The Australian today
"Push to 'gamble' on stocks"
Brokers must be starting to feel the pinch as they can see all that commission going to some one else.
No mention of trading shares directly using margin apparently this is not gambling but using CFD's is?CFDs involve borrowing money to bet on share price and foreign exchange movements. But it is far worse than gambling because investors who do not take "stop loss" measures to limit losses can shed much more than the money that they bet.
I know plenty that have done this trading with no leverage, the old joke comes to mind "How can you end up with one million dollars trading, start with two million" I have found people using leverage tend to use stops more so of course there are always those that don't....I know a few people who have lost their shirts by trading CFDs," he said. "They didn't know what they were doing and they lost a lot of money."
I would have thought if there was a major issue that this recent market fall would have fried plenty of accounts by now and it would front page news.
I started trading CFDs in 2002 with CMC (the old Deal For Free, not so free I can tell you) the main issue being the Market Maker platforms messing with spreads and throwing up re-quotes.
Higher leverage exists in Forex and Futures!
I think its an Broking industry beat up
What do others think?