With the increase in popularity of share trading by Australian investors, it is not surprising that more complicated trading platforms and products are being actively used by knowledgeable investors looking for additional trading opportunities. Contracts for differences, or CFDs, are a increasing in popularity in the Australian market. CFDs are derivative products whose main attraction is the large quantity of leverage they offer. Those with a good understanding of financial markets are attracted to CFDs, for their ease of use and simplicity. Often CFD traders are retail clients, institutional investors, hedge funds, day traders or the more sophisticated investors. CFDs, however, are usually not for the inexperienced trader or investor.
With astute traders aware of expenses and their impact on bottom-line gains, the question arises as to 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 based on part-time traders and full-time traders utilizing the Market Maker and Direct Market Access trading models. Cannex Canstar doesn't include newbie investors in their comparison, as they don't consider this product is appropriate for this sort of investor.
When assessing the CFD providers in Australia, consideration is given according to their pricing for Australian share CFDs, this comprises of brokerage and interest charges. Cannex Canstar also takes into account the features and versatility utilizing their services, risk management tools, in addition to their margin requirements. The Cannex Canstar methodology includes 200 pieces of data, making the scope of their CFD trading star ratings far more than the majority of traders could hope to compare by themselves. Their evaluation is dependent on CFD trading of ASX share CFDs. Cannex Canstar also provides extra points for having access to indices and other markets.
The Cannex Canstar rating considers the trading platform and services offered by CFD providers, incorporating order fulfillment, charting functionality, customer support, education, account management, information, choice of tradeable securities, brokerage, financing costs, etc. It is not a score of estimated returns from use of these services and by no means implies that an investor should have an expectation of positive returns. CFD trading is a self-managed activity and return of profits or losses depends upon the individual investor's judgments and behavior.
Past winners of the Cannex Canstar awards which are broken down into two different types being Direct Market Access (DMA) and Market Maker have been First Prudential Markets and IG Markets for their Direct Market Access (DMA) package and GFT and IG Markets for their Market Maker CFD product. The most recent candidate in the CFD market, International Capital Markets (IC Markets) is poised to take out the Cannex Canstar awards this year with its low cost Direct Market Access CFD package for full-time traders on the webiress trading platform.
Author Resource:-
John Benson is a skilled CFD trader with over 15 years trading experience in CFDs, Forex, Futures, Stocks and Options. John has written a number of publications and articles on day trading and investing in CFDs. John has first hand experience trading with a many of the CFD providers in Australia and abroad and has conducted a number of combined seminars and lectures on CFD trading with many of them.
![[Valid RSS feed]](http://www.e-book-catalog.com/articles-for-all/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
