CFD Trading Markets in Australia


The Australian foreign exchange introduced cfd trading in Australia some years back and ever since the introduction, more and more Australians have taken the initiative to actively trade in cfds. Introducing cfd trading meant that investors could easily use differences contracts to gain entry into the foreign exchange market without breaking their bank accounts to pay for brokerage fees.

Before the introduction of cfd trading, trading fees on other markets was high but this came down to trading at $10 for every cfd transaction made. This great innovative move allowed many traders to join in on the benefits that would come with cfd trading. The move however did not prevent many retail traders from coming up with various trading methods that included trading over the counter, executed as a market provider party and a trade counter.

To counter this method of trading, some brokers came together with a counter method of indexing traded cfds exchange. This move garnered more support from many willing traders became interested in cfd trading in Australia.

Trading Markets in Australia

Today, Australia has more than 30,000 traders involved with different cfd tools trading. Compared to a few years ago, this huge increase is all due to more flexibility and efficiency of the trading tools in the market and reliable, honest cfd trading brokers. The popular trading markets in Australia are;

·        Forex trading

Forex trading remains the biggest trading market in the country. It beats all the other markets in terms of operation, volume, asset value and the ready provision of liquidity among other benefits. The resurgence of trusted and good trader to mage forex accounts is also another factor that makes it the most popular market.

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·        Index trading

Index trading in Australia follows the prices set by the largest 200 Australian companies listed on the stock exchange. Known as Australia 200, many traders opt for index trading especially when it becomes hard to identify other opportunities in the market due to volatile conditions. The big 200 help traders to get more exposure so that they can expand some particular stock plans for the sole purpose of regulating the national trading markets.

·        Commodity trading

As commodity trading continues to rise, what happens in other parts of the world largely affects commodity trading in Australia. One good example is the rise of china as one the world’s leaders as a commodity provider and manufacturer. Chinas rise to glory has pushed up the growth the growth of interest on commodities.

This move and many others like this are the forces behind Australian traders embracing cfd trading on commodities that come with much lower costs on transactions. Some of the commodities that have seen a rise in interest are oil, gold, metal and petroleum products, and some agriculture products. People can take advantage of deals just as good as in other countries, getting access to the best gold prices.

·        Shares and equity trading

Other very common trading markets in Australia are shares, stocks and equity trading. Shares are great because they offer regular dividends and with the right broker, you can get the best deals in the stock market. Investing in shares can go both ways. If the stock market you buy into does well, then your shares do well too.

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If the stock market crumbles, then the value of your investment goes down too. However, with all the risks involved, trading in shares provides more returns than other investments in the end. Make sure to learn everything you need to know from your cfd broker before investing in shares and stocks.

Wrapping it up

CFD trading Australia continues to grow and it has come from far. Traders in Australia now have the option of choosing from many available cfd platforms in the market with the surety that the people representing their interests are reliable, trustworthy and have good reputations. The reason why it is necessary to trust your investment with trustworthy and dependable cfd brokers is so that your investment feels safe and you can have the surety of reaping profits. The Australian Regulatory Body also provides a conducive trading environment for the many traders making it easier to trade with ease.


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