How CFD started
Contracts for Difference (CFD) was introduced in the early 1990s in the United Kingdom and was initially used by Institution and Hedge Fund Traders as a means to hedge their exposure to the volatile stock market. It was a cost effective method for these early players in CFD due to the leverage provided. They are also able to avoid paying taxes since there are no actual trading of the underlying instruments.
In less than a decade, the popularity spread to retail investors, due to the increasing use of online trading brokers that made it easier for retail traders to track "live" prices and trade in real time. Use of CFD by retail investors expanded from stocks traded in the London Stock Exchange, to include global indexes, stocks, commodities and even currencies.
Contracts for Difference (CFD) was introduced in the early 1990s in the United Kingdom and was initially used by Institution and Hedge Fund Traders as a means to hedge their exposure to the volatile stock market. It was a cost effective method for these early players in CFD due to the leverage provided. They are also able to avoid paying taxes since there are no actual trading of the underlying instruments.
In less than a decade, the popularity spread to retail investors, due to the increasing use of online trading brokers that made it easier for retail traders to track "live" prices and trade in real time. Use of CFD by retail investors expanded from stocks traded in the London Stock Exchange, to include global indexes, stocks, commodities and even currencies.
The beginning of CFD trading in Singapore
CFD was introduced in Singapore in 2003 by Phillip Securities. With education and improved financial maturity, CFD has become a useful all-in-one trading instrument by a niche group of traders. More CFD brokers have started operation in Singapore, with traditional brokers also beginning to offer CFD trading within their traditional platform. With time, it is expected that CFD traing will gain traction to gain a larger market share in Singapore, when more traders switch from the conventional broker houses.
Increasing popularity around the World
Within a few years, CFD brokers start to expand overseas. Australia was the next country to incept CFD trading in 2002. Since then, CFD trading have been popular and introduced to countries includingUK , Germany , Switzerland , Sweden , The
Netherlands, Italy , Norway ,
France , Ireland ,
Spain , Canada ,
South Africa , Japan ,
Hong Kong , Australia ,
Canada , New Zealand
and Singapore .
Within a few years, CFD brokers start to expand overseas. Australia was the next country to incept CFD trading in 2002. Since then, CFD trading have been popular and introduced to countries including
