The world of CFD trading is worthwhile yet controversial in some countries around the world. This is because of the belief that CFDs along with over-the-counter financial instruments are considered too risky for traders. These instruments cause severe loss of their money so governments such as the US, Brazil, HongKong and others do not allow the use of such trading instruments. Despite the restrictions in some areas,? there are still other territories that appreciate the advantage and usage of CFDs for trading. We shall give you a list of these areas along with a brief discussion of their economic and trading status.?
1. United Kingdom
This European country has a mixed economic type and it belongs to the list of countries with largest market exchange rates and purchasing power parity. The UK is a place where several people do their businesses so we can never question why it is also one of the most globalized countries. London, which is the country’s capital, is dubbed as one of the major financial centers in the world.
2. Germany
Similar to the UK, Germany also has a mixed economic set-up with various private freedoms and a combination of centralized economic planning and government regulation. In terms of economic indicators, the country has Gross Domestic Product (GDP) worth 3806.06 billion US dollars in 2020 which represents 3.37 percent of the world economy.Technically this makes Germany the nation with the strongest economy in the world. According to experts, the German GDP is projected to reach 3960.00 USD Billion by the end of 2021, 4200.00 USD Billion in 2022 and 4450.00 USD Billion in 2023.
3. Singapore
This Asian country has an extraordinary economic characteristic as it is famed for being the least corrupt,most pro business and most open in the world. Despite having low tax rates, it has the second highest per capita GDP in the world in terms of purchasing power.
4. Australia
This territory has a highly developed mixed economy. Just recently, Australia has been declared 12th-largest national economy by nominal GDP (Gross Domestic Product), 18th-largest by PPP-adjusted GDP and it holds the record of the longest run of uninterrupted GDP growth in the developed world which they have been holding for 26 years since the country had a technical recession . As of the moment, Australia has an estimated GDP of $1.7 trillion.
5. Thailand
Most of the country’s economy depends upon their export which makes up about sixty per cent of the country’s gross domestic product (GDP). With a GDP of 16.316 trillion baht equivalent to US$505 billion in 2018, this Southeast Asian country is declared by the world bank as the 8th largest economy in Asia. Not to mention that their currency, the Thai Baht, ranked as the tenth most frequently used world payment currency in 2017.
Conclusion:
If we are to compare the countries that allow CFD Trading, we can derive that most of them have stable or large economic status. This therefore tells us that the legitimacy of CFDs as a trading instrument is appreciated by traders coming from these areas who are wise enough to outperform its risks.
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