I have often wondered if there are some participants who don't pay the stamp duty but have never been able to figure it out. The LSE does not have market makers like on the NYSE and the entire thing is electronic i.e. no floor.
i just came across them too .they seem interesting . fxstreet promoted http://www.gcitrading.com but they are from cayman offshore . Anyone heard of these guys ?
Why do most people trade cfd? because they are under capitalized, you can trade with 90% to 99% on margin and at the same time you will will pay about 0.40% to 1% in commission (r/t), also you pay about 7% interest rate (you receive 7% if you are short). And those are the"reelable" brokers with direct access, like Man financial, gni, city index, blue index etc. Not some shit firm like cmc or gci etc.
I've now seen two CFD firms pop up in Canada, but it looks like both have some fairly high barriers to entry. You either have to have a net worth of $1,000,000 plus, make $200,000 per year or be registered with the OSC (I haven't bothered to call either of them up to see which particular type of registration they are looking for...). If one is looking for leverage, I think that futures (and perhaps options) are a much better choice.
What about single stock futues. Isnt that the same idea . is the leverage there ? Why are most old school trders afraid of leverage. If you control your stops why the concerns. I would rather keep 10K in an ac rather than 50K . It scares me to leave more than 10K in an account with all the scams out there(refco) .
As an American citizen you cant trade CFD`s, due to regulationsâ¦I donât know if things have changed.
They are missing out. Whats the reasoning though? ---------------------------------------------------------------------- CFD Brokers Comparison
Direct Access to what? The CFD firm is the market. There might be a situation if your are British and for some tax or hedging reason you would want to trade CFDs but otherwise stay clear. It is likely that a lot of these firms are like some of the the cash FX firms that try to bleed you account dry by hitting your stops and giving you bad fills.