They should forget about iPhones if they can't even make their charts work.
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They should forget about iPhones if they can't even make their charts work.
I read earlier in this blog that someone says IG hedge most of their positions. However I think its fairly well known in the market that I had heavy losses in 2008 when a large number of clients were shorting banks and as IG were hedging none/little of it they took major losses.
some say IG make money becuase they have thousands of active (although very small) clients and open 2000-5000 clients a month and they hedge very little. Having such a huge client base means that because you are picking up lots of spreads. Because so many of these clients trade cancel each other out (if one client buys 20 ftse and another shorts they dont need to hedge), and most clients lose, they dont need to hedge anything. the money they make in spreads could sometimes even dwarf their overall net positions. And why hedge your book when 4 trading days out of 5 your "clients" lose money? makes no sense.
In regards to Worldspreads offering 0pt spreads, some say there are two points to be made here.
The reason they offer 0pt spread is because they dont hedge their positions and the vast majority of clients lose. If most of your clients over time lose, you obviously dont want to hedge this as if you dont hedge it you will make more money. Only consistently profitable or very large accounts need be hedged. Most of these large accounts would be far more cost effecticve trading futures (outright, not through SB) but they dont do so because of the tax benefits of SB.
for the trader, does it matter if your trade is hedged or not? of course it does! and this is why you will always suffer poor execution / stalling platforms / excess slippage / spikes with sb companies. if you lose, they win. they have a big incentive to try and hit your stop. most of them dont need to pay too much attention to this as most traders can blow up their account all by themselves.
if you are profitable in the long run you have a choice.
a) put up with poor execution and bad pricing with sb companies because if you can still make money your profits are tax free
or b) swith to true market access where your trade goes into the market through your futures broker and pay tax on your profits.
advertised spread does not equal actual spread.
i could open an sb firm tomorrow and offer 0 spreads on everything and even if i fill your entry at 0 p/l, i can just take a pip or two (or more) off you on the way out.
the above is all theoretical and is not my view 😉
i love ig and worldspreads and all sb companies. the above is purely rumour and guesswork 😉
ive found a new solution for my own trading now. works for me. i only gave a) and b) above. there is infact now (since 2011!) a c) but it doesnt apply to everyone. just those with larger accounts unfortunately for the little guy. then again we all have to start on a small account. consistent profits then turn it into a big account and theres no point having an sb account if youre not making any money as zero % tax on a zero profit is still Z.E.R.O.
good luck (though luck has nothing to do with it)
t30
some say IG make money becuase they have thousands of active (although very small) clients and open 2000-5000 clients a month and they hedge very little. Having such a huge client base means that because you are picking up lots of spreads. Because so many of these clients trade cancel each other out (if one client buys 20 ftse and another shorts they dont need to hedge), and most clients lose, they dont need to hedge anything. the money they make in spreads could sometimes even dwarf their overall net positions. And why hedge your book when 4 trading days out of 5 your "clients" lose money? makes no sense.
In regards to Worldspreads offering 0pt spreads, some say there are two points to be made here.
The reason they offer 0pt spread is because they dont hedge their positions and the vast majority of clients lose. If most of your clients over time lose, you obviously dont want to hedge this as if you dont hedge it you will make more money. Only consistently profitable or very large accounts need be hedged. Most of these large accounts would be far more cost effecticve trading futures (outright, not through SB) but they dont do so because of the tax benefits of SB.
for the trader, does it matter if your trade is hedged or not? of course it does! and this is why you will always suffer poor execution / stalling platforms / excess slippage / spikes with sb companies. if you lose, they win. they have a big incentive to try and hit your stop. most of them dont need to pay too much attention to this as most traders can blow up their account all by themselves.
if you are profitable in the long run you have a choice.
a) put up with poor execution and bad pricing with sb companies because if you can still make money your profits are tax free
or b) swith to true market access where your trade goes into the market through your futures broker and pay tax on your profits.
advertised spread does not equal actual spread.
i could open an sb firm tomorrow and offer 0 spreads on everything and even if i fill your entry at 0 p/l, i can just take a pip or two (or more) off you on the way out.
the above is all theoretical and is not my view 😉
i love ig and worldspreads and all sb companies. the above is purely rumour and guesswork 😉
ive found a new solution for my own trading now. works for me. i only gave a) and b) above. there is infact now (since 2011!) a c) but it doesnt apply to everyone. just those with larger accounts unfortunately for the little guy. then again we all have to start on a small account. consistent profits then turn it into a big account and theres no point having an sb account if youre not making any money as zero % tax on a zero profit is still Z.E.R.O.
good luck (though luck has nothing to do with it)
t30
lancenicolase
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I read earlier in this blog that someone says IG hedge most of their positions. However I think its fairly well known in the market that I had heavy losses in 2008 when a large number of clients were shorting banks and as IG were hedging none/little of it they took major losses.
some say IG make money becuase they have thousands of active (although very small) clients and open 2000-5000 clients a month and they hedge very little. Having such a huge client base means that because you are picking up lots of spreads. Because so many of these clients trade cancel each other out (if one client buys 20 ftse and another shorts they dont need to hedge), and most clients lose, they dont need to hedge anything. the money they make in spreads could sometimes even dwarf their overall net positions. And why hedge your book when 4 trading days out of 5 your "clients" lose money? makes no sense.
