This article is not a recommendation to trade with any particular broker.
You would have heard of CMC Markets when it comes to CFD trading.
CMC Markets is one of the earliest CFD providers or brokers in the field and in the beginning they provided commission free trading but then, as with most other providers, have 0.1% commission.
It is a commission of 0.1% or 10 basis points, with a minimum commission of $10.
Their range of markets for share include the:
Asian markets (Hong Kong’s HangSeng, Japan’s NIKKEI, Singapore’s SGX)
New Zealand NZX
UK’s FTSE, the US market (FJIA, NASDAQ, S&P, Canada’s TSX, and
European market and others.
And the margin is around 10% for most of these share CFD instruments.
There’s also index CFDs including the AUSSIE200, UK 100, US30, SPX500, NDAQ100 with a margin of around 1% for most, which represents more leverage (and less margin required) when compared to share CFDs.
And also there are sector CFDS, treasury CFDs and commodity CFDs as well.
You can trade shares, contracts for difference and FX (forex) CFDs also, so if you trade a variety of instruments, then you can do it on 1 platform.
In 2008, there was a lot of changes in CFD platforms when there was a ban on short selling in Australia, but this was lifted in May 2009.
The factors to look at with any provider are:
1. Conditions of trading such as commissions per trade (percentage and minimum), margin and spread (see their demo and real platform for the instruments you trade)
2. The instruments you want to trade
3. The type of trades (market, limit, stops)
4. The ease of use of the platform
5. Demo trading to ensure you are happy with the trade execution
And of course, when you open an account and trade for real is the way to fully tell the performance of the CFD provider. And this includes customer support if you ever need this, and as usual, see any other terms and conditions of the provider.
And one final consideration is the reputation and stability of the company as well, as you want a company that will stay.
CMC Markets Background
CMC is a global spread betting and CFD provider, and in Australia, the CMC Markets is the trading name of CMC Markets Asia Pacific Pty Ltd, and thus you may have of their various names used around the world.