With the rise in popularity of share trading by Australian investors, it isn’t unexpected that more sophisticated trading platforms and products are being actively utilized by knowledgeable investors searching for additional buying and selling opportunities. Contracts for differences, or CFDs, are a growing in acceptance in the Australian market. CFDs are derivative products whose main attraction is the high amount of leverage they offer. Those with a strong understanding of financial markets are interested in CFDs, for their ease of use and simplicity. Often CFD traders are retail clients, institutional investors, hedge funds, day traders or the more savvy investors. CFDs, however, are usually not for the inexperienced trader or investor.
With shrewd traders aware of costs and their effect on bottom-line gains, the question arises regarding which CFD provider offers better value. Yearly Cannex Canstar analyses products from CFD providers in Australia to compile its detailed analysis on CFD trading. CFD providers are assessed according to part-time traders and full-time traders utilizing the Market Maker and Direct Market Access trading models. Cannex Canstar does not include newbie investors in their assessment, as they don’t consider this product is suitable for this type of investor.
When assessing the CFD providers in Australia, consideration is given based on their pricing for Australian equity CFDs, this includes brokerage and financing charges. Cannex Canstar also takes into consideration the features and flexibility of using their services, risk management tools, along with their margin requirements. The Cannex Canstar methodology consists of 200 pieces of data, making the scope of their CFD trading star ratings far more than most traders could hope to compare by themselves. Their assessment is based on CFD trading of ASX share CFDs. Cannex Canstar also gives bonus points for having access to indices and extra markets.
The Cannex Canstar rating considers the trading platform and services offered by CFD providers, incorporating order fulfillment, charting capabilities, client support, education, account administration, information, range of tradeable securities, commission, financing costs, etc. It isn’t a ranking of expected returns from use of these services and in no way implies that an investor should have an expectation of positive returns. CFD trading is usually a self-managed activity and return of profits or losses is dependent upon the individual investor’s judgments and behavior.
Past winners of the Cannex Canstar awards which are broken down into two categories being Direct Market Access (DMA) and Market Maker have been First Prudential Markets and IG Markets for their Direct Market Access (DMA) offering and GFT and IG Markets for their Market Maker CFD product. The most recent contestant in the CFD market, International Capital Markets (IC Markets) is poised to take out the Cannex Canstar CFD awards this year with its low cost Direct Market Access CFD package for full-time traders on the webiress trading platform.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
