I am also starting to look for one. I was recommended ODL Securities as they provide free price feed and have no minimum trade size, which is good when you're starting out. It's important to be able to trade small when you're just wetting your feet. They also offer guaranteed stops (though this service is rather expensive).
If someone knows a good broker I'd be glad to hear about them.
Cheers!
J
If someone knows a good broker I'd be glad to hear about them.
Cheers!
J
tonygamble
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Halewood International are excellent.
Tony
Tony
tonygamble
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Fair enough.
Clearly you are not the sort of customer they look for.
Tony
Clearly you are not the sort of customer they look for.
Tony
peto
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Why CFD broker? I notice you're a UK resident so a good spreadbetter would give you equivalent or better spreads and the same type of trading platforms. In the case of CMC Group you'd use exactly the same platform and quotes.karmit said:Hi guys!
I'm looking for a online broker to deal in CFD's... which is the best (currently!) ?
Any comments, suggestions welcome!
Thanks,
karmit
The advantages however are no income tax, and no complicated tax returns to fill in! I believe that with great difficulty it is possible to use CFD's within a pension account but I have no idea how this works and can see no other reason why a uk resident would choose cfds
They both suffer the same disadvantage that you are effectively betting 'against the house' , and they both have wider spreads than Direct Access
peto
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http://www.interactivebrokers.co.uk/php/main.php (IB) is an example of a direct access broker. One is trading futures contracts directly on the electronic exchanges. All the major exchanges round the world are available. The spread is dictated not by the broker but by the bids and offers of other market participants, for the Dow for example it is usually 1 pip. If the spread is wider in any market you have the option of entering your own bid or offer inside the spread, which will then show up on the screen as a reduced spread. Commission is payable at around $2.40, (say $5 per contract per trade buy and sell) for futures. The platform may also be used to buy/sell shares, in the same way. A UK£ account may be maintained. £1450 min account balance.
The reduced spreads from direct access will have a marked effect on profitability on day-trading, but less on longer time-frames. There is no 'handholding', your broker will expect you to know exactly what you're doing and take no responsibility for anything going wrong!. An on-line 'exam' has to be passed to get an account to prove you know what you're doing.
Consequently I'd recommend you get experience first with a spread-better, preferably using a Demo account and longish time-frames. Capital Spreads look very good and have excellent support here on this forum. Deal4free aren't too bad. First get profitable on paper or demo account over a long period (months at least) before jumping in.
The reduced spreads from direct access will have a marked effect on profitability on day-trading, but less on longer time-frames. There is no 'handholding', your broker will expect you to know exactly what you're doing and take no responsibility for anything going wrong!. An on-line 'exam' has to be passed to get an account to prove you know what you're doing.
Consequently I'd recommend you get experience first with a spread-better, preferably using a Demo account and longish time-frames. Capital Spreads look very good and have excellent support here on this forum. Deal4free aren't too bad. First get profitable on paper or demo account over a long period (months at least) before jumping in.
Ingot54
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Hi Karmit, I replied as below (pasted) under another thread, but this is probably a more appropriate place.
I use IG Markets. Commission is variable - from 0.2% for regular traders over $AUS12,500 to 0.4% for smaller trades. There is a "Limited Risk Transaction" account, which requires the trader to use a Guaranteed Stop Loss Order (GSLO). The benefit of this is that you can trade on a smaller margin, plus sleep better at night. Any downside might be that the GSLO must be placed a minimum of 5% away from underlying, but as I set mine around 10%, I don't see this as a worry. There is also a regular account, (without the requirement of a GSLO), but the margin requirement is higher.
The GSLO costs 0.3% to put in place, but is a one-off fee per trade. You have the ability to ratchet up the stop position every day, if you like, at no charge. I believe CMC charge EVERY time the GSLO is moved.
My research of MAN Financial and GET showed no GSLO, plus I was concerned with the liquidity of GET. CMC charge $AUS35/month for access to stock exchange software re prices. IG Markets pay this for you, so you are getting a bit of value for the commission.
I have no ties with IG Markets, other than as a client, so have no interest in pushing their barrow. It's just that they came up best for me here in Australia, under the conditions I wish to trade. There have been no complaints among my acquaintances on other Australian forums about artificial price spiking. Dare I mention here that this has happened in Oz, but the trades affected were reversed when the trader complained! (To the CFD provider's credit).
Coming from Australia, I have a limited idea of who else offers CFD's, but consensus here would indicate CMC (D4F), MAN, or IG Markets are amongst the most used locally.
hth
I use IG Markets. Commission is variable - from 0.2% for regular traders over $AUS12,500 to 0.4% for smaller trades. There is a "Limited Risk Transaction" account, which requires the trader to use a Guaranteed Stop Loss Order (GSLO). The benefit of this is that you can trade on a smaller margin, plus sleep better at night. Any downside might be that the GSLO must be placed a minimum of 5% away from underlying, but as I set mine around 10%, I don't see this as a worry. There is also a regular account, (without the requirement of a GSLO), but the margin requirement is higher.
