Alanmcg: Sorry I don't understand why the CFD provider needs to use client funds.
If I buy 1000 BHP-cfds at 37.00, the cfd provider (DMA) has to pay $37000 to buy the shares, takes 10% margin from my account, charges me commission and overnight interest. Are you suggesting that the provider takes $37000 (or less) from the pooled client accounts to offset their purchase of the underlying BHP shares?
The client pays for any losses at the end of each session and if the shares are suspended the client can be asked to fund the entire purchase (100% margin). Why does the broker need to use client funds?
