The Market Maker 'Myth'

[Doomberg]

I've noticed that some of the people on here that use an ECN broker for example, seem to have this 'holier than thou' attitude towards anyone else who uses any type of SB company or any company who is a market maker. From what i've seen, it doesn't make that much difference in terms of where the price is, i often talk with people who trade DMA and when they ask what price i have at that instant its always the same, its never been out more than a point with IG or CS. So if the price is the same, and there is instant execution (which many SB companies now have) and similar spreads (often even smaller) then whats the problem?

Whats your views on SB & MM companies in general, and why?

 

[Depth Trade]

Do we have access to volume numbers? I would imagine the higher volume would dictate price and at some point the different markets intertwine.

 

[kalott]

" 99.49% of all orders were executed within a tenth of a second, with no human intervention and no re-quotes**
• At its April peak, the IG Index dealing platform handled 302 orders every second
• 99.92% of internet deals were automatically processed."

https://market.android.com/details?id=com.iggroup.android.spreadbet

 

[Doomberg]

" 99.49% of all orders were executed within a tenth of a second, with no human intervention and no re-quotes**
• At its April peak, the IG Index dealing platform handled 302 orders every second
• 99.92% of internet deals were automatically processed."

https://market.android.com/details?id=com.iggroup.android.spreadbet

This performance is probably faster to most 'proper' brokers tbh

Maybe i am missing some points, but what could other brokers offer thats superior?

 

[rc450]

once upon a time i had an account with an sb bucketshop and i wanted to short eur/usd about 5mins after some unexpected news, i tried numerous times to get in with a market order but couldn't so i stuck it in stealth mode and placed a sell order which was filled no problemo.
a few mins later i was sitting there with a 135pip profit and decided to move my stop to b/e, within seconds my stop got nailed and then the price moved back within a blink of the eye. i checked a few other brokers and spot prices and none showed the wild move i'd just witnessed.

moral of the story.. watch em like a hawk, keep close tabs on your acc. balance, don't trade the news and run like **** if they stiff ya and blah blah blah.. same as you would any broker, bank, shopkeeper etc.

 

[BeginnerJoe]

For today, IG prices didn't match my Oanda charts.

 

[bbmac]

For today, IG prices didn't match my Oanda charts.

How big was the discrepancy and which price was leading IG or the Oanda charts ?

 

[bedsit]

" 99.49% of all orders were executed within a tenth of a second, with no human intervention and no re-quotes**
• At its April peak, the IG Index dealing platform handled 302 orders every second
• 99.92% of internet deals were automatically processed."

https://market.android.com/details?id=com.iggroup.android.spreadbet

Statistics can be misleading and sometimes deliberately distorting. There are three kinds of commonly recognised untruths:

Lies, damn lies and statistics.
- Mark Twain

 

[Doomberg]

I've never really had an issue with any tbh, and on some bank stocks gone as high as +£400 a point

Also whats peoples views on Smart Market Live... they offer MT4

http://www.smartlivemarkets.co.uk/

 

[MajorDutch]

allegedly some ex igindex employees wrote this:

http://www.igindexarecheats.co.uk/ig_index_review/modx-1.0.2/index.php?id=16

 

[bedsit]

I've never really had an issue with any tbh, and on some bank stocks gone as high as +£400 a point

Also whats peoples views on Smart Market Live... they offer MT4

http://www.smartlivemarkets.co.uk/

It's ok if you don't mind being rejected entry 7 times within 4 minutes.

 

[Doomberg]

It's ok if you don't mind being rejected entry 7 times within 4 minutes.

Is it that bad? Damn, that would be pretty annoying and cause people to leave?

 

[Pazienza]

It just depends on what you need from a broker.

However, I've run IG Index charts for their "futures" next to ones from a proper futures broker and the difference is tiny, certainly nothing to concern most people. It would be impossible to scalp, but you shouldn't be doing this with an outfit like that anyway.

You've got benefits such as simplicity, incredible granularity, advantageous tax treatment, huge range of markets. Against that, you're not trading the actual market, plus you pay a fairly sizeable spread, albeit that these are much improved, etc etc.

In my opinion IG are perfectly fine for most people, but in the end be guided by your own experience. If you have problems or find a more suitable broker / SB company, just move.

I'm only talking about futures by the way, I really can't comment on their forex offering.

If you're worried about IG but want to continue spread betting, check out Prospreads.

 

[bedsit]

Is it that bad? Damn, that would be pretty annoying and cause people to leave?

I don't know Doom.
I guess they don't like successflul customers.

PS A very good post by sh5467. See the attachement - some info there how they may play the customers - allegedly

 

[Pazienza]

I've never really had an issue with any tbh, and on some bank stocks gone as high as +£400 a point

Also whats peoples views on Smart Market Live... they offer MT4

http://www.smartlivemarkets.co.uk/

You'll find a lot of people down on MT4, although I've never used it so I don't know.

Remember, you'll get a lot of moaning on forums like this in which people endeavour to make excuses for their own failures.

There are a few bucket shops that I think are rubbish, but they might seem very good to others. Just take everything that you read with a pinch of salt.

 

[alan5616]

I've noticed that some of the people on here that use an ECN broker for example, seem to have this 'holier than thou' attitude towards anyone else who uses any type of SB company or any company who is a market maker. From what i've seen, it doesn't make that much difference in terms of where the price is, i often talk with people who trade DMA and when they ask what price i have at that instant its always the same, its never been out more than a point with IG or CS. So if the price is the same, and there is instant execution (which many SB companies now have) and similar spreads (often even smaller) then whats the problem?

Whats your views on SB & MM companies in general, and why?

Read this and you will see just why so many people are right to be wary of MMs & SBs

http://alansforexblog.com/2008/04/20/proof-that-forex-brokers-cheat-you/

 

[bedsit]

You'll find a lot of people down on MT4, although I've never used it so I don't know.

Remember, you'll get a lot of moaning on forums like this in which people endeavour to make excuses for their own failures.

There are a few bucket shops that I think are rubbish, but they might seem very good to others. Just take everything that you read with a pinch of salt.

Heard this one about unsuccessful traders trying to blame somebody else lots of times - I guess SB companies like that sort of explanation.

Anyway, it's good to have choice. So if a bucket shop plays you - take Pazienza's advice and blame yourself. Myself I prefer to share the experience.

 

[alan5616]

Heard this one about unsuccessful traders trying to blame somebody else lots of times - I guess SB companies like that sort of explanation.

Anyway, it's good to have choice. So if a bucket shop plays you - take Pazienza's advice and blame yourself. Myself I prefer to share the experience.

It's not just bucket shops you need to be wary of. Even the world's largest retail forex broker is not above suspicion.

http://eon.businesswire.com/news/eon/20110303007107/en

Paras 3 & 4 in "About the Lawsuit" are particularly significant.

 

[Chartsy]

It comes down to this:

Spreadbetting; good for swing, crap for scalp.

 

[Doomberg]

If you're worried about IG but want to continue spread betting, check out Prospreads.

Hey i've looked at them, but Dax is minimum of €25 per point which is too much for me, and its my preferred day market