hi, I've SB indices and lately I've tried to day trade GBP/USD on rolling SB ( 3 pips spread) Could anyone explain the apparent suspicion by traders of SpreadBet Companies. Would I be better off trading the currency than SB. I am not losing money , but also not making much of a return . Your comments please
tryhard said:
It depends on what you want out of trading. If you are trying to scalp and with big size, the spread is very important. I would say day trading using SB's is hard..not impossible but hard. Its a lot easier for position trading.
The one thing to remember with SB's is that you are trading against THEIR QUOTE and not the spot. They can be very unscrupulous and move quote against you to take out your stop or (as is the case with Capital Spreads) only fill your order if the market moves against you.
Its worth noting that SB's are BOOKIES NOT BROKERS.
Good luck with your trading
BroadSword
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With most retail FX shops you are effectively dealing with a 'bookie' as well, insofaras they make their own market with a derivative price based (their interpretation!) market prices.
You are still trading 'against the house' as you are with SB. It is a synthetic not real market, made by them.
You are still trading 'against the house' as you are with SB. It is a synthetic not real market, made by them.
BroadSword
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For a small account, I'd still use a broker / market maker (bucket shop) but the odds are stacked against you if you're trying to trade off small timeframes with small stops. If you are sensible there is no problem on longer Tfs, imho.
I position / swing trade and use Oanda, about whom I have no problems. I also use SB though for longer TF trading (days/weeks).
HTH
I position / swing trade and use Oanda, about whom I have no problems. I also use SB though for longer TF trading (days/weeks).
HTH
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