Key Takeaways CFDs are not automatically excluded from an SMSF, but permission to open an account is only the starting point. The fund’s documents, investment strategy, transaction structure and records all need to support the decision. An SMSF may be able to trade CFDs if its governing documents and investment strategy allow it. The sole…
Key Takeaways CFDs do not pay shareholder dividends because you do not own the underlying shares. Instead, brokers commonly apply cash adjustments when a share or index goes ex-dividend. Long CFD positions may receive a dividend adjustment. Short CFD positions may have the equivalent amount debited. The adjustment can differ from the announced dividend after…
Key Takeaways Your CFD classification in Australia affects both the protections you receive and the leverage a broker may offer. The label is not simply a measure of trading experience; it depends on legal tests and the particular financial service. Retail clients generally receive ASIC’s standard CFD protections. Wholesale status may allow higher leverage, but…
New data from the Australian Securities and Investments Commission (ASIC) has revealed that a significant majority of retail traders in the Contracts for Difference (CFD) market are consistently losing money, highlighting the volatile nature of high-risk derivative products. As the primary regulatory body overseeing these financial services, ASIC’s sector-wide review provides an unfiltered look at…
In the 2023–24 financial year, 68% of Australian retail clients lost money trading Contracts for Difference (CFDs), with total net losses exceeding $458 million. As part of a massive sector-wide integrity initiative, the Australian Securities and Investments Commission (ASIC) scrutinized 52 CFD issuers from October 2024 to December 2025 to determine if retail distribution practices…
Key Takeaways Navigating the tax landscape requires understanding how your trading frequency impacts your legal obligations with the Australian Taxation Office. This oversight is vital for maintaining compliance and optimizing your financial standing. CFD activity is generally assessed as revenue rather than capital gains. Professional traders may register for an ABN to manage tax affairs.…
