I've had an account with CommSec for a few months now and I've been investing mainly into low risk shares. I also have a margin account.
A few weeks ago I opened up an account to trade CFDs. I was wondering what's the difference between trading on margin with e.g. CommSec and trading CFDs in terms of the cost of borrowing.
CommSec - 8%
CFD provider - official cash rate (3.25%) + up to 3%
It seems trading shares as CFDs makes more sense than trading with a margin account. You still get the dividends etc. and you pay less fees. Of course you can't trade all shares and you have to be more careful with risk.
Are there any disadvantages?