CFDs allow small outlay for big bets

[Temperament]

In the CFD market, it is common for providers to put in fixed margins for stocks and do not allow you to vary. Most of them charge you financing rates on the full market contract's value instead of what you have borrowed. What makes Singapore providers worse is that they charge higher finance charges than their international counterparts and one or two had rollover fees as well.

I think the use of leverage is ok if one knows how to use it probably, you just need to know the level you are ok with. CMC had a feature I liked - It was that they allowed an individual to vary the margins you took with CMC and interest was accordingly charged and not on the entire contract. If you are so risk averse, you can consider 99% cash and 1% margin or even pay 100% in cash full. It was a good personal experience as I took the liberty of placing $1000 contracts and judge the level of margin I was suitable with. (I found that I am "emotionally stable" with an average 1 part debt to 2 or 3 parts equity.). However since CMC introduced min commission and a monthly data fee, I have stopped using CFDs and am on a look out for better providers

Lastly, I think the CFD provider will try to hedge when people take short positions. Essentially CFD are like houses in casinos, though they will try to hedge if suddenly a lot of people are in one trade. CFD providers can also control the bets by restricting the amount of lots you can take, stop you from initiating long/short positions and even calling off some trades you have. The last point is a risk you take with CFD, they can close your position

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Wow! Very scary to me leh!
We all know the odds or edges in a Casino are fixed. From your explanation of CFD operation by Brokerages, they can vary as and when they seem appropriate. It's really very "frightening" to me.
Thanks.