Difference between SB & data providers

[n15ksh]

Hi,

I wanted to know what the difference is between opening an account and trading with spread betting companies (IG Index, CMC, city index etc..) against tradestation, e-signal or paid subscriptions.

I notice that with spread betting companies and metatrader you don’t have to pay to receive live data feeds (charts) and can trade with them.

On the other hand you have traderstation, e-signal you require you to pay money each month for live data feeds.

What is the difference between the two types? Why don’t people just spread bet and not have to worry about paying a subscription for data feeds to trade with.

IG index provide lovely charts with indicators and it’s all free apart from the spread etc... So why do people pay for e-signal £100's a month for allowing them to see the same thing?

Thanks

 

[ns1000]

With SB'd you get charts of their prices. Fine if that's who you're trading with. Potentially misleading if not. If you have a dispute with them, do you want to rely on their data?

You also pay for the charts and the data by dealing with them. No such thing as a free lunch. That said, some SBs provide much better charts than others - some might be worth it.

 

[n15ksh]

thanks, i found this really useful link too:

CFDs and SpreadBetting Compared

 

[raysor]

If you are short term trading the "spread" on IG is costly. You will tend to trade more because it is easy, and you will lose. I suppose the only way is to find a good stock (dificult in current market) and be prepared to hold it longer term (say MAR09 SB).
I always think it doesn't matter how you do it, you got to get just one thing right, and that's the direction of movement. SB are not taxable, CFDs no sdrt. Also remember they are geared instruments. It is only when you have got into a situation where the gearing is going against you that you realise how dangerous they can be. You can work things out to the Nth degree but there is always something in the markets that you are not going to be prepared for (and that applies to everyone)