Spreadco the one to beat?

[kwickwool]

Obviously you have to look at the whole package on offer and if you are trading many times a day the spread will only add to you profit margin but not worth the risk of poor service. Spread betting companies have indeed become more competitive and a better service which is why we are seeing this increase in value and can only be good for the consumer.

Have mentioned this before but have never understood why a spread betting company would impact on the trading of a success trader but not filling etc even though they are not hedging against them?

Why not just create a system within the company that looks at the top 5% of accounts i.e. the very successful ones and mirror the trading on the market, win win synergy yes? They should do all they can to keep good traders??

 

[Ross Spur]

I opened account with SpreadCo about 2 weeks ago and had about 10 trades so far.
I had no re-quotes, no crashes and I have no problems with them.

As some of you know WorldSpreads have £100k competition where you need to get 10 successful trades to qualify and I use my SpreadCo account to hedge some of the positions.

I think you will have problems with spread betting companies when you trade with a lot of money.

Spread Betting companies should hedge their positions on the open market but not all of them do so and thus use some dodgy techniques. If you have a problem with a spread betting broker you should compain to the FSA as by law spread betting companies have to be able to close your position at any given time (when the market is open).

Is everything still hunky-dory, or have the gremlins crept in?

 

[SanMiguel]

...when will people learn to use limit orders to avoid requotes?
never had any problems with any SBers and to me zero spreads was certain to come around the corner at some point.

I opened account with SpreadCo about 2 weeks ago and had about 10 trades so far.
I had no re-quotes, no crashes and I have no problems with them.

As some of you know WorldSpreads have £100k competition where you need to get 10 successful trades to qualify and I use my SpreadCo account to hedge some of the positions.

I think you will have problems with spread betting companies when you trade with a lot of money.

Spread Betting companies should hedge their positions on the open market but not all of them do so and thus use some dodgy techniques. If you have a problem with a spread betting broker you should compain to the FSA as by law spread betting companies have to be able to close your position at any given time (when the market is open).

Hedging, are't you losing the spread twice on each trade?
BTW, they don;t need to hedge their positions on the open market above the required minimum (check the FSA but it used to be something like 5% I think).

 

[lancenicolase]

Just curious - how do you spreadbet from California if it's illegal in US?

Ross Spur, I'm not from California but from London (UK). I set up this account and don't know how to change California to London now. You can see from my profile that I live in UK.

what's your progress with this £100k competition?

I have managed to do it... I totally had 14 trades and 10 of them were in a row.
I got an e-mail from them and there ware 185 winners, I give more details when I receive the cheque (supposedly, they were going to send a cheque).

...when will people learn to use limit orders to avoid requotes?
never had any problems with any SBers and to me zero spreads was certain to come around the corner at some point.

Hedging, are't you losing the spread twice on each trade?
BTW, they don;t need to hedge their positions on the open market above the required minimum (check the FSA but it used to be something like 5% I think).

SamMiguel, you raised a good point on hedging but I opened account with World Spreads just for the sake of the competition and even though I'm doing fine with trading indices I'm really rubbish when it comes to trading currencies (although my last two trades on EUR/USD and GBP/USD were successful). The second trade I did on WorldSpreads was going long on EUR and I dropped £100 but I hedged it and in fact got £102 on SpreadCo so was £2 up.

Secondly, I have never said that spread betting companies have to hedge their positions but most of them do. I think IG hedge more than anybody (I might be wrong) and the rest of the brokers hedge positions of good traders only. Besides that, you have to remember that SB companies balance their books quite often though their customer base.

 

[hacks]

lancenicolase, where did you hear that IG Index hedge more than the others? That's very re-assuring! I was just wondering because many people on this forum complain of their re-quotes. I have an account with them but I don't use them much. Thanks.

 

[lancenicolase]

lancenicolase, where did you hear that IG Index hedge more than the others? That's very re-assuring! I was just wondering because many people on this forum complain of their re-quotes. I have an account with them but I don't use them much. Thanks.

I have a friend who used to work for a spread betting company and he mentioned it but he wasn't sure as he didn't work for IG.
At the end of the day it's down to spread betting company to manage the risk, and it's down to them to decide if they want to hedge or take the risk... as most of the people lose only a small part is hedged.

All, I know for sure is that if you trade successfully all of the brokers will go out and hedge your positions (if they cannot balance the books internally and your stake is significant).

 

[pineappleman]

...when will people learn to use limit orders to avoid requotes?
never had any problems with any SBers and to me zero spreads was certain to come around the corner at some point.

