CFD Providers

Comparison table

Here is a quick comparison table of CFD providers with criteria that concerns me.

UK CFD Provider Comparison table

Provider ASX Feed Cost ASX CFD Commission Long/Short Interest
IG Markets AUD 37.50/month, free if you trade 4 times in that month. AUD max($8, 0.10% of trade value) +/- 2.5% LIBOR
CMC Markets ? AUD max($8, 0.08% of trade value) +/- 3.0% LIBOR

Best CFD Provider based on trade duration

Duration Description Best Provider
Intraday CFD trade No interest payable overnight. CMC Markets, as the trade value will be 16 bp. IG Markets will cost 20 bp
Multi day CFD Trade Assume the total transaction size is constant, and you know how in advance how many days to hold. Use IGMarkets for trades longer than 29 days. CMC markets for shorter trades.

Multi day CFD Trade workings

Calculate days held by solving: IG vs. CMC

2 x IG_commission + (days_held / 365) x (LIBOR + IG_interest_spread) = 2 x CMC_commission + (days_held / 365) x (LIBOR + CMC_interest_spread)

2 x 0.0008 + (days_held / 365) x (LIBOR + 0.025) = 2 x 0.0010 + (days_held / 365) x (LIBOR + 0.03)

(days_held / 365) * (LIBOR + 0.025) = 2 x (0.0010 - 0.0008) + (days_held / 365) x (LIBOR + 0.03)

(days_held / 365) * (LIBOR + 0.025) = 0.0004 + (days_held / 365) x (LIBOR + 0.03)

(days_held / 365) * (LIBOR + 0.025) - (days_held / 365) x (LIBOR + 0.03) = 0.0004

(days_held / 365) * (LIBOR + 0.025 - (LIBOR + 0.03)) = 0.0004

(days_held / 365) * 0.005 = 0.0004

days_held = 365 * (0.04 / 0.05)

days_held = 29.2

So if you hold the trade for longer than 29 days then use IGMarkets. Otherwise its more cost effective to use CMC markets.

CMC Markets

CMC Markets are not publicly listed, as far as I can tell.

See CFD Provider comparison for the UK.