Banned for winning too much?

[foredog]

THe spread is useless if the market's chopping about, you could sell at 145.05, it jumps up 5 ticks so with the .03 spread you get it back on the bid at 145.08 and it's back down to 145.02/5 in the blink of an eye.

Happens all the time, that's the point when you have to limit risk as some people will be sitting there at the PC going "buy 10, Sell 10" all day long and costing you money.

 

[donaldduke]

That's right -I stand corrected and will bow out.

"£1 bet on FTSE coming in guys: accept or reject?"

"50p on Nasdaq daily, Fred. Don't accept that one."

"Bill, help! 40 simultaneous orders. Heck, what should I do?"

"Tell them they'll have to get in line like everyone else"

You can laugh, but for IG Binaries (which are not hedgeable) this is exactly what happens very often.

I have had orders of £1pp a point queued up and eventually rejected in slow markets.
(IG claim Binaries are good for £100 a point), all automated the IG system rejected my orders only because i am a profitable client.

 

[tar]

You can laugh, but for IG Binaries (which are not hedgeable) this is exactly what happens very often.

I have had orders of £1pp a point queued up and eventually rejected in slow markets.
(IG claim Binaries are good for £100 a point), all automated the IG system rejected my orders only because i am a profitable client.

Binaries diffrent story , and u still make money at IG from binaries and they didnt ban u ...

 

[Joey25]

You can laugh, but for IG Binaries (which are not hedgeable) this is exactly what happens very often.

I have had orders of £1pp a point queued up and eventually rejected in slow markets.
(IG claim Binaries are good for £100 a point), all automated the IG system rejected my orders only because i am a profitable client.

I wasn't laughing. That Steve character riled me that's all.

I'm explicitly on dealer-requote with options, but don't feel I get cheated.

I rang up at 10:30 on the third Friday of the month in February and the guy was honest and said can you ring back in 5 minutes when we've updated our vols?
I don't object to that.

They once didn't send out a confirmation letter for a trade on the FTSE(£10 a point), and the dealer said I could have it at market, which was worth about £500 free money, just goodwill.

All the other things I enter with orders and have no problems at all.

 

[donaldduke]

Binaries diffrent story , and u still make money at IG from binaries and they didnt ban u ...

Yes i know IG Binaries are not a real market, but it does illustrate the tricks they play, even though they claim Binaries are good for £100 a point this is clearly not true if you consistently make money.

 

[stevespray]

I didnt mean to upset anyone! I was just saying it as it is.

Steve.

 

[Joey25]

I didnt mean to upset anyone! I was just saying it as it is.

Steve.

No, you're expressing your opinion. And I'm still convinced you work in IT.

 

[stevespray]

No, you're expressing your opinion. And I'm still convinced you work in IT.

I don't work in IT sorry. I am by trade an electrical / mechanical engineer - generally problem solving and fault detection and correction.

You say that I'm expressing 'my opinion' (implying that it is nothing more than my opinion) when in fact what I have openly stated is a ) my own direct experience after dealing with these firms for over 10 years, and b ) the statements and expertise given directly to me, face to face, by people who work at various SB firms - Therefore, like others on this thread who have provided primary examples of sharp practices, I would consider what I have written to be more than 'my opinion' as I absolutely KNOW that these firms detect clients who trade in a particular manner. That's not to say that they will close your account mind - they simply increase their own 'edge' by manipulating the client orders.

Steve.

 

[Joey25]

Yes, you don't work in finance, but your mates do. Respect.

 

[stevespray]

Yes, you don't work in finance, but your mates do. Respect.

I'm a full time trader although I don't say to people, "I work in finance."

 

[Joey25]

Oh really? Who with: Goldman Sachs, Marex, the kitchen?

 

[stevespray]

I run my own business basically but that has little to do with what is being discussed on this thread.

The question being asked relates to people being 'banned' (or at least hindered) for "winning too much". You've suggested that the spread gives the market maker (SB Co's) an edge over the clients which cannot be financially circumvented by the clients themselves in their trading activities no matter what trading style is adopted - is this correct?

All people like myself and DonaldDuke have stated is that this is not always the case - what each of us does as a job has little bearing on the matter - the SB firms detect certain clients and deal with them in a certain manner. CMC closed two accounts of mine some years back and the MD told me to find a broker who was "closer to the market" in other words direct access. This isnt made up nonsense this is real life.

Steve.

 

[Joey25]

You chose to go down the "you don't know what you're talking about route", when in fact all you are doing is stating one side of the story (the client's).

Anecdotal evidence is dangerous and hardly scientific. I've already said that an internet browser-based system is hardly going to match up to X-Trader or MT4.

Also, I totally accept that there will be delays with the products which are at the more illiquid end of the spectrum (my own trading, binaries etc.).

