Best Thread Capital Spreads

Jack Hughes said:
There are some clients that they just don't want.
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Right, and they discriminate these traders in some way or the other. However, if they feel some clients is taken unfair advantage, they should close the account instead, don't you agree?:)
 
gle101 said:
Right, and they discriminate these traders in some way or the other. However, if they feel some clients is taken unfair advantage, they should close the account instead, don't you agree?:)
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I don't think there's such a thing as 'unfair advantage'. If they think people are using a faster price feed, all they need to do is uprate their platform.
 
Jack Hughes said:
I don't think there's such a thing as 'unfair advantage'. If they think people are using a faster price feed, all they need to do is uprate their platform.
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Yes I agree, but if you look at it from the SB point of view. What is the right thing to do and from a legal standpoint. Manipulate your trades or close the account?
 
gle101 said:
Yes I agree, but if you look at it from the SB point of view. What is the right thing to do and from a legal standpoint. Manipulate your trades or close the account?
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It would be better if they defined 'scalping' and specified in the T&Cs what sort of clients they don't want. As that would probably go against MIFID, they should at least contact anyone taking 'unfair advantage' before the delaying tactics start.

btw, have you signed up for City Index yet, gle? Only a couple of re-quotes so far!
 
Jack Hughes said:
It would be better if they defined 'scalping' and specified in the T&Cs what sort of clients they don't want. As that would probably go against MIFID, they should at least contact anyone taking 'unfair advantage' before the delaying tactics start.

btw, have you signed up for City Index yet, gle? Only a couple of re-quotes so far!
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No I haven't signed up with Cityindex yet. Probably wait a couple of weeks more so you guys can report your experience trading with them. I did not have them in consideration before, but now it is a different story with the new competitive spread on the indices.
 
The facts about market share are difficult to ignore as per the selective data released by some of our competitors about the recent huge 'trends' survey that was commissioned in the Spread betting industry.

Oddly enough CS did not even take part in the survey and yet still came third on market share! Not only this but we came top (at 87pc) for client satisfaction and this was before our new platform release. It has to be remembered that the three 'big boys' have at least ten years, and in one case almost thirty years, start on CS/LCG. Unfortunately technology costs money and LCG has neither a huge time (i.e. client and money) advantage nor a friendly, very wealthy, owner to help us out of our mistakes. Other competitors with apparently much greater resources (and much bigger brand names) than us have been and (almost) gone.

On the Dow

we are still looking at the spread on this but I must admit that there is probably going to be one major market that CS does not quote the best/equal best price.

Simon
 
Simon,

How about the idea of doing non levaraged spread betting? E.G. Say I want to buy a unit trust... I can go and buy it normally through hargreaves landswhachmacallit or whatever... or you guys could let me buy it in a spread betting account, for a slightly higher comission (through the spread) but the returns would be tax free to me. It's win/win, surely?
 
arabian nights

unfortunately these markets are generally not 'live' quoted online and we can therefore not acurately price them. Also the 'exit' charges are horrendous which the SB company might be liable for on removing a hedge. Leverage is what you make of it as well... some of our clients actually buy/sell equities using almost zero gearing (i.e they put up nearly all the cash). This is because they dont pay stamp duty, commissions, get the deal for a tiny spread and (currently with such low interest rates) only pay marginal rolling costs to hold the position open.

Also (a minor point i realise with readers of these threads) but actively competing with investment houses in their "holy of holy's" might well bring the big bad tax man down on us. We may look into sector bets in the 'nearish' future but beyond this for the moment we will probably remain cautious.

Simon
 
I get what you're saying about leverage being what you make of it (especially when you're earning libor-2..libor+2 spread on a balanced book :D, but what about clients who don't want to be leveraged at all... you could be a very handy way of avoiding tax :))

Would be no real need to quote a continuous price... all you'd have to be is a wrapper, essentialy.
 
everyone has been very quiet on this thread for a while. Trade numbers are going through the roof so it cannot be that clients are going elsewhere...

can it be that people are finding less and less to complain about? (shock, horror)

with spreads on most brokers now pretty much at DMA levels the attractions of cfd and spread betting versus principal dealing are getting greater and greater. Especially when you consider the Stamp Duty aspect (I agree with many comments on various threads that the CGT aspect is really irrelevant unless you are a big winner) but the zero comms and stamp are really difficult to beat.

