How The Elections Day Will Affect the Online CFD Trading Market

Online CFD trading is not currently available to US citizens, putting them at a severe disadvantage. Traders do not realize this until the day they trade CFDs.

The US Presidential Election Could Enhance Online CFD Trading

US citizens are currently not allowed to trade CFDs, due to regulatory restrictions. In the same way that leverage for US forex traders is limited to just 50 to 1. Leverage is not a big deal, traders can still profit from good trades, even at a 50 to 1 leverage. But not having access to CFD brokers is a severe disadvantage. Since it prevents US retail traders from accessing the best liquidity pools in the financial markets. Online CFD trading may finally become a reality for many US traders, who really need it. It all depends on the next elected government. Historical evidence hints that republican presidents are far more likely to loosen regulatory restrictions, and make derivatives trading in the US better. Many online CFD brokers are ready to offer their services to future US clients. And US traders are clever and fast enough to adapt such improvements, and seize up new trading opportunities. Some of which are really only possible through CFD trading. These traders are already contemplating some kind of CFD trading system.

How Soon Could US Traders See Online CFD Trading?

This largely depends on the securities and exchange commission, which regulates the derivatives market in the US. It is more than 50% likely that a new republican administration will make suggestions and present the benefits of the entire retail trading market. So that retail traders will be able to provide more and more liquidity to the financial markets. An action which will make markets somewhat less volatile. And less volatility means more stability for these markets. Online CFD trading can help get there faster. So it is possible to see online CFD trading available to US retail traders, in less than 2 years from now.

How Will CFD Trading Impact New US Traders

Beginner traders all over the world have a high rate of failure, which is around 70%. US traders have a slightly better chance of success. Because they have access to seminars and training materials that are not available in other countries. The advent of CFD trading will definitely allow these new traders to implement better and better strategies. It’s all a matter of personal determination, training, and the risk-control benefits that CFDs offer. US traders who are already successful, will want to switch to CFDs, and pursue trading CFD for a living. Since CFDs offer superior liquidity and therefore a better filling price. Which means that the profitability of already profitable systems will increase. If one looks at the history of stock options and commodity futures, and how they contributed to market stabilization. It will become apparent that the small retail trader benefits from reduced volatility. This doesn’t mean that volatility will go away, but that there will be fewer extreme range days in the markets. The stock market has been suffering from reduced liquidity in recent years, due to changes made. And volatility has actually increased. Unlike commodity markets which have remained stable for decades. And where price stability is of extreme importance for the entire US economy and the rest of the world as well.