Friends With Money #5: Are CFDs worth the risk?


Contracts for difference, also known as CFDs, are derivative investments that have long been used by professional investors to gain leveraged exposure to a broad range of securities.

More recently, with an increase in the number of direct market access in the retail market they have soared in popularity with investors seeking strong returns.

But are the risks really worth the rewards?

friends with money podcast cfds risk v reward

In this episode of Friends With Money David Thornton is joined by Peter Campbell, a senior financial adviser at Merideon Wealth Strategies, to discuss the surge in CFD trading and the realities of using CFDs as an investment.

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David Thornton was a journalist at Money from September 2019 to November 2021. He previously worked at Your Money, covering market news as producer of Trading Day Live. Before that, he covered business and finance news at The Constant Investor. David holds a Masters of International Relations from the University of Melbourne.

Peter Campbell is a senior financial adviser for Merideon Wealth in Mandurah, Western Australia and is a Certified Financial Planner, holding specialist designations across both self-managed super funds and aged care. Peter Campbell is an Authorised Representative, and Merideon Wealth Strategies is a Corporate Authorised Representative, of Infocus Securities Australia Pty Ltd ABN 47 097 797 049, AFSL 236523. The information provided is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Infocus Securities Australia Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.