"I have been told that as a trading instrument they have banned the in New York" - It isn't CFDs that have been banned, it is just that US citizens cannot trade products OTC, they have to be exchange traded. Anyway, let's not base decisions on whether a product is good on not on what the yanks do, think of all the spam emails you get that attempt to ramp crap US stocks. Guess what? That's legal in the US. I would rather buy a BHP, RIO or MGQ CFD on margin that some crappy little US penny stock anyday.
"Why don't you just stick to vanilla puts and calls which are easier to understand." - Yeah, easier to understand once you've learned all about Delta's, Vega's, Theta's, Rho's, time decay, etc. You must be kidding yourself Hummms.
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