.04 USD/share with a minimum of only 5 USD, more suitable for small-scale traders.
However, there are also disadvantages:
Compared to traditional financial institutions, Bybit MT5 function still has significant gaps in compliance framework and transparency disclosure. Currently known information shows that MT5 service is provided by Infra Capital Limited, registered in Mauritius, holding only an SEC-2.1B investment trading license from the Mauritius Financial Services Commission (excluding underwriting). This license is only applicable to local Mauritius regulation and cannot cover major markets like EU, UK, US, and Japan, lacking cross-border validity.
Future Development
Bybit CEO Ben stated in a May 3, 2025 livestream that they plan to "de-MT5" by the end of this quarter, allowing users to trade stock indices, gold, oil, and US stocks directly on the main site without additional client installation. Bybit also plans to actively pursue regulatory licenses in Europe, Southeast Asia, and Hong Kong, and update and expand derivative product structures.
