Phil Mibbutz
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Confidence? 'I think they might close the SB arm...' doesn't sound too confident, and I certainly didn't mean to suggest that there was anything risky about GFT, or that you should be worried about your funds. I was just wondering how a company that seems intent on keeping punters away by asking for such a high initial deposit can compete with umpteen others that give money away to entice customers. Is there a USP that I've missed?
Yes I agree, this subject came up as there was a question on this thread as to why GFT is not represented frequent enough on this forum. The question whether GFT is a fair company or not, is not the issue here. In fact nothing indicates, that they are not giving a good service once you are in trading with them. What we are discussing is, why they have such a high account deposit policy, and if they are able to stick to this policy in the long run.
Right, let's focus on the topics.
I would just add this thought: Isn't it necesary to put some entry barriers to the SB business? It's a question more than an afirmation.
Even if I think that 2.500 US$, Is surely a too hight entry point, but asking a minimum level of 1.000 Pounds would surely make thinking and forced some of the new comming to the market to do more research, planned strategy and so on before openning a real account. I think that less people would be blow out of their economy if a higher level of economic comitment was asked.
And to the question if this is a good economic strategy or not for the GFT firm, we would need some statistics about how much get a SB company from 1 client with high economic comitment in front a client who do that just to try. I mean GFT surely open less account than this competitors which don't ask for such amount of money, but I'm also quite sure that each account opened will give them more money on a long run.
I would just add this thought: Isn't it necesary to put some entry barriers to the SB business? It's a question more than an afirmation.
Even if I think that 2.500 US$, Is surely a too hight entry point, but asking a minimum level of 1.000 Pounds would surely make thinking and forced some of the new comming to the market to do more research, planned strategy and so on before openning a real account. I think that less people would be blow out of their economy if a higher level of economic comitment was asked.
And to the question if this is a good economic strategy or not for the GFT firm, we would need some statistics about how much get a SB company from 1 client with high economic comitment in front a client who do that just to try. I mean GFT surely open less account than this competitors which don't ask for such amount of money, but I'm also quite sure that each account opened will give them more money on a long run.
These SB companies are Market Makers, as long as you cover up for the margin required, the deposit shouldn't be a problem. If the SB company have good internal risk management system, in the case your funds have been used up, they will act quickly with a margin call and close all the positions. You are making a bet, why should you be asked for more on the account, besides margin requirements? Some kind of minimum deposit I do understand, but not in these numbers. I don't think GFT is giving you interest on the money deposit, which is not allocated by positions? I feel it is better for the client, not being able to deposit this kind of money, as you sign up for the first time. If you are not an experienced trader, it is easier to trade in too high a stake, if the money is available on the account. I feel one must be able at least, to try out a SB company before depositing any larger sum of money. If GFT feels for the clients from a money management point of view, they should offer bets in a lower stake. This is someting I think all the SB companies should address, in order to give a newbie a fair start trying out SB. Live trading with real money is the only way to learn how to handle loss and winnners, and the emotional issues that comes along with that.
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Phil Mibbutz
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How about if someone tries ringing GFT and asking why they want such a large deposit? You never know, they might give a straight answer, although that would be a first for a SB company.
I'm a newbie to the forum so I don't suppose my recommendation counts much but ...
Very impressed with GFT. Opening an account was a bit of a hassle but the spreads are good, the margin requirement is excellent and the support has been excellent. Trading is better than other sites (apart from IG which is also excellent), never been faced with being unable to trade when I should be able to.
Margin requirmeents seems to get too little attention but its huge to me. GFT are the best with IG close behind. CityIndex and Capital Spreads etc are dreadful in comparison (~7 times as much margin required on the UK100)
Very impressed with GFT. Opening an account was a bit of a hassle but the spreads are good, the margin requirement is excellent and the support has been excellent. Trading is better than other sites (apart from IG which is also excellent), never been faced with being unable to trade when I should be able to.
