CFDs have become a very popular and tax efficient way for active investors to trade.So it is not surprising that to service this booming market the number of CFDproviders has risen sharply in the UK.
Some CFD providers such as GNI and Man Direct are backed by major financialgroups. For example GNI is part of Anglo-South African financial giant Old Mutual,while Man Financial is also quoted on the London Stock Exchange and offers a rangeof financial services including hedge funds.
Others have their roots in providing different products, but have moved into the CFDs market to take advantage of its significant growth and growing influence. Takespreadbetting companies City Index, IG Index and CMC Markets. They have built theirreputation on providing services allowing investors to place tax free bets on stockmarket movements - and see the CFDs market as a natural product extension.And the likes of Sucden have traditionally provided commodity trading services, butused these skills to expand their offering - although it only offers a telephone basedservice at present.
Investors looking for a CFD service should research the various options carefully.Providers such as Deal4Free offer commission free trading. Others such as GNI preferto offer competitive CFD prices, and sophisticated trading and research services tohelp investors make sensible investment decisions.
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Specific products are available such as stop loss services, allowing investors toreduce trading losses if an investment situation turns against them. And some providea 30 day free trial to get you comfortable with the services on offer.
The CFD market is evolving quickly and most providers now offer international trading opportunities covering the main US and European stocks and markets. And theinternet has opened up the possibility of providing cheap and efficient online tradingfacilities for private investors, which can only mean that this market will continue togrow.