This Article will discuss CFD trading platforms available in Australia in 2022. However, the best ones will vary in features, Fees, and Customer Service.
How CFD Works In Australia
CFDs are derivatives contracts based on the price movements of assets like stocks, commodities, currencies, interest rates, indexes, etc. They allow investors to speculate on the future movement of asset prices.
In Australia, CFDs are regulated by ASIC under the Commodity Futures Trading Act 2004. There are four main types of CFDs:
• Spot Contracts – These are traded on exchanges like the ASX. Spot contracts are used when traders want to buy or sell physical goods like gold, oil, wheat, etc. Spot contracts are also known as cash forwards.
• Forward Contracts – These are contracts between two parties where one party agrees to purchase something from another party at some point in the future. For example, a forward contract may specify that a company will agree to buy 100 tonnes of iron ore from a supplier at $50 per tonne in six months.
• Swaps – These are contracts between counterparties where both sides agree to exchange different amounts of money over a specified period of time. For example, a swap may require a buyer to pay $100,000 to a seller in 12 months.
Swap contracts are similar to futures contracts but differ because swaps are usually settled immediately, whereas futures are typically settled after a certain time.
• Options – These are contracts between buyers and sellers where the buyer pays the seller a premium to enter into the agreement. The buyer receives the right to exercise the contract before its expiration date.
Options are very similar to futures contracts, except that options expire immediately.
CFDs are traded on exchanges like ASX, CME, LIFFE, NYMEX, ICE, Eurex, Chi-X, BATS, NASDAQ OMX PHLX, CBOE, etc.
CFDs are highly leveraged products and carry significant risks. Please read the relevant Product Disclosure Statement (“PDS”) for further information. Past performance is not indicative of future returns.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
You must be aware of all the risks involved with trading CFDs. Seek independent advice if necessary.
Risk Warning: Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all your invested capital.
Please ensure you fully understand the risks involved and seek independent advice if necessary. GFT does not guarantee nor accept liability for loss or damage due to reliance on the information contained within this website, including data, quotes, charts, and forex signals.
What Is The Best CFD Trading Platform?
The best CFD trading platform for Australian traders is TradeStation, which offers a wide range of features such as advanced charting tools, technical analysis indicators, and market data feeds. This allows users to trade stocks, commodities, indices, forex pairs, ETFs, futures contracts, options, and cryptocurrencies. Users can also access news and research reports from major financial institutions.
Are CFDs Allowed In Australia?
Yes, CFDs are allowed in Australia. However, they are only available for trading contracts based on shares, commodities, indices, foreign exchange rates, and precious metals. The Australian Securities & Investments Commission (ASIC) regulates all financial markets in Australia.
Do You Pay Tax On CFD Trading?
Yes, you do pay tax on CFD trading. But don’t worry; we have all the information you need about how to avoid taxes when trading CFDs.
Which Trading Platform Is Best For Beginners in Australia?
The best trading platform for beginners is Robinhood. This app allows users to trade stocks at no commission fees. Robinhood is available for both iOS and Android devices.
Top 8 Best CFD Trading Platforms In Australia 2022
There are many good CFD trading platforms available in Australia 2022. The list includes some of the most popular and reputable platforms, so it is perfect for anyone looking to get started in the world of CFD trading.
TradeStation is a leading provider of online trading software solutions for Forex, Futures, Options, Indices, Commodities, Stocks, ETFs, Cryptocurrencies, and Binary options. Their platform provides powerful tools for technical analysis, charting, automated trading, backtesting, and much more.
FXCM offers a wide range of products and services designed to help retail traders make money by providing access to financial markets around the world. From forex trading platforms to stock market news feeds, they provide everything necessary to trade successfully in today’s fast-paced marketplace.
Plus500 is a global leader in binary options trading, offering over 50 different types of trades including currency pairs, stocks, commodities, indices, and cryptocurrency pairs. As a fully regulated broker, Plus500 is licensed out of Cyprus and holds an “A+” rating with the Financial Services Authority (FSA).
4. IG Group
IG Group is a leading global broker that offers futures, forex, CFDs, cryptocurrencies, and stocks. Founded in 1998, its offerings have grown considerably over the years to meet the demands of modern traders. Currently, they offer nearly 200 instruments across various asset classes.
5. Interactive Brokers
Interactive Brokers was founded in 1990 and are now one of the largest providers of online trading platforms. They cater to both beginners and experienced traders.
6. Zen Trader
Zen Trader is a web-based application that enables investors to place trades in any instrument without opening an account at a brokerage firm. The platform features many advanced tools for active traders.
Quoine is a blockchain-based company that focuses on real-time crypto exchanges. They use native digital assets to pay for transactions and fees. They aim to create a true peer 2 peer exchange where users can easily buy and sell cryptocurrencies.
8.. CMC Markets
CMC markets is a leading financial services company offering trading platforms across various asset classes, including forex, indices, commodities, cryptocurrencies, equities, ETFs, bonds, futures, options, and derivatives.
The best CFD trading platforms in Australia 2022 are those that offer the best user experience, offer the most features.