The recent performance of Opes Prime is also a signal for investors/traders to be wary of CFD platforms.
I posted about this some 5 months ago.
CFD trading/investing is a margin based activity where cash is the ONLY required asset.
CFD's have grown exponentially in popularity.
Buying CFD's doesn't give you direct ownership of shares and platform providers are free to do what they like with them ie lending them out for margins etc etc. Brokerage for CFD shares start at $8.00 and is FREE for most indexes. ie they must be using the shares as collateral for other financing. Exactly the same business process as Opes Prime.
I personally use IG (who have been without fault for me personally) but never leave surplus cash in the account nor take long term positions and ALWAYS transfer back the balance after closing any position. Just last week for the first time ever, they have flagged my account for this transacting process.
For CFD newbies its hard enough for them to understand the product they are purchasing. But I ask everyone to research their providers business model. I'm sure that they will find its almost identical to that of OPES prime.
Be careful CFD traders/investors - since its only cash that is required as an asset.
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