Contract for Difference (CFD) Market Latest Trends, Industry Players and Forecast to 2029

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Trading Contract for Difference (CFD) gives one a great option if they’re looking for quick wins in the market. A long position on a CFD requires relatively smaller amount of capital to initiate then a similar position on a traditional share. And since CFDs have no settlement times, it also allows traders to realise any profits instantly. CFD trading in the UK has grown since they had access to it in the end of the 90s. They are now considered mature markets in the CFD- & FX- trading space. In 2020, almost 560,000 customers traded CFD products each month, a year over year increase of 32%. It has also been estimated that this number will reach 720,000 in the second half of 2021. In 2020, there were over 1,000,000 CFD-funded retail client accounts, and currently there are 110 different CFD trading platforms licensed by the FCA, which is driving the demand of contract for difference (CFD) market.

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CFDs have been found to be less time consuming, as a lot of CFD traders rely on technical analysis (charts), as opposed to fundamental analysis (reading through financial reports) to make trading decisions. They are also a good tool for long-term investors during periods of market volatility. That’s because CFDs allows one to trade on markets that are heading down as well as up. If one believes that a share is overvalued, they can use a CFD to benefit from a fall in its share price. For instance – during a stock market decline CFDs can help to protect an existing portfolio and offset any losses. It also allows long-term investors to go short on a stock index CFD that has a high direct correlation with their portfolio of shares. The inclusivity of various markets in CFDs, such as FX, ETFs or crypto, is expected to gain traction in the coming years, thereby increasing the demand and sales of global contract for difference (CFD) market.

The detailed research study provides qualitative and quantitative analysis of contract for difference (CFD) market. The market has been analyzed from demand as well as supply side. The demand side analysis covers market revenue across regions and further across all the major countries. The supply side analysis covers the major market players and their regional and global presence and strategies. The geographical analysis done emphasizes on each of the major countries across North America, Europe, Asia Pacific, Middle East & Africa and Latin America.

Key Findings of the Report:

  • The global contract for difference (CFD) market was valued at US$ 5754.63 Mn in 2020 and is anticipated to reach US$ 7647.60 Mn by 2029 growing at a CAGR of 3.10% over the forecast period (2021 – 2029). With CFDs allowing investment capital across a wider spectrum of shares, including shares, indices, commodities, currencies, and treasuries, regardless of the markets are going up or down, the growth of the global contract for difference market is here to stay.
  • By Platform, app based segment recorded the highest market share in 2020 and also the fastest growing over the forecast period. The growth of this segment has been attributed to the availability of several user friendly mobile apps, giving one the option to be updated regarding the market anywhere.
  • Under end-users outlook, businesses recorded the highest market share in 2020. CFDs have helped businesses to trade among a wide range of assets such as stocks, commodities, etc.
  • By market type, stocks/equities segment recorded the highest market share in 2020 in the global contract for difference (CFD) market.
  • By region, North America accounted for the highest share in the contract for difference (CFD) market in 2020.
  • Some of the players operating in the contract for difference (CFD) market are Axi, City Index, Deriv, easyMarkets, eToro, FBS Markets Inc., Finq, FOREX.com, Firtrade Ltd., Fusion Markets, FXTM, HYCM, IG Group, Indication Investments Ltd., LegacyFX.com, Markets.com, OANDA Corporation, Pepperstone Markets, Plus500, Raw Trading Ltd (IC Markets), Spreadex Ltd., ThinkMarkets Group, Trading 212 Ltd., Vantage FX and XM Global Limited amongst others.

Global Contract For Difference (CFD) market:

By Platform

  • Web-based
  • App-based

By End-Users

  • Individuals
  • Businesses

By Market Type

  • Forex
  • Indices
  • Stocks/Equities
  • Commodities
  • Cryptocurrencies
  • Others

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • Latin America

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