I have presented my case, with knowledge gained from having actually worked as a risk manager (albeit in investment banking), that I don't find it plausible that they will lose sleep about vanilla scalpers - arbitrageurs yes, but the others, the "more the merrier".

Good trading,
Joey

 

[ceydababy]

For what it's worth because this looks like it has been done to death ! A good friend of mine works at a larger SB firm for obvious reasons I'm not going to name him or his company.

Without giving too much away they have been discussed in this thread and are one of the bigger players.

He CATEGORICALLY states that " clients trading short term (sub 5 minute) at larger size £50+ a point who consistently win will be referred to dealer, they are a business and want profitable business and they don't pay his wages by giving cash away "

He also confirms that they watch for clients who have a fast feed and an even faster finger, he reckons this activity is really watched for and anyone doing it will last no more than 48 hours before they're put on dealer referal.

It's not all bad. If you trade over longer time periods and consistently win his SB firm love's you. When they hedge your position they put in some of their own dough (because you are so good and win all the time) and they win too !

If anyone wants free money I would suggest Worldspreads. 2 point dow spread, £500 losses refunded (i think) and prices so slow you could post your trade confirmation and I bet the prices would have caught up just as the postman pops your envelope through the letter box of world spreads towers in Regent Street.

 

[new_trader]

He CATEGORICALLY states that " clients trading short term (sub 5 minute) at larger size £50+ a point who consistently win will be referred to dealer, they are a business and want profitable business and they don't pay his wages by giving cash away "

Thank you. This I can believe as I stated earlier, it is only size that matters. I think it's just coincidence they were also trading shorter time frames. Anyway, yesterday I made my 5th successful S/B scalp in a row. Now I'll just sit back and wait for the IG police to come knocking at my door

How long do they wait before they feel threatened by my short term trading?

 

[Pippppin]

One way ticket to zero...

Let's face it. SB companies primarily exist to wipe out their customers accounts, knowing another (mug) will be opening an account in the next few minutes. If they have a few "nuisance" customers (those who do know what they are doing), they will seek leverage from them (take the same trades etc.). If they cannot leverage them, they will be shown the door asap...

As for the tax free element. Does anybody think SB would be tax free if it wasn't a one way ticket to zero for all but a relative handful?

 

[Crawsthorne]

For what it's worth because this looks like it has been done to death ! A good friend of mine works at a larger SB firm for obvious reasons I'm not going to name him or his company.

Without giving too much away they have been discussed in this thread and are one of the bigger players.

He CATEGORICALLY states that " clients trading short term (sub 5 minute) at larger size £50+ a point who consistently win will be referred to dealer, they are a business and want profitable business and they don't pay his wages by giving cash away "

He also confirms that they watch for clients who have a fast feed and an even faster finger, he reckons this activity is really watched for and anyone doing it will last no more than 48 hours before they're put on dealer referal.

It's not all bad. If you trade over longer time periods and consistently win his SB firm love's you. When they hedge your position they put in some of their own dough (because you are so good and win all the time) and they win too !

If anyone wants free money I would suggest Worldspreads. 2 point dow spread, £500 losses refunded (i think) and prices so slow you could post your trade confirmation and I bet the prices would have caught up just as the postman pops your envelope through the letter box of world spreads towers in Regent Street.

Unfortunately, like many others I suspect, I have discovered that the Worldspreads solution does not last long before they put you on dealer referral, highlighting the main point that all of these companies will find a way of stopping something they can't make money from!!!

 

[Black Swan]

Thank you. This I can believe as I stated earlier, it is only size that matters. I think it's just coincidence they were also trading shorter time frames. Anyway, yesterday I made my 5th successful S/B scalp in a row. Now I'll just sit back and wait for the IG police to come knocking at my door

How long do they wait before they feel threatened by my short term trading?

Only five? You pussy

 

[Rossini]

Thank you. This I can believe as I stated earlier, it is only size that matters. I think it's just coincidence they were also trading shorter time frames. Anyway, yesterday I made my 5th successful S/B scalp in a row. Now I'll just sit back and wait for the IG police to come knocking at my door

How long do they wait before they feel threatened by my short term trading?

Try doing that for 5 days. Wait and see....

 

[new_trader]

Let's face it. SB companies primarily exist to wipe out their customers accounts, knowing another (mug) will be opening an account in the next few minutes. If they have a few "nuisance" customers (those who do know what they are doing), they will seek leverage from them (take the same trades etc.). If they cannot leverage them, they will be shown the door asap...

As for the tax free element. Does anybody think SB would be tax free if it wasn't a one way ticket to zero for all but a relative handful?

...tumbleweeds....


hmmmmm....

Spread betting is NON-PROFESSIONAL....

Now let's see what happens...