The reason I'm on this thread is because I'm considering the relative merits and demerits of Prospreads and Interactive Brokers. Of course there are several considerations, but the ones I've come to focus on are:
1) PS - basically what is their model? It's not just that ordinary SB companies take the other side to their clients, it's that they use underhand means to screw clients out of sustained winnings. They can do this because they make their own market. But they don't do it because they make their own market - a company could in principle make its own market and be honest. Just nobody's heard of an honest ordinary-SB firm, because basically they're bookies and if clients chuck their money away they try to encourage them to chuck more away, in their direction. In fact they're worse than high-street bookies because a high-street bookie's vig is about 11% whatever happens - and once they've taken it, the rest of the money that's bet goes to the winners. (OK this is a massive over-simplification , but in principle a high-street bookie wants to be flat on all outcomes)
So - what I really want to know is when do Prospreads hedge (fully and automatically, in relation to a specific order they've received from a client, and as soon as they can), and when don't they? Hopefully they will reply publicly. This is where I'm hoping they distinguish themselves from ordinary-SB firms, not just in the fact that the prices they quote are real market prices, which keeps getting trotted out but doesn't give the whole picture.
2) Interactive Brokers - I haven't looked at them so closely yet, but their customer service seems dire (just going by pre-sale experience here) compared to PS's. I've told them how much I'd be putting up, i.e. low-to-mid 5 figures (GBP) to start with, and they haven't even bothered replying to my emails. Various websites say how **** their CS is.
But is that particularly bad? Does it just come from them aiming at bigger clients, and if smaller clients get the same functionality (if not the attention and courtesy) of bigger clients, well that at least seems to be a good thing.
Lastly - Riogordo - isn't it 85K if Barclays go under, or do client a/cs come under different riles from personal a/cs?
You are right it has gone upto 85k. even better.