I'm thinking of using a cfd provider to reduce brokerage costs. I'm not really interested in the leverage aspect.
My online brokerage is $19.95 with nab online after the first 5 trades each month. Most of my trades would fall in the $5000-$20000 range.
I average around 20 trades per week.
This works out at around $800 per week brokerage.
I could trade cfd's for as little as $8 or 0.1%, which would reduce expenses considerably.
I've taken into account loss of interest and gst benefits associated with a normal online share trading account and reckon i could reduce brokerage costs to $500 per week on similar trading volumes.
I'm looking at a direct market access account with igmarkets.
Has anyone had any negative experiences with igmarkets or any of the other cfd providers or has anyone got anything to add that i may be overlooking?
