Can someone please explain the difference between Spread betting, CFD's & futures etc

[nkingy2003]

Can someone please explain the difference between Spread betting, CFD's & futures etc

I am a newbie to trading as you can probably tell by my question and I'm only familiar with spread betting and currently use IG Index to trade. I want to start using a few strategies which will be mid term strategies, weeks to months. If I spread bet then I will incur either carry fees if I trade using a daily contract or a wide spread if I trade using a monthly or quarterly contract. I realise the spread isn't that wide for these monthly and quarterly contracts but I was wondering if there is a more cost effectively way of mid term trading?

I was also hoping you could explain in brief what the other forms of trading and what the spreads or fees are like with them. Is spread betting the only one which isn't taxable?

I understand most people trade futures on here and have been told that spread betting is an amateurs game but I dont know how true that is. What do you guys trade?

 

[maiden22]

Re: Can someone please explain the difference between Spread betting, CFD's & futures

Hello.

Spreadbetting has lots of supporters and detractors. Personally I think you'll be absolutely fine for longer-term trading. Most agree it's not much use for scalping.

Tax free is a contentious issue, although you should be fine if you have other income (this argument is another one that has been round a thousand times).

There are differences, although for example FXCM claim that when you spreadbet with them you are effectively trading direct as they match your trade in the market. Their spreadbetting platform is just their normal one with an SB wrapper according to them.

I like IG, others think they're sperm of the devil. You'll haver to work out what suits you best, but the daily charges shouldn't be that significant unless you're holding for a long time.

This explains each type pretty well:

http://www.trade2win.com/traderpedia/Main_Page

There's a section on each on the right, scroll down a bit.

Hope this helps to get you started.

 

[nkingy2003]

Re: Can someone please explain the difference between Spread betting, CFD's & futures

Thanks Maiden!

You mention scalping. What is the best platform to use for scalping? I have been reading a lot on scalping and I would like to have a go although obviously with a demo account first lol.

A lot of people have been saying that the prefer to use platforms which are fast, reliable and where they get filled quickly which makes sense. I'm just wondering what these sites are?

 

[maiden22]

Re: Can someone please explain the difference between Spread betting, CFD's & futures

Thanks Maiden!

You mention scalping. What is the best platform to use for scalping? I have been reading a lot on scalping and I would like to have a go although obviously with a demo account first lol.

A lot of people have been saying that the prefer to use platforms which are fast, reliable and where they get filled quickly which makes sense. I'm just wondering what these sites are?

No probs - mi casa es su casa.

Scalping I have no idea - I think there are some people around here who do it successfully, but they are few and far between. Probably best to start a separate thread for that and see who answers, or ask one of the mods / guides to point you to someone who knows about it.

The trouble with platforms is everyone has their own opinion. Some may be valid, but don't forget people are quicker to complain than praise, and often people blame the platform for their own failings.

Personally I like IG but don't like Finspreads. Worldspreads seem OK. I have an FXCM account but haven't used it yet.

I've had no problems with IG and I am profitable, but only in a modest way (a few££ per pip at most), so I can't comment on how they'd be if you were trading large numbers. I suspect that alot of the "they screw you, they're bucketshops" stuff is overdone, but I might be wrong. Time will tell hopefully .

Sorry for sticking my oar in, but I'd be wary about scalping and trading off 1 / 3 / 5 minute charts and all that. You may be great at it, but most people I think try it and then move up the timeframes. I use mostly daily now with the very occasional 1 hr and 4 hr, and I'm doing much better.

The other thing is that I don't think demo will prepare you for real scalping, but again best to ask someone who has more experience.

Hope it all goes well for you.

 

[nkingy2003]

Re: Can someone please explain the difference between Spread betting, CFD's & futures

Yea IG seems really good to me although it is my first account so I have nothing to compare it to. I also like their 6 weeks Tradesense program which means at present my min per pip is £0.10 which is good to start with. Im pretty sure most platforms are £1 per pip but Im sure I saw someone post on here a little while back that there is a forex platform where the min per pip is much less. I will have to do some more research on different platforms to see which ones have the lowest min per pip.

I got Malcolm Pryors book 'Winning Spread Betting Strategies' today and Im half way through it. The systems seem to make a lot of sense and seem to be easy to execute but whether they will actually make money or not I dont know.

