Best Thread Capital Spreads

[capitalspreads]

Satelite over Dubai went down we had to change our price feed to internet from satelite.

 

[Uncle]

Many thanks for the prompt reply...........no damage done.........had a stop in as always which I have come to know you would have honoured.

John

 

[masmit]

The amount of tax you are going to pay if you are successful should feature very low on your list in my opinion.

Out of interest, why do you think this? It seems to me that if you are successful, the tax implications are especially important, no? I mean, if you made £100,000 spreadbetting, you'd keep the lot, but most other ways, you'd have to give £40,000 to the tax man. Surely this would more than wipe out the difference between a 0.5 spread and a 5, or even 10 point spread, particularly with a longer-term approach.

Conversely, if you lose, then your losses will not be in any way tax-deductible in spread betting, but then who sets out to lose?

Cheers,

Mark

 

[hagadol]

Simon

I noticed that CMC have reduced their Cable spread to 3, also their Euro Yen is at 3. In both cases 2 less than Capital Spreads now. On most other FX pairs you are at least one mor tick in spread.

Have you any plans to be more competitive ?

If not what is the advantage of trading with you rather than them ?

 

[MysticalTrader]

Simon, hi


While you are fielding questions, I notice that your daily FX prices are idfferent from the real-time feed I have. About 6 pips. Why so?

BTW, on the subject of CMC, I can offer an opinion. I have dealt with both the CMC customer service is not so good as Capital Spreads.

MT

 

[zarif]

Mystical trader and Simon:
Mystical trader i agree with the difference in price dilemma. Also Simon the tighter the spread the better its for your customers even though we are happy with you and the service that we get its best to keep everyone on their toes as the competition from others is always in question.

rgds
zarif

 

[MysticalTrader]

I know this is probably a stupid question, but what is Cable?

MT

Simon

I noticed that CMC have reduced their Cable spread to 3, also their Euro Yen is at 3. In both cases 2 less than Capital Spreads now. On most other FX pairs you are at least one mor tick in spread.

Have you any plans to be more competitive ?

If not what is the advantage of trading with you rather than them ?

 

[carlosd]

re spreadbetting

Hi there i'm a complete novice so excuse the silliness of the question if it is obvious to some.

But i've read on various threads that SB companies close accounts if clients win big.
Is this true or a myth.

And has this actually happened to anybody, or has nobody made enough from spread betting to have thier account closed.

Cheers
Carlos

 

[rossored]

I know this is probably a stupid question, but what is Cable?

MT

It's the nickname for the currency pair USD/GBP.

 

[TheBramble]

I know this is probably a stupid question, but what is Cable?

GBP/USD

 

[MysticalTrader]

ta.

MT

why is it called Cable?

GBP/USD

 

[minx]

ta.

MT

why is it called Cable?

First transatlantic cable between London and NY was used to telegraph fx orders over and back and arbitrage the price differences, via gold I think........ amongst other things...

 

[ChartMan]

Carlosd- I have known accounts get closed and / or restricted to telephone trading only in the past. Please note this was pre Capital Spreads days.

 

[andrewmooton]

Is it true that SB companies prefer their clients either not to win or beak even or do they not really care if they win or not?

 

[TheBramble]

Andrew. As has been often said before, trading is a zero sum game. There has to be a loser for every winner.

SBs claim in their blurb to hedge their clients' positions and therefore are happy to have their clients win. And I'm sure on a few trades they will do this if they think the client has got it dead right and/or is looking to put on a large position (providing they haven't prevented that client from doing so through other means).

But on balance, they will take the opposite side of their clients' positions themselves.

With a steady flow of new pocket-money clients ready to step up and back their convictions with their bets, if I were running an SB company, I'd be happier to have my clients lose. Same as a bookie really.

 

[carlosd]

spread betting

Hi bramble,

What alternatives would you recommend to spreadbetting ?

 

[blackcab]

carlos, it depends how much capital and experience you've got. If you've got 10-20k or higher and you've traded shares before, you could try CFDs, futures or direct access. If you've got much less capital, or experience, the only alternative I can think of would be conventional share dealing through a broker, ie long only.

 

[capitalspreads]

Mystical Trader / Hagedol

FX prices.... CMC (D4F) quote a rolling daily FX which means that the bet does not expire until you trade out of it. They charge a (pretty hefty) interest rate cost each day to hold spot FX trades overnight.

We expire the trade at the end of each day at a mid market price (no spread) with D4F you must trade out i.e pay their spread again. I understand that there are other problems with D4F ( if client comments can be believed) which don't occur with us. We hardly ever turn down trades nowadays except in volatile conditions (non Farm Payroll moments). When compared with the other SB companies, who quote the same product, our spreads are better.

But..... we are looking at the spreads on our spot rates especially Cable and may bring it down to 4.

We continue to open accounts from D4F every day, clients who trade the spot FX with us, so the tightness of the quote may not be the full story.

other questions

We have never closed a client down for winning too much money. A consistently winning client is very valuable as he/she gives us information into market moves etc.... we generally try to have no opinion on any market as this may cloud our judgement. But a good trader will, sometimes, show us the way.

If our clients just lost all the time we would be having to replace them at a ruinous rate. Client aquisition cost are not cheap !!!

Good luck

Simon

 

[zarif]

Simon well put as you say this is a two way street and i am sure you want the clients to win as it"good news is ten fold" and trading is a two way street. -The more the client makes and so do you.
The only thing as you say is if you can keep the spreads tighter than its better all round.

rgds
zarif

 

[MysticalTrader]

Helpful, thanks

If there is no rollover penalty, then I think the 4pip spread is pretty good. Interested in why the Capital price range was at variance from my live feed by about 7 pips though.

I would also be interested to know at what intervals the price in 'my protfolio' is refreshed... seemd quite a long way delayed from the live feed.

Notwithstanding, I shall probably be moving my meagre funds from Finspreads to Capital soon. Do they run all the markets that D4F and Finspreads run?

MT

Mystical Trader / Hagedol

FX prices.... CMC (D4F) quote a rolling daily FX which means that the bet does not expire until you trade out of it. They charge a (pretty hefty) interest rate cost each day to hold spot FX trades overnight.

We expire the trade at the end of each day at a mid market price (no spread) with D4F you must trade out i.e pay their spread again. I understand that there are other problems with D4F ( if client comments can be believed) which don't occur with us. We hardly ever turn down trades nowadays except in volatile conditions (non Farm Payroll moments). When compared with the other SB companies, who quote the same product, our spreads are better.

But..... we are looking at the spreads on our spot rates especially Cable and may bring it down to 4.

We continue to open accounts from D4F every day, clients who trade the spot FX with us, so the tightness of the quote may not be the full story.

other questions

We have never closed a client down for winning too much money. A consistently winning client is very valuable as he/she gives us information into market moves etc.... we generally try to have no opinion on any market as this may cloud our judgement. But a good trader will, sometimes, show us the way.

If our clients just lost all the time we would be having to replace them at a ruinous rate. Client aquisition cost are not cheap !!!

Good luck

Simon