Deal4free / CMC

[deniseme]

deal4free cfd

I am considering opening an account with deal4free, to trade cfd only, i am new to this and would appreciate advice on their service,(i have had problems getting money returned with etrade), and any pitfalls to avoid. I will only be trading FTSE 100 stocks to begin with, their spread on demo often seems to be 0.5 is this true in reality? Any comments, help appreciated.

 

[raf110]

There spreads are competitive, however they re quote all too often. Trading large sizes with cmc is very difficult. I suggest you go for direct access, you may pay a little extra in commissions but you will always get market price.

 

[Rainmaker]

i've closed both my cfd and spreadbet accounts due to numerous problems.

 

[bracke]

Go to the bottom of this page and look at some of the threads you will get the info there.

Regards

bracke

 

[madasafish]

I like SB for long term positions. Use IG Index mostly : largeish stakes. No problems...

 

[glamllc]

Hi,

Could someone point to a website where I can find information on how CFD works as a trading instrument?

Thanks in advance.

GL

 

[bracke]

glamllc

Click on Discussion at the top of this page, then click search for a post, then search for CFD.

or try www.hargreaveslansdown.co.uk and failing that try a search on yahoo and/or google.

Regards

bracke

 

[ALROB]

I tried dealing 4 times today in Ftse 250 stocks with Deal4Fleecing and the price was moved on each occasion, in one trade as much as five points. The deal size was £10. Their advertising is all about no commission being charged. They don't need to!

 

[raf110]

Alrob,

Thats the way its done. Just remember "nothings for free!"

 

[JTrader]

CMC do say that their platform is not designed for intra-day scalping, but is suited to longer term trades.
I use CMC as they are usually reliable, usually offer market prices and the commission is 0. Although I would like to move on to direct access trading and get away from any lingering doubts about CMC, I am concerned that if I did progress to direct access trading, I would struggle to cover the commissions.

 

[stevespray]

jtrader - You are correct, if you moved to direct access and tried the same scalping techniques you would most likely lose overall. Dont forget you also have stamp duty also, it all adds up. The only way forwad is to try you scalping techniques on US stocks. This is where a good direct access broker will excel. You can often get into a position with zero spread, the markets are liquid and commissions are extremely low and hence your 'running costs' are so much smaller than they are if you try to trade LSE. Maybe CMC realise this and that is why they do what they do.

Steve.

 

[TheBramble]

JT - what does your risk:reward look like if you're only aiming to make 2-3 points (net) per trade using an SB?

Or is risk:reward an inappropriate concept for scalping?

My own bias (if I were a scalper) would be to move to DA ASAP.

 

[scpope]

TheBramble

My own opinion on this is that sb is not suitable for day trading, particularly if your looking for a 2-3point scalp. To avoid being whipsawwed by sb companies swinging their quote around the live market price, your stop has to be greater than their spread, realistically twice the spread. So a firm using a 5 point spread requires at least a 10 point stop-loss against a 3 point scalp! Your win/loss ratio has to greater than 3:1 to make a profit!

This is my opinion and I know others on this board day trade sb successfully, maybe they'll enlighten us as to how its one over the longer term.

Stephen

 

[al-motor]

SCpope-

certainly agree with u that day trading most mkts using SB and u are asking for trouble.......... the only mkt which are the exception is the forex........... since the spread is similar to most brokers



aL

 

[scpope]

al.

The only comment on forex, which I have to admit I have day traded using Finspreads, is that you need a volatile market. If you run TSimLite to give live IB prices (assumming you don't have an IB account) and also display the sb prices, you find they swing wildly around the IB price and therefore you can't run tight stops which are possible on IB or I presume other Forex brokers.

Stephen

 

[donaldduke]

Got this email earlier today, shame i dont trader UK100, however
with spreads this tight i might give it ago..

UK100 NOW ONLY 2 POINTS

You can now trade the UK100 with just a 2 point spread, continuing our
commitment to offering the most competitive Spread Betting service in
the market

 

[bracke]

donaldduke

Which is the company offering the 2 point spread? Thank you

Regards

bracke

 

[donaldduke]

Look at the name of the thread!

CMC/Deal4Free

 

[bracke]

donaldduke

Silly me,my apologies. However in my defence it is not unknown for posts about other companies/topics to make their way into threads about similar topics.

Regards

bracke

 

[JTrader]

It is a shame that CMC and most sb companies seemingly cannot be relied upon to treat their clients fairly, equally and honestly all of the time in terms of not re-quoting and offering instant fills. If they ran a totally reliable operation (i.e. acting as an impartial broker - trying to make profit from the spreads only, afterall, all positions are hedged, and not take money from clients or deny clients profits by changing prices and slowing down fills) they would be the choice of most.
Maybe as the market for customers develops in the coming years and becomes more competitive, more companies will offer the same terms as CMC but without the downside. Just look at how the industry has developed and advanced over the last few years.
At the end of the day we are all in the business to make money - broker and client, if I make money I continue to trade and my broker makes money, and, continues to make money. It is surely in the best interests of all spreadbet companies to retain profitable customers by offering the best prices and the quickest fills, otherwise the client will go elsewhere.

If a trader has a mortgage to pay and perhaps children to feed they have enough to worry about in terms of trading profitably. They do not need and perhaps cannot continue to trade for a living with the added worry of "will I be able to trade properly tommorrow, and not have my orders delayed, passed on to a dealer and the prices re-quoted."

A level playing field is all that is required.