Best Thread Capital Spreads

Xenophobia said:
ps.

I think the whole latency issue would be at its prime during high impact news events.

Such as during a GBP news release price may start pumping up on the LIVE FEED before the SB firms price does.

So if price starts to move on the LIVE FEED first during the news then one could smack the BUY/SELL button on the SB firm platform at say £100 a pip. Obviously these news events can lead to a great deal of pips in the matter of minutes.

Im just guessing here. But I can see it being a major problem if that is the case.
Click to expand...

That makes sense. I'd also read somewhere, possibly here that they don't like people "news trading". This would only really make sense if they had a live feed or some fast source of info independent of the SB company.
 
gle101 said:
Simon, you did not answer my post #6202 regarding clients on referral to a dealer. If it is such a tiny problem why don't you close these accounts Simon? It would be a much more of a fair practice as I see it, instead of flagging and discriminating certain clients the way you do, and thus creating ill will for the company.
Click to expand...

I think I agree after thinking about this for a bit.

Simon said putting them on dealer acceptance is a way of making them compete with the market (not the platform) like everyone else. But part of competing with the market is sometimes reacting quickly, so if one set of clients is on dealer acceptance, and the rest aren't, they are not on equal terms, and could not react to genuine market moves in the same way.

Surely the real answer is to remove the latency or make it so small as to be unusable in this way. I can imagine it was a serious problem in the early days of spread-betting, with slow, creaky, under-invested IT hardware and software. (As many businesses were at one time).
 
montmorencyt2w said:
I think I agree after thinking about this for a bit.

Simon said putting them on dealer acceptance is a way of making them compete with the market (not the platform) like everyone else. But part of competing with the market is sometimes reacting quickly, so if one set of clients is on dealer acceptance, and the rest aren't, they are not on equal terms, and could not react to genuine market moves in the same way.

Surely the real answer is to remove the latency or make it so small as to be unusable in this way. I can imagine it was a serious problem in the early days of spread-betting, with slow, creaky, under-invested IT hardware and software. (As many businesses were at one time).
Click to expand...

But we're not trading 'the market'. we're trading CS's market.

Simon seems to have admitted that the latency excuse has become less valid, so all they have to do is invest some of the £1300 we all contribute to profits every year on better IT and the platform can be entirely automatic. Apart from anything else, there'll obviously be a saving on staffing costs when they can get rid of the dealers.
 
Ross Spur said:
But we're not trading 'the market'. we're trading CS's market.

Simon seems to have admitted that the latency excuse has become less valid, so all they have to do is invest some of the £1300 we all contribute to profits every year on better IT and the platform can be entirely automatic. Apart from anything else, there'll obviously be a saving on staffing costs when they can get rid of the dealers.
Click to expand...

The "dealers" may already be computers!

If client==scalper && PL>limit
then
wait wait_time
fi


Or whatever :)
 
I have no complaints with capital spreads. If they see the latency saga as being a issue then fair enough and they should proceed in taking the steps that they do in order to create a fair trading environment for all their clients including myself.

I trade between 2 SB firms IG and Capital spreads and I don’t have issues with any of them.

So as long as the good service continues then I will be a happy customer for many a year.

Personally I had never hear of the latency issue until this thread but yes I can see now how this could and would be a problem and a thorn in the SB firms side.
 
montmorencyt2w said:
The "dealers" may already be computers!
Click to expand...

Yes, I know that 'John' and his friends are just pieces of silicon, but what about the human dealers, the poor souls dedicating their time to thwarting the evil 0.77% of clients who reduce LCG's profit to only £6m?
 
Ross Spur said:
Yes, I know that 'John' and his friends are just pieces of silicon, but what about the human dealers, the poor souls dedicating their time to thwarting the evil 0.77% of clients who reduce LCG's profit to only £6m?
Click to expand...


But the question is Ross 0.77% of what ? 1f0k 250k 500k 1 million or more ?

If it is 0.77% of 500k clients then I would not want 3850 clients spinning me for £1000-£10,000 plus a day taking advantage of the latency issue. If it costs them money then just like any other organization they would have to pass on the costs to their honest clients. So power to them if they are doing there best to cut this out.


if my math is wrong please correct me:p
 
Last edited:
Ross Spur said:
the evil 0.77% of clients who reduce LCG's profit to only £6m?
Click to expand...

They all have to make a profit why the big deal ?

If they don’t make a profit then they don't exist and if they don’t exist then you don’t have a place to trade tax free :)

They are a company after all!

Profit is the name of the game.
 
Xenophobia said:
But the question is Ross 0.77% of what ? 1f0k 250k 500k 1 million or more ?

It is 0.77% of 500k clients then I would not want 3850 clients spinning me for £1000-£10,000 plus a day taking advantage of the latency issue. If it costs them money then just like any other organization they would have to pass on the costs to their honest clients. So power to them if they are doing there best to cut this out.


if my math is wrong please correct me:p
Click to expand...
Where did you get the figure 500k clients from, I would say 50k is a number I could go along with, or have I gotten my maths wrong?
 
gle101 said:
Where did you get the figure 500k clients from, I would say 50k is a number I could go along with, or have I gotten my maths wrong?
Click to expand...

Maybe not you math but more so your reading skills:p

What does the first line of my post say ?

Quote:

'But the question is Ross 0.77% of what ? 1f0k 250k 500k 1 million or more ?'

:LOL::LOL::LOL:
 
Xenophobia said:
Maybe not you math but more so your reading skills:p

What does the first line of my post say ?

Quote:

'But the question is Ross 0.77% of what ? 1f0k 250k 500k 1 million or more ?'

:LOL::LOL::LOL:
Click to expand...
Yes, maybe a little bit too hasty on my side, anyway, I would estimate CS active client base to be around 60k.
 
My guess is that the vast majority of SB clients are only active until they blow a couple of accounts. CMC used to be second biggest, I think, but they must have lost a lot of business over the last year or two with their crummy platform and wide spreads.
 
I know of an honest trader - who scalps and daytrades - he's just damn good...but Dealing Desk (Caps white label based) have had him on refer to dealer since February 2010!!! The guy genuinely done nothing wrong and is being penalised for just being very smart with price action

They tried that nonsense with me and the customer relationship manager at Tradefair (also a Caps white label based company) managed to sort it out within three days.

He said, the traders who I had talked to were from Capital Spreads and it was on their instructions, that they had to take me off automatic dealer, so they could check whether I had an unfair advantage. (whether this bit was truth from (ie about Caps being the dealers), I don't know - for all I know, he could be using the old negotiating technique of deferring blame to a third party)

HOWEVER...here is the big issue..

Nick (The manager in question) admitted this but prior to getting in touch with him - the traders I spoke to on the phone, initially said 'Sorry sir, looks like an error we have with our system' and then switched to 'Oh think we have to do this to try and see if your platform is working alright, because we care about your user experience' and it was only the the third trader who said 'Yeh, it's a systems issue - I guess you must be taken off automatic dealer, because.....' and then he stopped.

I quizzed him more and he said 'It is what it is and there was no timeline for when I would get normal service again'.

If Nick hadn't realised that I am an honest customer - I would still be like the trader I know and still be on refer to dealer.

Yes, Simon - you might have some dodgy scalpers who abuse the system - but don't let your guys or your white label clients, ruin your rep by taking it out on all your customers.

Even if you do put someone on refer to dealer, just have the courtesy to say 'Sorry we will check everything for x amount of time', instead of leaving them with no certainty.

Those three days were useless for me during the sharp volatility - took the traders between 5-10 seconds to execute anything I traded. Madness. Even more useless, when I had done nothing wrong.
 
P.S.

Simon - if you want prospreads to take off - do these two things:

1. Make all orders actually submit to the real market. Allow traders to register with the exchange, get an ITM, receive rebates, etc.
2. Go to pennies a round trip above say 10k lots/month.

You'll be doing ten million round trips a month within a quarter if you do this.
 
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