The United Kingdom has grown to be a mature market for CFD and FX trading. CFDs have been available to UK residents since the late 1990s, although they have only lately gained popularity. GDP could have fully recovered to pre-COVID-19 levels by Q1 2022. In addition, the estimate for market growth from 2023 to 2025 appears to be more favourable.
In 2020, about 560,000 consumers traded CFD products each month, a 32% rise year on year.
This figure is expected to reach 720,000 by the second half of 2021.
In 2020, there will be over 1,000,000 retail client accounts funded by CFDs.
The FCA has licensed 110 different CFD trading sites.
You can check top UK CFD brokers 2021, reviewed, tested and ranked.
Why has CFD trading exploded?
The fundamental reason is that Covid has caused market instability. CFD trading provides a possibility to profit in both market swings.
In the United Kingdom, crypto-derivatives are prohibited.
Due to the unpredictability of cryptocurrency values, the FCA banned crypto-derivatives by the end of 2020.
The FCA believes that these products are unsuitable for retail consumers due to the harm they pose.
The FCA is in charge of investor protection.
It is critical to remember that all forms of trading involve both risk and potential gain. So, before you go into the world of CFDs, make sure you do your homework.
Even some of the most well-known forex brokers, regulated by ASIC, CySEC, and the FCA, are still operating in the Southeast Asian market without getting local licenses and providing risky leverage to their clients via offshore companies.
Last year, South Korean financial firms’ OTC derivatives trading volume was 17,019 trillion won, a 5.2 percent decrease from the previous year. Currency trading accounted for 77.9 percent of overall transactions. Currency forwards and interest rate swaps decreased by 657 trillion won and 155 trillion won, respectively, contributing to the overall drop. Currency-related trades fell 4.9 percent year on year.
CFD brokers distinguish themselves through the markets and instruments they offer, the rates they charge, the trading apps, and the degree of customer care they provide.
Following all of the market activity from 2008 to 2018, investors began to view CFDs as a viable investment choice in 2019. Because the pattern was accelerating in 2020, expectations for 2021 are substantial.
Traders can execute trades in all market conditions, allowing them to estimate prices based on primary research in bear and bull markets.