Does anyone apart from the broker make money, are SB and CFD scams.

[WallStreetHero]

i have become a bit skeptical of SB and CFD brokers, there platforms offer prices quite different to the actual market.

now obviously when trading SB and CFDs there is no stock and its just a bet, so if you make money it comes out of your brokers pocket and if you loose money it goes in the brokers pocket and its the way the brokers make money and loose money, so the broker will obviously be trapping you into losing money.
there softwares i believe are designed for this and completely go against the trader, they give you demo accounts where you will turn into a millionaire quite easily to lure you into making a real account with them, where the real accounts are much harder to trade.

there really is no success story out there of people who have made money from trading in this way, the only traders that you hear stories of making money are professionals working with professional trading companies. its funny that out of millions of retail traders all over the world no one makes money apart from CMC, gft, CS, IG etc.

is there anyone out there who has made money with spread bets or cfds.

 

[WallStreetHero]

here is something that happened on gft platform back in 2009, i even took a screenshot and saved it as it looked very unusual.

gold went up about 35 dollars in one hour, nothing had happened on the actual market.

 

[JahDave]

I don't trade gold but I would bet that did not make a new high??????????????Please tell me if it did or not.............

JahDave

 

[Shanghai]

I think it would be great if the SB companies occasionally offered prices that are not the same as the actual markets for a temporary period. That would create great opportunities for arbitrage.

The problem with many people that criticise SB companies for hunting their stops etc is that they don't realise that it is the markets that is looking for stops, not the SB companies. That's the way the markets are supposed to work.

SB companies have their uses in trading as long as you understand the risks and limitations. I frequently use SB when the cost of doing so makes it worthwhile. I make decent amounts of money from my SB account and IG will likely be happy about that as they are probably have a flat order book and are making money from the spread.

 

[meanreversion]

SB companies have their uses in trading as long as you understand the risks and limitations. I frequently use SB when the cost of doing so makes it worthwhile. I make decent amounts of money from my SB account and IG will likely be happy about that as they are probably have a flat order book and are making money from the spread.

This is far too rational for t2w.

Don't you realise that all SB companies are evil and manipulative bucketshops whose sole purpose is to bankrupt all their clients?????

 

[Shanghai]

This is far too rational for t2w.

Don't you realise that all SB companies are evil and manipulative bucketshops whose sole purpose is to bankrupt all their clients?????

Oh bugger, you're right....what was I thinking.

SCAMMERS the lot of them, hang 'em all by their dangly bits, that's what I say.

 

[brewski1984]

I always find it funny when people claim trading or even the poker sites as a better example are rigged, especially demo accounts. For someone to lose, somebody else has to win. I'm sure the guys who were long on that gold trade weren't complaining it was rigged and neither would the guys that gutshot you on the river on full tilt poker be complaining it was against them.

 

[SanMiguel]

here is something that happened on gft platform back in 2009, i even took a screenshot and saved it as it looked very unusual.

gold went up about 35 dollars in one hour, nothing had happened on the actual market.

It's quite simple, if that happens you complain. they reinstate your trade. Not everything is on purpose, there is such a thing as IT issues.
The brokers do not need to play against you, new traders are quite adept at giving money to the broker through stupid trades.
You are also failing to mention that it is not always the broker taking the other side of the trade, they can if they want match your order in their book with another trader.

 

[Doomberg]

They give you demo accounts where you will turn into a millionaire quite easily to lure you into making a real account with them, where the real accounts are much harder to trade. There really is no success story out there of people who have made money from trading in this way.

Are you for real? If you buy RBS shares outright or back them £100 per point to go up on IG and hold them for 6 months they will go up in that time and you will make money, how can they distort it so much? Sure there are a few tricks they can play to make you lose on the short term, but in 80% of cases the traders don't lose because they have been tricked, they lose because they have done badly.. the market its self makes it hard enough.. On your logic no one can win on Forex too because most of them are not DMA

 

[SanMiguel]

i

there really is no success story out there of people who have made money from trading in this way, the only traders that you hear stories of making money are professionals working with professional trading companies. its funny that out of millions of retail traders all over the world no one makes money apart from CMC, gft, CS, IG etc.

The professionals lose too bud.
It's a market, when someone is winning, someone is losing. Don't forget all the stories of governments selling gold, the swiss bank trying to prop up the euro, etc. etc.

 

[WallStreetHero]

well is there anyone here who has made a regular consistent income through cfds or SBs

 

[Chartsy]

i believe trader_dante has used them for pretty much his entire trading career. Not to mention loads of others...

If you swing trade forex i think it's worthwhile, low rollover costs, tax free, usually pretty decent spreads,no exchange rate risk etc

 

[at6aoo]

Spread bet and CFD prices are very similar to that of the derivatives, such as Futures and Option. The broker does not pay out or take your money but it is the market maker that payout or take your money. the broker only makes money on the difference between the spread. every time you place a bet the broker will place the opposite bet of the same instrument with the market maker to hedge against losses.

point to know:

The Prices are live Future prices, it is you that is losing money not the software making you lose.

Spread betting and CFD trading is pure speculation, it carries a high level of risk if you are here to make money I wish you good luck but it aint easy.

In trading it is your own mind that dont allow you to make money, not the market nor the spread betting firm.

You can only learn this by trading your own money, as there is a degree of emotion involved.

IF you want any more advice I would happy to help you. My brother is a senior developer at a big spread betting firm and I have been doing this for a number of years.

you need to find a very good strategy that works with you best, that you can make more money than lose on average.

Finally remember the word GREED, people lose fortunes when they become greedy, there are times when you will make money but never close your position and lose it all back, you need to know how much will be realistically good enough for the hour or day, and also never chase losses.

very best of luck

 

[enragedcow]

when i first started trading i summised that perhaps the people making the money were the market makers dealing the CFDs and providing you with a chart

but then after a bit more thought you can see that granted, every time you win a trade on a cfd market maker type platform you've just taken that company's money... BUT the company is likely to have some sort of hedging or real market trading that allows them to profit

also think of how much cash the brokers hold at one time, cash earns interest and can be used for profitable investments

and there's always the 50 - 60% of traders who just blow up their accounts

so after examining the incentives and options for the firm offering CFDs and a chart service the likely conclusion is that individual traders CAN win

 

[brettus]

I think it would be great if the SB companies occasionally offered prices that are not the same as the actual markets for a temporary period. That would create great opportunities for arbitrage.

The problem with many people that criticise SB companies for hunting their stops etc is that they don't realise that it is the markets that is looking for stops, not the SB companies. That's the way the markets are supposed to work.

SB companies have their uses in trading as long as you understand the risks and limitations. I frequently use SB when the cost of doing so makes it worthwhile. I make decent amounts of money from my SB account and IG will likely be happy about that as they are probably have a flat order book and are making money from the spread.

This is right. Why does everyone go on about the brokers, Spreadbetting and CFD companies losing them money? They just take commissions, and the spread. You are the idiot who takes your profit too early(Not directed at you Shanghai) and runs your losses until your margin runs out. If you can't beat the spread and the commissions then don't trade...Given their price spikes a few times, due to unknown reasons, but it causes more trouble than it's worth.