Ha ha, if you can't understand it then that's a big clue that you're not really qualified to use DMA yet
...and learn some manners before you post
Ha ha, if you can't understand it then that's a big clue that you're not really qualified to use DMA yet
You can't do that with ProSpreads, you have to trade units of the same size and currency as the underlying future ($12.50/tick in your example).
Clearly ProSpreads are not really ofter the nickle & dime end of the spreadbetting market but really positioning themselves as an alternative to a futures broker.
So are the charts IT finance but with volume? and can you get a volume indicator on indicies and forex?
With futures margins and commissions being so low these days I'm not sure if there's much advantage in doing that. I doubt if the tax issue would outweigh the extra spread cost, it wouldn't for me anyhow, maybe it would for others.
Don't quite understand your point.
In round numbers they (efectively) charge of the order of 1 tick per round trip for which you get real-time Level 2 visibility onto the futures exchange. Monthly turnover of (iirc) 200+ lots substantially reduces this (effective) commission.
No other spreadbet company to my knowledge operates this business model. They all (effectively) operate an internal market.
Velocity are, imo, their nearest analogue in the futures broking market, personally I've always been put off by their location however (Dallas?) and implications for sytem latency.
Super cheap commission is, of course, offered by IB, however they do not offer a true "real-time" price feed (iirc it's only 1 sec) + I've no wish to become involved (however periferally) with the US tax and regulatory authorities.
Dear All,
Furthermore, we would like to point out that any DMA trading done through a broker will be done in a similar fashion. It will not be the actual client who is entering the underlying market, it will be the broker entering the market on behalf of the client and then charging the client a commission for this.
ProSpreads
Most seem to be US based but you're not liable for US taxation.
The commission is for a round trip ( to buy and later sell the contract). One tick on the ES is 12.50 and a full point is $50. So if you buy one contract at 1100 and sell it at 1101 then you make $50 and pay $3 or $4 commission. If you buy at 1100 and sell at 1100.50 you make $25 and still pay the same commission.
The commission is for every contract you trade regardless of how much money you make on the trade.
There is a further difference isn't there? With an SB firm, if you buy at 1100, and then sell at 1100, it won't actually cost you anything will it? You can say that you "paid" the spread, but no money actually changed hands.
But with a "real" trading broker, you would still pay the $3 or $4 commission wouldn't you?
I gues you are right, but dont forget that if you trade at the same price then the actual market would have gone at least 4 maybe 5 tics in your favour so they are taking their commission from that, the 5 tics profit.
When i trade and if lucky take 5 tics , then pay the comission, i am showing a profit not a scratch trade.
I gues you are right, but dont forget that if you trade at the same price then the actual market would have gone at least 4 maybe 5 tics in your favour so they are taking their commission from that, the 5 tics profit.
When i trade and if lucky take 5 tics , then pay the comission, i am showing a profit not a scratch trade.
Aren't you also "paying" a spread?
. . . Also how much slippage will they induce every now and again to get a few more ticks from you here and there. They are a spreadbetting company after all.
All I can say is that, from home, I have benchmarked their trading system against both bloomberg and reuters price feeds by phoning my trading desk (professionally I work on a trading desk, have done for 25-odd years now), monitored their price ladder prices vis a vis the actual exchange (level 2) price ladder and entered and exectuted trades.
All the above was perfectly visible to someone watching other trading systems that accessed the real, underlying, market with no visible latency (time lag).
What more can I say. I have examined your concerns and found them to be groundless. This is a major reason why I use them.
Just to point out that the commission is the same as the spread charge, the commission is built into the spread, you have no other cost's.Aren't you also "paying" a spread?
Also how much slippage will they induce every now and again to get a few more ticks from you here and there. They are a spreadbetting company after all.