The example I gave could have been better worded. There are certainly clients with specific trading needs where CFD trading isn't the optimal option.
(‘Sure you can place a trade into the bid or ask directly’)
I assumed the comment would be taken that it is possible to get a quarter point price advantage if executed.
The reality is most non HFT traders cross the spread to guarantee execution of trades as there is significant risk of orders not being filled sitting at the back of the queue. (Certainty vs risk of execution). This being the case it is reasonable to suggest that the CFD option is valid.
When we look at indexes such as the Dax the advantage of placing orders into the bid/ask is negligible.
The added cost of exchange fees and platform costs as well as having funds held overseas vs an Australian bank account is something that also needs to be considered in comparing the pro’s and cons.