In regards to Worldspreads offering 0pt spreads, some say there are two points to be made here.
The reason they offer 0pt spread is because they dont hedge their positions and the vast majority of clients lose. If most of your clients over time lose, you obviously dont want to hedge this as if you dont hedge it you will make more money. Only consistently profitable or very large accounts need be hedged. Most of these large accounts would be far more cost effecticve trading futures (outright, not through SB) but they dont do so because of the tax benefits of SB.
for the trader, does it matter if your trade is hedged or not? of course it does! and this is why you will always suffer poor execution / stalling platforms / excess slippage / spikes with sb companies. if you lose, they win. they have a big incentive to try and hit your stop. most of them dont need to pay too much attention to this as most traders can blow up their account all by themselves.
if you are profitable in the long run you have a choice.
a) put up with poor execution and bad pricing with sb companies because if you can still make money your profits are tax free
or b) swith to true market access where your trade goes into the market through your futures broker and pay tax on your profits.
advertised spread does not equal actual spread.
i could open an sb firm tomorrow and offer 0 spreads on everything and even if i fill your entry at 0 p/l, i can just take a pip or two (or more) off you on the way out.
the above is all theoretical and is not my view 😉
i love ig and worldspreads and all sb companies. the above is purely rumour and guesswork 😉
ive found a new solution for my own trading now. works for me. i only gave a) and b) above. there is infact now (since 2011!) a c) but it doesnt apply to everyone. just those with larger accounts unfortunately for the little guy. then again we all have to start on a small account. consistent profits then turn it into a big account and theres no point having an sb account if youre not making any money as zero % tax on a zero profit is still Z.E.R.O.
good luck (though luck has nothing to do with it)
t30
As I recall the problems IG had in 2008 were not related to hedging but the credit accounts. IG did offer credit accounts to wealthy customers and as some of them went bankrupt IG struggled to collect the money. According to IG they managed to collect most of the money.
As for the hedging, IG hedge most of their positions and if somebody bet big on the banks they were going on the market and hedge. The problem with hedging is that the whole process will move the market or even before the start hedging the market moved against them.
I agree with you on WorldSpreads as the whole idea of zero spreads is to attract more customers and make profits as punters lose, even though their official line is that they will make money on other (not zero spread) markets.
Having traded with most of the spread betting companies I have never seen any of them doing any price manipulations.... it's just not worth it.
Although, I do remember one funny accident I had with Capital Spreads: during oil inventory announcement I bought oil at $98 something (it was a few years ago) and in a matter of minutes their platform was showing $89, looked scary as I was down $9 in a matter of seconds but I called them and they confirmed there was a problem and it was quickly fixed (with in 2 minutes) and I closed my position in profits. The funny thing was that my stop loss wasn't hit and graph didn't show the glitch.
Spreadco: slow system and my god the slippage is awful.
They don't allow OCO orders when a trade is already open so you have to set separate take profit and
stop loss and then cancel one if the other is hit.
Only way you get your price is to use limit orders.
They don't allow OCO orders when a trade is already open so you have to set separate take profit and
stop loss and then cancel one if the other is hit.
Only way you get your price is to use limit orders.
montmorencyt2w
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if you are profitable in the long run you have a choice.
a) put up with poor execution and bad pricing with sb companies because if you can still make money your profits are tax free
or b) swith to true market access where your trade goes into the market through your futures broker and pay tax on your profits.
So it seems we either have a choice of fighting the greedy SB companies or fighting the greedy (and increasingly hard-to-deal-with) Revenue.
For the time being, I think I'll take my chances with the SB companies. At least I can choose from among them.
montmorencyt2w
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if you are profitable in the long run you have a choice.
a) put up with poor execution and bad pricing with sb companies because if you can still make money your profits are tax free
or b) swith to true market access where your trade goes into the market through your futures broker and pay tax on your profits.
So it seems we either have a choice of fighting the greedy SB companies or fighting the greedy (and increasingly hard-to-deal-with) Revenue.
For the time being, I think I'll take my chances with the SB companies. At least I can choose from among them.
When I started spreadbetting the spread was 4 points on the ftse and 8 overnight with some companies having 12 points overnight.
I have an account with future spreads and they have changed their name now because they are owned by capital spreads now but the bet is placed straight on the futures market and you can see the trades being filled in setts and the spread on the ftse is 0.25 of a point.
