Barclays Stockbrokers Clients Are Undeterred By Falling Markets

One in two (54%) private investors sees Contracts for Difference (CFDs) as a means of trading against a weak market, according to a recent survey by Barclays Stockbrokers.

With the FTSE 100 falling by 10 per cent in June, the findings show that private investors recognise CFDs as an effective way to trade profitably when market conditions would otherwise deter them.

Barclays Stockbrokers has seen the highest ever levels of CFD trading amongst its client base - an increase of a third since the start of the year. This and the widespread awareness of CFDs as an alternative means of trading in testing market conditions indicates that investors are becoming increasingly sophisticated. Investors are also becoming increasingly au fait with the flexibility presented by CFDs as 30 per cent of trades are placed in indices as opposed to half this at the start of the year.

Richard Miller of Barclays Stockbrokers, said:

"The findings show that investors are becoming increasingly sophisticated and redefining their investment strategy according to different market conditions. Historically, weak markets have led to investors easing off on trading activity until the trading environment stabled. Since the start of the year, however, we have seen investors adapting to the market’s fluctuations and bringing the downturn to their advantage. Private investors are becoming more sophisticated and more accustomed to investment products and techniques which were previously restricted to professional or institutional investors. We are continuously developing such products to suit private investors and expanding our offering so we can put our clients on the same footing as the institutions, so they trade confidently regardless of market conditions."

In order to help clients better understand these complex and risky investment products, Barclays Stockbrokers is working with clients to educate them about the features of CFDs and the flexibility and risk associated with investing in the product. Investors can learn about CFDs through information and tutorials featured in the Barclays Stockbrokers online Education Centre. Investors can ensure they are equipped to trade in CFDs knowledgably and effectively by using the CFD trading simulator available via the website.

The question about the CFDs was displayed on Barclays Stockbrokers website from 21 to 28 June 2006. 407 visitors to the website participated in the survey.

About Barclays Wealth
Barclays Wealth is the leading wealth manager in the UK with £78.3bn assets under management (2005). It is made up of a number of businesses that provide customers with a comprehensive range of solutions covering private banking, investment, life and pensions to meet their financial planning needs, in the UK and overseas.

Barclays Wealth is part of the Barclays Group, one of the largest financial services groups in the world by market capitalisation. Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services. Operating in over 60 countries and employing over 113,000 people, we move, lend, invest and protect money for over 25 million customers and clients worldwide.

For further information or quotes contact:
Caroline Wells
PR Manager, Barclays Wealth
020 7114 7435
Caroline.Wells1@GROUPLOMB.Barclays.co.uk