One of the good things about CFDs is that it allows you to trade with a small account. The main problem with CFDs is that you are essentially trading against your CFD provider and the market. Most CFD providers B book so your losses are their wins.
The SPI on the other hand is a regulated "real" market thats overseen by the ASX. So everyone who trades on this market has to follow the same rules. So there is no ambiguity on what the real price is as its done via the exchange with real buys and sells. Another benefit is that since its real contracts being traded there is real volume data on the SPI which may help with analysis.
The biggest drawback of the SPI is the size for those with smaller accounts. Initial margin is $6k and its $25 a tick. Plus you have to add the cost of the data feed in there. I think you need minimum $30k to start trading the SPI to have any chance of making money
This is just my 2c. There is no right solution or 1 size fits all for traders. CFDs are a great way to start for most traders but if you have the capital available then best start trading the SPI imho
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