I think as far as scalping goes, I think it probably is best if I leave it a little while. Been reading some more information and its definitely not for beginners lol.

 

[maiden22]

Re: Can someone please explain the difference between Spread betting, CFD's & futures

Yea IG seems really good to me although it is my first account so I have nothing to compare it to. I also like their 6 weeks Tradesense program which means at present my min per pip is £0.10 which is good to start with. Im pretty sure most platforms are £1 per pip but Im sure I saw someone post on here a little while back that there is a forex platform where the min per pip is much less. I will have to do some more research on different platforms to see which ones have the lowest min per pip.

I got Malcolm Pryors book 'Winning Spread Betting Strategies' today and Im half way through it. The systems seem to make a lot of sense and seem to be easy to execute but whether they will actually make money or not I dont know.

I think as far as scalping goes, I think it probably is best if I leave it a little while. Been reading some more information and its definitely not for beginners lol.

I think you can extend that £0.10 per pip period if you ask to - I was on it for ages.

Try Oanda - I think they do pennies per pip, and I know successful traders who use them.

If you're looking for methods, be sure to check out the "James16 Chart Thread" on Forex Factory, or the Trader Dante Making Money Trading thread on here (based on J16). Some useful ideas there.

 

[nkingy2003]

Re: Can someone please explain the difference between Spread betting, CFD's & futures

I am definitely looking for methods. I will check them out, thanks. I will also have a look at Oanda, I have seen them mentioned a few times before of the forums.

 

[sonia222]

Re: Can someone please explain the difference between Spread betting, CFD's & futures

No probs - mi casa es su casa.

Scalping I have no idea - I think there are some people around here who do it successfully, but they are few and far between. Probably best to start a separate thread for that and see who answers, or ask one of the mods / guides to point you to someone who knows about it.

The trouble with platforms is everyone has their own opinion. Some may be valid, but don't forget people are quicker to complain than praise, and often people blame the platform for their own failings.

Personally I like IG but don't like Finspreads. Worldspreads seem OK. I have an FXCM account but haven't used it yet.

I've had no problems with IG and I am profitable, but only in a modest way (a few££ per pip at most), so I can't comment on how they'd be if you were trading large numbers. I suspect that alot of the "they screw you, they're bucketshops" stuff is overdone, but I might be wrong. Time will tell hopefully .

Sorry for sticking my oar in, but I'd be wary about scalping and trading off 1 / 3 / 5 minute charts and all that. You may be great at it, but most people I think try it and then move up the timeframes. I use mostly daily now with the very occasional 1 hr and 4 hr, and I'm doing much better.

The other thing is that I don't think demo will prepare you for real scalping, but again best to ask someone who has more experience.

Hope it all goes well for you.

Thanks for ur opinion......ur msg is vry long

 

[BSD]

Re: Can someone please explain the difference between Spread betting, CFD's & futures

http://www.trade2win.com/boards/gen...ndex-taking-me-bankruptcy-13.html#post1072272

 

[fayalac]

Re: Can someone please explain the difference between Spread betting, CFD's & futures

Thanks Maiden!

You mention scalping. What is the best platform to use for scalping? I have been reading a lot on scalping and I would like to have a go although obviously with a demo account first lol.

A lot of people have been saying that the prefer to use platforms which are fast, reliable and where they get filled quickly which makes sense. I'm just wondering what these sites are?

FXCM say they dont care if you do and they have a good and reliable plattform.
But take things slower.
Do you really know what means to scalp?
Most people recommend to look for brokers with faster plattforms because operations can be made within seconds....
I have done many times extremelly fast operations, 2 - 3 seconds, but as the time involved in making a full operation gets closer the risks inherent grow.
There are many kinds of scalping from very fast operations through longer time operations wich can easily be defined as intraday´s.
Many people claim - and i have no doubt they do - they operate only at 1 and 5 min charts, to do these requieres a lot, i mean a lot, of experience and you must be aware that you r/r ratio can be very small so to make a profitable trading requieres basically mostly luck, dont get confussed by terminology.
Scalping is a good method, i have used it many times but basically in ranging markets, if you can anticipate a trend or a change in the markets behavior, then scalp, otherwise, as another mate said, if you dont trade you already won.

 

[Ambrose Ackroyd]

Re: Can someone please explain the difference between Spread betting, CFD's & futures

I am definitely looking for methods.

http://forex-strategies-revealed.com/