CFDs are a brand new financial instrument related to existing financial products (such as futures), and Japan traded rice on the first official futures exchange in 1710.。

Late entry to the market did not affect its popularity。In fact, CFDs make the headlines in most financial newspapers and magazines month after month。

Interest in markets such as Australia has grown alarmingly since the launch of CFDs。

CFD trading originated in the 1990s and was initiated by a London derivatives brokerage firm called Smith New Court, which was later acquired by Merrill Lynch.。Customers of Smith New Court wanted to find a way to short the market while using leverage, so CFDs were born。

CFDs also provide customers with a way to avoid stamp duty, making the product more popular with traders。The reason there is no stamp duty is that with CFDs you do not hold physical shares.。

The first company to launch CFDs for retail clients was GNI, which created an online trading system called GNI Touch that traders can trade without having direct access to the London Stock Exchange.。GNI was subsequently acquired by MF Global in October 2002, becoming a world leader in futures and CFD trading.。

It wasn't until the late 1990s and early 2000s that CFDs really became mainstream in the European market, and soon after that, other countries opened their doors to that market.。

CFDs break out in Australian market

In 2002, CFDs entered the Australian market through CFDs broker IG Markets and were closely watched by CMC Markets.。When CMC Markets first introduced CFDs, the product was called dealforfree.Com。

Since CFDs are unheard of, not many traders believe that such a magical product exists。

When CMC Markets first launched in Australia, you were able to trade the top 200 shares of the Australian Stock Exchange on 5% margin (20x leverage) without brokerage commissions, and the benefits were incredible.。

Access to global markets

Opening a CFD account gives you access to many world markets, including:

Click the mouse to enter the global market

As the Internet reaches homes around the world, CFD trading becomes easier and truly amazing。As more baby boomers approach retirement and seek additional sources of income, CFD trading will continue to be a cost-effective option for many years to come.。

ASX-regulated contracts for differences

In Australia, the CFD market is largely unregulated, however, the ASX (Australian Securities Exchange) launched its own CFD exchange in November 2007, providing participants with additional protection from listing on the exchange.。

However, due to liquidity reasons and, in some cases, the increase in bid-ask spreads, the product has not attracted much interest from CFD traders。Currently, the market is booming and more and more traders are investing in it.