I didn't use the account because everything moved so fast it was hard to keep up with the numbers and I couldn't feel comfortable with the platform, it wasn the platform what was the problem but how fast my brain could take in all the information and my brain doesn't work very fast anymore after years of boozing.
I have an account with nearly every spreadbetting company except spread co who turned me down becuase their 3rd party couldn't identify me and they didn't like the documents I sent in to prove who I am. I only wanted to see how their platform worked and if they are any good.
I don't like this £200 cash back because it hardly costs them anything and I much prefer the free money some offer, I had £250 off both twowayspreads and odl markets and capital spreads offerd me £200 to come back to them. I might phone up capital spreads to see if the £200 is still on the table, could be another £200 for doing nothing.
Never turn your nose up to free money.
I have an account with future spreads and they have changed their name now because they are owned by capital spreads now but the bet is placed straight on the futures market and you can see the trades being filled in setts and the spread on the ftse is 0.25 of a point.
I didn't use the account because everything moved so fast it was hard to keep up with the numbers and I couldn't feel comfortable with the platform, it wasn the platform what was the problem but how fast my brain could take in all the information and my brain doesn't work very fast anymore after years of boozing.
I have an account with nearly every spreadbetting company except spread co who turned me down becuase their 3rd party couldn't identify me and they didn't like the documents I sent in to prove who I am. I only wanted to see how their platform worked and if they are any good.
I don't like this £200 cash back because it hardly costs them anything and I much prefer the free money some offer, I had £250 off both twowayspreads and odl markets and capital spreads offerd me £200 to come back to them. I might phone up capital spreads to see if the £200 is still on the table, could be another £200 for doing nothing.
Never turn your nose up to free money.
A few points here potshot, and as you mention future spreads have changed their name now and are prospreads but the spread on ftse is more than you state due to the fact that each trade is obviously a round trip as get in and out, prospreads ex future spreads charge 0.25 to get in, 0.25 to get out and the market spread which is 0.5 therefore round trip of 1 pip and that I believe is after 200 trades, round trip of 1.5pips <200, I think but no absolute on this and cant be arsed looking it up. That being said I think they are the best platform around for the scalper or trader as very fast execution, no requotes, spreads good, DMA, and as all trades are laid on the market the company has no reason at all for manipulation or any tricks.
The platform is a bit tricky but easy when u get used to it, and the beauty being that you can have the quick trade ladder open on say 5 instruments, like ftse/dow/eurusd/gdpusd/wti and jump in at any moment, trailing stops, stops anywhere, can pull and place orders in split second timing so as mentioned ideal for the scalper.
By the way there is rarely anything in the world as free money, were you a successful trader with capital spreads and they are offering you money to come back to them? In reality a few hundred quid is bugger all to get on the right software and platform is it?
ps not affiliated with prospreads at all, but they are I believe the only company that offers DMA which is a pretty awesome tool for spread betting. and yes their platform is a bit tricky but so is trading and if u got the nonce for trading then you should have the nonce to learn the platform???
The platform is a bit tricky but easy when u get used to it, and the beauty being that you can have the quick trade ladder open on say 5 instruments, like ftse/dow/eurusd/gdpusd/wti and jump in at any moment, trailing stops, stops anywhere, can pull and place orders in split second timing so as mentioned ideal for the scalper.
By the way there is rarely anything in the world as free money, were you a successful trader with capital spreads and they are offering you money to come back to them? In reality a few hundred quid is bugger all to get on the right software and platform is it?
ps not affiliated with prospreads at all, but they are I believe the only company that offers DMA which is a pretty awesome tool for spread betting. and yes their platform is a bit tricky but so is trading and if u got the nonce for trading then you should have the nonce to learn the platform???
***FUTURES PRICES but SPREAD BETTING ACCOUNT***
I work for a UK based FSA regulated prop firm who offer actual futures prices (DMA if you want to call it that) for all futures exchange listed products.
So that makes us a futures broker right?
Well actually no.
Even though the price you get (always, you can see it hit the market as we hedge all trades) is the futures price, we will then charge you a small comm (more than some futures brokers, but less than the SB firms total spread ie. underlying + SB add on) and the account you hold with us will be a financial spread betting account.
So you get the best of both worlds. Futures pricing, Spread betting account (tax benefits).
To my knowledge we are the only firm in the UK to offer this.
PM me if interested. We offer execution to outside traders by invitation only (Large accounts/high volume traders only)
Thanks,
t30
I work for a UK based FSA regulated prop firm who offer actual futures prices (DMA if you want to call it that) for all futures exchange listed products.
So that makes us a futures broker right?
Well actually no.
Even though the price you get (always, you can see it hit the market as we hedge all trades) is the futures price, we will then charge you a small comm (more than some futures brokers, but less than the SB firms total spread ie. underlying + SB add on) and the account you hold with us will be a financial spread betting account.
