Is Spread Betting a realistic vehicle for professional trading?

[Sharky]

An increasing number of people are trading using spreadbetting to avoid paying commission and taxes. It's quick and easy to open an account, requires very small capital, offers leverage and lets you trade in very small amounts across a wide range of markets. But do the larger spreads, requotes on a fast moving market, futures led cash market indices and inability to trade within the spread make this more like gambling rather than serious trading.

So we ask you do you agree or disagree with the following recent quote from Malcolm Robinson?..

"Trading with a spread betting firm is absurdly costly, spread betting firms are like amusement arcades, they can be fun, but to imagine you are going to make your living from slot machines is illusory."

 

[jezza888]

seems things haven't changed much over the years then!

 

[charliechan]

hey jezza - i think your signature says it all really in so far as bucket shops go.

we have all read the perils of bucketshops in lefevre's famous work - and that was 100 years ago. yet people still believe they can make a buck against them consistently!

although we are all individually unique, human behaviour remains as predictable as ever....

 

[fxmarkets]

"Trading with a spread betting firm is absurdly costly, spread betting firms are like amusement arcades, they can be fun, but to imagine you are going to make your living from slot machines is illusory."

I'm drawing that conclusion though from trading arcades too... theres more to it than the spread size I think....... I mean paying desk fee's for what exactly how much and for what ? do you need that overhead? I still dont know if you go to an arcade when you want , Again your paying as a customer for what ? someone said you get a canteen, pool table, free tea and coffee , and even an economist on site !

Are trading arcades amusement arcades just package ,promoted differently?
Refco says you trade what you want......... cheers ,not sure about how you want and err when can I do that , 4.30 am alright? 22.45 o.k. ? I'm going in saturday 9pm , extra power analysis that good for you ?

Now can anyone answer some of those points? who is at refco or another, can it be done?

 

[Trader333]

Paul,

The statement about spreadbetting is too simplistic in my view and should cover day-trading separately to position trading. From memory I think that the comment by Malcolm Robinson is specific to day-trading and should be treated as such as longer term trading is an entirely different activity where spreadbetting is a good option and profits are easier to achieve.



Paul

 

[tomaz55]

An increasing number of people are trading using spreadbetting to avoid paying commission and taxes. It's quick and easy to open an account, requires very small capital, offers leverage and lets you trade in very small amounts across a wide range of markets. But do the larger spreads, requotes on a fast moving market, futures led cash market indices and inability to trade within the spread make this more like gambling rather than serious trading.

So we ask you do you agree or disagree with the following recent quote from Malcolm Robinson?..

"Trading with a spread betting firm is absurdly costly, spread betting firms are like amusement arcades, they can be fun, but to imagine you are going to make your living from slot machines is illusory."

I have been day trading cable for 18 months using a spreadbetting firm, and must say its I have absolutely no problem with that, it's efficient, tax free, commission free, you only pay for the spread (in my case 3 pips), no quarrels. happy trading

 

[Shaun12uk]

I have been day trading cable for 18 months using a spreadbetting firm, and must say its I have absolutely no problem with that, it's efficient, tax free, commission free, you only pay for the spread (in my case 3 pips), no quarrels. happy trading

Hi Tomaz,
Could you confirm whether you think it is feasible to trade Forex or indices futures through SB's and if so whether it is wise to spread you trading between a few firms rather than just one.

I have heard other members say that some SB's switch you onto manual trading rather than on-line if you take to much profits for their liking.

Shaun

 

[Shakone]

Could someone who is a profitable trader at a bank (or perhaps using direct access) make consistent profits using a spreadbet firm? If the answer is yes, then there is no problem using spreadbet firms to trade. If they answer is no ... well then the average Joe doesn't have much chance. Who from the professional world of trading actually thinks that they couldn't make money using any spreadbet firm?

 

[SanMiguel]

This thread was started in 2002 when everyone hated SB companies.
I think it is common knowledge know that it's no different to spot forex or any other form in terms of profitability.

I have heard other members say that some SB's switch you onto manual trading rather than on-line if you take to much profits for their liking.

Laughable.