Around eight to ten years ago CFD trading was introduced in Australian markets and a couple years later Trade appeared. CFDs threatened the revenue model of the discount brokers because through CFD trading in Australia, retail traders could access the different markets with minimum brokerages and these alarmed brokers from the traditional markets. CFD trading also introduced new innovations and new features and this brought a new revolution to the financial trading industry in Australia.
CFD trading through Trade reduces the trading costs The CFD providers in Australia charged as low as $10 per transaction which was lower in comparison to $20-30 standard at that time. This saw an overwhelmed response from the investors and this boosted the interest in the CFD trading through Trade. The availability of CFDs for all the major markets was also the reason for the rapid growth of CFD trading in Australia.
CFD trading in Australia today there are more than 30000 traders in Australia performing trades in CFD instruments and this is more than 400 % in just ten years. The CFD trading today is open for a wide range of markets and the interest of the trader depends upon his choice of underlying instruments. The most popular CFD trading markets at Trade today are:
This market is the biggest financial market in the world which operates 24X7 and provides highest liquidity in the world. Index- Stock indices like S&P500, the DAX, FTSE, Australia 200 and many others are the compiled indicators which are used to track national markets. They enable traders to earn an exposure to national stock portfolios.
The interest in trading commodities has grown rapidly with the rise of China as industrial giant. The growing CFD trade on the areas like oil and gold, agricultural products and petroleum based products shows that Australian traders are showing interests on basic and raw commodities with minimum margin and costs of transaction.
To conclude SIC which is Australian Securities and Investment Commissions is effective in creating a positive trade environment in Australia. CFD trading Australia is well developed and the traders in Australia have lot of CFD platforms to choose from. Based on the services offered by the Australian brokers, CFD traders in Australia can choose the market they like and start trading CFDs instantly. Due to the increase in the number of CFD brokers as well as CFD traders in Australia, the competition has grown up and this enables brokers to allow a lot of attractive features as well as lowering of the commissions and the fees.
The first step in starting CFD trading via Trade is a careful selection of the platform. You need to make sure that all your requirements for CFD trading is met through a good platform and a good CFD broker in Australia and thereafter you can start trading CFDs with successful strategies and discipline in place.