Finsa Pty Limited, trading as Core Spreads Australia, operates a client qualification policy which is intended to ensure that Australian applicants are adequately qualified to trade in Contracts for Difference (CFDs), and similar products such as Spread Trading, before an account is opened. All such applicants are assessed and have to pass a qualification test before they are enabled for trading. The test is designed to assess the understanding of and experience of potential clients in trading CFDs.
The qualification test is conducted on a web page and consists of ten multiple choice questions from the following categories:
Core Spreads Australia holds a database of suitable questions for each category from which the ten qualification test questions are selected. Core Spreads Australia periodically alter the ten test questions.
Core Spreads Australia requires Australian applicants to correctly answer at least one question from each category and at least seven questions in total to pass. If they pass, they are deemed sufficiently qualified to trade in CFDs and their accounts are activated and enabled for trading. If they do not pass, they are advised to open a demo account to gain a better understanding of the product in the virtual environment.
If Australian applicants do not qualify due to lack of experience, they are directed to the demo platform where they have to place at least five opening trades before they are deemed to have sufficiently increased their experience to be reassessed with another set of ten multiple choice questions.