CFD Trader Psychology – A Shift to Shares and Mobile Trading


MELBOURNE, Australia, February 3, 2014 /PRNewswire/ --

  • Market sentiment showed further improvement post-GFC, although concerns are increasing
  • IG clients have migrated back to stocks, and mobile trading continues to rise

2013 was an outstanding year for global equities, with traders happy to follow the trends higher; however, 2014 hasn't started off as positively. Concerns are increasing around how moves in emerging markets and rebalancing in China will affect the global economy, though IG clients are seeing significant trading opportunity here.

IG, Australia's leading CFD provider*, saw increased trading confidence within its client base throughout 2013; the total level of Australian client funds held with IG increased 18.8% from 2012, and was up 37.8% from June 2012.

During the GFC, IG's clients who traditionally traded individual equities migrated to the Australia 200 (ASX 200) and other global indices due to the diversification these markets provide. However in 2013, post-GFC, in terms of equity transactions, IG's Australian clients traded 13% more than in 2012.

Tamas Szabo, Head of IG Asia Pacific, comments that while indices and forex were still very popular in 2013, IG has seen a shift back into equities.

"Clients seemed happy to increase their exposure to stocks last year as market sentiment improved," Mr Szabo said.

"This shift in trading psychology is particularly interesting, because volatility was at historically low levels in 2013, although short selling opportunities are looking likely, with volatility potentially increasing this year."

IG extends US market hours during earnings season

Trading US shares through traditional brokers is typically expensive; if clients are looking to take advantage of short-term moves with leverage, CFDs offer a convenient alternative, with the flexibility to go short as well and long.

IG has recently added the capability to trade a number of US shares during extended hours, giving clients the ability to trade US companies when they report their earnings, quoting from 8pm to 12pm (AEDT) Monday to Thursday and 8pm Friday to 9am (AEDT) Saturday.

IG's Australian clients have responded to the extended trading hours positively, increasing their exposure to US stocks which has continued the shift into the share CFD trading space. Given the view on the US economy this year, it is an area we expect further growth from Australian clients.

Mobile trading trend continues to skyrocket

Australia has the fifth highest smartphone penetration as a percentage of the total population in the world at 64.6%¹, and Investment Trends' 2013 CFD Report highlighted that 56% of current CFD traders use their smart phone for news and information.

The shift to mobile trading is exponential; in October 2011, around 14% of all IG clients' transactions were executed using a mobile device - now over 40% of IG's clients transactions are executed via a mobile trading device and this percentage is increasing.

IG continues to invest significant funds in mobile technology, and has the best mobile trading offering in the CFD industry^.

¹Google/TNS, Q1 2013

* By primary relationships, Investment Trends June 2013 CFD Report

^ Highest client satisfaction with smartphone/tablet platform. June 2013 Investment Trends Australia CFD Report

About IG

IG specialises in financial derivatives, principally CFD trading on over 6,000 global share CFDs, indices, forex, commodities, options, binaries and more. IG Markets is a part of IG Group, a FTSE 250 company established in 1974 which now employs over 1000 staff in 16 countries.

A CFD (or Contract for Difference) is an agreement to exchange the difference in value of a particular asset between the time at which a contract is opened and the time at which it is closed.

IG Markets advises that trading CFDs may not be suitable for everyone, since CFDs are a geared product and can result in losses that exceed an initial deposit, and that product disclosure statements are available from http://www.ig.com/au

IG Markets Limited. ABN 84 099 019 851, AFSL 220440

Authorised Futures Dealer in New Zealand, Company No.2249573

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ISSUED FOR:     IG

FOR FURTHER     MR CHRIS WESTON, INSTITUTIONAL DEALER  

INFORMATION:    TEL +61(03)9860-1758 OR +61(0)416-548-119

SOURCE IG Australia

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