Where are all the spreadbetting millionaires?

I have been spreadbetting for 6 years (IG, Fins, Capitalspreads etc). As well as futures trading for 13 years (commodities) and stocks (US).

I have noticed a dearth of media publicity for spreadbetting millionaires. When was the last time you saw a millionaire spreadbetting punter on the BBC, or in The Times, or the Sun? A quick google search produces Mr.IG himself, Stuart Wheeler. Where are all the spreadbetting millionaires? The FTSE home traders. The USD/EUR bandits. Relaxing on their sunkissed beaches in the Pacific?

It is rather like asking "where are the horse racing millionaires?" Punters, not owners. We all know that if we had the perfect horse racing "system", and regularly started to take large sums off the local bookie, we would be run out of town...

The spreadbetting firms hide behind...
Sir, your computer is at fault, that is why you could not enter/exit your trade. Have you tried emptying your cache (as well as your bank account Sir). Try a guaranteed stop Sir (and your stock will have to go to the moon for you to make a profit). We do not move the "spread window" to stop you out of your trade Sir (but the underlying market was nowhere near that level). We do not move the "spread window" Sir to ensure a much smaller return on a profitable trade (I called this one right and I have barely made enough to buy a packet of crisps).

The illusion of spreadbetting. Similar to the illusion of "personal pensions".
Where are those "spreadbetting millionaires", I wonder....

I think most people make a decent living spreadbetting but unless you have a large amount to trade its hard to make millions. Takes money to make money. Its too ease slag off the IGs of this world. It comes down to the individual and if they are a bad trader there is little IG can do.

Where are all the spreadbetting millionaires?

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They do exist but mostly as directors of the spreadbetting companies.


Paul

Trading2k said:

I think most people make a decent living spreadbetting.

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I COMPLETELY disagree with this statement.

I have made six figures spread betting in the last couple of years.
If i live long enough i might get to the magic 7 figure.

I guess most people who make a fair chunk on spreadbetting see it's better sense to go direct and make bigger money there than stay and trade with a bookie who will screw them over at some time or another.

SB - better than keeping your money in the bank at current (and falling) UK interest rates

"most people make a decent living spreadbetting" - stats shows thats NOT true. 95% lose.

"I made six figures spreadbetting in the last year" - I'd LOVE to know your method / starting balance

Spreadetting Millionaires ?
From experience they do not like custermers to win large amounts of ££$$ and will do all they possibly can to obstruct you, this is pointed at CMC .
Over a period of time taking a million from a SB firm is achievable if they let you close those positions.

They hate traders who place large limit orders closely to together when the market tanks/rallies as they cant hedge the position if suddenly you have built up substantial profits, I talk from real experience.

Believe me, most lose just like most William Hill punters lose.

Sure, always exceptions to the rule but the percentage of spread betting clients that have more money than they paid in over a 3-5 year period I think would be about 2% and that might even be too generous.

Anyone can lucky over a year or 2 but to KEEP your money and ADD to it, for most people that is a pure pipe dream.

PS. But of course, you won't see or hear about most of the 98%, in fact when you meet one chances are they'll tell you that they're in the 2% camp Can't knock them though, it's just human nature.

Pippppin said:

I have been spreadbetting for 6 years (IG, Fins, Capitalspreads etc). As well as futures trading for 13 years (commodities) and stocks (US).

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Are you successful now?

Masquerade said:

I guess most people who make a fair chunk on spreadbetting see it's better sense to go direct and make bigger money there than stay and trade with a bookie who will screw them over at some time or another.

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This is my view. Spreadbetting is simple to get into, doesn't require big money and isn't beset with complications like having to do tax returns, but once you're making enough for the SB companies to want to make life hard for you you're better off moving into direct access where the spreads are smaller, noone has a vested interest in obstructing your entries/exits and prices accurately reflect the underlying market. BY that time paying someone to handle your tax returns, etc. is no big deal. I hope to reach this point one day!

I make an acceptable return from spreadbetting but I would prefer to go the direct access route. The problem is that I can't trade US markets because of the time difference so I trade the LSE. And LSE shares have 0.5% stamp duty so spreadbetting is the only choice for me as a fairly short term trader. Happy to take ideas from people as to better markets to trade from China.

Having said that I don't think most of the problem is with the spreadbetting companies, rather the people that the companies attract to do business.

I'm in the six figure mark too.

Just under 1/3 of the way to seven figures.

Starting balance was £50.

Not done as well in the direct market as I have done spread betting. So far...

trader_dante said:

I'm in the six figure mark too.
Just under 1/3 of the way to seven figures.
Starting balance was £50.
Not done as well in the direct market as I have done spread betting. So far...

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I started out with even less than £50, i started with a credit account, (am still quite suprising IG gave me one those as a newbie).

But you seem to be a fair bit a head of me.. Lets see if i can catch up..

donaldduke said:

I started out with even less than £50, i started with a credit account, (am still quite suprising IG gave me one those as a newbie).

But you seem to be a fair bit a head of me.. Lets see if i can catch up..

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lol donaldduke...a credit account is still a starting balance though...at my prop firm we have a standing start of zero also but the margin to trade a 10 lot...which is essentially quite a lot of money.

But I am sure you will catch me...I'm currently short equities though...and if they break the November low I'm going to be half way to seven figures lol

I love these "95% of spread 'betters' fail" quotes...only "2% do this blah blah"...totally unsubstantiated claims based upon urban myth.
There also appears to be a general consensus that SB is 'dirty', 'low rent', not "nice and clean" like direct access... that's boll0x...not paying the revenue a penny of your winnings far outweighs the spread fees involved and the image issues. Making a grand in a week and keeping it, (despite the SB company making perhaps 200 quid out of your efforts) is OK by me...

Trading2k said:

I think most people make a decent living spreadbetting but unless you have a large amount to trade its hard to make millions. Takes money to make money. Its too ease slag off the IGs of this world. It comes down to the individual and if they are a bad trader there is little IG can do.

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That's a sweeping statement. I don't think that most people do, but money is made, regardless of the scoffers.

A fool and his money are soon parted. I fear that many traders are not traders, at all.

Split

LOL, if ever a thread reminded me why I hardly bother with T2W these days, this is it.

I wonder how many time this, and every other new thread today, has been done.

People like Trader_Dante and Donaldduke will tell you that they've made a success of spreadbetting, all the failures will ignore them and blame the spreadbetting companies rather than their own inadequacy.

Yawn.

UTB

the blades said:

LOL, if ever a thread reminded me why I hardly bother with T2W these days, this is it.

I wonder how many time this, and every other new thread today, has been done.

People like Trader_Dante and Donaldduke will tell you that they've made a success of spreadbetting, all the failures will ignore them and blame the spreabetting companies rather than their own inadequacy.

Yawn.

UTB

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Most of the failures in sb are under capitalised and inexperienced. This is good coz its their money that the experienced ones take. A lot panic when they take a loss and close out too early - or take profit way too early instead of running it. I know i been there !!!