Because many methods of trading do not allow people to know in advance at what price they want to fill. I think a crystal ball may allow you to know in advance at what price we want to be filled, but in the real world many methods do not have that bonus. I understand some methods look for, say, retracements to support so you can put a limit around support etc but many methods do not work like this, you have to wait for the moment and click the mouse to say "fill me!!".

So limits are not useful for most traders, even successful ones, it's down to your method.

So it follows that, with all respect, that is not an acceptable answer or excuse to allow SB companies off the hook with the illegal games they play with your genuine efforts to speculate successfully. We shed blood and tears over years developing our trading method, our discipline, our money management, etc to a point we are in an enviable position amongst wannabe traders as we can make long term profit... then bucket shop b*stards (most SB companies) undo all of our honest hard work by fiddling the data, delaying the fills etc. They should all be locked up or hanged (ideally).

But of course weak spineless Britain with it's complete lack of control on the financial industry (eg, the useless FSA etc) is the ideal breeding ground for such filth.

Off my soap box now.

 

[SanMiguel]

So limits are not useful for most traders, even successful ones, it's down to your method.

Most professionals use limits, perhaps not always for the entry, but the exit is very often managed with a limit.
I agree it's down to your method though.
There is an easy way to manage requoting issues by talking to your broker, changing to a broker with a faster system, or using limits, it really is that simple.
I'm firmly in the belief that the SB shops don;t need to do anything, most of the punters lose. Any problems with requotes are down to bad/slow systems, punters using market orders and different fill criteria between broker systems.

 

[pineappleman]

Most professionals use limits, perhaps not always for the entry, but the exit is very often managed with a limit.
I agree it's down to your method though.
There is an easy way to manage requoting issues by talking to your broker, changing to a broker with a faster system, or using limits, it really is that simple.
I'm firmly in the belief that the SB shops don;t need to do anything, most of the punters lose. Any problems with requotes are down to bad/slow systems, punters using market orders and different fill criteria between broker systems.

I understand, but I still feel to say "it's down to market orders" is defeating the whole basis of trading no?? When we see a price, we want it, we give our order. To say SB's cannot fill us at that price surely is pathetic, they shouldn't be showing the damn price on the screen then LOL!

I'm not moaning at you my friend, I'm sure you words are true, but all I am saying is that these bucket shops could offer a wonderful service and we in the UK should be proud and grateful to have the ability to beat the taxman and trade tax free with bookie acting as brokers. If we got no dodgy spikes, no silly games, no requotes etc then ok I would be proud of them. But I have seen the tricks and I've been around the block too much.

I'm currently checking out Smart Live Markets who seem to be good with spreads and the MT4 platform. Hopefully these could be different to the usual lot. Also, if you wanna go DMA with spreadbetting and are willing to pay an extra premium over regular DMA then ProSpreads are the people to deal with. I think we can start small with bucket shops who offer up to £50-£100 per point but when our account is healthily increased we need to change to professionals like ProSpreads if we ever want to make real money trading, or just go regular DMA route. Bucketshops (SBs) have thier place until you become a little too successful in your account, you must then run before you are robbed.

 

[SanMiguel]

I understand, but I still feel to say "it's down to market orders" is defeating the whole basis of trading no?? When we see a price, we want it, we give our order. To say SB's cannot fill us at that price surely is pathetic, they shouldn't be showing the damn price on the screen then LOL!

I'm not moaning at you my friend, I'm sure you words are true, but all I am saying is that these bucket shops could offer a wonderful service and we in the UK should be proud and grateful to have the ability to beat the taxman and trade tax free with bookie acting as brokers. If we got no dodgy spikes, no silly games, no requotes etc then ok I would be proud of them. But I have seen the tricks and I've been around the block too much.

I'm currently checking out Smart Live Markets who seem to be good with spreads and the MT4 platform. Hopefully these could be different to the usual lot. Also, if you wanna go DMA with spreadbetting and are willing to pay an extra premium over regular DMA then ProSpreads are the people to deal with. I think we can start small with bucket shops who offer up to £50-£100 per point but when our account is healthily increased we need to change to professionals like ProSpreads if we ever want to make real money trading, or just go regular DMA route. Bucketshops (SBs) have thier place until you become a little too successful in your account, you must then run before you are robbed.

Not sure if ProSpreads is real DMA, it is DMA "like" trading.
So, OOI, what in a DMA platform do you like that you don't like in a SB platform? Is it simply the requoting aspect of it? In a DMA system every order is placed as a limit unless you hit the market price and even limit orders aren't filled - it depends where you are in the queue. This is opposite to that of a SB system where if the price is hit, your order will be filled regardless as a block of orders at that price.
Sometimes you can get a requote and then you do get a better price later as it moves more in your favour, this is why I refer to the efficiency of the trading system as being the main culprit.
Some SB systems are slow by their nature as they run over a web platform, which may nit refresh often enough, some run on Windows platforms but are slow, some fast, some brokers have great systems but then not during news, IT based problems really.

