Am I the only one that experienced increasing numbers of "price no longer valid" messages trading with CS (DAX and FTSE)? Volatility has increased and this is to be expected, but at times I found it really hard getting into a trade. It is my feeling that CS has "tuned" the order decimals parameters too much, this in order not to be on the wrong side of the trade. It must also be said, that sometimes when I have been rejected, it has been to my advantage as the market went against me.
Best Thread Capital Spreads
Jack Hughes
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Stopped using them since Fins offered 1pt Dow, but maybe you've been put on their scalpers' hit list? Does the transactions record show many new dealer names, ie, real people rather than John the computer?
btw, isn't it surprising that the 1pt offer hasn't been matched?
No I am not on any scalpers list, this I immediately would have noticed, it is more like that the quote they give is oversensitive in volatile times. FTSE rolling daily quotes comes with fractions of a point, so I guess this can be set to different levels when the order hit the server. One good thing I noticed, is that the execution time stamp now comes in seconds as well. This is very good news (been on my wish list for a long time), especially useful if you afterward would like to check the correctness of an execution.
Yes I have several SB that I trade with, I switch between these if there is a problem. No I do not easily give up on a SB. I have learned that all SB have problems of some sort or the other, these problems have a tendency to come and go, so it usually pays to stick around for some time. I see no reason at this time to leave CS after nearly 5 years of overall satisfaction trading with them.
1 point on the Dow is an extremely good deal, I would really be surprised if CS can match that. It is quite clear Cityindex is prepared to pay a lot for new clients and a larger market share.
Whoever you are, wherever you be, if you are not on top of your game you lose market share, its as simple as that. Just the publicity of it all has made people realise that City Index may well be another alternative.
Yes it's a tough competition out there, Cityindex must have been losing market share for years (IG as well) as they left the market free to companies like CS. CS platform is much better, no doubt about it, but when it comes to the execution service I don't know, I will have to find out. Traders move around and trade more frequently with the ones that give the best spread and service. I am waiting for the SB industry to adopt more to the MiFID and use this as an advantage in there marketing campaigns.
Jack Hughes
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If City's platform is as fast and reliable as the rest, which it seems to have been recently, I can't see why anyone would use with another SB giving 2/3/4pt spread on Dow. As this is one of the main markets traded, Capital Spreads and its clones must have lost a chunk of business over the last few weeks, so I think they'll have to match the offer soon.
tar
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IG had strong growth over the years check their results , and i find their platform much better than CS ...
http://www.iggroup.com/corporate/results.html
tar
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good information regarding market share on page 16
http://www.iggroup.com/content/files/igg_interim_presentation_jan10.pdf
http://www.iggroup.com/content/files/igg_interim_presentation_jan10.pdf
tar
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its impossible to have full market share , they cut spreads on alot of markets to target CMC and Cityindex clients , they dont care about CS , look at the revenue numbers for each comapny u will c more than 190 m pounds as revenue for CMC and around 25 M or something for LCG ( CS ) , they want to take some of CMC's business ...
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I am not talking about full market share. IG is the biggest one, I don't deny that fact. I just say that they reduce their spread in order to take market share, there is no other other reason for it. If they reduce their spread, the exiting clients will be more eager to trade these instruments, as well as new clients will join the company for the same reason.
tar
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agree ofcourse , the point is you cant get it all even if u have 1 pip spread and your competitor have 5 pip on cable ! look at FXSOL for example they have clients and they make money although there is better alternatives out there ...
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Jack Hughes
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CS's results weren't too hot, so when's Simon going to come on here and tell us about a 1pt Dow spread?
tar
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maybe he will make spread cuts on another markets sp500 , shares , commodities ...
I got the impression by his post they would look into it, but I don't expect a 1 point spread on the Dow.
Jack Hughes
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He's been very quiet for a few weeks. If not 1pt Dow, a narrower spread on NQ or SP500 would be good.
montmorencyt2w
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But CS and the other LCG-related firms are quite competitive in FX aren't they?
Are Cityindex as good in that respect?
The FX market must be enormous in spread-betting mustn't it?
Are Cityindex as good in that respect?
The FX market must be enormous in spread-betting mustn't it?
It is all a marketing strategy. They can cut the spreads to zero and there still will be more people losing money than there is winning. Of course I like to see small spreads but are traders more successful with 1 point spread on the ftse, dax, dow?
Jack Hughes
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Yes, especially if they tune the software so only bets that initially go against the punter are opened.
I don't think a SB operates this way. They look at the total internal risk management profile, too much unbalance and they have to correct it in some way or the other. Yes they are more successful, you have more profit or less loss. Although, if you are a swing trader if will not matter that much, seen from a percentage of a trade point of view.
