Do Australian CFD providers have contracts with unfair terms?
Summary : Every year, Australian Contract for Difference (CFD) providers make hundreds of millions in trading revenue from Australian clients which according to ASIC are a "combination of net client losses and fees and costs charged to clients." And over 70% of Australian CFD retail clients are net losers each year; thus over the life of an account this proportion of net losers would be even higher - likely over 90%. Thus, as you might expect given such wealth extraction, each year, thousands of Australians complain about unfair losses relating to CFDs. Complaints must first be submitted to the provider with only a minority of clients pursuing them further with the Australian Financial Complaints Authority (AFCA). However, any unfairness in CFD providers' standard business model is rarely investigated, let alone redressed by the AFCA complaint process. The AFCA appears to rely on the assumption that the terms and conditions clients accept when they sign up with a CFD p