Do they play about with the price...possibly, again it depends on the broker, whether they widen their spreads at certain times, whether they track the market price or whether orders within their system affect the price in tiny increments. I agree the rules could be more concise but speaking to the dealing desks, they are all very quick to rectify problems or mistakes.

 

[gle101]

Anyone who can give a report on experiences trading live with Spreadco?

 

[anley]

Don't get caught in spreadhunting. Who cares about spreads, provided that they are low? Service and reliability. Ease of withdrawal of funds--all are very important. Also, NOT having to telephone with enquiries or complaints. I used to spreadbet for two points and it was reduced to one. Very nice and appreciated. Looking for 0.8? you should be spending your time looking for moves, not bargain hunting for spreads. A good trade is more important.

Too true. Concentrate on making money first, say 6 profitable trading months in a row. Then worry about how tight the spread is (as long as it's not too wide to begin with).

 

[Ross Spur]

Anyone who can give a report on experiences trading live with Spreadco?

Sometimes works very quickly, sometimes doesn't. Not sure yet if this relates to how much you've been winning/losing! Charts pretty good, but the platform has a few bugs that need sorting. Customer service always helpful.

 

[gle101]

Sometimes works very quickly, sometimes doesn't. Not sure yet if this relates to how much you've been winning/losing! Charts pretty good, but the platform has a few bugs that need sorting. Customer service always helpful.

Thanks a lot Ross. How do you find their Dow 0.80 spread in comparison with Cityindex 1 point spread?

 

[pineappleman]

Not sure if ProSpreads is real DMA, it is DMA "like" trading.

...

Some SB systems are slow by their nature as they run over a web platform, which may nit refresh often enough, some run on Windows platforms but are slow, some fast, some brokers have great systems but then not during news, IT based problems really.

...

speaking to the dealing desks, they are all very quick to rectify problems or mistakes.

Yeah it's DMA like trading, the closest thing to DMA you will get if you wanna stay taxfree! But yes you pay in the extra spread so it all depends on how much cash you making.

I think you hit the nail on the head: running over a web based platform is awful. I like Smart Live as they use MT4 which is quick and good at what it does (compared to web based it's a dream) hence why I'm giving them a shot. But yes I have seen some SB platforms (web) over the years take ages to boot up, then freeze, kick out, yikes, it's no way for a man to trade (not when he's serious about it).

And to be fair, things are better now - I have heard many times that companies are willing to listen and rectify issues, like you said. I guess it's like everything else in the world (and in trading): nothing's perfect but you have to work as well as you can with what is in front of you.

 

[Ross Spur]

Thanks a lot Ross. How do you find their Dow 0.80 spread in comparison with Cityindex 1 point spread?

When the platform is working properly, you'd think it would be a slight advantage, but I'm not sure if having decimals on the US30 is in the clients' favour. The charts are better than City's, but you have to put a stop more than a certain distance away (5pt, I think). Another major failing is that you can't put a stop on at the same time as opening a trade.

 

[pineappleman]

...you have to put a stop more than a certain distance away (5pt, I think). Another major failing is that you can't put a stop on at the same time as opening a trade.

Designed to make you lose, then.

 

[gle101]

When the platform is working properly, you'd think it would be a slight advantage, but I'm not sure if having decimals on the US30 is in the clients' favour. The charts are better than City's, but you have to put a stop more than a certain distance away (5pt, I think). Another major failing is that you can't put a stop on at the same time as opening a trade.

Yes, it is better to have a 1 point spread (1 tick per point) on the Dow. Being little less than 1 point spread makes it about even with Cityindex I guess. It has come to my knowledge they are planing to introduce stop loss in points on the order ticket window, in the very near future (hopefully this month). Not less than 5 points spread is not an issue, at least not for me. How do they perform execution wise, fast, re-quote or price no longer valid?

 

[lancenicolase]

Even though 0.8 and 1 is pretty much the same they have by far better spreads during the out-of-market hours.
Just 1.8 on FTSE100 and 2.8 points on the Dow. CityIndex have 4 points spread during out-of-market hours on the Dow.
Besides that, SpreadCo have 4 points spread on US crude whereas City have about 7.

 

[Ross Spur]

Anyone else noticed that the candlestick charts do some weird things, ie, the candles jump about after they've been formed?