Deposit account v Credit account

[kevin546]

Would someone be kind enough to explain which account offers the best trading value.

Kevin

 

[the blades]

Would someone be kind enough to explain which account offers the best trading value.

Kevin

Kevin,

I'll give you my two penneth;

The credit account seems too good to be true. You demonstrate a level of saving and they will lodge you credit of half that ammount with IG, and 20% (I recall) with Finspreads. CS don't offer credit. Other than that, the quotes with the same company are identical, I believe. If you hold your positions for a day or two then only consider the spread. However, I hold some of my positions for up to 3 months with relatively wide stops - with a deposit accout you'd have to lodge typically a 10% margin plus the equivalent value of your stop distance - you are losing interest on this ammount (maybe up to 6% if you had an offset mortgage!). Obviously these costs are factored into spreads - note that CS and D4F, offering the tightest spreads(?), don't do credit.

I have debated this with Simon of the CS thread and although we begged to differ, I believe it is cheaper to hold some quarterly bets with IG index through credit compared to the tighter spreads of CS. You can do the maths for yourself.

If you're a frequent trader then obviously tight spreads are No1 consideration. I do these type of trades with CS (no credit) and longer term trades with IG and Finspreads. As with all things, it's horses for courses.

Hope this helps a bit.

UTB

 

[kevin546]

The blades

Thanks for reply it puts it into perspective. Most companies are mentioned among the threads but one that does not seem to appear as often is CityIndex which I found rather good although for day trading the spreads are rather wide but narrower than IG and Cantor.

Kevin