Retail brokers build up product range amid regulatory change

In Japan, Saxo Bank FX KK launched index-tracking and commodity CFDs on its retail platform last Monday (July 5). The index-tracking CFDs enable retail traders to trade CFDs linked to the performance of 16 stock indexes on more than 23 global exchanges and can be short sold. The bank said it is offering double leverage on the index-tracking CFDs.

The Danish company is also enabling Japanese retail clients to use commodity CFDs, employing leveraged commodity trading with reduced collateral. “Commodity CFDs represent an alternative to trading commodities on the futures exchanges, which can be prohibitive, with lot sizes and high collateral requirements restricting the trader's ability to engage in a trade,” the bank said.

Meanwhile, FXCM Australia launched a new CFD instrument that combines forex, global stock indexes, oil and gold trading into a single platform last Wednesday.

Dan Perry, managing director at FXCM Australia in Sydney said: “FXCM opened its Australia office in early 2009 to act as headquarters for the company's expansion into the South Pacific region. As it has expanded its local reach and global footprint into the Pacific, the company has hired staff locally to provide clients with quick deposit, withdrawal and support services.”

FXCM said the new index, commodity and precious metal CFD instruments will complement its existing forex business and appeal to more retail clients in Australia and New Zealand.