Best Thread Capital Spreads

[capitalspreads]

seguna

mmmmm

just looked at FXCM their spreads are the same or wider than ours

their margin requirements are higher

you have to trade in the currency concerned (rather than sterling) and thus pay out horrible exchange rates to convert your money.

you can only trade in lot sizes (much bigger than the minimum size available on our site)

and unless I have missed something I cannot find any mention of Guaranteed stops.

Still if trading at 3 in the morning is your cup of tea then ..what can I say.

Simon

 

[Mr Chill]

I've been trading live with C.S. now for about a month so far its been excellent ,keep up the good work .

 

[capitalspreads]

ah ha

appreciation .. thx Mr Chill

Simon

 

[capitalspreads]

seguna

sorry they do offer guaranteed stops.... seems like a great way to place orders just before a big number !

simon

 

[Buk]

Hi Simon! - hearing good things about CS all the time....nice to see a SB company actually 'listening' to & responding to clients concerns! good stuff.......actually FXCM do operate guar fills on stops round the clock, and a cust can opt to trade in sterling denom.....but as with all things, there's plenty of room on the playing field for all concerned! keep up the good work......

http://www.fxcm.co.uk/fxcm_UK_mini_account.html

ooops! you got in there before me...... :cheesy:

 

[dailydow]

capital spreads seeing as your being so friendly and helpfull today thought i would try this one on you.
Your most succesfull traders that you have on your books what is there style and method.
i would assume they are trading long term maybe forex playing the swings.
dont know wether this question has allready been asked as i havent scrolled through the whole thread but something that i would like to know and im sure a lot of other people on here as well.
thanks
philip

 

[capitalspreads]

dailydow

difficult question.. we get so many trades that it is hard to identify good traders from poor ones!

But... in general good traders find a system that works for them and DO NOT vary from it.

Although you may make money from an impulse trade, in the main, they will end up costing you.

Analyse each position with reasons for taking each bet (not just "I think" it is going up) and also identify the point at which you will take your loss in advance of taking the position. Usually stops should be set at chart points whatever charting system you are using. If positions go in your favour try to identify places to move your stop to prevent a winning position turning into a losing one.

AND whatever you do ..never EVER think you are right.

Simon

 

[seguna]

CS

Can you please state your spreads for the major currency crosses? Do you guarantee these spreads up to $25 million position size? Do you guarantee WYSIWYG pricing REGARDLESS of market action, up to $25m posns? You've already agreed your stops are certainly NOT guaranteed. Are your fills instant? Also, by trading a mini account, very small positions can still be taken. FXCM beats you hands down for executionary excellence. However, they're not tax free.

I'm not here to plug or promote FXCM or others like them. Just to let others who are SERIOUS know that there are often MUCH BETTER trading vehicles than SB to trade from.

With SB, because of the freedom the MM has to quote what they please, one has to battle 1. The MM and their agenda/tactics 2. The Market behaviour and 3. Personal Competency.

I know that ALL execution vehicles have their inherent pros & cons but I have not seen any with as much risk as SB. People ought to know these things so they can make informed choices.

SB has its place in the market and that place should be clear to all concerned.

rgds
S

 

[Mr Chill]

seguna

Give it a rest will you ,your've made your point .I'm sure most people are quite capable of making their own mind up .

 

[capitalspreads]

Seguna

I realise that £25m is an impressive amount to guarantee a fill in and I also asked FXCM a few questions which they were happy to answer. To guarantee stops in that kind of size one hopes that a 9/11 or similar does not occur after the close on friday and before opening on sunday as one wonders who would carry the risk!

SB generally appeals to the smaller to medium trader who likes to have a wide (massive) array of markets on one platform and wishes to trade in only his own base currency and thus it definately has its place.

I merely pointed out a few of the areas that we match or beat them (and came back and corrected my own erroneous statement without prompting!).

You can hardly blame me for that !

Our MM is a computer which merely quotes the market feed from a selection of Banks no more than that. It runs the order books (Limits and Stops) with no human interferance.

By the way apart from the Spread (which in FX is as good as most direct feed accounts) I am not sure why SB trading is any more risky than any other type of dealing.

Aside from that they do appear to be a good site and well worth a closer look.

Good trading whoever you use

Simon

 

[LittleWhiteBull]

Simon

Can you tell me why I can't set a stop where I want it on CS. You recommend stops are put in where the Charts tell me but CS keep telling me it's too close to the current price - and often it is nowhere near!

