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Re: Opinion on CFDs
There are different types of CFDs, depending on the CFD provider you
are dealing with. These are not standardised products and each provider
can have different brokerage rates, interest rates, dealing platforms, and so
on. Also, some providers are market-making in the CFD (these are most
likely to be a "bucket shop" operation) while other providers will have a
DMA model (Direct Market Access) where each deal you do is automatically
dealt into the exchange, such a provider is much less likely to be a "bucket
shop".
On the face of it, and with only the information you provided, a 40USD
round trip charge would seem to very strongly suggest that the CFD
provider you are referring to is indeed operating on the bucket shop
model.
Last edited by mister ed; 09-06-2007 at 12:15 AM.
Reason: tidy up formatting
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