Spreadbetting Small Cap Equities

[trillionaire]

I'm finding the smaller cap stocks have spreads within a spread (which you can find via dummy buys and watching the trades) which spreadbet companies don't take into account.....they only follow the official spreads. This can be much more expensive and more time consuming for your investment to even out before hopefully a profit (i.e. Sync was officially quoted at 2.75 and 2.81 at IG and 2.82 at Spreadex....but I could buy online at 2.39....though the sell price is the same).

Admittedly this does not apply to the larger stocks on LSE/AIM/Plus, but it certainly does for smaller stocks.
I am sometimes tempted via the DMA CFD route (only IG is an option with more limited stocks than Spreadex) simply for the reason of getting within the spread regardless of CGT implications, as I want to make a profit first.

 

[ns1000]

You paid 2.39 for a stock IG was bidding 2.75?

 

[trillionaire]

Yes...spread within a official spread for certain AIM stocks, regardless of it being IG/Spreadex /whoever.

 

[ns1000]

but that's not within the spread - you seem to have paid less than the bid.

 

[trillionaire]

No ns1000..... the "official "bid was 2.25 when I bought it

 

[ns1000]

ok - muisunderstood your first post.

With to get the same price with SB you can try phoning an order through. The SBs should have access to the same prices. Alternatively if you're trading DMA CFDs, some brokers will give you access to an RSP, which should give you the same sort of improvement http://info.l2dealer.com/content/sites/l2igm/en_GB/deal-rsp.html

 

[trillionaire]

"Alternatively if you're trading DMA CFDs, some brokers will give you access to an RSP, which should give you the same sort of improvement http://info.l2dealer.com/content/sit.../deal-rsp.html"

thanks and that's my point in the initial post....I'm tempted via the CFD route