So you get the best of both worlds. Futures pricing, Spread betting account (tax benefits).
To my knowledge we are the only firm in the UK to offer this.
PM me if interested. We offer execution to outside traders by invitation only (Large accounts/high volume traders only)
Thanks,
t30
It's not DMA.
Have you used the Prospreads live platform ?
But I bet you can't beat Cityndex 1 point spread (1 tick) on the Dow future(which actually is YM). 🙂***FUTURES PRICES but SPREAD BETTING ACCOUNT***
I work for a UK based FSA regulated prop firm who offer actual futures prices (DMA if you want to call it that) for all futures exchange listed products.
So that makes us a futures broker right?
Well actually no.
Even though the price you get (always, you can see it hit the market as we hedge all trades) is the futures price, we will then charge you a small comm (more than some futures brokers, but less than the SB firms total spread ie. underlying + SB add on) and the account you hold with us will be a financial spread betting account.
So you get the best of both worlds. Futures pricing, Spread betting account (tax benefits).
To my knowledge we are the only firm in the UK to offer this.
PM me if interested. We offer execution to outside traders by invitation only (Large accounts/high volume traders only)
Thanks,
t30
A few points here potshot, and as you mention future spreads have changed their name now and are prospreads but the spread on ftse is more than you state due to the fact that each trade is obviously a round trip as get in and out, prospreads ex future spreads charge 0.25 to get in, 0.25 to get out and the market spread which is 0.5 therefore round trip of 1 pip and that I believe is after 200 trades, round trip of 1.5pips <200, I think but no absolute on this and cant be arsed looking it up. That being said I think they are the best platform around for the scalper or trader as very fast execution, no requotes, spreads good, DMA, and as all trades are laid on the market the company has no reason at all for manipulation or any tricks.
The platform is a bit tricky but easy when u get used to it, and the beauty being that you can have the quick trade ladder open on say 5 instruments, like ftse/dow/eurusd/gdpusd/wti and jump in at any moment, trailing stops, stops anywhere, can pull and place orders in split second timing so as mentioned ideal for the scalper.
By the way there is rarely anything in the world as free money, were you a successful trader with capital spreads and they are offering you money to come back to them? In reality a few hundred quid is bugger all to get on the right software and platform is it?
ps not affiliated with prospreads at all, but they are I believe the only company that offers DMA which is a pretty awesome tool for spread betting. and yes their platform is a bit tricky but so is trading and if u got the nonce for trading then you should have the nonce to learn the platform???
Now I remember with your prompt 0.25 in and 0.25 out. I am going to try out prospreads demo account again to try and get used to it but last time the damn thing wouldn't work properly and on trying to close positions in the demo account nothing happened and I lost thousands on the demo account what led me to not fund the account.
I can't believe spreadco turned me down, it must of been my passport photo what scared them witless. I have lived where I am for over 10 years so how their 3rd party couldn't check me out is a mystery.
But I bet you can't beat Cityndex 1 point spread (1 tick) on the Dow future(which actually is YM). 🙂
Advertised Spread does not equal Actual Spread.
But yes, in fact it is beatable for the right volumes.
I'm assuming you don't do much volume though?
Best of Luck with City!
Very much equal I would say following the real YM future.Advertised Spread does not equal Actual Spread.
But yes, in fact it is beatable for the right volumes.
I'm assuming you don't do much volume though?
Best of Luck with City!
Very much equal I would say following the real YM future.
You should be fine then as long as you continue to lose consistently.
Sb firms make money 2 ways:
1. Wide spreads/slippage (winning traders)
2. Dont hedge the position (losing traders)
Good luck!
Not many complaints on this forum about bad behavior on City's part. Should have shown up by now after nearly a year of 1 point spread on the Dow.You should be fine then as long as you continue to lose consistently.
Sb firms make money 2 ways:
1. Wide spreads/slippage (winning traders)
2. Dont hedge the position (losing traders)
Good luck!
No I haven't been in their office being located in Sweden. After being in real trouble a year or so I guess City is very careful not taking an excessive overall internal risk on outstanding positions. But I have to admit, their price on the Dow is unbeatable as we are talking of 1 point spread (1 tick). And the point to be taken is they execute well.Have you been to their new offices? Very, very flash.
Paid for by lots of this:
2. Dont hedge the position (losing traders)
"Roll up, Roll up!"
No I haven't been in their office being located in Sweden. After being in real trouble a year or so I guess City is very careful not taking an excessive overall internal risk on outstanding positions. But I have to admit, their price on the Dow is unbeatable as we are talking of 1 point spread (1 tick). And the point to be taken is they execute well.
take a look:
http://www.proav.com/casestudy/city-index/
probably nothing compared to sweden tho. i hear your (empty) prisons look like that 😉
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