Spreadbetting Indices

[brendansvest]

The benefit is that the rebate is paid in one payment after the end of each trading month so it can be one substantial payment instead of a small saving each time you trade. Ask any futures trader about the benfit of rebates. A clear set percentage paid to each client. Hardly smoke and mirrors is it?

 

[chezlaw]

The benefit is that the rebate is paid in one payment after the end of each trading month so it can be one substantial payment instead of a small saving each time you trade. Ask any futures trader about the benfit of rebates. A clear set percentage paid to each client. Hardly smoke and mirrors is it?

Oh I see, its an interest free savings account. Nice

You're really not doing any favours to the spread betting isn't micky mouse trading argument.

 

[brendansvest]

It isn't mickey mouse as I take it very seriously. I suggest you talk to futures traders about their rebates. Futures trading isnt mickey mouse is it?

 

[chezlaw]

I understood you were saying that futures traders get rebates dependant on volume. Volume discounts in the form of rebates makes sense.

Giving everyone the same rebate is plain silly.

 

[brendansvest]

Why? It's all part of the FSA requirement for TCF. Why shouldnt the smaller trader benefit in the same way as the bigger players?

 

[chezlaw]

Why? It's all part of the FSA requirement for TCF. Why shouldnt the smaller trader benefit in the same way as the bigger players?

So we're clear now that your cunning plan for spread betting is different to the rebate system you have for futures trading. As you said, for SB you will just collect fees, save them up and kindly give them back at the end of the month.

I think you should consider the Party model a bit more closely, I'm not a fan of Party Gaming from past experiences but they have huge experience and success when it comes to rebate schemes.

 

[brendansvest]

I am aware of the party model and it works exactly the same way. The only difference is that the rebate has tiers, there is no reduction in the spread and it is still paid on a monthly basis. So, the big difference is........?

 

[chezlaw]

I am aware of the party model and it works exactly the same way. The only difference is that the rebate has tiers, there is no reduction in the spread and it is still paid on a monthly basis. So, the big difference is........?

tiers depending on ...

 

[brendansvest]

Party Markets rebate has tiers.

 

[chezlaw]

Party Markets rebate has tiers.

that depend on ... volume.

 

[brendansvest]

Yes, we arent penalising the smaller traders. Is that not fair?

 

[chezlaw]

Yes, we arent penalising the smaller traders. Is that not fair?

Why not be even fairer, increase the spread some more and give everyone a 20% rebate.

 

[brendansvest]

Greta idea, look forward to setting up with your company. Let me know when you are up and running.

 

[tan5ki]

Im sorry brendansvest but I kind of agree with Chezlaw. How exactly does the client benefit more from paying a wider spread to trade only to see 10% of it come back in one lump some at the end of the month compared to simply paying a 10% smaller spread to trade?

What do some of the more experienced traders think of this idea?

 

[brendansvest]

The advertisement is on T2W today. As we cant reduce the spread we rebate the client therefore still getting the value back to the customer.

 

[Splitlink]

I think that a straight 1 or 2 point spread is clearer to the trader than this rebate system. Everyone to his own method of trading, but I don't want to be bothered with a cash back at the end of the month idea. That's just a complication to my bottom line calculation.

This has to be for reasons of you own, not for any benefit to the client, IMO.

 

[brendansvest]

It is a straight 2 point spread. The prices are the same as any other platform, bit with us you get a rebate at the end of the month. If you ignore the rebate in any calculation it becomes a welcome bonus.

The client is the one who benefits as the rebate is paid from our end with no cost or loss to the customer.

 

[Splitlink]

I trade with a 2 point spread on Footsie, so I can't see anything wrong with your scheme, then. They say that Tradefare (if that is the correct name) is offering 1 point spreads, so their clients would not feel the same. In fact, if I was to change my BS, which I am not thinking of doing, why would I not go to Tradefare, in preference? When it comes down to it, the spread is lower and that, plus customer service,is what counts. You are selling a gimmick, if you will excuse me saying so.

 

[brendansvest]

How can an ongoing rebate be a gimmick? As I am sure you will apprecaiate we are a broker providing access to a SB platform from a major provider. We do not control the spread therefore we provide a rebate to add value to the account. In respect of customer service I am confident you will not find better. Any queries are directed to traders and brokers, not call centre staff and salesman as this is the case with other brokers. Have you seen the FX Rebate we are offering?

 

[glide]

is anyone spreadbetting indices? If so, who do you use and why?

I use tradefair as their spread on the instruments I trade is reasonable, i.e. 1 on Dax and 2 on cable. The response time is good and I rely on market timing to enter and they are good for that. I used to use others but found them less responsive. Also, their customer service is good and friendly and I believe that they are 'Fair'.
Here is an extract from my blog about timing which as I said is my main issue:
"It is of utmost importance to understand the time that you choose to trade in and know what you potentially expect at that time of day. This differs from instrument to instrument so it is important to study market behavior for your particular instruments. I usually trade only 2 instruments the DAX and the GBP/USD and I am pretty familiar with their behavioral patterns during the trading day. Other instruments behave differently and I will only trade them (and I do occasionally trade WTI, Nat Gas, and other currencies) after I've studied their time related behavior. Most of my trades outside of the DAX and GBP/USD are news related and of course, when figures are released a different volatility exists which usually out of the normal patterns.

The best time to trade the DAX is close to the London open at 08:00 (03:00 EST) as the open usually brings a large surge in volume and it's and easy time to scalp. Sometimes the scalp will turn into a longer term trade if a trend develops, however it is often possible to achieve a gain of 20 – 40 points in the first half hour of trading. As my daily target is 30 points and it is often hit within 30 minutes, I can then relax and look for absolutely perfect set ups that will not risk the gain. "

The charts and vids are in the blog if you're interested.