The Investment Trends 2017 Australia CFD Report has been released. The annual survey, taken amongst 12,000 investors, was conducted in May 2017. The data gathered includes perceptions of traders regarding the market in Australia.
According to the report, the total number of CFD traders in the country is steady, but is hampered by high rates of dormancy. Investment Trends lists the total number of Australian CFD traders at around 37,000, which is unchanged when compared to the previous year. The number represents clients of brokerages that have placed at least one trade during the past 12 months.
The study’s findings coincide with a period of low volatility across multiple asset classes, which has greatly affected trading volumes at a number of brokerages worldwide. Market trends however did not affect growth in markets such as in the UK, Spain and Germany, where Investment Trends reported material growth.
Commenting on the results, the Research Director at Investment Trends, Dr Irene Guiamatsia, said: “High levels of client dormancy are outweighing the industry’s strong client inflows. The 17,000 individuals who stopped trading CFDs in 2017 represented 46 percent of the trader population.”
“Australia has one of the highest rates of dormancy relative to other international markets covered by Investment Trends, and this is impeding growth,” she added.
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IG Retains Crown with 35% of the Market
IG Group’s Australian subsidiary continues to dominate the market. CMC Markets is closing the gap and Plus500 tops City Index for third spot. The lead of IG Group still looms large – 35 percent of all traders are with the London-headquartered brokerage company.
“CMC Markets and Plus500 were the largest movers by primary market share in 2017. Relatively new entrant Pepperstone successfully made it into the top 10 this year, demonstrating that many providers are serious about competing in this market,” said Guiamatsia.
Client Satisfaction at Record Levels
Clients of Australian CFD providers have continued to enjoy a great level of service. Under the strict supervision of ASIC, 95 percent of all clients rated the services of their broker as ‘good’ or ‘very good’. The number is a record high for the survey.
“CFD providers are doing well at maintaining their client relationships. This has at least in part contributed to the low levels of switching activity observed across the industry,” explained Guiamatsia.
The survey highlighted the best performers in different areas of the survey: