Why Traders Prefer Online CFD Trading

Online CFD trading offers same profitability as the spot market, but at better liquidity conditions and better efficiency, which no other instrument offers.

Online CFD Trading Gains in Popularity

More and more demanding traders switch to online CFD trading, as it offers them better exposure to the market, without the big liquidity risks. Most CFD trading platforms are suitable for trading up to quite large size, typically up to $100 per pip for currencies, and also quite high for stocks and commodities as well, such as gold. So these limits are not actual limits, but rather levels below which all CFD platforms offer the best benefits a trader can get, and a good trading strategy is significantly enhanced as a result. The online trading Australia’s brokerage industry offers today is very good and competitive. In fact Australia’s brokers offer more to their clients in term of level of service, leverage and even liquidity than many US brokers offer to their clients. CFDs in particular are most popular in Europe and Australia than anywhere else. Traders prefer CFDs for various reasons, but solid liquidity has to be the number one reason. The second most obvious reason is high leverage, which makes trading and investing in commodities so much more affordable. With leverage rates up to 200 to 1, one can only imagine the possibilities in the hands of a wise commodities trader. Oftentimes, gold and silver traders use CFD contracts because of these reasons, as gold in particular tends to become illiquid at times and even the best brokers suffer as a result. Poor liquidity means traders cannot close profitable trades fast enough while the market starts moving against them on profit taking, this factor alone can eat into profits very fast. So the CFD gold trader has a huge advantage over the spot gold trader during such times.

Every Trader Wants to Have Maximum Efficiency

Efficiency in trading is key, whether through better liquidity or better leverage, the wise trader knows how to handle the conditions as best a they possibly can, all in the interests of trading success. The reason online CFD trading caught on so well is precisely because of these traders, who will not settle for anything less than the best out there. As soon as something new and innovative comes out, they spot it, and grab it. CFD trading was an innovating step towards better trading. The CFD trading Australia’s brokerage firms offer is of professional level, and can meet the needs to all traders trading up to $100 per pip /point in most markets. For larger trading volumes, some CFD brokers may be better than others, but it certainly possible to extend CFD trading with the right broker, even beyond $100 per pip or point. In the case of gold alone, CFDs have won hands down, and no other trading instrument even comes close to CFDs.