The primary reasons for the ban are concerns over the lack of transparency and the risks associated with leveraged trading. CFDs are over-the-counter (OTC) products, meaning they are traded directly between parties without going through a regulated exchange.
Equity's dues structure has two components: Basic dues: $176 annually, billed at $88 twice a year each May and November. Working dues: 2.5% of gross earnings under Equity contract, which are collected through weekly payroll deductions.
CFDs enable you to increase your purchasing power because you can trade them on leverage. This means you only need to put up a fraction of the full value of your trade–the "margin"–to gain full exposure. On most stocks, brokers offer leverage up to 5x (and up to 20x on stock indices).
The primary reasons for the ban are concerns over the lack of transparency and the risks associated with leveraged trading. CFDs are over-the-counter (OTC) products, meaning they are traded directly between parties without going through a regulated exchange.