WorldSpreads

Why does a company advertise a one point spread which I would say would encourage frequent traders and then not allow the same traders to trade frequently?

Racer said:

Why does a company advertise a one point spread which I would say would encourage frequent traders and then not allow the same traders to trade frequently?

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Do you really need to ask Racer?

EDIT: scratch that, just re-read it! Sorry!

They told me some time ago there was a problem with their system which would be sorted out, so a lot of times I had to wait for dealer to respond.

I went back to trade later in the day with them and the same problem again waiting for the dealer to respond,

These are the trades I tried to place in the afternoon when I stared having problems with waiting. before the ones below I had around 20 trades on hold, I had a stop watch for these ones take a look below.

trade 1 to 10

time dealer to respond
15.21 12,04 sec
15,23 17,49 sec
15,24 15,04 ses
15,25 19,23 ses
15,26 14,11 ses
15,26 17,39 ses
15,28 11,75 ses
15,28 8,52 ses
15,28 21.46 ses

Well this is not good enough and another thing I notice later in the day..,let's say I went long at 50 when I decided to get out on the ticket it said 55/56 I wanted to get out at 55 as shown on the ticket I would get a quote 3 to 4 tick lower than what it showed, at this time the market was not moving, I done it again it showed 55/56 on the ticket but they come back gain with a quote of 4 pips lower. I called them up and I had a quote more to the market. If they cant deliver on line trading they should say. phone trading only

and before you say you must have had a bad day, you be wrong I have made 400 quid a day with them,on avr, but now they are making it harder for me to trade. and I have only been with them a short time.

Anyone else having to wait for a trade on line up to 20 sec

the answer has to be to attract business, its a risk because it can do more damage than good for the companies rep. fair enough if they didnt advertise "Instant" dealing, but 1 pip ..... asking for trouble really isnt it.......

I still say if a company is prominantly advertising Instant and publicly announcing 1 pip, I would of thought that they would of have to complied with delivery of the service as advertised... now with the small print and perhaps this is where they can get away with it, refuse to deal etc, their discretion, thats one grey patch, that i would like to see in bigger text next to the 1 pip crap, if a company (hmm, i would of thought 1 reject in 100 is a lot.....). is frequently failing a test of fair standards then..... they have no right to get away with advertising and publicly stating , instant, and 1 pip....

if i had my money there id ring firstly trading standards, secondly ..... the person who makes these decisions(SB Firm) and mention sub 60 seconds, 1 pip max size are we welcome, asking for trouble ......?

poor sods.

hmmm who I am with well over a thousand trades, never a rejected ticket...... sure ive been slipped 1 point in a swift market, market order but.... millisecs...... and no rejects...... no stops, limits failed either.

lol what am I doing its a spreadbet co. what do you expect......

I did mention crimestoppers... do people feel as if they are receiving injustice...

I feel your pain and frustration...... but if you gotta bang an order through at price..... that doesnt need to be an issue........ ever.

Follow your head. deep down, you know.

Come on we could get the law changed.........

If they can get away with it they will....

Further ranting..

righty, lets start a petition, who do they need to comply to, lets get a legal definition (for advertising pursposes BOLDLY if nothing else......) whats the legal defintion regulating these companies on INSTANT, frequency time etc, less than 1 sec confirm etc...... whats a fair legal defintion, do they have to live up to it.....? whats the legal accepted level? nobody looked into it.....? shouldnt they.. time for compliance, 1 week , 1 month..... or just get away with it until told otherwise....

I dont use spreadbet but just having a rant, who are their regulators, phone number? what do they say IF ANYTHING , that as an absolute minimum, they have to , or are expected to maintain standards to regarding Instant and frequency, what constitutes a violation of that? who monitors it? who reports it? ohh we wait for complanints? lots of complaints MAY warrant further investigation ?

lol, im p!ssed off and I dont even use them.......

INSTANT? not quite is it....

anyone else feel peeved at this, or anything to say?

Any baby firm has teething problem. As long as it can be fixed quickly then it will be alright. But from what you guys said, it's probably not the case here. And that's why we need many more than one account, is it not?

Racer, have you thought about phoning their regulators, even out of curiosity ? to see if there is any fairness policey verses prominance of AD, compliance.... definition of INSTANT etc...