Margin requirmeents seems to get too little attention but its huge to me. GFT are the best with IG close behind. CityIndex and Capital Spreads etc are dreadful in comparison (~7 times as much margin required on the UK100)
Phil Mibbutz
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GFT is also the only one apart from IG where you can trade directly from charts (even if it doesn't work properly
).GFT is also the only one apart from IG where you can trade directly from charts (even if it doesn't work properly
Trade from the charts with IG? That's news to me? I've not noticed this feature - are you sure, if so how do you access this? cheers
Phil Mibbutz
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If you look on the IG site, there's a video explaining all.
Phil Mibbutz
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GFT's SB arm still seems pretty keen to avoid having any customers, because they don't reply to e-mails, apparently.
chilltrader
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Don't know what you guys are on about.
I opened an SB account with GFT a few months back after I read the "NFA Dead Firms Walking..." thread here on T2W. Apparently they are one of the most capitalised group out there.
There are more chances of Capitalspreads/ODL/Alpari etc going broke than GFT!
...and the platform? I like it! I can even deal via my mobile phone. No issues with execution and the customer service is pretty good. Mind you, I mostly indulge in Indices and Forex only.
I opened an SB account with GFT a few months back after I read the "NFA Dead Firms Walking..." thread here on T2W. Apparently they are one of the most capitalised group out there.
There are more chances of Capitalspreads/ODL/Alpari etc going broke than GFT!
...and the platform? I like it! I can even deal via my mobile phone. No issues with execution and the customer service is pretty good. Mind you, I mostly indulge in Indices and Forex only.
Phil Mibbutz
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Still virtually no-one trying to use GFT, the Marie Celeste of spreadbetting?
Judging by the replies to this thread, it appears not many people are interested in GFT.
A year ago, I used their Dealbook 360 software to trade forex. Not impressed with them because they would hold a trade in the pending window for a minute and then fill at top of the spike. During that time, you had no way to cancel the trade and you were completely at their mercy. If they can't fill you immediately, at least they should give you the ability to cancel. But they don't because they know that they can make money easily off you this way.
A year ago, I used their Dealbook 360 software to trade forex. Not impressed with them because they would hold a trade in the pending window for a minute and then fill at top of the spike. During that time, you had no way to cancel the trade and you were completely at their mercy. If they can't fill you immediately, at least they should give you the ability to cancel. But they don't because they know that they can make money easily off you this way.
Phil Mibbutz
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Dealbook is good compared with most SB platforms but has a few glitches with charts.
It's good at taking your money with the delayed execution I mention above.
Phil Mibbutz
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Did you query this with them?
Yes, they reckon lack of liquidity.
But more likely, the dealers are waiting to see which way price goes. If it goes your way, no fill. If it goes against you, they fill at bad price.
[alexa;]
I know my account manager gives $50 bonus to anyone who opens an account even with min of $200, so why would someone new open ann account with $2500 with new broker?
[Phil Mibbutz]
Apparently there's nothing to stop you depositing the minimum to open the account, then withdrawing most of it,
Below is a post I posted on another thread and thought it relevant to this thread, so I have re-posted it here.
Just got off the phone with GFT.
I can confirm there cable and Euro/major spreads are between 1-3 pips, depending on volatility.
The other majors are at 2-4.
In reply to alexa-
They do offer a no lower limit stop loss and a no lower limit initial stop.
My only reservations with them are that they require a deposit of $2500 (or £1600) to open an account.
I have accounts with ETX and Ig, but I wanted a new account to live test scalping. For which at a certain point in the trade a trailing stop of around 5 pips would be required.
Now considering this is a trial at scalping (I usually swing) I feel it is a lot of money to tie up in something that may not come to anything.
In reply to Phil Mibbutz
I thought about opening an account and then withdrawing £1200, but GFT said you need a minimum of £4000 on deposit to keep an open position. At this point I got a bit fed up with the telephone conversation.
So if any one knows of any other spread betting firms that would offer a low cable spread and auto trailing stops of at least 5 pips. It would be great to hear from you.
Thanks
Jason
