"If you have long positions and the SP goes against you because of the loss caused by the dividend you have a paper loss that. in most cases, will come back in time. With IG it's taken off you in real $ instantly. If there are other brokers that don't do this I'd be very interested in jumping ship."
If CMC, IG etc operate the same way as the ASX CFD market, you will not be penalised. This is what the ASX says about its CFDs
Contract Design and cashflows - The ASX CFD contract design automatically calculates cashflows (Contract Interest, Dividend Cashflows, etc) on all positions held. This has the economic effect of making the ASX CFD position identical to holding a leveraged spot position in the underlying.
I interpret this as: If you are holding a long position, you are given credit for dividends and you are charged holding costs (i.e. time value of money) The converse would be true if you held a short position.
As far as the CMC, IG ecosystems work (I have trouble thinking of them as markets in the true sense) probably the same way. Dont they publish a Product Disclosure Statement ?
(20min delay)