G'day there, I haven't bought or sold a CFD before and I realise they're used by most people for trading, but I'm wondering if anyone is using them in a buy and hold strategy? offer direct market access CFD's (meaning shares in XYZ are actually bought) so you get dividends and offers etc just like a normal shareholder (but unfortunately you don't get franking credits). The leverage available is staggering - 97% for blue chips through to 1% for little dodgy buggers: http://www.fpmarkets.com.au/docs/FPM CFD Instrument Listing.pdf The interest rate is higher than a margin loan, but not that much. With FP Markets they charge RBA Cash rate (6.00% currently) + 3% - so 9% interest currently. CMC Markets - Australia charge RBA Cash Rate + 2% - so 8% interest... Considering you can get CFD's on the Streettracks ASX200 stock (STW) why would people rather get 50% leverage through a margin loan at a similar interest cost when you can get 83% leverage via a CFD?