Key findings of the Investment Trends 2014 Australia CFD Report:
– Contrary to the global trend, the Australian CFD market grew in trader numbers despite low volatility in 2014
– Usage of mobile trading surged among frequent traders
– Overall satisfaction eased at an industry level but remains high
– IG’s improved mobile trading, CMC Markets’ platform upgrades and City Index’ new platform were all positively received by clients
Contrary to the global trend, the Australian CFD market grew in trader numbers despite low volatility in 2014
The number of CFD traders in most of the countries studied by Investment Trends fell in the previous 12 months but the Australian CFD market bucked this trend. Against a backdrop of lukewarm investor sentiment and low volatility levels trader numbers increased slightly to 42,000 people who traded CFDs at least once in the 12 months to June 2014. The inflows of dormant traders who resumed trading in the last 12 months continued to track upwards reaching a high of 10,000 (up from 9,000), whilst 8,000 new traders joined in the 12 months to June 2014 (down from 9,000). 17,000 CFD traders stopped trading in the 12 months to June 2014 (down from 21,000).
The Investment Trends 2014 Australia CFD Report is an in-depth study of Australian CFD traders’ attitudes and investing habits, based on a survey of 12,398 investors conducted between 28 April and 22 June 2014.
The number of CFD traders increased by 2% to 42,000 (from 41,000) current CFD traders. Compared to the other countries examined by Investment Trends, the Australian CFD market performed well with the UK spread betting, UK CFDs, France CFDs and Singapore CFDs all reporting losses in trader numbers.
The five largest CFD providers by number of primary client relationships were:
Usage of mobile trading surged among frequent traders
Adoption of mobile trading increased slightly in Australia with 72% (up 2% pts) of current CFD traders using a mobile platform in relation to trading. This is a moderate level among the countries examined by Investment Trends, behind Singapore CFDs (82%), UK CFDs (73%) and UK spread betting (72%).
Usage of mobile trading surged among frequent traders (30+ trades per month) with 33% of frequent traders using a smartphone/tablet as their main means of CFD trading, more than doubling from 15% last year. Frequent traders were also more likely to use a mobile platform with 78% (up 5% pts) of frequent traders using a mobile platform in relation to trading. A more modest gain was observed among mainstream traders, with 17% now predominantly trading via a mobile app, up from 15%.
IG currently has the highest rated mobile app, while FXCM had the largest improvement in mobile trading (now ranking 2nd, up from 4th).
Overall satisfaction eased at an industry level but remains high
After eight years of increasing trader satisfaction at an industry level, satisfaction eased in the last 12 months but remains high. At an industry level, the composite satisfaction score^ of overall satisfaction decreased 2% pts to 70%.
CFD traders assessed their main provider overall and across 16 areas including functionality, price and service. FP Markets leads on overall satisfaction followed by FXCM and CMC Markets.
IG’s improved mobile trading platform, CMC Markets’ platform upgrades and City Index’ new platform were positively received by clients
Individual providers are constantly improving their offering to their clients. We asked current CFD traders what they perceived as the most useful innovations introduced in the last 12 months from their main provider. IG’s improvements to both their Apple and Android trading platforms have been well received by many of their clients. CMC Markets’ platform upgrades were also well received with clients liking the new pattern recognition tools, portfolio mixer and mobile platform. City Index recently launched their new Advantage Trader platform which was also well received.
About the report
The results are drawn from the Investment Trends 2014 Australia CFD Report, based on an in- depth study of 12,398 Australian investors from 28 April to 22 June 2014. This is the largest known study of online retail investors in Australia.
About Investment Trends
Investment Trends is the leading researcher in the retail Online Broking, CFD and forex markets globally. We combine our analytical rigour and strategic thinking with the most advanced research and statistical techniques to help our clients gain competitive advantage.
We have over 10 years experience in researching the Australian retail wealth management and global broking markets from which we provide new insights and decision making support to over 200 leading financial service businesses globally.
Investment Trends’ clients include a number of global banking organisations, all major CFD providers and online brokers as well as industry regulators, investment platform providers, industry associations and financial planning software providers.