They had a problem with their system it seems

11. If you have reason to believe that the bookmaker with which you deal is not acting in accordance with representations that it has made to you, the terms of your customer agreement or the rules of the FSA, you should report it to the Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR. Tel: 0845 080 1800.


hmmm... well the numbers there, first one to report back re any issues........ will be rewarded in heaven.

I am willing to have someone from the press/ magazine to sit next to me and see how they operate does anyone know of anyone?.

Further more, is it just me and racer who have an account with them, I don't see any one else coming forward. It now looks to me, its not the feed, it's because I have taken money off them, the same with racer.

I usually trade the Future markets with a broker, but I had to try a 1 pip spread tax free, but as I though it's to good to be true, Its a shame I will try tomorrow again with them and report back.

I think it is called "Conflict of interest." You are trading a synthetic market with a company who make more money if you fail. That is not condusive to them serving your best interests.

are they making the representation that my fill will be Instant?

this is exactly the reason you should deal on the underlying if you're gonna spreadbet.

I'd bet theres nothing wrong with their systems, its just that with their "cheap" 1 pip spreads it suits them to get a dealer to quote you.

but you can get 1pip spreads every day in the real futures market, with <100ms fills - unless you're dealing open outcry, which is basically what you're doing with WS and their dealer baloney. 20 seconds is a darn long time in the markets and I'd bet it would cost you more than 1 pip.

Same here, I am no newbie to trading. I have used Currenex front end to provide me with a true one-click ESP (Executable Streaming Prices) and 1 pip spread all the time, but now trade Futures CME FX

I had a look at worldspreads for the 1 pip spread, deep down I new what would happen. only been with them a short time taking 400 quid a day off them, as you guessed, they have made it difficult for me to trade with them with holding quotes.

It says this on the site lol



Instant execution
You do not have to wait for your broker to get back to you before entering or closing any trade. Whenever you feel like betting, WorldSpreads offer instant execution by the telephone or via our fully interactive online dealing system, assuming appropriate liquidity in the markets.

http://www.worldspreads.com/index.aspx

fxmarkets said:

righty, lets start a petition, who do they need to comply to, lets get a legal definition (for advertising pursposes BOLDLY if nothing else......) whats the legal defintion regulating these companies on INSTANT, frequency time etc, less than 1 sec confirm etc...... whats a fair legal defintion, do they have to live up to it.....? whats the legal accepted level? nobody looked into it.....? shouldnt they.. time for compliance, 1 week , 1 month..... or just get away with it until told otherwise....

I dont use spreadbet but just having a rant, who are their regulators, phone number? what do they say IF ANYTHING , that as an absolute minimum, they have to , or are expected to maintain standards to regarding Instant and frequency, what constitutes a violation of that? who monitors it? who reports it? ohh we wait for complanints? lots of complaints MAY warrant further investigation ?

lol, im p!ssed off and I dont even use them.......

INSTANT? not quite is it....

anyone else feel peeved at this, or anything to say?

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Morning....

The Control of Misleading Advertising Regulations covers these matters. In my opinion the company could be on very thin ice.


The Office of Fair Trading states that an ‘Advertisement’ is….

“Any form of representation which is made in connection with trade, business, craft or profession in order to promote the supply or transfer of goods or services, immovable property, rights or obligations.”

The Control of Misleading Advertisements Regulations (CMARs), aims to protect the interests of consumers and businesses from misleading advertising – or advertisements which make unacceptable comparisons.

CMARs states that…

Advertising should not:
a) Contain a false statement of fact
b) Conceal or leave out important facts
c) Promise to do something – if there is no intention of carrying it out
d) Create a false impression, even if everything stated in it may be literally true.

I'd say that it is possible to argue that quite a few of the companies breach these regulations on many adverts. The law also appears to state that, as a business, you can only offer goods / services as you are prepaired to offer them. With that in mind it is clear that most of the spreadbetting companies use an interpretation of their T&C to revoke promises made or implied in their advertising. Never having to fill at a quoted price is clearly something that they dont advertise yet it is an important point for a trader.

Steve.

Thanks Racer - I was thinking of trying them out, but you've saved me the bother.