A leading researcher in financial markets has named IG Markets as the number one CFD provider for active traders, new traders and traders switching from other providers in Australia.
According to the sixth annual report by Investment Trends, a specialist market research organisation in the financial services sector, in the twelve months to May 2011 the volume of trading on underlying markets shifted, moving away from shares to forex trading, which accounted for 27% of CFD trades over the year. This does not come as a great surprise with the amount of coverage global currencies have received over the last 12 months.
The report also highlighted that the growth in the number of active CFD traders slowed. However, there was still significant movement within the industry with many traders switching between providers ‐ with over a third of switchers moving to IG Markets. Charting and platform features were cited as important factors for CFD clients moving providers. Demonstration accounts played an important role too, with almost half of those who opened one, using it to compare platforms. IG Markets received the highest satisfaction scores for the range of markets available, trading platform features, charting, reporting and trading tools.
Forexmagnates has been closely monitoring the competitive FX environment which shows phenomenal growth and an influx of new brokers.
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Australia’s financial markets are very sophisticated and as well as derivatives traders are active in ETF’s. A report shows there are about 53,500 investors active in ETFs in Australia since the start of this year (2011), the number could grow to somewhere between 72,000 and 80,000 by the end of 2012. This is a fair amount as the total retail online share trading market stands at about 700,000.
ASIC has closely been monitoring the FX industry, in particular high leverage accounts offered by brokers. In addition ASIC has been monitoring the use of algos and is keen to ensure that Australia is ‘clean’ and transparent. ASIC earlier Wednesday published its second report on the supervision of markets. In the year’s first six months, ASIC has investigated six cases of potential market manipulation and a further ten breaches of market integrity rules. In some of these cases, charges have been filed in cases that will soon go to the country’s court system.
With 16 million internet users, a healthy and stable economy; the use of online trading will certainly see strong growth.