As I've only been using the account for a week it may be something I'm doing wrong, but if I leave my stops where they are at the moment the losses could be too great.

In every other way I am finding CS great to use, can't understand why there is so much negativity about Spreadbetting, at least it lets small time traders like me get a good grounding in Trading (and make a little profit!).


LWB

 

[seguna]

All

I have no personal negativity about SpreadBetting. My point is that those who use it (which I would for certain trade types) should be aware of the parameters and unique risks they are trading against - especially at higher sizes. SB is great for ease of access to a wide range of markets, small sizes and of course, 0% tax.

CS

Thanks for your comments. I was aware that most SB companies use computer based MM for the majority of small size trades. However, as you've mentioned yourself much earlier, larger positions do have to pass through a dealer leading to requotes and slower fills etc in certain types of market.

The question by LWB and the various issues mentioned in this thread and various others re: pricing, slippage, stops and MM dependance etc are clear enough to highlight the risks with SB. The main risk however, from which all the others derive is MM dependance.

 

[Mr Chill]

seguna

What would you define as a larger position? and maybe CS could comment .

 

[seguna]

FSA Regulation

CS

Can you please offer any thoughts on how FSA regulation affects the practices of SB firms? Since SBing is classed as 'betting' for TAX purposes, why does it need Financial Regulation? Do you know if there are plans to subject SB to CGT sometime in the future?

PS: I was wondering if we should start a new thread to discuss the above as this one is now 27 pages long!?!

:cheesy:

 

[seguna]

MC

Anywhere from £100pp to £5000pp.

I know some firms limit certain instruments to £500pp and somewill not accept ANY trade greater than £5000pp.

CS, you are the insider sir.

:|

 

[Mr Chill]

Thanks Seguna

It would be interesting to know at what size a bet would become a problem ,i.e before it would have to go through a dealer .

 

[FetteredChinos]

Mr Chill, correct me if im wrong Mr Capitalspreads, sir, but as far as i am aware every trade goes through a dealer.

i had this discussion with their customer support, and it appears that all their limit/stop orders are executed manually by the dealers. which is a bit bonkers, as it takes a while for the orders to show up as executed, but i have been assured that all orders will be honoured at the price +/- slippage, natch.

i do wish their system would be fully automated, i DO NOT like the fact that you cannot place orders within a few points of the current price.

just my 5 zlotys.

FC

 

[capitalspreads]

Seguma

the FSA regulates all (at least most) financial based trading systems available from the UK. We report every trade every day to the FSA and also report all of our clients funds on account with all unrealised profitable positions (not losing ones). We also report that the funds available in the client segregated account match this sum. (ie we will top the money up if clients are winning). This ensures that our clients can be confident that
we have the resources to honour our debts to them.

The point about betting and regulation by the FSA is a fair one but I think that clients are happier that thier money is being safely deposited rather than not ! And we like the FSA overseeing us for the same reason.

I do not know of any plans to change CGT rules on SB (of course that does not mean that there are non).

Fettered Chinos

our computers run the order book and highlight any orders that have been hit. A human then confirms each stop to check whether it was a fair level sometimes, especially in commodities and FX, odd prints go through the system and if we just let a computer automatically action a stop we would be unable to identify these misprints until it was too late.
We realise that this sometimes means a delay in stops being activated but to be honest this can only work in the customers inrterest as it may give him/her the opportunity to close at a better level or move the stop further away

We are trying to move all of our minimum order distances closer in as with the dow and FTSE we are now at 5 and 4 points (which is the spread anyway)
We may have missed a few so if you could e-mail us with the ones that seem too far away we will try to look at them.

[email protected]



Simon

 

[seguna]

Mr C

Unfortunately I don't know what the exact levels are for these with different SB firms. Try checking with your SB to find out what it is. With CapitalSpreads however, we already know from CS that every Stop triggered requires dealer intervention, regardless of the size.

 

[tradesmart]

I note with surprise that the ‘user friendly’ statements on stop activation by drivethru (Simon) earlier today have been edited out and and pasted into a new post above by CapitalSpreads (Simon)……..?!?

The earlier statement to the effect that stops would not be activated if the market merely ‘bounced’ off the stop level doubtless made reasonable, confidence inspiring reading to many traders; particularly in view of the fact that many traders have expressed reservations and concern about SB bookies deliberately “running” stops to take out margins on these threads.

As ‘drivethru’ has morphed into ‘CapitalSpreads’ (apparently one and the same…!) why the change of policy…..?

Very strange……….