Zero Spread WorldSpreads

Tired_Of_Conmen said:

Ok... I don't know about anyone else but every single banner ad on T2W on my PC is right now all about one thing: 0 point spread on major markets with WorldSpreads.

Sigh.... do I need to ask? What's the catch?

Anyone from WorldSpreads on here want to comment? Anyone got any experience with this?

I'm presuming WorldSpreads is not a charity trying to make us retail trader's successful...? So what's the catch?

As far as I know, if you don't charge commission and you have no spread you make... about.... erm.... £0.00 profit per trade as a broker? Sorry if my math is slightly off.

TOC

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Tired_Of_Conmen said:

Ok... I don't know about anyone else but every single banner ad on T2W on my PC is right now all about one thing: 0 point spread on major markets with WorldSpreads.

Sigh.... do I need to ask? What's the catch?

Anyone from WorldSpreads on here want to comment? Anyone got any experience with this?

I'm presuming WorldSpreads is not a charity trying to make us retail trader's successful...? So what's the catch?

As far as I know, if you don't charge commission and you have no spread you make... about.... erm.... £0.00 profit per trade as a broker? Sorry if my math is slightly off.

TOC

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Conor Foley said:

Dear Tired_Of_Conmen,

We have decided to offer 10 of our popular markets at zero spreads. We quote over 2,000 markets and there has been no change to the spreads on those. In our experience, clients trade a range of markets, so while we will clearly be earning less on the 10 'Zero Spreads' markets, we would hope clients will also trade other markets where we offer 'normal' spreads. So, while we are not a charity, as you correctly state, there is no catch.

Conor Foley
CEO
WorldSpreads

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Ross Spur said:

Do trades on these popular markets go through automatically, or is there dealer intervention? Zero spread is bound to attract short-term traders, but presumably you don't want 'scalpers'.

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neil said:

Zero spreads only for the Platinum account - you need to deposit £5000.
But then, how long will the offer last?
In which case why leave your existing SB company that already offers low spreads?
Are regular winning traders put on manual or requoted trades?
Thse are just a few points to ponder and monitor while you try the company.

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gamma said:

What happens if your account balance drops below 5000?
Do you have to maintain a minimum balance of 5000 all the time?

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Conor Foley said:

Hi Ross,


b) Traders who have no opinion on the market but try to generate a profit by dealing on system prices that may not be perfect (i.e. may lag the market by a second or so).


Hi Conor

Do you have specific guidelines/rules/process to determine the above, otherwise it could be a fairly wide judgemental call?

Thanks

T

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timaru69 said:

Conor Foley said:

Hi Ross,


b) Traders who have no opinion on the market but try to generate a profit by dealing on system prices that may not be perfect (i.e. may lag the market by a second or so).


Hi Conor

Do you have specific guidelines/rules/process to determine the above, otherwise it could be a fairly wide judgemental call?

Thanks

T

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That's what I'm wondering, too. Probably 99.9% of SB-ers don't and can't trade on slow prices, or 'system prices that may not be perfect', but they still get put on dealer referral.

btw, how much interest do we get on the £5k?

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timaru69 said:

Conor Foley said:

Hi Ross,


b) Traders who have no opinion on the market but try to generate a profit by dealing on system prices that may not be perfect (i.e. may lag the market by a second or so).


Hi Conor

Do you have specific guidelines/rules/process to determine the above, otherwise it could be a fairly wide judgemental call?

Thanks

T

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Hi T,

I dont have anything formal I can give you on this, and, as a trader myself, I do empathise with your concerns. The only guideline I can give you is the self-explanatory one, namely 'clients who are only interested in dealing on prices which are not completely "spot on"'. Even with enhancements in processor speeds and broadband connectivity, there will be times where prices lag the exchanges. This is an industry hazard. Unfortunately, there are one or two traders who spoil it for everyone else.

We go out of our way not to place clients on Dealer Referral, but sometimes we have no choice. The fewer clients we have on Dealer Referral, the less time our Traders need to spend checking prices!

You are correct - at the end of the day, it is a judgement call, but we only do it when we have to.

Regards,

Conor.

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Ross Spur said:

timaru69 said:

That's what I'm wondering, too. Probably 99.9% of SB-ers don't and can't trade on slow prices, or 'system prices that may not be perfect', but they still get put on dealer referral.

btw, how much interest do we get on the £5k?

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Ross,

I can tell you, sincerely, that we dont place clients on Dealer Referral without good reason and, for those that we do place on Dealer Referral are still quoted the market price. OK, it may take a couple of seconds longer, but we are only talking about a couple of seconds.

I do need to present the facts in relation to Dealer Referral and the concerns that clients have about prices being called against them. When a Trade pops up in front of our dealers, they are not aware whether a client is opening a new position or closing an existing one. If you are in any doubt about that, you are welcome to visit our offices and I will show you. All our dealer is interested in doing is quoting you a correct, two-sided price. If I thought I was being 'read' by a firm, I would simply sell if they called it up or buy if they called it down. With 1 points spreads, and now 0 point spreads, we simply cannot call the price away from the market price. We would be arbitraging ourselves.

Conor Foley
CEO
WorldSpreads

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arabianights said:

When you say "gilt", would you be interested in offering zero spreads on the two and five year gilt futures?

If so I will open account and deposit tomorrow

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Conor Foley said:

Ross Spur said:

Ross,

I can tell you, sincerely, that we dont place clients on Dealer Referral without good reason and, for those that we do place on Dealer Referral are still quoted the market price. OK, it may take a couple of seconds longer, but we are only talking about a couple of seconds.

I do need to present the facts in relation to Dealer Referral and the concerns that clients have about prices being called against them. When a Trade pops up in front of our dealers, they are not aware whether a client is opening a new position or closing an existing one. If you are in any doubt about that, you are welcome to visit our offices and I will show you. All our dealer is interested in doing is quoting you a correct, two-sided price. If I thought I was being 'read' by a firm, I would simply sell if they called it up or buy if they called it down. With 1 points spreads, and now 0 point spreads, we simply cannot call the price away from the market price. We would be arbitraging ourselves.

Conor Foley
CEO
WorldSpreads

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So generally speaking most clients will be filled automatically and instantly?

As you're here, can I ask why only Platinum accounts get zero spreads? Surely it's easier to offer tighter spreads with lower stakes, as those with maybe £500-1000 margin will be using?

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SanMiguel said:

Just out of interest, do you have any plans to offer the zero spread on GBPUSD or the wall street 30?
on another note, I never fully understood why worldspreads opened up a trading as company called twowayspreads with almost similar software...

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