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CFDs
CFD providers battle it out for top spot
CS - November 20, 2008
A snapshot of the CFD industry has just been released and there is movement in the ranks as the top players battle it out for the top spots.
The Investment Trends’ 2008 Contracts for Difference Report – which is based on an online survey of 8,000 investors, including 2,000 CFD traders - reveals some telling insights into the state of the CFD industry in Australia.
Most interesting is who owns what in market share.
Ranking of CFD providers in terms of market share
According to Investment Trends, CMC Markets continues to take out the top spot with a 32 per cent market share, followed by IG Markets (27%), MF Global (18%) and MQ Prime (7%). MF Global’s market share includes its white labelled offerings.
Interestingly, the much-vaunted ASX CFDs only accounts for about 1% of the total volume of CFD trades.
Below is a list of the 2008 rankings.
2008 Rank – Top CFD providers based on market share
1. CMC Markets
2. IG Markets
3. MF Global
4. MQ Prime
5. First Prudential Markets
6. ANZ/E*Trade
7. CommSec
8. City Index
9. Sonray
10. Tricom
11. Marketech
12. GET Financial
Today, IG Markets is hot on the heels of market leader CMC Markets, whose market share has headed south since 2005 when it owned a massive 60 per cent share of the CFD market. Since then its share has tumbled to 32%, according to the report.
Other providers losing market share over the past year include E*TRADE tumbling from 3rd place in the 2007 rankings to 6th place today. Sonray & GET Financial have also lost ground.
For comparison purposes, here is a list of the 2007 rankings.
2007 Rank – Top CFD providers based on market share
1. CMC Markets
2. IG Markets
3. E*TRADE
4. MF Global
5. MQ Prime
6. First Prudential Markets
7. City Index
8. Sonray
9. CommSec
10. Tricom
11. GET Financial
12. Marketech
Clearly, the biggest gainers in market share over the past few years are IG Markets, MQ Prime, MF Global, CommSec and First Prudential Markets.
The report also noted that the number of CFD traders in Australia has fallen from 31,000 in April 2007 to 26,000 in August 2008 – largely due to high levels of market volatility.
However the good news for CFD providers is that the report shows that a further 33,000 investors intend to trade CFDs within the next 12 months.
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CFDs: CFD providers battle it out for top spot
Markets: US, European stocks take another dive
Global Crisis: US economic woes deepen after data
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Global Crisis: Crisis 'could mean bargains for China'
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