Simon
 
capitalspreads said:
everyone has been very quiet on this thread for a while. Trade numbers are going through the roof so it cannot be that clients are going elsewhere...

can it be that people are finding less and less to complain about? (shock, horror)

with spreads on most brokers now pretty much at DMA levels the attractions of cfd and spread betting versus principal dealing are getting greater and greater. Especially when you consider the Stamp Duty aspect (I agree with many comments on various threads that the CGT aspect is really irrelevant unless you are a big winner) but the zero comms and stamp are really difficult to beat.

Simon
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Simon,

If you are not having to field loads of complaints, then excellent - you are free to consider some possible enhancements!

I posted these in another thread. I will post the link to that thread, but then quote here what I posted for ease of reference:

http://www.trade2win.com/boards/spr...etting-myths-what-reality-16.html#post1166390

montmorency said:
Instead I would like to concentrate on what we as SB traders would like to see, as the firms compete for our business.

1.We have talked endlessly about tighter spreads, and of course that is a good thing that can only be encouraged.

2. Cheaper overnight rolling fees. I know not everyone holds overnight, but for anyone wanting to swing or position trade, this is important, and it can start eating away into your profits, especially over a weekend.

3. Metatrader 4. SLM have made an excellent start. Let's see the others compete.

4. The ability to "hedge", i.e. holding contemporaneous positions in the opposite direction. There are several situations when you might want to do this. It doesn't have to be anything to do with "hedging" in the obvious sense.

You might be holding a long-running long position in a bull market, but might also want to trade the counter-trend intraday. You could do this in another account, but why not be able to do it in the same account?

I have seen one SB firm advertise this option ... was it World Spreads?
Looked interesting.


- What else is there?

Do we want a more "DMA-like" approach, like FXCM and Prospreads....?

Of course we want fast execution and no slippage.

Oh yes, I like the LCG/CS approach to margins, where you essentially pay up-front for the margin which is good for that position whatever happens to price. So long as you do not move your stop, your margin should stay the same, unless the firm decides to change margin requirements in the middle of your position, which theoretically can happen, but isn't that common. With this system, your stop will be hit before you get a margin call, which to me is a much more transparent thing ... you have direct and transparent control over your stop. It is much less transparent when it comes to margin, in my experience. I don't mind being stopped out. I don't like being margin called when my stop is nowhere near being hit, as has happened on occasions with firms that do not work like LCG/CS, etc
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I left that last bit in, although of course you've no need to do anything about that, as I was commending your approach to other SB firms!

In addition to that list, I've thought of a couple of other things:

- Fractional bet sizes, e.g.

£1.75 per pip ...etc.

- Small bet sizes <£1 per pip (requires fractional bet sizes!)

The reason for the latter is so that people can try out different strategies (or newbies can try spread betting live without any or much previous experience) with relatively little risk, but in a more realistic way than a demo platform would offer.

Well that little lot shouldn't take you more than an afternoon or so! :)

EDIT: I have been reminded that IGIndex allow "hedging", and I think FXCM do, as well.
 
capitalspreads said:
everyone has been very quiet on this thread for a while. Trade numbers are going through the roof so it cannot be that clients are going elsewhere...

can it be that people are finding less and less to complain about? (shock, horror)

with spreads on most brokers now pretty much at DMA levels the attractions of cfd and spread betting versus principal dealing are getting greater and greater. Especially when you consider the Stamp Duty aspect (I agree with many comments on various threads that the CGT aspect is really irrelevant unless you are a big winner) but the zero comms and stamp are really difficult to beat.

Simon
Click to expand...

Maybe they all 'wised up' and got themselves a DMA account. That way they dont have to worry about you widening your spread and taking out their stops, or indeed freezing their platform when they try to close a profitable trade, or any of the other crap you pull.
 
capitalspreads said:
everyone has been very quiet on this thread for a while. Trade numbers are going through the roof so it cannot be that clients are going elsewhere...

can it be that people are finding less and less to complain about? (shock, horror)

with spreads on most brokers now pretty much at DMA levels the attractions of cfd and spread betting versus principal dealing are getting greater and greater. Especially when you consider the Stamp Duty aspect (I agree with many comments on various threads that the CGT aspect is really irrelevant unless you are a big winner) but the zero comms and stamp are really difficult to beat.

Simon
Click to expand...

unprofessional comment , sorry .
 
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