Account Closure?

[Interceptor]

I was wondering if anyone on this site has ever had an account closed by a spread betting company, due to success? I keep hearing the occasional veiled hint/apocryphal story that, if a trader actually manages to perform very well, then the odds are that your SB provider will terminate your account. Which seems to take away the eventual goal that everyone strives for!
Also, if its true, then where do you progress to from there?
Thanks for any answers.

 

[trader_dante]

I was wondering if anyone on this site has ever had an account closed by a spread betting company, due to success? I keep hearing the occasional veiled hint/apocryphal story that, if a trader actually manages to perform very well, then the odds are that your SB provider will terminate your account. Which seems to take away the eventual goal that everyone strives for!
Also, if its true, then where do you progress to from there?
Thanks for any answers.

I know someone who has.

Once they close your account, go to another SB broker and repeat until you run out of brokers.

You can likely make several million before you run out of them.

Then perhaps it's time to go to the direct market.

 

[Interceptor]

Thanks for that.
Are there known to be any 'information conduits' between the SB's, in relation to customer records etc? Or are they happy for you to go elsewhere?

 

[trader_dante]

Thanks for that.
Are there known to be any 'information conduits' between the SB's, in relation to customer records etc? Or are they happy for you to go elsewhere?

The person that I know that got banned didn't have a problem opening accounts elsewhere.

 

[Interceptor]

Thanks again.

 

[grantx]

X75,

Now this has been raised, I wouldn't be surprised if it is developed because they all have a mutual interest.

Grant.

 

[timsk]

I know someone who has.
Once they close your account, go to another SB broker and repeat until you run out of brokers.

Hi Tom,
Do you know the exact reason why the SB company banned him? This is important because the trader in question may well have told you that it was because he kept making money at the expense of the SB firm, but I'd be extremely surprised if that's the reason given by the SB firm themselves. If they said as much in writing, this would be very bad publicity for them indeed. It would totally undermine their general battle cry that they hedge client positions and encourage successful traders because it brings in more punters. It's also short sighted on their part because, if this trader is/was that good, a smart company would follow in his slipstream and capitalize on having such a successful client? I suspect - and it is just a suspicion - that the trader in question wasn't playing fair in the eyes of the SB firm and that's why they terminated his account and not because he was a regular trader who just happened to be very good.
Tim.

 

[Interceptor]

How is it possible for a trader to be unfair with his/her SB company? I assumed that that could only be one-way traffic?

 

[mp6140]

MP -- unanswered question for me

I was wondering if anyone on this site has ever had an account closed by a spread betting company, due to success? I keep hearing the occasional veiled hint/apocryphal story that, if a trader actually manages to perform very well, then the odds are that your SB provider will terminate your account. Which seems to take away the eventual goal that everyone strives for!
Also, if its true, then where do you progress to from there?
Thanks for any answers.

=============================================================

i have often wondered if this was "urban legend" left over from some of the wilder and woolier days of "brokers" or not, but i have NEVER in all my travels met someone who has been banned by their brokers (our brokers here in the states appear to be similar to your "bookies")

I make an extremely decent amount, with over 98% win rate (other 2% was an accident) and use a russian spread better as a broker, and while they will certainly hit me with slippage on a manual exit, they have never done anything against a limit order exit !
and since i dont use stoplosses, i cant tell what they would do against them.

so even with winning a fair amount, they have NEVER suggested i "get out of town NOW !"

THE OTHER SIDE of the coin is what you refer to as direct access --- here in the states one can open an account with a number of "direct access" ECN's (electronic communications networks) for as little as 500 pounds ($250 USD) so most of my trading is done through them, as there is NO slippage or stop hunting possible !

HONESTLY, over a number of years I have HEARD they can drop you, but unlike TD have NEVER yet met one, which may simply be because i trade an awful lot thru direct access as do traders i talk to !

interesting to see what truth is behind the legend !

enjoy and trade well

mp

 

[timsk]

How is it possible for a trader to be unfair with his/her SB company? I assumed that that could only be one-way traffic?

Hi x75,
Have a gander at this thread. There may be other ways besides the one outlined here, but this is the sort of thing I was referring to in my post and the kind of trading that SB firms don't like and regard as 'unfair'.
http://www.trade2win.com/boards/spread-betting/22098-how-make-money-spreadbet-firms-slow-quotes.html
Tim.

 

[TheBramble]

How is it possible for a trader to be unfair with his/her SB company?

By making a profit.

 

[mp6140]

By making a profit.

THANK YOU BRAMBLE --- i had forgotten the golden rule

"do not do profit unto your bookie !"

its a warm day here as spring is upon us, so i must go to the frozen food section at walmarts and photograph auriolas and their attached buds, blooming forth !

back soon

mp

 

[Interceptor]

Cheers for all of the answers.
Is there a sensible stake size to which you can progress with an SB, after which life becomes "difficult"? I saw someone mention £20 a point.