The GSLO costs 0.3% to put in place, but is a one-off fee per trade. You have the ability to ratchet up the stop position every day, if you like, at no charge. I believe CMC charge EVERY time the GSLO is moved.
My research of MAN Financial and GET showed no GSLO, plus I was concerned with the liquidity of GET. CMC charge $AUS35/month for access to stock exchange software re prices. IG Markets pay this for you, so you are getting a bit of value for the commission.
I have no ties with IG Markets, other than as a client, so have no interest in pushing their barrow. It's just that they came up best for me here in Australia, under the conditions I wish to trade. There have been no complaints among my acquaintances on other Australian forums about artificial price spiking. Dare I mention here that this has happened in Oz, but the trades affected were reversed when the trader complained! (To the CFD provider's credit).
Coming from Australia, I have a limited idea of who else offers CFD's, but consensus here would indicate CMC (D4F), MAN, or IG Markets are amongst the most used locally.
hth
SOCRATES
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It is very curious indeed how it is that opinion is so fiercely divided as to the merits of particular brokers, and speadbetting houses and so on.
I have yet to get to the bottom of this. I find this very interesting. In the United States the same anomaly occurs. Why this is makes me wonder. I am determined to get to the heart of the riddle. It bothers me when something that ought to be obvious is not clear to me.
I have yet to get to the bottom of this. I find this very interesting. In the United States the same anomaly occurs. Why this is makes me wonder. I am determined to get to the heart of the riddle. It bothers me when something that ought to be obvious is not clear to me.
Ingot54
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Socrates, in Australia, CMC (used to be D4F) have developed a bad reputation, it seems. A lot of news on our forums is negative regarding them. It has been claimed by some that artificial price spiking has occurred, essentially taking out hundreds of automated Stop Loss Orders, and in the process generating a bonanza opportunity for "someone" to buy in at a heavily discounted price, at the bottom of the pile of fallen dominos.
Apparently when CMC was asked about the spike, the position was restored, and fees refunded, because the "spike" did not occur in the underlying. This is because CMC is not a CFD provider, but a Market Maker - essentially a Bookmaker, who may charge the prices they like, if there are takers.
When deciding whether you should have your account with company A or company B, it has to be considered whether the company is a bona fide CFD Provider, or simply a Market Maker. There is a huge difference, and some have lost their accounts without learning the difference yet.
With a CFD Provider, you should get a GUARANTEE of the price EXACTLY matching the underlying, NO SLIPPAGE. For this, you have to expect to pay a commission. Many traders (punters) don't like commissions, so elect to have accounts with Market Makers (Bookmakers). They do not often get charged the fees up front, but these MM's are not charities - the money still has to come from somewhere. Unfortunately the mugs who pay the spreads, slippages etc are the ones who pay for the MM's yachts.
It's OK if you know what you are doing, and trade according to the risks. If a share is not very liquid (and there are still mugs who trade these, when there are literally thousands of other choices available), you can expect the spread to be wider. Why? because the MM often hedges by buying the underlying as insurance, or put options ditto.
CFD Providers almost ALWAYS buy the underlying instrument. You deposit a margin to cover a % of price movement, but they put up the lot. You may be asked to increase your margin (margin call), if the underlying goes against you. I am sure you are already aware of much of what I have said, but some readers may not.
I apologise if I have any facts askew, and will gracefully accept any chastening.
For me, it's NO Market Makers. If I could not be sure my CFD Provider was actually purchasing the underlying, I would not trade.
hth
Apparently when CMC was asked about the spike, the position was restored, and fees refunded, because the "spike" did not occur in the underlying. This is because CMC is not a CFD provider, but a Market Maker - essentially a Bookmaker, who may charge the prices they like, if there are takers.
When deciding whether you should have your account with company A or company B, it has to be considered whether the company is a bona fide CFD Provider, or simply a Market Maker. There is a huge difference, and some have lost their accounts without learning the difference yet.
With a CFD Provider, you should get a GUARANTEE of the price EXACTLY matching the underlying, NO SLIPPAGE. For this, you have to expect to pay a commission. Many traders (punters) don't like commissions, so elect to have accounts with Market Makers (Bookmakers). They do not often get charged the fees up front, but these MM's are not charities - the money still has to come from somewhere. Unfortunately the mugs who pay the spreads, slippages etc are the ones who pay for the MM's yachts.
It's OK if you know what you are doing, and trade according to the risks. If a share is not very liquid (and there are still mugs who trade these, when there are literally thousands of other choices available), you can expect the spread to be wider. Why? because the MM often hedges by buying the underlying as insurance, or put options ditto.
CFD Providers almost ALWAYS buy the underlying instrument. You deposit a margin to cover a % of price movement, but they put up the lot. You may be asked to increase your margin (margin call), if the underlying goes against you. I am sure you are already aware of much of what I have said, but some readers may not.
I apologise if I have any facts askew, and will gracefully accept any chastening.
For me, it's NO Market Makers. If I could not be sure my CFD Provider was actually purchasing the underlying, I would not trade.
hth