CMC Catching Up With IG in Australia, Plus500 Tops City Index: Investment Trends

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.

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The study’s findings coincide with a period of low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term 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.

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 ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term, 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: