Best Thread Capital Spreads
Sad to say this company is up to no good. (Note this trade was on dealer referral so they can't say I got a price that they didn't approve of) Took a long on EUR/USD at 1.4020 at 18:16:39pm just after NFP. Price went all the way up to 1.4181 and I closed the position at 1.4167. Next thing my account is showing the closing price was at 0.7058 giving me a 6962 pip loss!!! Rang them up and they admitted the trade closing price was incorrect and they'd search the time and sales to give me the price when the trade was closed at 18:17:42. According to my T/S was somewhere between 1.4135-45.
Next thing I see they've closed the position at -15 pips loss which they say was triggered by the stop. Called them again and they're now saying they will reverse the loss but can't give me the winning trade because they can't give customers the price they wanted. I asked them to just give me the price on their time and sales at the time the trade was closed... and they can't do it because er... no reason... they just can't. 30 min later the price is back to my entry and they're saying I would have been stopped out eventually... and they don't know when I would have closed it so can't give me a price??? hello the position was already closed at 18:17:42 which is time stamped. That aside have made +1500 pips out of them so can't complain but clearly if you are profitable they will start to gun you starting with being placed on dealer referral. Any recommendations for an honest broker?
Update: after about six calls speaking to four different staff they put me through to the manager who reviewed the trade and concluded the winning trade was valid. Have now been credited with the winnings so retract my previous negative review. Capital Spreads you're alright!
Next thing I see they've closed the position at -15 pips loss which they say was triggered by the stop. Called them again and they're now saying they will reverse the loss but can't give me the winning trade because they can't give customers the price they wanted. I asked them to just give me the price on their time and sales at the time the trade was closed... and they can't do it because er... no reason... they just can't. 30 min later the price is back to my entry and they're saying I would have been stopped out eventually... and they don't know when I would have closed it so can't give me a price??? hello the position was already closed at 18:17:42 which is time stamped. That aside have made +1500 pips out of them so can't complain but clearly if you are profitable they will start to gun you starting with being placed on dealer referral. Any recommendations for an honest broker?
Update: after about six calls speaking to four different staff they put me through to the manager who reviewed the trade and concluded the winning trade was valid. Have now been credited with the winnings so retract my previous negative review. Capital Spreads you're alright!
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tar
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"NFP" ! u mean "FOMC" , yeah they had a bad print on the Euro i saw it ...
I can report good service this evening from Caps. I went long on GBP/USD this am and set a limit order and a new stop 60 pips higher than the automatic stop the platform generates. I found this evening the position had been closed at the automatic stop, though my new stop level had been confirmed by email this morning. I phoned them, they immediately recognised this as a rogue trade on their part and have credited my account with the losses and re-instated my position.
Could not ask for more. Of course, it's still a losing trade, but hey-ho that's my own fault. ;-)
Could not ask for more. Of course, it's still a losing trade, but hey-ho that's my own fault. ;-)
Yes it is my experience that CS will do the right thing. At times it takes up to more than one email but eventually they usually come around. If one happens to trade at an errounious price however, one cannot expect them to let you have the profit from that trade.
Update: after about six calls speaking to four different staff they put me through to the manager who reviewed the trade and concluded the winning trade was valid. Have now been credited with the winnings so retract my previous negative review. Capital Spreads you're alright!
It wasn't an erroneous price if it was a fault with their system. Can't see how it reflects particularly well on CS if it took six calls before they corrected their mistake.
tar
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I saw a bad print on cable ( sell ) one minute before BOE news today !
It was their automatic stop,that stopeed me using them really,I know you can change it but it's just annoying and I don't want to be annoyed when I can just use another company and not be.
capitalspreads
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back for a comment
donovan5
i can understand this being annoying but the system was designed so that hardly any clients ever went into a negative balance AND more importantly that CS never had to make margin calls.
The practice of margin calling is always open to double meaning. In reality if you are losing so much money on a position that you are in need of a margin call then (frankly) you should be out of the position anyway! Having been in the industry as long as i have I can tell you that the biggest client losses have always been the ones where a margin call is made and met... then the client continues to pile more and more cash into a position to defend it against closure.
set against this is the undoubted fact that sometimes you get taken out on (or near) the lows. being a trader myself I find this very annoying.
The average revenue that CS makes from its clients is half, on a per/client basis, that made by our bigger competitors (those who give out this info). I truly believe that the main reason for this is the mandatory stop policy enforced by CS.
Simon
donovan5
i can understand this being annoying but the system was designed so that hardly any clients ever went into a negative balance AND more importantly that CS never had to make margin calls.
The practice of margin calling is always open to double meaning. In reality if you are losing so much money on a position that you are in need of a margin call then (frankly) you should be out of the position anyway! Having been in the industry as long as i have I can tell you that the biggest client losses have always been the ones where a margin call is made and met... then the client continues to pile more and more cash into a position to defend it against closure.
set against this is the undoubted fact that sometimes you get taken out on (or near) the lows. being a trader myself I find this very annoying.
The average revenue that CS makes from its clients is half, on a per/client basis, that made by our bigger competitors (those who give out this info). I truly believe that the main reason for this is the mandatory stop policy enforced by CS.
Simon
capitalspreads
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chubbardo
if we were in error i am surprised that it took six calls to recognise it as we should have seen it immediately. I would be interested in knowing the details (if possible)
Simon
if we were in error i am surprised that it took six calls to recognise it as we should have seen it immediately. I would be interested in knowing the details (if possible)
Simon
Hello - I'm a small retail trader with Tradefair who I believe is a white label for CS.
I've been trying to find info on how rollover cost is calculated on FX pairs - can you shed some light on this? Thanks
Also I want to say I've been very happy with the service since switching over from IGMarkets last year. With IG I always felt I was being stopped out by someone sitting on the other side of my trades but with TF/CS I always feel like I'm getting market prices.
I've been trying to find info on how rollover cost is calculated on FX pairs - can you shed some light on this? Thanks
Also I want to say I've been very happy with the service since switching over from IGMarkets last year. With IG I always felt I was being stopped out by someone sitting on the other side of my trades but with TF/CS I always feel like I'm getting market prices.
Yes a lot of good choices out there. It will be interesting to see what will happen to this industry in the next couple of years to come.
montmorencyt2w
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I've used Tradefair rather more than I have used CS, but it's also LCG, and uses exactly the same mechanisms as far as compulsory stops and margins are concerned, and once I realised how it worked, I really began to appreciate it. Once you have placed your trade and set your stop, your margin requirement stays the same, no matter what happens to the position. With the system that most non-LCG SB companies seem to use, the MR increases the more your trade goes against you, so (especially if you have a lot of positions going against you) you can hit a margin call even when none of the positions is anywhere near its stop-loss. What's worse, it's not just one position that's closed, it's the whole lot.
With LCG-type margining, you will hit your stop-loss before you get margin called. This seems fair and transparent to me. The stop setting is something even a newbie can understand, whereas the margin calculation can be obscure to say the least.
capitalspreads
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GLE101
things have been a bit quieter on this thread in recent times as less questions seem to be asked (and fewer moans as well). I have ocassionally made an ad hoc comment to show that I am still here but most of the comment seems to focus on competitor problems (good!) but at the cost of little mention of Capital Spreads (bad).
Gromito
overnight financing on FX pairs. basically you take the base rate of the second currency in the pair subtract the base rate of the first currency ... add or subtract 2pc (depending on whether you are long or short)...multiply by the value... multiply buy the stake ... and divide by 36500.
this does get complicated in that you ens up with negative interest rates sometimes (alot of the time these days). But all you have to remember is that a negative number merely reversed the expectation of who pays who.
so if you were trading in GBP/USD and the UK base was 5pc (i know nowhere near current levels but just for the sake of this example) and US base was 1pc. and the cross was at 1.6000
you make a buy bet of £3. you charge will be ((1-5)+2)*3* 16000/36500 = minus £2.63. Because you are long you would expect to pay but as the number is negative you would receive. So we would pay you £2.63 overnight. If you had been short then you would have paid us (1-5-2)*3*16000/36500
or £7.89. In this case the number is again negative but because you are short you pay us.
I know it can seem complicated but once you get the idea it is simple.
The basic policy is "which currency have you bought" and "which have you sold". If you put the currency you have bought on deposit at the base rate of that currency minus 1pc and then borrow the currency that you have sold at the relevent base rate plus 1pc what whould be the effect ?
LCG charges clients three days over the weekend... and yes we know that the currency markets actually charge the weekend from wednesday to thursday but our clients understand our way better.
Simon
things have been a bit quieter on this thread in recent times as less questions seem to be asked (and fewer moans as well). I have ocassionally made an ad hoc comment to show that I am still here but most of the comment seems to focus on competitor problems (good!) but at the cost of little mention of Capital Spreads (bad).
Gromito
overnight financing on FX pairs. basically you take the base rate of the second currency in the pair subtract the base rate of the first currency ... add or subtract 2pc (depending on whether you are long or short)...multiply by the value... multiply buy the stake ... and divide by 36500.
this does get complicated in that you ens up with negative interest rates sometimes (alot of the time these days). But all you have to remember is that a negative number merely reversed the expectation of who pays who.
so if you were trading in GBP/USD and the UK base was 5pc (i know nowhere near current levels but just for the sake of this example) and US base was 1pc. and the cross was at 1.6000
you make a buy bet of £3. you charge will be ((1-5)+2)*3* 16000/36500 = minus £2.63. Because you are long you would expect to pay but as the number is negative you would receive. So we would pay you £2.63 overnight. If you had been short then you would have paid us (1-5-2)*3*16000/36500
or £7.89. In this case the number is again negative but because you are short you pay us.
I know it can seem complicated but once you get the idea it is simple.
The basic policy is "which currency have you bought" and "which have you sold". If you put the currency you have bought on deposit at the base rate of that currency minus 1pc and then borrow the currency that you have sold at the relevent base rate plus 1pc what whould be the effect ?
LCG charges clients three days over the weekend... and yes we know that the currency markets actually charge the weekend from wednesday to thursday but our clients understand our way better.
Simon
Good I would say, I have at least given my grace for you on the other threads.
Quite likely a lot of your clients have left Capital Spreads.
If they are talking about your competitors, good or bad, they obviously have an account there.
