Can American do spread betting
No, spread betting on financial markets is illegal in the USA.
Can American do spread betting
Hi all
I am currently looking for a new Spread Betting Broker and have found a big problem!
I have multiple accounts and demo accounts open to find the best broker for me. I have realised that each brokers charts show different prices and candles for the same time frame.
Some touch a certain price multiple times indicating a possible support and others do not. Which is right? How can you trust the data you are receiving?
Also the candles open and close at different prices also showing different highs and lows to each other. You look at one broker and the charts suggest a possible trade. You look at another and the charts do not suggest a trade.
Why does this happen and how do you know which broker has reliable data.
I am a day trader, US/Nymex oil is the market I prefer.
I am comparing IG index, Etx capital ,GFT and Trade fair. In the process of testing other demo accounts and opening live accounts.
Any info would be greatly appreciated.
excellent post. wrapped it up in a nutshell.You will always have this problem for two reasons if you trade forex. If you trade other things the result is the same in effect.
1. The market does not exist.
2. You are not even trading this non-existent market, you are trading a synthetic version of it created by the spread bet firm. In addition, look carefully at their charts. Somewhere you will see it stated that the charts are not necessarily a reflection of the made up prices in the made up market - they are "representative" only.
The forex market is everywhere currencies are exchanged, but there is no exchange. So there is no correct price. If you want a definite price, you need to trade something that is on an exchange.
Then the spread bet companies create their own version of whatever they view as the market. That is what you are trading, and not the market. If you want to trade the real market, you need a broker rather than a bookmaker.
Finally, like I say above they make no claim that their charts are accurate.
That's forex via a bookmaker. Get used to it or trade something else.
i had a quick look on my broker (interactive brokers) Time and Sales for GCZ13 (i presume this is what you were trading). At 01:21:23 this morning gold traded at 1302.9. Then there was a gap for 20 secs which is a bit odd, next trade was at 01:21:43 at 1293.3!
So although this 20 sec gap is a bit strange, it would appear that ETX filled you correctly.
Thanks mate - I checked with IG and they had a bar down. No gap. But my argument was that this is not a volatile move! I work for an exchange - so I know what is possible with today's technology and these SB companies are plain ripping people off with their proprietary systems.
If we had HFT traders exposed to such slippage on our exchange there would be mass desertions - and these guys complain about trades not being filled in micro-seconds let alone criminal slippages such as this on negligible volume.
What is more interesting is if you had a limit order to buy at 1298. Would you have been filled at 1298 or at 1295ish?
I had this issue with an SB recently. I put a limit order to sell before the market opened, the market opened with a big gap, the SB filled me at my limit price. I successfully argued that i should have been filled at the opening price on the underlying market which was much higher than my limit. This is actually known as "positive slippage".
What is more interesting is if you had a limit order to buy at 1298. Would you have been filled at 1298 or at 1295ish?
I had this issue with an SB recently. I put a limit order to sell before the market opened, the market opened with a big gap, the SB filled me at my limit price. I successfully argued that i should have been filled at the opening price on the underlying market which was much higher than my limit. This is actually known as "positive slippage".